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The role of small scale industries in india

The role of small scale industries in india

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Published by: Appan Kandala Vasudevachary on Mar 29, 2014
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03/29/2014

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“A small scale or cottage industry may be defined as an enterprise or series
of operations carried on by a workman skilled in the craft on his responsibility, the finished product of which, he markets himself 
 -Prof. K.T. Sash
 
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 Indian economy is an under developed economy. Its vast resources are either unutilized or under utilized. A major section of man power is lying idle. The per capita income is low. Capital is shy and scarce and investment is lean. Production is traditional and the technique is outdated. The output is insufficient and the basic needs of the people remain unfulfilled.
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Industrialization is the only answer to this present state of disrupted economy. The problem is of the approach which should be direct, utilitarian and pragmatic. Such industries do not require huge capital and hence suitable for a country like India.
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The small scale industries
 
have a talent of „dispersal. They can
be accessible to the remote rural areas of the country and do not lead to regional imbalances and concentration of industries at one place, which is responsible for many economic resources such as entrepreneurship and capital.
 
*
SSI means small scale industries, which is an industrial undertaking with the investment not exceeding Rs.100 lakhs in plant and machinery. In cases of auxiliary industries the investment ceiling on plant and machinery is also Rs.100 lakhs.

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