The document discusses government policies that promote small scale industries in India. It defines small scale industries as businesses with plant and machinery investments under 1.5 crore rupees. The government has implemented various policies since 1948 to support small businesses through reservations, subsidies, credit access, and marketing assistance. The latest policies in 1991 increased investment limits, allowed equity participation, and prioritized small businesses for materials and payments. The policies aim to foster local production, employment, and use of local resources through small scale industries.
The document discusses government policies that promote small scale industries in India. It defines small scale industries as businesses with plant and machinery investments under 1.5 crore rupees. The government has implemented various policies since 1948 to support small businesses through reservations, subsidies, credit access, and marketing assistance. The latest policies in 1991 increased investment limits, allowed equity participation, and prioritized small businesses for materials and payments. The policies aim to foster local production, employment, and use of local resources through small scale industries.
The document discusses government policies that promote small scale industries in India. It defines small scale industries as businesses with plant and machinery investments under 1.5 crore rupees. The government has implemented various policies since 1948 to support small businesses through reservations, subsidies, credit access, and marketing assistance. The latest policies in 1991 increased investment limits, allowed equity participation, and prioritized small businesses for materials and payments. The policies aim to foster local production, employment, and use of local resources through small scale industries.
Industries What Are Small Scale Industries The industries which are organized on a small scale and produce goods with the help of small machines, hired labor and power are called as small scale industries. Scale Industry is defined as a unit in which investment in original value of plant and machinery should not exceed Rs. 1.5 Crore. Characteristics Of Small Scale Industries 1.Strart up cost 2.Profitability 3. Employees 4. Localized Operation 5.Use of indigenous raw material Government Polices For Small Scale Industries Reservation for Manufacturing: Reservation of items for exclusive manufacture sector statutorily provided for in the Industries (Development and Regulation) Act, 1951, has been one of the important policy measures for promoting this sector. The Reservation Policy has twoobjectives:- 1. Ensure increased production of consumer goods in the small scale sector. 2. Expand employment opportunities through setting up of small scale industries. Industrial Policy Resolutions 1948 • Industrial policy resolution 1948 The government stressed the role of SSIs for balanced industrial growth. It was stated that SSIs are particularly suited for the utilization of local resources and creation of employment opportunities. Industrial Policy Resolution 1956 • It stated that besides continuing the policy support to cottage, village and small industries by differential taxation or direct-subsidies, the aim of state policy would be that development of this sector is integrated with that of large scale industry. Industrial policy resolution 1977 It emphasize that whatever can be produced by SSIs must only be so produced. The main thrust of policy was effective promotion of cottage, village and small industries widely dispersed in rural areas and small towns. This thinking specified the following things: 504 items were reserved for exclusive production in the small-scale industries. The concept of District Industries ICs) was introduced so that in each district a single agency could meet all the requirements of SSIs under one roof. Technological up gradation was emphasized in traditional sector. Special marketing arrangements through the provision of services, such as, product standardization, quality control, market survey, were laid down. Industrial policy resolution 1980 Investment limit was raised for tiny, small, and ancillary units to Rs. 2 lacs, Rs. 20 lacs, and Rs. 25 lacs respectively. Reservation of items and marketing support for small industries was to continue. Availability of credit to growing SS units was continued. Buffer stocks of critical inputs were to continue. Agricultural base was to strengthen by providing preferential treatment to agro- based industries Stress was reiterated to upgrade technology to improve competitiveness. Special emphasis was laid on training of women and youth under Entrepreneurial Development Programmed. Activities of Kadhi and Village Industries Commission and Khadi and Village Industries Board were to expand. Industrial policy resolution 1990 It raised the investment ceiling in plant and machinery for SSIs. It created central investment subsidy for this sector in rural and backward areas. Also, assistance was granted to women entrepreneurs for widening the entrepreneurial base. Reservation of items to be produced by SSIs was increased to 836. Small Industries Development Bank of India was established to ensure adequate flow of credit to SSIs. Industrial policy resolution 1991 SSIs were exempted from licensing for all articles of manufacture. The investment limit for tiny enterprises was raised to Rs. 5 lacs irrespective of location. Equity participation by other industrial undertakings was permitted up to a limit of 24 percent of shareholding in SSIs. Factoring services were to launch to solve the problem of delayed payments to SSIs. Priority was accorded to small and tiny units in allocation of indigenous and raw materials. Market promotion of products was emphasized through cooperatives, public institutions and other marketing agencies and corporations. THANK YOU PAWAN PHULARA (353) PRIKSHIT LAMBA (354)