Small Scale Industry

10786 Words Dec 9th, 2010 44 Pages
SMALL SCALE INDUSTRY

INTRODUCTION The definition for small-scale industrial undertakings has changed over time. Initially they were classified into two categories- those using power with less than 50 employees and those not using power with the employee strength being more than 50 but less than 100. However the capital resources invested on plant and machinery buildings have been the primary criteria to differentiate the small-scale industries from the large and medium scale industries. An industrial unit can be categorized as a small- scale unit if it fulfils the capital investment limit fixed by the Government of India for the small- scale sector. As per the latest definition which is effective since December 21, 1999, for
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7.66 During the one year period i.e., 2000-01 Over 1999-2000, the number of SSI units is estimated to have increased by 1,58,000, production at current prices by Rs. 72,609 crore and at constant prices by Rs. 33,714 crore. Employment increased by 7,14,000 persons, while exports were higher by Rs. 5,778 crores. 7.67 According to projections made by the Ministry of Small Scale Industries during 2000-01, the SSI sector recorded growth in production of 8.09 per cent over the previous year. The small scale industries sector has recorded higher growth rate than the industrial sector as a whole (4.9 per cent during 2000-01). It contributed about 40 per cent towards the industrial production as a whole and 35 per cent of direct exports from the country. 7.68 The Government has been taking various measures from time to time in order to enhance The productivity, efficiency and competitiveness of the SSI sector. In pursuance of the comprehensive policy package announced last year, the major developments that have taken place in the SSI sector during 2001-02
THE SMALL SCALE INDUSTRIAL UDERTAKING An industrial undertaking in which the investment in plant and machinery, whether held on ownership terms or on lease/hire-purchase basis, does not exceed Rs.10 million
(Rs.1 crore) is regarded as a small scale undertaking. These