EXPORT PROSPECTS FOR SMALL SCALE INDUSTRIES

INDIAN PERSPECTIVE
PRESENTED TO: MS. ADITI PRESENTED BY: SWATI MBA II YEAR

EXPORT CONTRIBUITION
SSI Sector plays a major role in India's present export

performance.
60%-65% of the Indian Exports is being contributed by SSI

Sector.
Direct exports from the SSI Sector account for nearly 45%

of total exports. The number of small scale units that undertake direct exports would be more than 9000.

It is estimated that small scale industrial units contribute

around 20% to exports indirectly. This takes place through merchant exporters, trading houses and export houses.

Table: I Growth pattern in the number of establishments of SSIs (in lakhs) Year 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 No. of SSIs 19.48 20.82 22.46 23.88 25.71 26.58 28.03 29.44 30.8 32.12 33.7 34.6 35.1 38.6 Growth rate 6.86 6.88 7.88 6.32 7.66 3.38 5.46 5.03 4.62 4.29 4.92 2.67 1.45 9.97

Source: Ministry of SSIs Annual Reports of SIDO*,Govt. of India New Delhi *(Small Industries Development Organization)

NATURE OF SBU( SMALL BUSINESS UNITS) IN INDIA In India ,village & small industries sector consists of both the traditional & modern small industries . This sector has 8 sub group which are
1. 2. 3. 4. 5. 6. 7. 8.

Handlooms Handicraft Coir Sericulture Khadi Small scale industries Village Industries Power looms

The Details of the items reserved for SSIs are given below:

Food and allied industries Wood and wood products Paper products Plastic products Chemicals and chemical products Natural essential oils Organic chemicals, drugs and drug intermediates Other chemicals and chemical products Glass and ceramics

Mechanical engineering excluding transport equipment Electrical machines, appliances & apparatus Electronic equipments and components Transport equipment boats and truck body building Auto parts components and ancillaries and garage equipments Bicycle parts, tricycles and perambulators Miscellaneous transport equipment Sports goods Stationery items Others

Indian Textile industry - important from perspective of overall economy

Total market size (2004-05): USD 38 bn Domestic market ~ USD 25 bn Exports ~ USD 13 bn Strong contribution to Indian Economy 14% contribution to industrial production 4% contribution to GDP 16% contribution to export earnings Direct employment to more than 35 million people Industry functions in the form of clusters (roughly 70 in number) across

India, producing 80% of the countrys total textile

Sector is diverse, with the hand-spun and hand woven sector at one end of

the spectrum, and the capital intensive, sophisticated mill sector at the other

India has a strong base in raw materials

Cotton dominates the industry

Nearly 56% of yarn produced is made of cotton Country produces nearly 23 varieties of cotton India is the second largest player in the world cotton trade Largest producer of jute Second largest producer of silk Third largest producer of cotton, accounting for nearly 16% of global production. Third largest producer of cellulosic fibre/yarn Fifth largest producer of synthetic fibres/yarn Eleventh largest producer of wool

Indias position is strong vis--vis other countries in most raw materials

Abundant availability of raw material is one of the key advantages of the Indian textile industry

EXPORTOF FLORICULTURE IN INDIA

Major flowers: 1. Roses 2. jasmine 3. Tuberose 4. Carnation 5. Gerbera 6. Crossandra 7. Anthurium 8. Marigold 9. Chrysanthemum 10.Gladiolus 11.Orchids 12.Lilly

cut flowers - fresh and dried dominate floriculture export trade

of India. The cut flowers are exported in two forms: Fresh form for bouquets and ornamental purposes. Dried, dyed, bleached etc. for other purposes The information of export of fresh cut flowers in respect of quantities values and the countries to which exported is given in Total quantity exported was valued at Rs.25.12 crores.
The biggest export market was Japan importing 19.65% cut

flower followed by USA 10.44%, Germany (7.96%), UK (7.40%), Australia (5.43%) and Netherlands (4.67%).

The fresh cut flowers are exported to 54 countries, but

nearly 68% are exported to 10 countries . Unit value revealed that the highest price was paid by

Netherlands (Rs.376.62/kg), Japan (Rs.155.92/kg) Singapore (Rs.141.49/kg).

The overall average price received was Rs.92.26/kg. The

price offered by USA was quite low (Rs. 51.33/kg India is the largest supplier of roses to Japan and Australia The export of roses for the coming Valentine's Day (February 14) is expected to be about Rs. 35 corer, estimated to be a 30% rise over last year.