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Potentials of Village and Small Enterprise Sector in the North Eastern Region of India

Potentials of Village and Small Enterprise Sector in the North Eastern Region of India

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Published by Sudhanshu K Mishra
Development of village, micro and small enterprises in India has a special significance with regard to bridging up the disparities between urban and rural sectors of the economy on the one hand and the more industrialized and the less industrialized states on the other. It would also channelize to the mainstream the forces of development in the rural and remote areas presently strewn with the immense possibilities of manufacturing and service activities. Mahatma Gandhi had envisioned this long back, but Indian planners exhibited their preference to development of large-scale industries first. However, after having taken a step further to globalization and liberalization, India has recognized the relevance of small enterprises. Enactment of the Micro, Small and Medium Enterprises Development Act, 2006 is an instance of the action taken in the wake of this recognition.

The North Eastern Region (NER) of India comprises eight states: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura, all well known for their handicrafts. The Schedule Tribes form the majority of population there. Most of these states are hilly and have remained agriculturally as well as industrially backward. Promotion of small enterprises is most suitable for their timely development.

In this paper we present a statistically detailed profile of small enterprises in the NER. We explore the possibilities of development of the small enterprises sector and discuss the constraints on the same.
Development of village, micro and small enterprises in India has a special significance with regard to bridging up the disparities between urban and rural sectors of the economy on the one hand and the more industrialized and the less industrialized states on the other. It would also channelize to the mainstream the forces of development in the rural and remote areas presently strewn with the immense possibilities of manufacturing and service activities. Mahatma Gandhi had envisioned this long back, but Indian planners exhibited their preference to development of large-scale industries first. However, after having taken a step further to globalization and liberalization, India has recognized the relevance of small enterprises. Enactment of the Micro, Small and Medium Enterprises Development Act, 2006 is an instance of the action taken in the wake of this recognition.

The North Eastern Region (NER) of India comprises eight states: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura, all well known for their handicrafts. The Schedule Tribes form the majority of population there. Most of these states are hilly and have remained agriculturally as well as industrially backward. Promotion of small enterprises is most suitable for their timely development.

In this paper we present a statistically detailed profile of small enterprises in the NER. We explore the possibilities of development of the small enterprises sector and discuss the constraints on the same.

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Published by: Sudhanshu K Mishra on Feb 19, 2008
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Potentials of Village and Small Enterprise Sectorin the North Eastern Region of India
SK MishraDept. of Economics North-Eastern Hill UniversityShillong, Meghalaya (India)
Abstract
The Village and Small Enterprise sector (VSE) has not only a tremendous potentiality of development in the North-Eastern Region (NER) of India, it also suits most to thisregion’s natural endowment, human resources and sociological conditions. This sector also provides a great scope to women empowerment and thus reduction in gender-basedinequalities in the society. This paper examines the prospects and constraints of development of the VSE sector in the NER with a special reference to social,technological and infrastructural aspects.
 
Potentials of Village and Small Enterprise Sectorin the North Eastern Region of India
I. The Village and Small Enterprises in the Indian Economy
: Village and smallenterprises in India have an age-old history. Artisans in different trades were needed to provide implements to farming operations; furniture and fixture needed to build houses;clothes to wear; ornaments, jewellery and footwear to put on; and a plethora of other articles. They also supplied those articles to the town-dwellers and the rich. Side by sidethere were persons who provided various services to the people in rural as well as urbanareas. When Mahatma Gandhi pleaded for a thrust to be given to these trades and spokeof village-based tiny productive activities, he had, in fact, many things in mind. However,the planned development of India was inclined to large and heavy industries. Yet,although with a concern of lesser order, village and small industries flourished andcomplemented the industrial economy of India. A synoptic view of growth of small-scaleenterprises may be obtained through Table-1 and Fig.-1. Its growth accelerated in the1960’s and continued unabated since then to cross 86 thousand units (firms) in 1998.
Fig.-1: Trends in Growth of Small-Scale Industries in India: 1901-2001
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TABLE-1 : YEAR-WISE VALUE OF PLANT & MACHINERY (VPM in Rs. LAKH) INSTALLED BOPERATING REGD. SSI UNITS
 YearVPMUnits YearVPMUnits YearVPMUnits YearVPM Units YearVPM Units
19013201801921146 901941448235196180451196198144864224641902262203192231015419424973561962443217711982549503099419032041871923296124194366231219633432116319834867927767190429422619241841421944570335196456071375198460141350861905487306192544322919452035451196559132897198584045490561906242250192613012919461627398196638601489198676148417461907463263192723218619471810439196755792021198779482459801908282236192855315319481031432196872272904198882287492581909713310192923116619491005317196978712937198995525496021910252 83193045831519501780683197018794100091990130800810711911 39 42193115917419511244223197197004344199197216545541912141 5219324622711952126448719721619475101992132197708461913 93 411933293297195368727019731366368661993121802602081914145 481934305240195460432619741713877081994149086660051915118 66193563236019551056571197520541118481995191714850801916 51 581936260287195612254521976266281028719961945918570019 21 57 19 61 34 19 19 55 19 2 1 19 1998 8
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