Growth and Problem of Small Scale Industry

7012 Words Nov 29th, 2010 29 Pages
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Growth and Problem of small scale sectors

Submitted To : | DR . S. Gupta | Submitted by : | Abdul Hamid |

Small-Scale Industries of India

Introduction

The industrial policy Resolution of 1956, while emphasizing the role of cottage and small scale industries, stated: They provide immediate large scale employment, they offer a method of ensuring a more equitable distribution of National Income, and they facilitate an effective mobilization of capital and skill, which might otherwise remain unutilized.
A significant feature of the Indian economy since indecency is the rapid
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Source : All India report on functions and activities (1992-93), small industries development organization, department of small scale industry, Government of India, pp.4-16. | It is generally recognized, that the healthy expansion cottage and small scale sectors depends upon a number of factors, like the provision of raw materials, cheap power technological advances, and organized marketing of products.
In this connection, we may refer to the problems faced in the production, process of the small scale industries, the low capacity utilization of the small industries, the lack of technical and financial assistance, the availability of raw materials, for the production process and finally the formulation of industrial policy for the small sector.
Wisdom demands that efforts should be made to strengthen the SSI sector, rather than adopting a policy of neglect, or leaving it to the harsh forces of the stifle its growth.

Key role of Small scale industry in the Indian economic structure

India has traditionally always had a vibrant and competitive SSI. Even after the dawn of industrialization, British producers of textiles found handmade Indian textiles such a threat that they lobbied hard to have its import banned, succeeding in the late eightenth century (Gupta & Sharma, 1996). During pre-economic
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