Professional Documents
Culture Documents
e4
Moder
nSmal
lBusi
nessEnt
erpr
ises
Cont
ent
s
Rol
eofSmal
lScal
eIndust
ri
es
I
mpactofGl
obal
i
zat
ionandWTOonSSI
s
Concept
sanddef
ini
ti
onsofSSI
Gov
ernmentpol
i
cyanddev
elopmentofsmal
lscal
esect
ori
nIndi
a
Gr
owt
handper
for
manceofSSIi
nIndi
a
Si
cknessi
nSSIsect
or
Pr
obl
emsf
orSSI
Anci
l
lar
yandt
inyi
ndust
ry(
def
ini
ti
ons)
.
Rol
eofSmal
lScal
eIndust
ri
es
SSIconst
it
utesav
eryi
mpor
tantsegmentoft
heI
ndi
aneconomy
.
SSIhaspr
omi
nentr
olei
nsoci
o-economi
ctr
ansf
ormat
ionoft
hecount
ry.
SSIaccountsf
or35per
centofi
ndustr
ial
product
ion,
40per
centofexpor
tsand
60percentemploy
mentoppor
tuni
ti
es.
I
mpor
tanceofSSI
:
Pr
ovi
dei
ncr
easedempl
oymentt
hroughl
abour-
int
ensi
vepr
ocess.
\
Requi
rel
owergest
ati
onper
iod.
Easyt
osetupi
nrur
alandbackwar
dar
eas.
Needsmal
l
/local
mar
ket
.
Encour
agegr
owt
hofl
ocal
ent
repr
eneur
shi
p
Cr
eat
eadecent
ral
i
zedpat
ter
nofowner
shi
p.
Fost
erdi
ver
sif
icat
ionofeconomi
cact
ivi
ti
es.
I
ntr
oducenewpr
oduct
spar
ti
cul
arl
ytocat
ert
olocal
needs.
I
nfl
uencet
hest
andar
dofl
i
vingofl
ocal
peopl
e.
Pr
ovi
deequi
tabl
edi
sper
sal
ofi
ndust
ri
est
hroughoutr
ural
andbackwar
dar
eas.
I
mpactofGl
obal
izat
iononSSIi
nIndi
a
Withglobalizat
ion, SSIsareexposedt osev erecompetitionbot hf r
om thelargescal
e
sectorandf rom MNCs.Thepoorgr owthr at eintheSSIsect ordur ingpost-
l
iberal
izati
onper i
odcanbeat tr
ibut
edt ov ariousfactor
ssuchasnewpol iciesofthe
governmentt owar dsliberal
izat
ionandgl obal i
zati
onwi thoutensur ingint
erestsor
pri
orit
yoft hesect or.Lefttothemer cyofl endinginsti
tutionsandpr omotional
agencieswhosemai nagendai stoser v
ebi gunitsandmul ti
nationals,
SSIsect or
s
havesuf f
ereddet eriorat
ioninthequalit
yofi tsoutput,
indust r
ial si
cknessand
ret
ardedgr owth.
TheproblemsofSSIsintheliber
alizedenv i
ronmentar emul ti
dimensional–delayi
n
i
mplement at
ionofproj
ects,i
nadequat eavailabi
l
ityoffinanceandcr editet
c.
Competit
ioninthedomest i
cmar kethasf ur
therintensi
f i
edwitht hearr
ival
of
mult
inati
onalcompaniesast her
est ri
cti
onsonf oreigndirectinvestmentswere
removed.
Tomeetthepresentaswellasfutur
erequi
rementsoftheSSIsectorandnat
ional
economysat
isfactor
il
y,pol
i
ciesandproj
ect
sf orSSIsect
orswil
lhavetobeeffect
ive
andgrowt
horiented.
Inor
dertoprot
ect,
suppor
tandpromotesmallent
erpr
ises,anumberofprot
ect
ive
andpromoti
onalmeasur
eshavebeenunder
takenbycentralgov
ernment.
Thepr
omot
ional
measur
esar
e:
I
ndust
ri
alext
ensi
onser
vices
I
nst
it
uti
onal
suppor
tinr
espectofcr
edi
tfaci
l
iti
es
Pr
ovi
si
onofdev
elopedsi
tesf
orconst
ruct
ionofsheds
Pr
ovi
si
onoft
rai
ningf
aci
l
iti
es
Suppl
yofmachi
ner
yonhi
repur
chaset
erms
Assi
stancef
ormar
ket
ingandt
radi
ng
I
mpactofWor
ldTr
adeOr
gani
zat
ion(
WTO)onSSI
Itwasestabl
i y1st1995andheadquar
shedonJanuar t
ersatGenev
a.
Itservesast hel
egalandinst
it
uti
onalfoundat
ionofthemul t
il
ater
alt
radi
ng
system.
Ithas134members.
I
mpactofWTOonSSI
s:
Obj
ect
ivesofWTO;
Makeopt i
maluseofworldsresour
ces.
Encouragesustai
nabl
edev el
opmentandalsotoensur
eenv i
ronmentcareand
devel
opmentalacti
vi
ti
es.
Eff
ortsshoul
dbemadet hatpoorcountri
esaswel
lasdevel
opi
ngcountri
eshave
ashareinthegrowthi
nthewor l
dtrade.
Funct
ionsofWTO:
Adv
ant
agesorpr
osofWTO:
Di
sadv
ant
agesofWTO:
WTOhasoft
enbeencri
ti
ciz
edforignor
ingthepl
ightoft
hedevel
opi
ngwor
ld.
I
tisar
guedt
hebenef
it
soff r
eetr
adeismost l
ytothedevel
opedwor
ld.
Conceptsanddefini
ti
onsofSSI
Asmal lscaleindust
ry(SSI)i
sanindustr
ialundert
aki
ngi
nwhi chthei
nvestmentinfi
xed
assetsinpl ant& machinery,whetherheldonowner shi
pt erm oronl easeorhire
purchase,doesnotexceedRs.100lakhasonMar ch31,
2001.However,t
hisinv
estment
l
imitisvari
edbyt heGovernmentfr
om timet oti
me.
Ti
nyUnit
:theinvestmentli
miti
nplantandmachi
ner
yinr
espectoft
inyent
erpr
isesi
sRs.
25Lakhi
rrespecti
veoflocat
ionofuni
t.
Smal l
-scal
eservicesandBusinessEnt
erpri
ses(SSSBEs)
:Indust
ryrel
atedser
vicesand
businessenter
prisewithafixedasset
s,excludi
nglandandbuil
ding,uptoRs10l akh,
i
rrespecti
veoflocati
onasonMar ch31,2001.
Gov
ernmentpol
i
cyanddev
elopmentofsmal
lscal
esect
ori
nIndi
a
Variousmeasur estakenbycentralandstategovernments,forthedevelopment
ofSSIi ncludespr oductreser
vati
ons,fi
scalconcessi
ons,mar keti
ngassistance,
exportsetc.
Manyi nstit
utionsnamel yNSIC,SIDOetchavebeen est abli
shedbyGov ernment
ofIndiatopr omoteSSI s.
Admi ni
strati
velySSIsectorisdi
videdint
osevenindustr
ygr oups:
Sl Tr
adi
tionSect
or Sl Moder
nSect
or
n no
o
1 Handicraf
ts 6 Powerl
ooms
2 Handlooms 7 Resi
dualsmal
l
-scal
e
I
ndustr
ies
3 Khadi,
vil
lageand
cot
tage
i
ndustri
es
4 coi
r
5 Seri
cul
ture
Thedef
ini
ti
onofSSIi
sbasedlar
gel
yoncumul
ati
veamountofi
nvest
menti
npl
antand
machi
neryandi
nvest
mentli
miti
sasgi
venint
abl
ebelow
I
ndust
ri
alPol
icy1991:
Pol
i
cypr
oposedbyGov
ernmentofI
ndi
a.
Emphasi
sonpr
omot
ionandst
rengt
heni
ngofsmal
l
.Ti
nyandv
il
lage
i
ndust
ri
es.
Policyalsoproposedtoencour
ageandsupporti ndustr
yassociat
ionst
o
establi
shcounselingandcommont est
ingfaci
li
ties,andtechni
calup
gradationaimedatimprovi
ngproducti
vi
ty,
effi
ciencyandcost
effecti
venessinSSIsector
.
Pol
icyI
nit
iat
ivessi
nce1999:
Anewmi ni
str
yofSSIandAgroandRuralI
ndustr
ieswascreat
edonOct
ober
14,
1999.Themini
str
yannouncedanagendaformill
enni
um pol
icy
.
Anewcr edi
tInsur
anceSchemewasannouncedinBudget1999-
2000forSSI
secur
it
ytobanksandt oi
mprovet
hefl
owofi nv
estmentcredi
ttoSSIuni
ts.
Anati
onal
programmetoboostrurali
ndustr
ial
izat
ionhasbeenannounced,
wit
h
amissi
ontosetup100rur
alcl
usterseveryyear.
Gr
owt
handper
for
manceofSSIi
nIndi
a
Si
ncebegi
nni
ngofplanni
ngin1950-
51,
effor
tshavebeenmadef
ordev
elopment
ofSSIi
nvi
ewofthei
rpotent
ial
forcr
eat
ingemploy
ment .
Per
for
manceofSSIsectori
nIndi
adur
ing1980s,
1990sandov
eral
lper
for
mance
ar
egiveni
nthet
ablesbelow.
Thegrowthrat
einemploy
menti
nSSIsect
orhadbeenondecl
i
ne.Anal
lti
medecr
easewas
seenbetween1995-
2000.
Si
cknessi
nSSIsect
or
Pr
obl
emsi
nSSI