Govrnment Policy Towards

Small Scale Business

Small Scale Business or Small Scale Industries
(SSI)
According to Micro Small and Medium Enterprise Development
(MSMED) Act , 2006 : Small scale industries are defined as the
industries where -
• The investment in plant & machinery is more than Rs 25 lakhs but
does no exceed Rs 5 crore in case of manufacturing sector
• The investment in equipments is more than Rs 10 lakhs but does not
exceed Rs 2 crore in case of service sector .
Industrial policy

• Industrial policy means the rules & regultions laid down by the
government for regulating , developing and controlling the industrial
undertakings in the country .
• It was an effort to expand the industrial base and uplift the indian
economy to its deserved heights
• The main aim for creating industrial policies were to free indian
economy from licensing.
Industrial Policy 1948 ( IPR 1948)
• The first industrial policy after independence was announced on 6th
April 1948 .
• The main goal to lay down the foundation of mixed economy whereby
the private and public sector was accepted as important components
in the development of industrial economy of India.
• The policy divided the industries into four broad categories:
(i) Industries with Exclusive State Monopoly: It included industries
engaged in the activity of atomic energy, railways and arms and
ammunition.

(ii) Industries with Government Control: It included the industries of

national importance and so needs to be registered. 18 such industries
were put under this category eg. fertilizers, heavy chemical, heavy
machinery etc.

(iii) Industries in the Mixed Sector: It included the industries where

private and public sector were allowed to operate. Government was
allowed to review the situation to acquire any existing private
undertaking.

(iv) Industries under Private Sector: Industries not covered by above

categories fell in this category.
Industries Development Regulation Act
(IDRA) , 1951

• IDRA , 1951 is the key legislation in the industrial regulatory

framework.
• It gave powers to the government to regulate industries in many
ways.
• The main instruments of this act were to regulate the output and
control the prices .
Industrial Policy Resolution , 1956 (IPR 1956 )
• This resolution was adopted by Government of India in April 1956
• The main objective of the policy was to establish a socialistic pattern
of the society