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Role of Small-Scale Industries in An Emerging Economy in India

The document discusses the significant role of small-scale industries (SSIs) in India's emerging economy, highlighting their contribution to employment, production, and GDP. It outlines government policies and support measures aimed at promoting SSIs, while also addressing challenges faced by these enterprises, such as access to finance and skilled labor. The Ministry of Micro, Small and Medium Enterprises plays a crucial role in facilitating the growth and development of this sector.

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Gaurav Singh
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0% found this document useful (0 votes)
17 views4 pages

Role of Small-Scale Industries in An Emerging Economy in India

The document discusses the significant role of small-scale industries (SSIs) in India's emerging economy, highlighting their contribution to employment, production, and GDP. It outlines government policies and support measures aimed at promoting SSIs, while also addressing challenges faced by these enterprises, such as access to finance and skilled labor. The Ministry of Micro, Small and Medium Enterprises plays a crucial role in facilitating the growth and development of this sector.

Uploaded by

Gaurav Singh
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© © All Rights Reserved
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Journal of Advances and Scholarly Researches in Allied Education

Vol. 15, Issue No. 9, October-2018, ISSN 2230-7540

Role of Small-Scale Industries in an Emerging


Economy in India

Ajit Singh*

M.Com. (UGC NET/JRF) Department of Commerce

Abstract – A critical element of the Indian economy since autonomy is the quick development of the
small scale industries. In the course of recent decades, progressive governments have encircled
strategies to ensure the interests of the small scale mechanical segment and encourage its fast
advancement. In compatibility of their arrangements, Governments have started different help measures
now and again, which incorporate reservation, amendment of speculation roofs, and modernization of
innovation, advertising help, monetary motivators and so forth.

Keywords: Small Scale Industry, Economy

-----------------------------------X----------------------------------

1. INTRODUCTION Small scale ventures are of exceptionally


uncommon significance in India. On the off chance
Small and medium undertakings have been that we need capital, we don't need labor, and we
accepting driving force in the improvement procedure should utilize this labor both to add to the
of the Government of India. The Nehruvian abundance of the nation and to lessen
Philosophy of industrialization has given significance joblessness", Jawaharlal Nehru said. Furthermore,
and understood the significance of small and small scale ventures stay away from provincial
medium ventures for the national advancement. The awkward nature and encourage decentralized
immature and creating nations are commonly improvement in different pieces of the nation,
commanded by agrarian economy and portrayed by including the remote regions, by viably using the
underemployment and rising unemployment1 . The locally accessible crude materials and different
industrialization in these economies is relied upon to assets, including work power.
fill double need of making roads for the assimilation
of abundance work and broadening of occupation. Small scale enterprises have developed as an
SMEs must expand the essential help and energetic and dynamic part of the Indian economy
compliment the advantageous impacts of that contributes around 40 percent of the absolute
Industrialization. The SMEs utilizes capital and work modern generation and more than 34 percent of
for creating economy. They can create a unit of yield the national fares. At present the Small Scale
with lesser expense of generation. For the most part Industrial part is giving work to more than 250 lakh
SMEs units are work concentrated and require smallr people. The chiefs of our economy are more than
measures of capital. In the capital rare and work mindful of the significance of the small scale
surplus economy like India the two perspectives for businesses as far as work potential, profitability,
example more yield and greater business are use of indigenous assets, adjusted provincial
similarly significant and in this setting Small and advancement and so forth. In the expressions of
medium undertakings become extremely critical. Dr. Manmohan Singh, "the way to our achievement
of assembling in the small scale part". The small
The SMEs utilizes capital and work for creating scale area is significant for its commitment to GDP
economy and they can deliver a unit of yield with as well as for its outstanding exhibition in fares and
lesser capital however more work than the bigger in creating business.
units. In the capital rare and work surplus economy
like India the two perspectives for example more 2. LITERATURE REVIEW
yield and greater work are similarly significant.
www.ignited.in

Mathew. J, Mainimala (2006) A noteworthy


The small scale ventures accept extraordinary segment of the economy comprises of the
significance in moderating the issue of joblessness, independently employed who are both
in encouraging the development of the modern breadwinners and shareowners. The offer of the
division and in guaranteeing all round advancement ownership and association types of associations in
of the economy. the national salary is 35 percent, that of corporate

571
Ajit Singh*
Role of Small-Scale Industries in an Emerging Economy in India

around 15 percent, of government around 25 investigation of sending out and non-trading units in
percent, and horticulture around 25 percent. Haryana) had reasoned that SSI units are at a
Consolidate agribusiness and the independently creating stage and more development is required
employed in industry and administration areas, however a few issues should be tackled
almost 60 percent of the national salary is created by Underutilization of introduced limit The showcasing
the independently employed and does not fall in the exercises to be quality for selling SSI fabricated
worldview of either private enterprise or communism. items.

Gupta and Sharma, (1996) India has generally 3. MINISTRY OF MICRO, SMALL AND
dependably had a dynamic and focused SSI. Indeed, MEDIUM ENTERPRISES
even after the beginning of industrialization, British
makers of materials discovered handmade Indian The Ministry of Micro, Small and Medium
materials such a risk, that they campaigned hard to Enterprises, a part of the Government of India, is the
have its import restricted, prevailing in the late pinnacle body for the detailing and organization of
eighteenth century. standards, guidelines and laws identifying with
smaller scale, small and medium endeavors in India.
Nyati, (1988) during pre-financial advancement The Minister of Micro, Small and Medium Enterprises
period a wide assortment of motivating forces, is Nitin Gadkari since 31 May 2019.
concessions and institutional offices were stretched
out for the improvement of SSIs. Be that as it may, The insights given by the yearly reports of Ministry
these communist limited time approach measures, of Small and Medium Enterprises (MSME)
much of the time brought about security of powerless demonstrates an ascent in the arrangement sum
units as opposed to the free development of units spent on the khadi division from ₹194.27 crore to
under aggressive business condition. ₹1454 crore, and non-plan sums from ₹43.7 crore
to ₹229.1 crore, in the period from 1994–95 to
Srinivas K T, (2013) has contemplated the exhibition 2014–2015. The intrigue appropriations to khadi
of smaller scale, small and medium undertakings and foundations expanded from ₹9.63 crore to ₹31.45
their commitment in India's monetary development crore in this period.[2]
and presumed that MSMEs assume a fundamental
job in the comprehensive development of Indian The Ministry of Small Scale Industries and Agro
economy. and Rural Industries (SSI&ARI) was made in
October 1999. In September 2001, the service was
Ahluwalia, I.J., (1985) in International Marketing part into the Ministry of Small Scale Industries
under the part "Sending out not only for private (SSI) and the Ministry of Agro and Rural Industries
venture demonstrate the issues for small exporter (ARI).
and found that A generally huge residential market
and absence of introduction to different societies, The President of India changed the Government of
making the choice of business sectors and India (Allocation of Business) Rules, 1961, under
recognizable proof of clients in abroad troublesome. the warning dated 9 May 2007. As per this
The absence of administrative abilities and general alteration, the ARI and SSI were converted into a
asset Controlling the remote activity, channel, solitary service, the current MSME.
arrangement and physical circulation,
Service of Small Scale Industries
Distinctive security and quality standard
The now-ancient SSI was entrusted with the
Sumanjeet Singh and Minakshi Paliwal (2017) in advancement of smaller scale and small ventures
"releasing the development capability of Indian (MSEs). The Small Industries Development
MSME division" had presumed that without a doubt Organization (SIDO) was under the control of the
the MSME segment has colossal potential for service, similar to the National Small Industries
creating imaginative business enterprise and Corporation Limited (NSIC) open area undertaking
monstrous work yet a few issues defying MSMEs are (PSU).
Lack of access to fund
The Small Industries Development Organization
Absence of access to enter remote market
SIDO was built up in 1954 based on the
Absence of gifted labor suggestions of the Ford Foundation. It has more
than 60 workplaces and 21 independent bodies
www.ignited.in

Absence of solid and stable framework under its administration. These self-governing
bodies incorporate Tool Rooms, Training
Ineffectual advertising system Institutions and Project-cum-Process Development
Centers.
Dr. Reetu Sharma (2012) in "issues and prospects of
small scale mechanical units (a contextual

572
Ajit Singh*
Journal of Advances and Scholarly Researches in Allied Education
Vol. 15, Issue No. 9, October-2018, ISSN 2230-7540

Administrations given by SIDO to the SMEs include:

• Facilities for testing, tormenting, preparing


for enterprise improvement

• Preparation of undertaking and item profiles

• Technical and administrative consultancy

• Assistance for fares

• Pollution and vitality reviews

SIDO additionally gives monetary data benefits and


exhorts Government in approach definition for the
advancement and improvement of SSIs. The field The Micro, Small and Medium Enterprises (MSME)
workplaces additionally fill in as successful area has risen as a very energetic and dynamic
connections between the Central and State segment of the Indian economy in the course of the
Governments. most recent five decades. It contributes essentially
in the financial and social improvement of the
4. MICRO, SMALL AND MEDIUM nation by encouraging business and producing
ENTERPRISES biggest work openings at similarly lower capital
expense, next just to horticulture. MSMEs are
According to the National Sample Survey (NSS) 73rd integral to enormous businesses as subordinate
round, led by National Sample Survey Office, units and this part contributes altogether in the
Ministry of Statistics and Program Implementation comprehensive modern advancement of the nation.
during the period 2015-16, there were 633.88 lakh The MSMEs are enlarging their area crosswise
unincorporated non-farming MSMEs in the nation over divisions of the economy, creating various
occupied with various financial exercises (196.64 scopes of items and administrations to satisfy
lakh in Manufacturing, 230.35 lakh in Trade and needs of household just as worldwide markets.
206.84 lakh in Other Services and 0.03 lakh in Non-
hostage Electricity Generation and Transmission,) CONCLUSION
barring the MSMEs enlisted under
Small scale enterprises assume an indispensable
(a) Sections 2m(i) and 2m(ii) of the Factories job in the improvement of the national economy.
Act, 1948, India is confronting the issues of joblessness and
lack of capital assets. "The implicit qualities of
(b) Companies Act, 1956 and (c) Construction small scale ventures, for example, generally small
exercises falling under Section F of National size of beginning capital necessity, business and
Industrial Classification (NIC) 2008. work age potential, and so on., render them the
perfect for adjusted and decentralized
Table and Figure demonstrates the dissemination of improvement." The business produced in small
MSMEs action class astute scale manufacturing plant units is multiple times
that of enormous foundations for a speculation.
Table: Estimated Number of MSMEs (Activity
Wise) REFERENCES

1. Srinivas K. T. (2013). Competitiveness of


Small-Scale Industries of India,
Conference on Global Competition &
Competitiveness of Indian Corporate.

2. Nyati, K. (1988). Problems of pollution and


its control in small-scale industries.
www.ignited.in

3. Gupta, M. & Sharma, K. (1996, third


quarter). Environmental operations
management: An opportunity for
improvement. Production and Inventory
Management Journal, pp. 40-46.

573
Ajit Singh*
Role of Small-Scale Industries in an Emerging Economy in India

4. Manimala J. Mathew (2006).


Entrepreneurship Education and Training in
India: Global Education, University of Essex,
Scotland.

5. Ahluwalia, I.J. (1985). Industrial Growth in


India: Stagnation Since the Mid- Sixties
(London, Oxford University Press).

6. Sumanjeet Singh and MinakshiPaliwal


(2017). Economic Development in India; The
role of Individual Enterprises, Asia-pacific
Development Journal Vol 12. No 2.

7. Dr.Reetu Sharma (2012). How is


Entrepreneurship good for Economic
Growth?, Progress Foundation, Zurich:
Switzerland.

8. https://msme.gov.in/sites/default/files/MSME-
AR-2017-18-Eng.pdf

9. https://en.wikipedia.org/

10. https://shodhganga.inflibnet.ac.in/simple-
search?query=commerce&go=

Corresponding Author

Ajit Singh*

M.Com. (UGC NET/JRF) Department of Commerce

ajitinshan@gmail.com

www.ignited.in

574
Ajit Singh*

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