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.
Arya
Institute of Engg.&Technology
Kukas, Jaipur
Submitted by: Submitted To :
Renuka Chaudhary Dr. Manish Jain
MBA II Sem Head of MBA Department
Batch 2011-13
RTU Roll no.
PREFACE
In recent times, the Marketing Department of any company has been seen as a very productive
department contributing towards the Organizational goals and objectives. With this, the
expectations of management have grown up to a greater extent. Now, the Marketing is not just
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seen as a department for recruiting people but its mainly known for making the work enjoyable
for every employee. Marketing is also known for keeping employees motivated at all times, in
training them, helping in employees personal and professional lives and maintaining a balance
in between and alas in retaining them. Therefore, the work of Marketing department has
become tougher. Beside various other Marketing systems and processes, the advertising is
known as an important tool for any Organization and almost every Organization is spending
more on this area for promoting its product.
The Indian Economy has become very sound in last five years. The Indian Government has
permitted to enter Multinational Corporations (MNCs) in India with which the opportunities for
professionals have arisen. Advertising is an important part of any organization, it helps to
promote a product in market ,to make consumer aware of product, to increase its sales etc.
This project report is developed to discuss use of children in advertising.
Acknowledgement
I express my warmest thanks & deep sense of gratitude to the individuals for their generous
help in discussing the project and giving their valuable time in successful completion of this
project. Time to time I got constructive suggestions, guidance and encouragement.
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I would like to express my deep thanks to Dr. Arvind Agarwal, President, Arya Group of
Colleges and Prof. M. L. Gupta, Principal, Arya Institute of Engineering & Technology,
Jaipur for extending me the opportunity of presenting the project and providing all the
necessary resources for this purpose.With much pride and delight I would like to express my
sincere thanks to Dr. Manish Jain (Head of the department) for his excellent guidance and
valuable suggestions throughout the project work. I express heartfelt thanks to Mr. Anshul
Mathur (Project Guide) for her wonderful support and for giving me an opportunity to present
project report on Children Advertising.
I also want to give my humble regards to Mr. Anshul Mathur, Mr. Pramod Sharma, Ms.
Nisha Goyal, Mrs. Ankita Pareek , Ms. Padma sharma , Ms. Shavika, Ms. Shivali, Ms.
Mona and Ms. Usha for their valuable support and believe in my work. Without their sustained
interest and encouragement, this work could not have been possible to reach the state ofcompletion with satisfaction. In fact it is their real devotion to the development work, which
instilled in me, the need of a passionate commitment to pursue this project.
I am also grateful to all my friends for providing critical feedback and support whenever
required. Parents made me endure such times with their unfailing humour and warm wishes.I
regret for any inadvertent omissions.
Renuka Chaudhary
MBA IInd SEM.
RTU Roll No.
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TABLE OF CONTENTS
S.No. Page No.
1. Acknowledgement 4
2. Interim Report 5
3. Introduction of the Industry 6
3. Objective 8
4. Literature Review 10
5. Questionnaire
12
6. Methodology 17
7. Reference 21
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Small scale industries
Overview:-
Since the time of independence, the small-scale sector in India has been a
major contributor to countrys Gross Domestic Product (GDP). This traditional
sector in India is considered to have huge growth prospect with its wide range of
products. With 40 percent share in total industrial output and 35 percent share inexports, the small-scale industrial sector in India is acting as Engine of Growth in
the new millennium.
The definition for small-scale industrial undertakings has changed over
time. Initially they were classified into two categories- those using power with less
than 50 employees and those not using power with the employee strength being
more than 50 but less than 100. However the capital resources invested on plant
and machinery buildings have been the primary criteria to differentiate the small-
scale industries from the large and medium scale industries. An industrial unit can
be categorized as a small- scale unit if it fulfils the capital investment limit fixed
by the Government of India for the small-scale sector.
As per the latest definition which is effective since December 21, 1999, for
any industrial unit to be regarded as Small Scale Industrial unit the following
condition is to be satisfied: -
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Investment in fixed assets like plants and equipments either held on
ownership terms on lease or on hire purchase should not be more than Rs 10
million.
However the unit in no way can be owned or controlled or ancillary of any
other industrial unit.
The traditional small-scale industries clearly differ from their modern
counterparts in many respects. 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.
Khadi and handloom, sericulture, handicrafts, village industries, coir, Bell
metal are some of the traditional small-scale industries in India. The modern small
industries offer a wide range of products starting from simple items like hosiery
products, garments, leather products, fishing hook etc to more sophisticated items
like television sets, electronics control system, various engineering products
especially as ancillaries to large industrial undertakings.
Nowadays Indian small-scale industries (SSIs) are mostly modern small-
scale industries. Modernization has widened the list of products offered by this
industry. The items manufactured in modern Small-scale service & Business
enterprises in India now include rubber products, plastic products, chemical
products, glass and ceramics, mechanical engineering items, hardware, electrical
items, transport equipment, electronic components and equipments, automobile
parts, bicycle parts, instruments, sports goods, stationery items and clocks and
watches.
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Since independence the Government of India has nurtured this sector with
special care with the following aims: -
To develop this sector as a major source of employment
To encourage decentralized industrial expansion
To ensure equitable distribution of income.
To mobilize capital investment and entrepreneurship skills.
Small scale industries were the dream of Mahatma Gandhi, father of our
nation. He has supported the growth of small sector industries in India, because he
had the vision that it will helped the poor people of India to come up. Small scale
industries or cottage industries are not capital based, but the talent and effort based
business. So even a middle class person can own run this.
History of Small ScaIe Industry
Ministry of Agro and Land Rural Industries and Ministry of SSI have been
merged into a single namely, Ministry of Micro Small & Medium Enterprises.The
President under Notification 9th May 2007 has amended the Government of India
(Allocation of business) Rules 1961, Pursuant to this amended Ministry of Agro
and rural Industries ( Krishi Evam Gramin Udyog Mantralay) and ministry of SSI
(Laghu Udoyag Mantralay) have been merged into a single Ministry, namely,
Ministry of Micro Small & Medium Enterprises ( Suksham Laghu Aur Medium
Udyam Mantralay )
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CONCEPT & DEFINATION OF SSI
In most parts of the world the nomenclature used is small and Medium
Enterprises (SMEs) and the citeria for defininig include the number of employees
and /or the turnover. In India the Small Scale Industry eoveks different meanings
for different agencies and the financial institution. For example for the purpose of
excise and sales Tax Exemption, the turnover alone is the determinig criterion.
However in broder terms, currently, an SSI is defined in terms of investment
ceiling on the original value of instlled plant and machinery.
7.65 The small scale sector has played a very important role in the
socio-economic development of the country during the past 50 years. It has
significantly contributed to the overall growth in terms of the Gross Domestic
Product (GDP), employment generation and exports. The performance of the
small scale sector, therefore, has a direct impact on the growth of the overall
economy. The performance of the small scale sector in terms of parameters like
number of units (both registered and unregistered), production, employment and
exports is given in Table 7.15. 7.66 During the one year period i.e., 2000-01
Over 1999-2000, the number of SSI units is estimated to have
increased by 1,58,000, production at current prices by Rs. 72,609 crore and at
constant prices by Rs. 33,714 crore. Employment increased by 7,14,000 persons,while exports were higher by Rs. 5,778 crores. 7.67 According to projections
made by the Ministry of Small Scale Industries during 2000-01, the SSI sector
recorded growth in production of 8.09 per cent over the previous year. The small
scale industries sector has recorded higher growth rate than the industrial sector as
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a whole (4.9 per cent during 2000-01). It contributed about 40 per cent towards the
industrial production as a whole and 35 per cent of direct exports from the
country. 7.68 The Government has been taking various measures from time to
time in order to enhance the productivity, efficiency and competitiveness of the
SSI sector. In pursuance of the comprehensive policy package announced last
year, the major developments that have taken place in the SSI sector during 2001-
02
Small Scale and Ancillary Industries:-
Small scale industrial units are those engaged in the manufacture,
processing or preservation of goods and whose investment in plant and machinery
(original cost) does not exceed Rs.1 crore. These would, inter alia, include units
engaged in mining or quarrying, servicing and repairing of machinery. In the case
of ancillary units, the investment in plant and machinery (original cost) should
also not exceed Rs. 1 crore to be classified under small-scale industry.
The investment limit of Rs. 1 crore for classification as SSI has been
enhanced to Rs.5 crore in respect of certain specified items under hosiery, hand
tools, drugs & pharmaceuticals, stationery items and sports goods by the
Government of India.
Small scale businesses operating in India:-
In order to encourage growth, expansion and more investment in the small-
scale sector the Government has adopted a policy of reservation for allowing
certain products to be exclusively manufactured by the small-scale sector.
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The number of items in the reserve list has changed over time. As per the
revision done on March 2005, total 506 items are there in the reserve list for SSIs.
The details of the items reserved for SSIs are given below:
Food and allied industries (9)
Wood and wood products (9)
Paper products (19)
Plastic products (53)
Chemicals and chemical products (7)
Natural essential oils (2)
Organic chemicals, drugs and drug intermediates (33)
Other chemicals and chemical products (67)
Glass and ceramics (27)
Mechanical engineering excluding transport equipment (137)
Electrical machines, appliances & apparatus (17)
Electronic equipments and components (1)
Transport equipment boats and truck body building (3)
Auto parts components and ancillaries and garage equipments (36)
Bicycle parts, tricycles and perambulators (41)
Miscellaneous transport equipment (4)
Sports goods (7)
Stationery items (13)
Others (21)
The Government of India under the purview of a special Parliamentary Act
established The Small Industries Development Bank of India (SIDBI) in April
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1990. The primary objective of this bank was to ensure steady flow of funds to
SSIs to ease their financial constraints.
Unfortunately all previous attempts for development, expansion and
modernization of SSIs have not been of much use. However the recent measures
like setting up of the Technology Development Board, the Technology
Development and Modernization Fund, ISO 9000 Certification, stress on
improving managerial skills are turning out to be much more fruitful in
modernizing the SSIs in India.
As per the latest definition which is effective since December 21, 1999, for any
industrial unit to be regarded as Small Scale Industrial unit the following conditionis to be satisfied: -
Investment in fixed assets like plants and equipments either held on ownership
terms on lease or on hire purchase should not be more than Rs 10 million.
However the unit in no way can be owned or controlled or ancillary of any other
industrial unit.
Opportunities in Small Scale Business:-
As Small Scale Businesses are less capital intensive and highly labor
intensive, there are huge opportunities for this sector in a labor-abundant capital-
scarce economy like India. The other factors that are cater to the fast growth of
this sector are Extensive Promotion & Support by the govt., available grants &
Subsidies, raw material procurement, rising export demand for Indian products
and rising domestic demand which is the result of overall economic growth. But,
the growth rates can increase further if more development measures are taken to
improve the Technology and Marketing side of Small Scale Business and thus
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small-scale businesses can construct the most dynamic and vibrant sector of the
economy.
The opportunities in the small-scale sector are enormous due to the
following factors:
Less Capital Intensive
Extensive Promotion & Support by Government
Reservation for Exclusive Manufacture by small scale sector
Project Profiles
Funding - Finance & Subsidies
Machinery Procurement
Raw Material Procurement
Manpower Training
Technical & Managerial skills
Tooling & Testing support
Reservation for Exclusive Purchase by Government
Export Promotion
Growth in demand in the domestic market size due to overall
economic growth
Increasing Export Potential for Indian products
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Growth in Requirements for ancillary units due to the increase in
number of Greenfield units coming up in the large scale sector.
Small industry sector has performed exceedingly well and enabled
our country to achieve a wide measure of industrial growth and
diversification.
Comparative growth of SSI sector and Total
Industry sector
Year SSI Sector Growth Rate Total Industrial Sector
Growth Rate
1994-95 10.44 9.10
1995-96 11.49 13.00
1996-97 1.29 6.10
1997-98 9.19 6.70
1998-99 7.84 4.10
1999-2000 7.09 6.70
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
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By its less capital intensive and high labor absorption nature, SSI sector has
made significant contributions to employment generation and also to rural
industrialization. This sector is ideally suited to build on the strengths of our
traditional skills and knowledge, by infusion of technologies, capital and
innovative marketing practices. This is the opportune time to set up projects in the
small-scale sector. It may be said that the outlook is positive, indeed promising,
given some safeguards. This expectation is based on an essential feature of the
Indian industry and the demand structures. The diversity in production systems
and demand structures will ensure long term co-existence of many layers of
demand for consumer products / technologies / processes. There will beflourishing and well grounded markets for the same product/process, differentiated
by quality, value added and sophistication. This characteristic of the Indian
economy will allow complementary existence for various diverse types of units.
The promotional and protective policies of the Govt. have ensured the presence of
this sector in an astonishing range of products, particularly in consumer goods.
However, the bugbear of the sector has been the inadequacies in capital,
technology and marketing. The process of liberalization coupled with Government
support will therefore, attract the infusion of just these things in the sector.
Small industry sector has performed exceedingly well and enabled our
country to achieve a wide measure of industrial growth and diversification.
Small scale industry in INDIA:-
In India, the latest definition of a small-scale industry (SSI) is any unit with
an upper limit on investment (in plant and machinery) of from Rs. 0.20 million to
Rs. 0.35 million in the case of SSI and Rs. 0.45 million in the case of ancillary
units. What is called the village and small industries (VSI) sector comprises both
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traditional and modern small industries; it is constituted by eight specific groups
viz. Handloom, Handicrafts, Coir, Sericulture, Khadi, Village Industries, Small-
Scale Industries and Power looms. The last two items constitute the modern group
of industries, the others being traditional.
INDIAN SME SECTOR AT A GLANCEINDIAN SME SECTOR AT A GLANCE
2005-062005-06
SSI units :SSI units :12.3 million12.3 million
Employment generated in SSIs :Employment generated in SSIs :29.5 million29.5 million
Production : At current PricesProduction : At current PricesRs.4762.01 billionRs.4762.01 billion
Exports :Exports :Rs. 1215 billionRs. 1215 billion
SSI account:SSI account:Industrial Production:Industrial Production:
40%40%
Exports:Exports:
35%35%
(50% of(50% of
Direct & Indirect)Direct & Indirect)
GDP Share:GDP Share:7%7%
Ownership pattern :Ownership pattern :
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Proprietorships :Proprietorships :78%78%
Partnerships :Partnerships :16%16%
Corporate & Others :Corporate & Others :6%6% Industrial Units :Industrial Units :
96%96% Service Enterprises :Service Enterprises :
3%3% Ancillary Units :Ancillary Units :
1%1% Produces Diverse range of products (more than 8000-Produces Diverse range of products (more than 8000-
consumer items, capital goods and intermediates)consumer items, capital goods and intermediates)
In the economic development of India, a strategic position has been given to
the development of village and small industries (VSI) which constitute an
important segment of the overall economy. Next to agriculture, the VSI sector
provides the greatest employment opportunities, a considerable portion of which is
in rural and semi-rural areas. It contributes about fifty percent of the value added
in manufacturing.
India's overall policy on all industrial development is contained in the
Industrial Policy Resolution of 1956, as amended from time to time. New
priorities have been developed as and when required including some designed to
reduce the basic handicaps of small-scale industries. The latest of these is the
Industrial Policy of July 1980 which alms to harmonize growth in the small-scale
sector with that in the large and medium sectors and to remove the dichotomies
between the two sectors.
During the sixth plan period (1979-80 to 1984-85) production in this sector
increased from Rs. 335380 million to Rs. 657300 million at current prices and
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employment from 23.37 million to 31.50 million persons. The latter figure
represents nearly 80 percent of the entire industrial employment. Of this total,
modern small-scale industries employ 9 million people; next in importance is the
handloom subsector which employs about 7.5 million people. During the seventh
plan period (1985-90) the total value of production of the VSI sector is expected to
increase by about 52.4 percent and employment by 27 percent to 40.0 million. The
seventh plan also lays emphasis on the necessity of providing a new thrust for tiny
units having fixed investment of less than Rs. 0.2 million. They form nearly 90
percent of the total number of small-scale industrial enterprises. A modified
strategy will provide adequate facilities in rural and semi-urban areas which willincrease dispersion of these industries.
PERFORMANCE OF MICRO & SMALL ENTERPRISES
Year
Number of Enterprises
(Lakh Nos.) Empl.
(Lakh
Person
)
Productio
n (Rs.
Crs.)
Growt
hShare In
Register
ed
Unregister
edTotal
at
Current
prices
Rate
(%)GDP (%)
2002-
200315.91 93.58
109.
49
263.4
9314850 8.68 5.92
2003-
200416.97 96.98
113.
95
275.3
0364547 9.64 5.79
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2004-
200517.53 101.06
118.
59
287.5
5429796 10.88 5.84
2005-
200618.71 104.71
123.
42
299.8
5497842 12.32 5.83
2006-
200720.98 107.46
128.
44
312.5
2587196 12.65 5.94
2007-
2008
(Project
ed)
24.68 108.99133.
67
322.2
8695126 13.00 NA
Problems in small scale industries:-
Majority of the small scale units use old techniques of production and out
dated machinery and equipment. Up gradation of the technology and achieving
economies of scale is one of the major problems facing the sector? They cannot
afford new machines and equipments and are therefore not in a position to use the
latest techniques of production. They do not find it possible to conduct research
and development on a continuing basis. Therefore, productivity and quality in
small scale firms tends to be low while unit cost of production is generally high.
But with liberalization of the economy, the MSMEs are facing stiff competition
from imports and need technological up gradation in order to produce better
quality products at cheap rates.
Problems Faced by SSIs as Barriers toProblems Faced by SSIs as Barriers toGrowthGrowth
Market RelatedMarket Related 70%70%
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Finance RelatedFinance Related 25%25%
Government Policy RelatedGovernment Policy Related 12.78%12.78%
Power Related/InfrastructurePower Related/Infrastructure 14.0%14.0%
TechnologyTechnology 14.60%14.60%
As far as sourcing technology is concerned, small businesses face the following
three essential problems:-
Obtaining information about technology is the first important issue. For
most of them, information about available technology options is through
word of mouth or from a visit to an advanced unit. Few have access to
technical literature, professional journals or information about new product
launches. But with the advent of internet, new vistas are opening up
through electronic journals, catalogue downloads and advanced search
facilities.
Actual procurement of the technology is the next important issue because
even if information is obtained, there are barriers to import of technology
and other problems relating to technology transfer, vendor capability, after
sales support, import procedures, etc which impede procurement.
Acquiring finance for technology up gradation is also a problem. Small
enterprises generally look to external sources of funding for upgrading
technology as withdrawing money from business entails its own costs.
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With a view to foster the growth of MSME sector in the country, government has
taken up several initiatives:
ISO 9000/14001 Certification Fee Reimbursement Scheme was introduced
in order to incentivize technological up gradation, quality improvement and
better environment management by the MSEs. The scheme provides
incentive to those small scale/ ancillary undertaking who have acquired ISO
9000/ISO 14001/HACCP certifications.
In order to reduce the cost of funds, a scheme called Credit Linked Capital
Subsidy Scheme (CLCSS) for Technology Up gradation in Small Scale
Industries has been put into place. It aims at facilitating technology up
gradation by providing upfront capital subsidy to small scale industry units,
including tiny, Khadi, village and coir industrial units, on institutional
finance (credit) availed of by them for modernization of their production
equipment (plant and machinery) and techniques.
National Manufacturing Competitiveness Programme (NMCP) has beenlaunched by the government in order to help MSMEs improve their
competitiveness. The schemes under this Programme are aimed at
addressing the technology/quality up gradation needs of the sector, mainly
in the public-private partnership mode.
Small Industries Development Bank of India (SIDBI) in collaboration with
United Nations-Asian Pacific Centre for Transfer of Technology (UN-
APCTT) had established Technology Bureau for Small Enterprises (TBSE)
to bring synergy between Technology and Finance for Small and Medium
Enterprise (SME) sector. The objectives of the company are to:
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Provide professional services for technology transfer in order
to enhance market competitiveness of small and medium
enterprises and promote sustainable development.
Maintain and provide data base on technology options
available from different countries.
Provide micro small & medium enterprises information on
sources of technology and means of accessing them.
Provide background information on technology seeking
enterprises to technology suppliers and collaborators.
Identify business partners willing to collaborate and extend
support to tie up financial assistance and other requirements
such as drafting agreements, obtaining various approvals and
preparation of business plans required for transfer of
technology.
Provides financial syndication through banks and financial
institutions.
Besides, National Small Industries Corporation Ltd. (NSIC) has taken up an
initiative to enhance technology options for small scale industries. An ISO 9001
certified company, it has been working to fulfill its mission of promoting, aiding
and fostering the growth of small scale industries and industry related small scale
services/business enterprises in the country. Over a period of five decades of
transition, growth and development, NSIC has proved its strength within the
country and abroad by promoting modernization, up gradation of technology,
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quality consciousness, strengthening linkages with large medium enterprises and
enhancing exports - projects and products from small industries.
Also, Small Industries Development Organization (SIDO) has set up 10
Tool Rooms and Training Centers in the country in order to assist small scale units
in their technical up gradation by providing good quality toolings.
Further, in order to facilitate investments for technological up gradation and
higher productivity in the micro and small enterprises, the phased deletion of
products from the list of items reserved for the exclusive manufacture by such
enterprises is being undertaken.
Small scale industry in Rajasthan:-
Rajasthan started experiencing industrial development between 1950 and
1960. Large and small scale industries started springing up in the Kota, Jaipur,
Udaipur, Bhilwara and other Industrial Estates of Rajasthan. The main industries
of Rajasthan include textile, rugs, woolen goods, vegetable oil and dyes. Heavy
industries consist of copper and zinc smelting and the manufacture of railway
rolling stock. The other industries related to Private Sector include steel, cement,
ceramics and glass wares, electronic, leather and footwear, stone and other
chemical industries. Altogether the industrial sector accounts for about 32.5 per
cent of the total share of the states economy. During 1995- 96 and 2001-02, the
industrial sector of Rajasthan experienced growth at the rate of 6.9% per annum
Textile Industry
Textile is the chief industry and the Rajasthan is considered as Indias
second largest producer of Polyester Fiber. It is grown in the Bhilwara district of
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Rajasthan. Besides these, Rajasthan is also involved in the large scale production
of cotton and wool in the country. In total the production of Textiles accounts
21.96 % in the state. Rajasthan also produces huge quantities of spun yarn and
hence is the fourth largest producer in India.
Cement Industry
The state of Rajasthan is also the major producer of cement and accounts for
15 per cent of the cement output of the country.
Salt Production-
Rajasthan is the third largest producer of salt (sodium chloride) in the
country and accounts for the countrys one-tenth of salt production.
The large mineral and metal deposits like zinc, copper, lignite, gypsum and mica
in the state have also fostered the growth of a large number of industries that are
involved in producing by-products by utilizing these natural resources.
Wooden handicraft:-
Wooden handicrafts are specialized skills passed on from one generation to
the next. The term 'wooden handicrafts' refers to a wide range of wooden items
carrying utilitarian and artistic value that are made by hand, or with the use of
simple tools. Indian wooden handicrafts reflect unmatched workmanship, fine
designs, and subtle elegance. This makes India one of the chief exporters of
wooden handicrafts in the world market.
The wooden handicrafts industry plays an important role in the Indian economy.
This industry requires low capital investment and other resources. The wooden
handicraft sector provides a high ratio of value addition, and has emerged as one
of the major sources of foreign exchange earnings for India.
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Indian wooden handicrafts are much sought after the world over, and form
an important export commodity of India. Although India's handicraft exports show
a consistent increase of sixteen per cent every year, its share in the international
market is not more than two per cent.
The Indian wooden handicraft sector is the second largest employment
provider (after agriculture). It employs about six million artisans. Women
constitute a large section of the handicrafts industry, including people belonging to
the weaker sections of society.
Performance
Production
The small-scale industries sector plays a vital role in the growth of the country. It
contributes almost 40% of the gross industrial value added in the Indian economy.
It has been estimated that a million Rs. of investment in fixed assets in the small scale
sector produces 4.62 million worth of goods or services with an approximate value
addition of ten percentage points.
The small-scale sector has grown rapidly over the years. The growth rates during the
various plan periods have been very impressive. The number of small-scale units has
increased from an estimated 0.87 million units in the year 1980-81 to over 3 million in
the year 2000.
When the performance of this sector is viewed against the growth in the manufacturing
and the industry sector as a whole, it instills confidence in the resilience of the small-
scale sector.
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Year Target Achievement
1991-92 3.0 3.1
1992-93 5.0 5.6
1993-94 7.0 7.1
1994-95 9.1 10.1
1995-96 9.1 11.4
1996-97 9.1 11.3
1997-98 * 8.43
1998-99 * 7.7
1999-00 * 8.16
2000-01 (P) * 8.90
P-Projected (April-December)
* Target not fixed at constant prices
Employment
SSI Sector in India creates largest employment opportunities for the Indian populace,
next only to Agriculture. It has been estimated that 100,000 rupees of investment in
fixed assets in the small-scale sector generates employment for four persons.
Generation of Employment - Industry Group-wise
Food products industry has ranked first in generating employment, providing
employment to 0.48 million persons (13.1%). The next two industry groups were Non-
metallic mineral products with employment of 0.45 million persons (12.2%) and Metal
products with 0.37 million persons (10.2%).
In Chemicals & chemical products, Machinery parts except Electrical parts, Wood
products, Basic Metal Industries, Paper products & printing, Hosiery & garments,
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Repair services and Rubber & plastic products, the contribution ranged from 9% to 5%,
the total contribution by these eight industry groups being 49%.
In all other industries the contribution was less than 5%.
Per unit employment
Per unit employment was the highest (20) in units engaged in beverages, tobacco &
tobacco products mainly due to the high employment potential of this industry
particularly in Maharashtra, Andhra Pradesh, Rajasthan, Assam and Tamil Nadu.
Next came Cotton textile products (17), Non-metallic mineral products (14.1), Basic
metal industries (13.6) and Electrical machinery and parts (11.2.) The lowest figure of2.4 was in Repair services line.
Per unit employment was the highest (10) in metropolitan areas and lowest (5) in rural
areas.
However, in Chemicals & chemical products, Non-metallic mineral products and Basic
metal industries per unit employment was higher in rural areas as compared to
metropolitan areas/urban areas.
In urban areas highest employment per unit was in Beverages, tobacco products (31
persons) followed by Cotton textile products (18), Basic metal industries (13) and Non-
metallic mineral products (12).
Location-wise Employment Distribution - Rural
Non-metallic products contributed 22.7% to employment generated in rural areas. Food
Products accounted for 21.1%, Wood Products and Chemicals and chemical products
shared between them 17.5%.
Urban
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As for urban areas, Food Products and Metal Products almost equally shared 22.8% of
employment. Machinery parts except electrical, Non-metallic mineral products, and
Chemicals & chemical products between them accounted for 26.2% of employment.
In metropolitan areas the leading industries were Metal products, Machinery and parts
except electrical and Paper products & printing (total share being 33.6%).
State-wise Employment Distribution
Tamil Nadu (14.5%) made the maximum contribution to employment.
This was followed by Maharashtra (9.7%), Uttar Pradesh (9.5%) and West Bengal
(8.5%) the total share being 27.7%.
Gujarat (7.6%), Andhra Pradesh (7.5%), Karnataka (6.7%) and Punjab (5.6%) together
accounted for another 27.4%.
Per unit employment was high - 17, 16 and 14 respectively - in Nagaland, Sikkim and
Dadra & Nagar Haveli.
It was 12 in Maharashtra, Tripura and Delhi.
Madhya Pradesh had the lowest figure of 2. In all other cases it was around the
average of 6.
Year Target
(lakh nos.)
Achievement
(lakh nos.)
Growth rate
1992-93 128.0 134.06 3.28
1993-94 133.0 139.38 3.28
1994-95 138.6 146.56 5.15
1995-96 144.4 152.61 4.13
1996-97 150.5 160.00 4.88
1997-98 165 167.20 4.50
1998-99 170.1 171.58 2.61
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Small Scale Industries And Their Big Role
1999-00 175.4 177.3 3.33
P-Provisional
Export
SSI Sector plays a major role in India's present export performance. 45%-50% of the
Indian Exports is contributed by SSI Sector. Direct exports from the SSI Sector account
for nearly 35% of total exports. Besides direct exports, it is estimated that small-scaleindustrial units contribute around 15% to exports indirectly. This takes place through
merchant exporters, trading houses and export houses. They may also be in the form
of export orders from large units or the production of parts and components for use for
finished exportable goods.
It would surprise many to know that non-traditional products account for more than 95%
of the SSI exports.
The exports from SSI sector have been clocking excellent growth rates in this decade.
It has been mostly fuelled by the performance of garments, leather and gems and
jewellery units from this sector.
The product groups where the SSI sector dominates in exports, are sports goods,
readymade garments, woollen garments and knitwear, plastic products, processed food
and leather products.
The SSI sector is reorienting its export strategy towards the new trade regime being
ushered in by the WTO.
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Year Exports
(Rs. Crores)
(at current prices)
1994-95 29,068
(14.86)
1995-96 36,470
(25.50)
1996-97 39,249
(7.61)
1997-98 43946
(11.97)
1998-99 48979(10.2)
1999-00 (P) 53975
(10.2)
P-Provisional
Major Export Markets
An evaluation study has been done by M/s A.C. Nielsen on behalf of Ministry of SSI. As
per the findings and recommendations of the said study the major export markets
identified having potential to enhance SSIs exports are US, EU and Japan. The
potential items of SSIs have been categorised into three broad categories. More..
Export Destinations
The Export Destinations of SSI products have been identified for 16 productgroups. More..
Opportunity
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Small Scale Industries And Their Big Role
The opportunities in the small-scale sector are enormous due to the following factors:
Less Capital Intensive
Extensive Promotion & Support by Government
Reservation for Exclusive Manufacture by small scale sector
Project Profiles
Funding - Finance & Subsidies
Machinery Procurement
Raw Material Procurement
Manpower Training
Technical & Managerial skills
Tooling & Testing support
Reservation for Exclusive Purchase by Government
Export Promotion
Growth in demand in the domestic market size due to overall economic growth
Increasing Export Potential for Indian products
Growth in Requirements for ancillary units due to the increase in number of
greenfield units coming up in the large scale sector. Small industry sector has
performed exceedingly well and enabled our country to achieve a wide measure
of industrial growth and diversification.
By its less capital intensive and high labour absorption nature, SSI sector has made
significant contributions to employment generation and also to rural industrialisation.
This sector is ideally suited to build on the strengths of our traditional skills and
knowledge, by infusion of technologies, capital and innovative marketing practices. This
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Small Scale Industries And Their Big Role
is the opportune time to set up projects in the small-scale sector. It may be said that the
outlook is positive, indeed promising, given some safeguards. This expectation is
based on an essential feature of the Indian industry and the demand structures. The
diversity in production systems and demand structures will ensure long term co-
existence of many layers of demand for consumer products / technologies / processes.
There will be flourishing and well grounded markets for the same product/process,
differentiated by quality, value added and sophistication. This characteristic of the
Indian economy will allow complementary existence for various diverse types of units.
The promotional and protective policies of the Govt. have ensured the presence of this
sector in an astonishing range of products, particularly in consumer goods. However,
the bugbear of the sector has been the inadequacies in capital, technology and
marketing. The process of liberalisation coupled with Government support will
therefore, attract the infusion of just these things in the sector.
Small industry sector has performed exceedingly well and enabled our country to
achieve a wide measure of industrial growth and diversification.
By its less capital intensive and high labour absorbtion nature, SSI sector has made
significant contributions to employment generation and also to rural industrialisation.This sector is ideally suited to build on the strengths of our traditional skills and
knowledge, by infusion of technologies, capital and innovative marketing practices. So
this is the opportune time to set up projects in the small scale sector. It may be said that
the outlook is positive, indeed promising, given some safeguards. This expectation is
based on an essential feature of the Indian industry and the demand structures. The
diversity in production systems and demand structures will ensure long term co-
existence of many layers of demand for consumer products / technologies / processes.
There will be flourishing and well grounded markets for the same product/process,
differentiated by quality, value added and sophistication. This characteristic of the
Indian economy will allow complementary existence for various diverse types of units.
The promotional and protective policies of the Govt. have ensured the presence of this
sector in an astonishing range of products, particularly in consumer goods. However,
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Small Scale Industries And Their Big Role
the bug bear of the sector has been the inadequacies in capital, technology and
marketing. The process of liberalisation will therefore, attract the infusion of just these
things in the sector.
SSIs IN INDIA
Estimated No. of Units 3.57 Million
Employment 19.96 Million
Share in Industrial Value Added 39%
Share in Total Exports
DirectOverall
45%34%
Total Number of Items Produced Over 8000
Number of Reserved Items 675
(Figures for 2002-2003)
TRENDS IN GROWTH SSI & INDUSTRIAL SECTOR (in %)
Year SSI Sector Industrial Sector
1991-92 3.1 0.6
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1992-93 5.6 2.3
1993-94 7.1 6.0
1994-95 10.1 9.4
1995-96 11.4 12.1
1996-97 11.3 7.1
1997-98 8.43 5.8
1998-99 7.7 4.0
1999-2000 8.16 6.5
TRENDS IN GROWTH OF EMPLOYMENT IN
SSI & INDUSTRIAL SECTOR (in %)
PeriodGDP Growth per
annum
Increase in jobs per annum
Organised Sector
including
Government
SSI
sector
1980-
19905.7% 1.59% 6.7%
1991-
19975.7% 0.86% 3.5%
1980 - 1997
Organised Sector 53.66 lakh new jobs
SSI Sector 80.00 lakh new jobs
http://www.dcmsme.gov.in/ssiindia/statistics/economic.htm#topTop Related