small scale industries in india (itee)

8/8/2019 Small Scale Industries in India (Itee)

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MADE BY:MADE BY:AMARJIT KUMARAMARJIT KUMAR

MBA 1ST SMBA 1ST SEM.EM.ROLL NO. 04ROLL NO. 04

FMSFMS--BHUBHU


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DEFINITION OF SSIDEFINITION OF SSI..

using power withusing power withless thanless than

50 employees50 employees

not using powernot using power

with thewith the

employee strengthemployee strengthbeingbeing

more than 50 butmore than 50 but

less than 100less than 100

SSIsSSIs

19501950


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YEARYEAR INVESTMENT LIMITSINVESTMENT LIMITS19601960 Upto Rs 5 lacs in Plant & MachineryUpto Rs 5 lacs in Plant & Machinery

19661966 Upto Rs 7.5 lacs in Plant & MachineryUpto Rs 7.5 lacs in Plant & Machinery

19751975 Upto Rs 10 lacs in Plant & MachineryUpto Rs 10 lacs in Plant & Machinery

19801980

Upto Rs 20 lacs in Plant & MachineryUpto Rs 20 lacs in Plant & Machinery


19911991



19991999



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CLASSIFICATION OF SSIsCLASSIFICATION OF SSIs

TRADITIONALTRADITIONAL MODERNMODERN

KHADIKHADI

HANDLOOMHANDLOOM

VILLAGE INDUSTRIESVILLAGE INDUSTRIESHANDICRAFTSHANDICRAFTS

SERICULTURESERICULTURE

TV setsTV sets

ELECTRONICSELECTRONICS

CONTROL SYSTEMSCONTROL SYSTEMSANCILLARY INDUSTRIESANCILLARY INDUSTRIES


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ROLEROLE OFOF SSIsSSIs ININ INDIAN ECONOMYINDIAN ECONOMY

PRODUCTIONPRODUCTION

EMPLOYMENTEMPLOYMENT

EXPORTEXPORT

OPPORTUNITIESOPPORTUNITIES

WELFARE PROMOTINGWELFARE PROMOTING..


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PRODUCTIONPRODUCTIONContributes almost 40% of the gross industrial value.Contributes almost 40% of the gross industrial value.

The small-scale sector has grown rapidly over theyears. The growth rates during the various planperiods have been very impressive. The number of

small-scale units has increased from an estimated0.87 million units in the year 1980-81 to over 3 millionin the year 2000.


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EMPLOYMENTEMPLOYMENTCreates largest employment opportunities for the IndianCreates largest employment opportunities for the Indian

populace, next to Agriculture.populace, next to Agriculture.

It has been estimated that Rs. 1It has been estimated that Rs. 1 lakhlakh of investment in fixedof investment in fixedassets in the smallassets in the small--scale sector generates employment forscale sector generates employment forfour personsfour persons..

Food products industry has ranked first in generating

employment, providing employment to 0.48 millionpersons (13.1%). The next two industry groups wereNon-metallic mineral products with employment of0.45 million 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%

TRADITI AL M DERN

EMPLOYMENT

OUTPUTOUTPUT

56%56%

13%13%

33%33%

74%74%


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EXPORTEXPORT 33% of the Indian Exports is contributed by SSI Sector.33% of the Indian Exports is contributed by SSI Sector.

nonnon--traditional products account for more than 95% of the SSItraditional products account for more than 95% of the SSIexportsexports..

mostly fuelled by the performance of garments, leather and gems andmostly fuelled by the performance of garments, leather and gems and

jewelleryjewellery units from this sectorunits from this sector..

The product groups where the SSI sector dominates in exports,are sports goods, readymade garments, woollen garments andknitwear, plastic products, processed food and leather products.


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OPPORTUNITYOPPORTUNITY

FACTORSFACTORSLess Capital IntensiveLess Capital IntensiveExtensive Promotion & Support by GovernmentExtensive Promotion & Support by GovernmentReservation for Exclusive Manufacture by small scaleReservation for Exclusive Manufacture by small scale

sectorsectorFundingFunding -- Finance & SubsidiesFinance & SubsidiesMachineryProcurementMachineryProcurement


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Raw Material ProcurementRaw Material ProcurementManpower TrainingManpower TrainingTechnical & Managerial skillsTechnical & Managerial skillsTooling & Testing supportTooling & Testing supportReservation for Exclusive Purchase by GovernmentReservation for Exclusive Purchase by GovernmentExport PromotionExport PromotionGrowth in demand in the domestic market size due toGrowth in demand in the domestic market size due to

overall economic growthoverall economic growthIncreasing Export Potential for Indian productsIncreasing Export Potential for Indian products


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Opportunities

Fashion Technology

Information Technology

Design TechnologyHealth Technology

Bio Technology


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WELFAREWELFAREy Increases income levels.

y Equitable distribution of income.

y Reduction of regional disparities.

y Preservation of inherited skills.


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COMPARATIVE GROWTH RATES OF SSI SECTOR AND TOTAL

INDUSTRIAL SECTOR

Year SSI Sector Growth Rate Total Industrial Sector

Growth 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


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0

1

2

3

4

56

7

8

9

10

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

SSI

SSISSI

INDUSTRYINDUSTRY

COMPARATIVE GROWTH RATESCOMPARATIVE GROWTH RATES

Source: SIDO HalfCentury by DCSSI, Govt. ofIndia 2004 and Annual Report of

the Ministry ofSSI2005-06

8.04

56.06

2.7

7.68

5.7

8.06

6.09

9.96

8.04


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INDIAN SME SECTORINDIAN SME SECTOR AT A GLANCEAT A GLANCE

20052005--0606

yy SSI units : 12.3 millionSSI units : 12.3 million

yy Employment generated in SSIs :Employment generated in SSIs :29.5 million29.5 million

yy Production : At current PricesProduction : At current PricesRs. 4762.01 billionRs. 4762.01 billion

yy Exports : Rs. 1215 billionExports : Rs. 1215 billion

yy SSI account:SSI account:

Industrial Production : 40%Industrial Production : 40%Exports : 35% (50% of Direct &Exports : 35% (50% of Direct &

Indirect)Indirect)GDP Share : 7%GDP Share : 7%

yy Ownership pattern :Ownership pattern :

yy Proprietorships : 78%Proprietorships : 78%yy Partnerships : 16%Partnerships : 16%yy Corporate & Others : 6%Corporate & Others : 6%

yy Industrial Units : 96%Industrial Units : 96%

yy Service Enterprises : 3%Service Enterprises : 3%

yy Ancillary Units : 1%Ancillary Units : 1%

yy ProducesProduces DiverseDiverse rangerange of ofproductsproducts (more(more thanthan 80008000--consumerconsumer items,items, capitalcapitalgoodsgoods andand intermediates)intermediates)


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DISABILITIESDISABILITIES

y OUTPUT vs EMPLOYMENT

y ADVERSE IMPACT ON CAPITAL FORMATION.

y INEFFICIENT PRODUCTION

y LARGE SICKNESS.

y SEVERAL DIFFICULTIES.


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AIMAAIMA Impact AssessmentImpact Assessment

IMPEDIMENTS TO GROWTHIMPEDIMENTS TO GROWTH

Problems Faced by SSIs as Barriers to Growth

Market Related 70%

Finance Related 25%

Government Policy Related 12.78%

PowerR

elated/Infrastructure 14.0%

Technology 14.60%


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MEASURESMEASURES

y CREDIT RATING SCHEME

y MARKETING ASSISTANCE SCHEME

y TECHNICAL ASSISTANCEy MEASURES FOR EXPORT PROMOTION

y INFRASTRUCTURE DEVELOPMENT

y ENTREPRENEURSHIPANK SKILLDEVELOPMENT


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REFERENCEREFERENCE INDIAN ECONOMYby RUDDAR DATT AND K.P.M.

SUNDHARAM

INDIAN ECONOMYbyA.N. AGRAWALESSENTIALS OF BUSINESS ENVIRONMENT BY K.

ASWATHAPPA

Websites: http://indiabudget.nic.in

http://dcmsme.gov.in/ssiindia


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small scale industries in india (itee)

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