Small Scale Industries(SSI)

INTRODUCTION DEFINITION EMERGENCE OF SSI SCOPE OF SSI WHY WE NEED SSI? PERFORMANCE OF SSI IN INDIA EXPORT ORIENTED SSI UNITS STEPS IN SETTING UP SSI ROLE OF GOVT.FOR PROMOTING SSI COMMERCIAL BANK SERVICES AND PROMOTING SSI ADVANTAGES OF SSI PROBLEM FACE BY SSI SMALL BUSINESS SERVES AS A SEED BED FOR LARGE BUSINESS CONCLUSION
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SSI means small scale industries, which is an industrial undertaking with the investment not exceeding Rs.100 lakhs in plant and machinery. In cases of auxiliary industries the investment ceiling on plant and machinery is also Rs.100 lakhs.
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ACCORDING TO FISCAL COMMISSION -1950: A UNIT OPRATING WITH HIRED LABOUR , USUALLY 10 TO 50 HANDS .

ACCORDING TO SSI BOARD -1955: A UNIT EMPLOYING LESS THAN 50 PERSONS IF POWER AND LAESS THAN 100 PERSONS WITHOUT THE USE OF POWER AND WITH A CAPITAL INVESTMENT RUPEES 5 LAKH.

SMALL SCLAE INDUSTRIES PERIOD

SSI PREINDEPENDANCE

SSI POST INDEPENDANCE

Before Independence, the present small scale industry was meant to denote the village and the urban cottage industry. This group included a variety of industries ranging from manufacturing of Iron safes, locks, carpets, marble jigs, baskets, hand-loom cloth and the like. In fact, at that time the term cottage and Small scale industries was used in juxtaposition to large scale industries, which were established under the British patronage. They received encouragement and support during the freedom movement. The small scale industries found a prominent place in the economic programme envisaged by the Indian National Congress.
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After 1947 Jawaharlal Nehru maintained separate entities of small scale industries. He was of the view that a small industry was the middle sector and it would overlap both the cottage and the large industries. 1977 industrial Policy The basic policy support of SSI sector had its roots in the Industrial Policy Resolution 1977, laid emphasis on reservation of items. The reservation economically viable and technologically feasible products to be exclusively manufactured by small scale industry began with a list of 47 items which was gradually extended to too many products. At Present 812 items are in the reserved list.

The limit on the fixed capital investment for SSIs was Rs 7.5 lakhs and for ancillaries it was Rs 10 lakhs. After the Industrial Policy, the ceiling for investment for SSIs was raised to Rs 60 lakhs and Rs 70 lakhs for ancillaries .
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FOR EMPLOYMENT GENRATION FOR BALANCE REGIONAL GROWTH FOR MOBILISATION OF LOCAL RESOURCES FOR EXPORT PROMOTION FOR CONSUMER SURPLUS FOR DEVELOPMENT OF ENTERPRENEURSHIP FOR LARGE SCALE EMPLOYMENT WITH LOW INVESTMENT FOR ATTAINING SELF RELIANCE AND SELF DEPENDANCE FOR ENSURING EQUAL DISTRIBUTION OF INCOME AND WEALTH

PERFORMANCE OF SMALL SCALE INDUSTRIES IN INDIA

It contributes almost 40% of the gross industrial value added in the Indian economy.

Production (Rs. '000 crores) at 1993-94 prices

300000 250000 200000 150000 100000

It has been estimated that a million Rs. of investment in fixed assets in the small scale sector produces 4.62 million.

Production (Rs. 000' crores) at 1993-94 prices

50000
0

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Rural
Non-metallic products contributed 22.7% to employment generated in rural areas. Food Products accounted for 21.1%, Wood Products and Chemicals and chemical products shared between them 17.5%. Urban As for urban areas, Food Products and Metal Products almost equally shared 22.8% of employment. Machinery parts except electrical, Non-metallic mineral products, and Chemicals & chemical products between them accounted for 26.2% of employment.

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Punjab (5.6%)

Tamil Nadu (14.5%)

Karnataka (6.7%)

Maharashtra (9.7%),

Uttar
Gujarat (7.6%) Pradesh (9.5%)

West Bengal (8.5%)

DATA REALISED BY SIDO

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SELF ACTUALISATION ECONOMIC INDEPENDENCE SELF IDENTIFICATION AND SOCIAL STATUS INCREASE CONFIDENCE SELF RESPECT

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PSIEC Ltd. helps creative and skillful artists in Punjab by selling their handicrafts in the Showrooms at various places in India. It owns a chain of emporia which is famously called Phulkari in the major cities of Punjab (Amritsar, Ludhiana, Jalandhar, Patiala), Chandigarh, Delhi and Kolkata. Phulkari Showrooms are a home to the best of the handicrafts in the world. Visit any Showroom near you and you will be amazed at the creativity in everything they make- carpets, furniture, textiles and many household items like crockery

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SSI Sector plays a major role in India's present export performance.

This takes place through merchant exporters, trading houses and export houses. They may also be in the form of export orders from large units or the production of parts and components for use for finished exportable goods. The product groups where the SSI sector dominates in exports, are sports goods, readymade garments, woolen garments and knitwear, plastic products, processed food and leather products. SSI Sector contributes about 45%-50% of the Indian Exports. Data realised by commerce ministry of india

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S. NO 1 2 3 4

PRODUCT GROUP

MAIN DESTINATION

READYMADE GARMENT SPORTS GOODS SPICES LEATHER &LEATHER ITEMS

USA,WEST ASIA,NORTH AFRICA UK,USA,GERMANY EAST ASIA, UNION ,NORTH AFRICA GERMANY , UK, ITALY,USA,FRANCE

WOOL& WOOLEN KNITED GARMENT

PROCESSED FOOD ITEMS TABACCO AND TABACCO ITEMS ELECTRONIC ITEM AND COMPUTER SOFTWARE CASHEW ITEM MARIENE PRODUCT

6 7 8

EUROPE,BANGLADESH ,JAPAN ,SHRI LANKA , BHUTAN , EUROPE,BANGLADESH ,JAPAN, USA

EAST EUROPE USA , UK , HONGKONG UAE,JAPAN USA ,UK , JAPAN ,NEATHERLAND UK,USA,GERMANY EUROPE,BANGLADESH
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PRELIMINARY STAGE SCANNING OF BUSINESS ENVIROMENT SELECTION OF IDEA DECIDING ORGANISATIONAL STRUCTUER PROJECT APPRAISAL SELECTION OF ILOCATION AND SITE IMPLIMENTATION STAGE STATUTORY LICENCES ARANGEMENT OF FINANCE POWER AND WATER CONNECTION RECRUITMENT OF PERSONNEL AND TRAINING RAW MATERIAL PRECURMENT MARKETING AND PROFIT GENRATION

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RESERVATION POLICY

PURCHASE ASSITANCE

CONCESSION IN CENTRAL EXCISE

SIDBI

SALE TAX EXEMPTION

Role of government for promoting ssi TCOS SUPPLY OF RAW MATERIAL

MARKETINF ASSITANCE INDUSTRIAL ESTATES

FINACIAL INCENTIVE

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INDUSTRIAL POLICY RESOLUTION 1948

INDUSTRIAL POLICY RESOLUTION 1956

INDUSTRIAL POLICY RESOLUTION 1977

INDUSTRIAL POLICY RESOLUTION 1991

INDUSTRIAL POLICY PACKAGE FOR SSI 2001-02

INDUSTRIAL POLICY ON SSIS 200405

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Out of 836 items reserved in 1989,39 items were dereserved in four phases viz.,

15 items in 1997 9 items on 1999 15 item on 2001 51 item were reserved in 2002, 75 item in 2003 and 85 items in 2004, 108 in March 2005 and 180 in May 2006.
Now 298 items stand reserved for this sector.
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LOAN UPTO RS 5 LAKH TO ALL SSI UNITS WAS ANNOUCED BY RBI IN YEAR 2000.LATER IN 2002 THE LOAN LIMIT WAS INCREASE TO RS 15 LAKH. (WITOUT TAKING ANY COLLATERAL SECURITY )

OPEN ATLEAST ONE BRANCE IN EVERY DISTRICT WHERE SSI UNITS HAVE CLUSTER (417 SPECIAL;ISED BRANCES OPRATING IN THE COUNTRY AT THE END OF MARCH 2006)

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RBI ISSUED DETAILED GUIDELINES TO SCHEDULED COMMERCIAL BANK FOR TIMELY ASSISTANCE TO POTENTIALLY VIABLE SSI UNITS AT REDUCED RATE IN 2002.

RBI ADVISED SOFT LOAN ASSISTANCE TO WOMEN ENTREPRENEURS BESIDE USUAL TERM LOAN IN SSI, TINY AND SERVICE TO PROMOTE WOMEN ENTREPRENEURS.

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NATIONAL SMALL INDUSTRIES CORPORATION LTD. (NSIC) SMALL INDUSTRIES DEVELOPMENT ORGANIZATION (SIDO) SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI) SMALL INDUSTRIES SERVICE INSTITUTE (SISI) SMALL INDUSTRIES DEVELOPMENT CORPORATION (SIDC) TECHNICAL CONSULTANC ORGANISATION (TCOs)
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ADVANTAGES OF ESTABLISH SSI

EMPLOYMENT GENRATION

MAKE USE OF INDUSTRIAL WASTE

MEETS THE DEMAND OF THE MARKET

ADVANTAGES OF ESTABLISH SSI

REDUCES REGIONAL DISPARITY

SHARE IN NATIONAL INCOME

EXPORT PROMOTION

SOCIAL ADVANTAGES

MOBILIZATION OF LOCAL RESOURCES 27

INTERNAL PROBLEMS
FAULTY PLANNING

EXTERNAL PROBLEMS

LOCATION

POOR PROJECT IMPLEMENTATION

POWER PROBLEMS

POOR MANAGEMENT

INPUT

INADEQUATE FINACE PROBLEMS

MARKET PROBLEMS

LABOUR PROBLEMS

GOVT. POLICY

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SEED BED REFERS TO PREPARING THE SOIL FOR SOWING OF SEEDS FOR A GOOD CROP. AS IT PROVIDES CONDUCIVE CONDITIONS FOR THE DEVLOPMENT AND GROWTH OF ENTREPRENEURS

E.g:-AMUL,TOPS,VARDHMAAN, HIMALYA.PVT.LTD
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TO SUM UP WE CAN SAY THAT SSI SERVES AS A SEED BED OF ENTREPRENEURISHIP AS IT PROVIDES CONDUCIVE CONDITIONS FOR THE DEVLOPMENT AND GROWTH OF ENTREPRENEURS . SMALL ENTREPRISES REQUIER LOW INVESTMENT AND SIMPLE TECHNOLOGY AND USE LOCAL RESOURCES TO MEET LOCAL DEMANDS THROUGH PERSONAL CONTACTS.
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