small scale industries by anas ahamad

8/7/2019 Small Scale Industries by Anas Ahamad

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PRESENTED BY :-ANAS AHAMAD (PGDM AIMA)


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` Year 1950

Size of Gross Investment in fixed assets in plant and

machinery, land, building etc. (not exceeding Rs. 5 lakhs and

strength of workforce (employment less than 50 workers / day

using power or less than 100 workers / day without use of

power).

Eligibility criteria based on investment in Machinery and

Equipment only.


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` A recent World Bank Report states: There is now widespread

recognition within India that vibrant SMEs are potentially a

key engine of economic growth, job creation and greater

economic prosperity.

` 10th Plan Document of Govt. of India states: Growth as

planned will come from a sharp step-up in industrial and

services growth, spurred by SMEs.


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` SSIs are generally less capital-intensive and more labour-intensive.

` Are best suited for countries like India, China and most of the developingworld having abundant supply of low-cost manpower and bountiful naturalresources

` Have provided seed bed for Enterprise Development in the country

` Provide large scale employment, ensure equitable distribution of income andfacilitate effective mobilization of resources of capital and skills, which wouldotherwise remain unutilized, particularly in rural and backward areas.

` India has already established a niche in SME Development Strategy and providing excellent support in product development, R&D, financialinstruments, Infra-structure, marketing and export development

` Consequently, India is fast emerging as a global hub for labour-intensivemanufacturing and knowledge-oriented businesses.


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Year No. ofRegistered SSI

working Units

(Million)

No. of

UnregisteredSSI working

Units

(Millions)

Total SSIworking Units

(Millions)

Production (Rs. Billion)

Employment(Million

Persons)At current

prices

At constant

prices (1993-

94 prices)

1990-1991 0.79 6.00 6.79 635.18 682.95 15.834

1991-1992 0.87 6.19 7.06 730.72 791.80 16.599

1992-1993 0.99 6.36 7.35 855.81 935.23 17.484

1993-1994 1.06 6.59 7.65 988.04 988.04 18.264

1994-1995 1.16 6.80 7.96 1222.10 1091.16 19.140

1995-1996 1.16 7.12 8.28 1482.90 1216.49 19.793

1996-1997 1.20 7.42 8.62 1684.13 1353.80 20.586

1997-1998 1.20 7.77 8.97 1891.78 1478.24 21.316

1998-1999 1.20 8.14 9.34 2129.01 1594.07 22.055

1999-2000 1.23 8.48 9.71 2342.55 1707.09 22.910

2000-2001 1.31 8.80 10.11 2612.89 1844.28 23.909

2001-2002 1.37 9.15 10.52 2822.70 1956.13 24.909

2002-2003 1.59 9.36 10.95 3119.93 2106.36 26.021

2003-2004 1.70 9.70 11.40 3514.27 2265.81 27.142

2004-2005 1.85 10.11 11.86 4182.63 2515.11 28.257

2005-2006 1.87 10.47 12.34 4762.01 2776.68 29.491

Source : SIDOs Half Century y DCSSI, Govt. of India, 2004, and Economic Survey, Govt. of India, 2006-2007, Feb. 2007


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Year SSI Sector Growth Rate Total Industrial Sector

Growth Rate

1993-94 5.65 6.00

1994-95 10.44 9.10

1995-9

6 11.49 13.001996-97 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 8.04Source: SIDO Half Century by DCSSI, Govt. of India 2004 andAnnual Report of the Ministry of SSI 2005-06


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Rs. in Crores

As at end March Total advances by

Banking Sector

Total Advances to

SSI Sector

Proportion of SSI to

Total Advances

1999 246203 42674 17.30

2000 292943 45788 15.63

2001 469153 56002 1.94

2002 536727 57199 10.66

2003 669534 60394 9.02

2004 764383 65855 8.62

2005* 972587 76114 7.83

Source : RBI Report on Trend and Progress of Banking in India

* Provisional


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` SSI units : 12.3 million

` Employment generated in SSIs

:29

.5 million` Production : At current

Princes Rs. 4762.01 billion

` Exports : Rs. 1215 billion

` SSIs 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 of

products (more than 8000-consumer items, capital goods

and intermediates)


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SSI AnEngine ofGrowth

>8000Products

35% ofNationalExport

Over 27mEmployed

7% 0fGDP


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` Problems Faced by SSIs as Barriers to Growth

Market Related 70%Market Related 70%

Finance Related 25%

Government Policy Related 12.78%

Power Related/Infrastructure 14.0%

Technology 14.60%


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y To facilitate growth of this sector with changing economic

scenario

y To facilitate growth within the framework of social and

economic policy of the countryy To encourage technology modernization

y To promote entrepreneurship among technically qualified

persons

y To improve product standardsy To create opportunities for in house R&D

y To provide greater export thrust


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HEALTH TECHNOLOGY INFORMATION TECHNOLOGY

Personal Health Care

Preventive Health Care

Yoga & Naturopathy Herbal Therapies

Environmental Health

Food Supplements

Food, Inspection and Testing

etc. Medical Waste Management

Hospital Supplies & StaffingServices

Media & Entertainment

Contents,

Animation, Games,

Gaming.


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FASHION TECHNOLOGY DESIGN TECHNOLOGY

` Personal Embellishment (Face,

Hair, Hands, Feet, Cosmetics,

Perfumes etc.)` Glamour & Limelight

` Creative

` FashionAccessories (purses,

bags, carryon, watches etc.)

Interiors - (Furniture & Furnishing homes, work places, community,

hospitals, schools, shopping places,recreation, sports) Exteriors - (Architectural) Dies and tools Watches Jewellery Hospital equipments


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x 10th largest economy in the world - 4th in terms of PPP

x Will overtake Japan in PPP terms by 2010, to be 3rd largest in theworld

x Large entrepreneurial base and diversified manufacturingstructure

x Large reservoir of skilled labour at internationally competitive cost

x Vast pool of scientifically and technically qualified manpower of20m

x A large domestic market - 300 m + strong middle class population

x having substantial purchasing power

x Largest democratic set - up

x A broad based and transparent legal framework including

arbitration


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x Vast network of bank branches, financial institutions andwell-organized

x capital and money marketsx A network of technical and management institutes of highest

x International standards for development of humanresources

x India has a record of meeting its international financialobligations as

x Per schedule and has never been a defaulterx No communication barrier, as English is the most prevalent

business Languagex Strong and vibrant small scale sector that is keen to

establishx Strategic alliances with their foreign counterparts


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` It can be seen that the policy framework is consistent since independence

` The specific definition for medium enterprises augurs well for graduation

of micro enterprises to small and small enterprises to medium enterprises

` With more budgetary allocation to service sector, SSIs will be able to

generate more employment opportunities to educated unemployed youth

` The launching of Technology Mission will facilitate the Government towork out a long term action plan to ensure organized growth of this sectorto face competition in liberalized services sector and knowledge basedeconomic scenario


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small scale industries by anas ahamad

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