we are talking about the small scale industries and their financial institutions and govt. support.problems of small scale industries and business .

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2. 2
.
Policy of the government
Regarding Small
Industries and Providing
Guidance, Assistance to
Small Scale Industries,
General Problems of
Small Scale Industries
In India

3. 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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4.  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”.
4

5. SMALL SCLAE INDUSTRIES PERIOD
SSI PRE-
INDEPENDANCE
SSI POST
INDEPENDANCE
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6.  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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7. 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 SSI’s was Rs 7.5 lakhs
and for ancillaries it was Rs 10 lakhs. After the Industrial Policy, the
ceiling for investment for SSI’s was raised to Rs 60 lakhs and Rs 70
lakhs for ancillaries .
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8. 8

9. VILLAGE AND
COTTAGE
INDUSTRIES
HANDLOOMS &
HANDICRAFTS
9

10. Person or firm that buys large
quantity of goods from various
producers or vendors, warehouses
them, and resells to retailers.
A business or person that sells goods t
o the consumer, as opposed to
a wholesaler or supplier, who normally
sell their goods to another business.
Commission agents thrive in a variety
of businesses. International agents
work in the export/import arena.
Insurance and real estate agents also
often work on a sales-based
commission.
10

11. PROFESSIONAL
SERVICES
COMMISSION
SERVICES
PERSONAL
SERVICES
•(LAW,MEDICINE,ACCOUNTING )
•(TRANSPORT,
WAREHOUSING,REPAIR SHOP)
•(FASHION SHOPS, DRY
CLEANING )
11

12.  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
12

13. PERFORMANCE
OF
SMALL SCALE
INDUSTRIES
IN
INDIA
13

14.  It contributes
almost 40% of the
gross industrial
value added in the
Indian economy.
 It has been
estimated that a
million Rs. of
investment in fixed
assets in the small
scale sector
produces 4.62
million.
0
50000
100000
150000
200000
250000
300000
Production (Rs. '000 crores) at
1993-94 prices
Production (Rs. 000'
crores) at 1993-94
prices
14

15. 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.
15

16. Tamil Nadu
(14.5%)
Maharashtra
(9.7%),
Uttar
Pradesh (9.5%)
West
Bengal (8.5%)
Gujarat (7.6%)
Karnataka
(6.7%)
Punjab (5.6%)
DATA REALISED BY SIDO
16

17.  SELF ACTUALISATION
 ECONOMIC INDEPENDENCE
 SELF IDENTIFICATION AND SOCIAL STATUS
 INCREASE CONFIDENCE
 SELF RESPECT
17

18.  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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20.  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 bycommerce ministryof india
20

21. S. NO PRODUCT GROUP MAIN DESTINATION
1 READYMADE GARMENT USA,WEST ASIA,NORTH AFRICA
2 SPORTS GOODS UK,USA,GERMANY
3 SPICES EAST ASIA, UNION ,NORTH AFRICA
4 LEATHER &LEATHER ITEMS GERMANY , UK, ITALY,USA,FRANCE
5 WOOL& WOOLEN KNITED GARMENT EUROPE,BANGLADESH ,JAPAN ,SHRI
LANKA , BHUTAN ,
6 PROCESSED FOOD ITEMS EUROPE,BANGLADESH ,JAPAN, USA
7 TABACCO AND TABACCO ITEMS EAST EUROPE
8 ELECTRONIC ITEM AND COMPUTER
SOFTWARE
USA , UK , HONGKONG UAE,JAPAN
9 CASHEW ITEM USA ,UK , JAPAN ,NEATHERLAND
10 MARIENE PRODUCT UK,USA,GERMANY
EUROPE,BANGLADESH
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22. 22

23. Role of governmentfor
promoting ssi
RESERVATION
POLICY
CONCESSION
IN CENTRAL
EXCISE
SALE TAX
EXEMPTION
SUPPLY OF
RAW
MATERIAL
FINACIAL
INCENTIVE
INDUSTRIAL
ESTATES
MARKETINF
ASSITANCE
TCO’S
SIDBI
PURCHASE
ASSITANCE
23

24. 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 2004-
05
24

25. 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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28.  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)
28

29.  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.
29

30. 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)
30

31. EMPLOYMENT
GENRATION
MEETS THE DEMAND
OF THE MARKET
SHARE IN NATIONAL
INCOME
SOCIAL ADVANTAGES
MAKE USE OF
INDUSTRIAL WASTE
REDUCES REGIONAL
DISPARITY
EXPORT PROMOTION
MOBILIZATION OF
LOCAL RESOURCES
ADVANTAGES
OF ESTABLISH
SSI
ADVANTAGES OF ESTABLISH SSI
31

32. INTERNAL
PROBLEMS
FAULTY
PLANNING
POOR PROJECT
IMPLEMENTATION
POOR
MANAGEMENT
INADEQUATE
FINACE
PROBLEMS
LABOUR
PROBLEMS
EXTERNAL
PROBLEMS
LOCATION
POWER
PROBLEMS
INPUT
MARKET
PROBLEMS
GOVT. POLICY
32

33. 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
33

34.  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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