SMALL SCALE INDUSTRIES
ASPECTS TO BE COVERED
Definition
Classification
Norms
Contribution to Indian economy
DEFINITIONYEAR UNIT INVESTMENT
1955 SSI 5 Lakhs
1966 SSIAU
7.5 Lakhs10 Lakhs
1975 SSIAU
10 Lakhs15 Lakhs
1980 SSIAU
20 Lakhs25 Lakhs
1985 SSIAU
35 Lakhs45 Lakhs
1991 SSIAU
60 Lakhs75 Lakhs
1997 SSI 3 Crores
1999 SSI 1 Crores
CLASSIFICATION
MANUFACTURING
- Village and cottage industries
- Handlooms and handicraft
- Modern SSI
TRADING
- Wholesale
- Retail
- Commission agents
SERVICES
- Professional Services
- Commercial Services
- Personal Services
• Foreign Direct Investment Approval
• NRI Investment Approval
• Foreign Exchange Regulation
• Environment Regulations
• Income Tax
NORMS FOR THE SSI
• Corporate Tax
• Excise Duty
• Sales Tax
• The Industrial Development and Regulations (IDR) Act, 1951
• Workmen’s Compensation Act
• Employment of Women
NORMS FOR THE SSI
• Payment of Gratuity Act
• The trade Union Act
• The Air and Water Pollution Act
• Environment Protection Act
• The Industrial Disputes Act
NORMS FOR THE SSI
1. Production contributes almost 40% of the gross industrial
value added
number of small-scale units - increased from an estimated 0.87 million units in the year 1980-81 to over 3 million in the year 2000.
CONTRIBUTION OF SSI IN INDIA
2. Employment
India – Labor intensive country
Self employment
Employment to farmers
Constitutes 75% of the total employment
3. Exports Export promotion Reducing pressure on the BoP Contributes 40 – 45 % of Indian exports
4. Opportunities Less Capital Intensive
Extensive Promotion & Support by Government
Reservation for Exclusive Manufacture by small scale sector
Machinery Procurement Raw Material Procurement Manpower Training Technical & Managerial skills
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