Download - 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
19851985 Upto Rs 35 lacs in Plant & MachineryUpto Rs 35 lacs in Plant & Machinery
19911991
Upto Rs 60 lacs in Plant & MachineryUpto Rs 60 lacs in Plant & Machinery
19971997 Upto Rs 100 lacs in Plant & MachineryUpto Rs 100 lacs in Plant & Machinery
19991999
Upto Rs 100 lacs in Plant & MachineryUpto Rs 100 lacs in Plant & Machinery
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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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