44209410 Small Scale Industries in India Itee
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Transcript of 44209410 Small Scale Industries in India Itee
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using power with
less than
50 employees
not using power
with the
employee strength
being
more than 50 but
less than 100
SSIs
1950
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YEAR INVESTMENT LIMITS1960 Upto Rs 5 lacs in Plant & Machinery
1966 Upto Rs 7.5 lacs in Plant & Machinery
1975 Upto Rs 10 lacs in Plant & Machinery
1980 Upto Rs 20 lacs in Plant & Machinery
1985 Upto Rs 35 lacs in Plant & Machinery
1991
Upto Rs 60 lacs in Plant & Machinery
1997 Upto Rs 100 lacs in Plant & Machinery
1999
Upto Rs 100 lacs in Plant & Machinery
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CLASSIFICATION OF SSIs
TRADITIONAL
MODERN
KHADI
HANDLOOM
VILLAGE INDUSTRIESHANDICRAFTS
SERICULTURE
TV sets
ELECTRONICS
CONTROL SYSTEMSANCILLARY INDUSTRIES
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PRODUCTION
EMPLOYMENT
EXPORT
OPPORTUNITIES
WELFARE PROMOTING.
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Contributes almost 40% of the gross industrialvalue.
The small-scale sector has grown rapidly overthe years. The growth rates during the variousplan periods have been very impressive. Thenumber of small-scale units has increased froman estimated 0.87 million units in the year 1980-81 to over 3 million in the year 2000.
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Creates largest employment opportunities forthe Indian populace, next to Agriculture.
It has been estimated that Rs. 1 lakh ofinvestment in fixed assets in the small-scalesector generates employment for four persons.
Food products industry has ranked first ingenerating employment, providingemployment to 0.48 million persons (13.1%). Thenext two industry groups were Non-metallicmineral products with employment of 0.45million persons (12.2%) and Metal products with0.37 million persons (10.2%).
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0%
10%
20%
30%
40%
50%
60%
70%
80%
TRADITIONAL MODERN
EMPLOYMENT
OUTPUT
56%
13%
33%
74%
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33% of the Indian Exports is contributed by SSI Sector.
non-traditional products account for more than 95% of the SSIexports.
mostly fuelled by the performance of garments, leather andgems and jewellery units from this sector.
The product groups where the SSI sector dominates in exports,are sports goods, readymade garments, woollen garmentsand knitwear, plastic products, processed food and leatherproducts.
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FACTORSLess Capital IntensiveExtensive Promotion & Support by
GovernmentReservation for Exclusive Manufacture by
small scale sectorFunding - Finance & Subsidies
Machinery Procurement
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Raw Material Procurement
Manpower Training
Technical & Managerial skillsTooling & Testing support
Reservation for Exclusive Purchase by
Government
Export PromotionGrowth in demand in the domestic market size
due to overall economic growth
Increasing Export Potential for Indian products
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Fashion Technology
Information Technology
Design Technology
Health Technology
Bio Technology
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Increases income levels.
Equitable distribution of income.
Reduction of regional disparities.
Preservation of inherited skills.
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Year SSI Sector Growth Rate Total Industrial SectorGrowth Rate
2000-01 8.04 5.00
2001-02 6.06 2.70
2002-03 7.68 5.70
2003-04 8.06 6.09
2004-05 9.96 8.04
Source:SIDO Half Century by DCSSI, Govt. of India 2004 and Annual Report of the Ministry of
SSI 2005-06
CO R GRO R S
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0
1
2
3
4
5
6
7
8
9
10
2000-
01
2001-
02
2002-
03
2003-
04
2004-
05
SSI
SSI
INDUSTRY
COMPARATIVE GROWTH RATES
Source: SIDO Half Century by DCSSI, Govt. of India 2004 and Annual Report ofthe Ministry of SSI 2005-06
8.04
56.06
2.7
7.68
5.7
8.06
6.09
9.96
8.04
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SSI units : 12.3 million
Employment generated in SSIs: 29.5 million
Production : At current PricesRs. 4762.01 billion
Exports : Rs. 1215 billion
SSI account:
Industrial Production : 40%Exports : 35% (50% of Direct &
Indirect)GDP Share : 7%
Ownership pattern :
Proprietorships : 78% Partnerships : 16%
Corporate & Others : 6% Industrial Units : 96%
Service Enterprises : 3%
Ancillary Units : 1%
Produces Diverse range ofproducts (more than 8000-consumer items, capitalgoods and intermediates)
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OUTPUT vs EMPLOYMENT
ADVERSE IMPACT ON CAPITAL FORMATION.
INEFFICIENT PRODUCTION
LARGE SICKNESS.
SEVERAL DIFFICULTIES.
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AIMA Impact AssessmentIMPEDIMENTS TO GROWTH
Problems Faced by SSIs as Barriers to Growth
Market Related 70%
Finance Related 25%
Government Policy Related 12.78%
Power Related/Infrastructure 14.0%
Technology 14.60%
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CREDIT RATING SCHEME
MARKETING ASSISTANCE SCHEME
TECHNICAL ASSISTANCE MEASURES FOR EXPORT PROMOTION
INFRASTRUCTURE DEVELOPMENT
ENTREPRENEURSHIP ANK SKILL DEVELOPMENT
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INDIAN ECONOMY by RUDDAR DATT AND K.P.M.SUNDHARAM
INDIAN ECONOMY by A.N. AGRAWAL
ESSENTIALS OF BUSINESS ENVIRONMENT BY K.ASWATHAPPA
Websites:
http://indiabudget.nic.in
http://dcmsme.gov.in/ssiindia
http://dcmsme.gov.in/ssiindiahttp://dcmsme.gov.in/ssiindia -
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