SMALL SCALE INDUSTRY

Prepared by
1. 2. 3. 4.

Bakhai Dhaval (02) Bhatt Malvik (04) Dabhi Yuvraj (10) Joshi Mitesh (23)

There are various kinds of industries like 1) Small scale 2) Medium scale 3) Large scale .INTRODUCTION Industry is defined as a group of firms producing identical or similar goods. Industries may be classified with respect to 3 main aspects given below. 1) Nature 2) Ownership 3) Size The classification on the basis of size is identified in terms of capital investment.

The definition for small-scale industry has changed over time by its investment limits. Latest limits According to Micro. Industry Small scale Medium scale Large scale Investment Limit 25 lakhs ² 5 crore 5 crore ² 10 crore More than 10 crore . Small and Medium Enterprises Development Act 2006 are as given below.

* Small scale industries today account for 40 percent of the industrial production.263 470. hosiery and garment.8 million industrial units.966 Employment ( In lakhs) 271.90 . Year 2003-04 2004-05 2005-06 No of SSI units (in lakhs) 113. 12.5 lakhs and in industrial policy 1990 the limit was raised upto 60 lakhs.59 123.95 118.40 Production (In crore) 357. They are involved in food processing.733 418.OVERVIEW OF SMALL SCALE INDUSTRY * Small sector have its importance since independence and as the time passes investment limit in small sector has been increased.91 294. and leather and leather products. 35 percent of the total exports.36 282. and employ more than 30 million people in approx. For example in 1966 the limit is less than 7. So we can say that the small-scale industrial sector in India is acting as Engine of Growth in the new millennium.

. The traditional units are highly labor consuming with their age-old machineries and conventional techniques of production resulting in poor productivity rate whereas the modern small-scale units are much more productive with less manpower and more sophisticated equipments.CLASSIFICATION Small scale industries Traditional Modern The traditional small-scale industries clearly differ from their modern counterparts in many respects.

electronics control system.. leather products.( CONT«. village industries. Bell metal are some of the traditional small-scale industries in India. fishing hook etc to more sophisticated items like television sets. various engineering products especially as ancillaries to large industrial undertakings. handicrafts. garments. . coir. sericulture.) Khadi and handloom. The modern small industries offer a wide range of products starting from simple items like hosiery products.

  To Mobilize capital investment and entrepreneurship skills.OBJECTIVES   To develop major source of employment.   To Encourage decentralized industrial expansion . .   To Ensure equitable distribution of income.   To ensure regular supply of goods & services through use of local skills & resources   To preserve craftsmanship & art heritage of the country.

F. Schumacher. ) Innovative and productive Individual tastes.IMPORTANCE Small is beautiful ( Emphasis should be on person and not on product ² E. fashions and personalized services Symbols of National Identity Happier In work Always winners of the game Dispersal over wide areas .

PROBLEMS Shortage of raw material Inadequacy of finance Problems of marketing Technological problems Managerial problems .

PROMOTIONAL MEASURE Institutional structure ‡ The central silk board ‡ The all India handloom board ‡ The all India Handicrafts Board ‡ National small industries corporation Assistance Programme ‡ Reservation ‡ Financial & Marketing assistance ‡ RBI·s credit guarantee scheme ‡ Transport subsidy ‡ Pegging of capacity .

Objectives 1. 1990. National Small Industries Corporation Ltd. Development 4. Financing 2. Small Industrial Bank Of India (SIDBI) 2. Co-ordination . Khadi and Village Industries Commission (KVIC) SIDBI Established at April 2. (NSIC) 3. 1.INSTITUTIONS FOR SMALL INDUSTRY There are several institutions specifically to assist the development of the small scale industries. State Small Industries Development Corporation (SSIDC) 4. Promotion 3.

SUMMARY Development of small scale industries has been given a lot of emphasis in India because number of important objectives discussed earlier. |IT IS WORK THAT MATTERS.} . future managers and government should think upon that part and take appropriate steps is favorable. Though have an important role in the Indian Economy small scale industries have facing some problems. THOUGH IT IS SMALL OR BIG IF YOU HAVE PERFORMED IT WITH FULL COMMITMENT IT SURELY GIVES YOU THE FRUITFUL RESULTS IN FUTURE.

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