Role played by small scale industries in India?

Answer 1

Role played by small scale industries in India?India has traditionally always had a very vibrant and competitive SSI. Even after the 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 eighteenth century (Gupta & Sharma, 1996).

During pre-economic liberalization period a wide variety of incentives, concessions and institutional facilities were extended for the development of SSIs. But these socialistic promotional policy measures, in many cases resulted in protection of weak units rather than the independent growth of units under competitive business environment (Nyati, 1988).

Such situation was continued up to the mid of 1991. Under the regime of economic liberalization, the focus was shifted from "protection" to "competitive promotion" (Raja & Rajashekar, 2002).

The public policy in India had been attaching lot of importance to village and SSI on many grounds such as, SSI being labor-intensive, helped to increase the volume of employment, particularly in rural areas, it is estimated that about 2 crore persons are engaged in India in these industries. The handloom industry alone employs 50 lakh people. They account for 6% of GDP, 95 % of all industrial units, and 34% of total exports. Around 39 lakh SSIs in India has emerged versatile producing over 8000 products, from traditional handicrafts to high-end technical instruments.

Generalizations are also difficult because though there are firms which are growing rapidly, there also exists 138,000 sick units within the sector in India. The contribution of SSI in India to national development was too little as compared to the contribution of SSI in other countries of the world. India's SSI shared 95 % of all establishments, 40 % of output, 45% of employment and 35 % of exports. But Taiwan ranked first with a share of 97% of establishments, 81 % of output, 7% of employment, 48 % of exports followed by Japan contributing highly with 99 % of establishments, 52 % of output, 72 % of employment and 13 % of exports (SIDBI Report, 2000).

Answer 2

these small scale industries help in increasing GDP of a country as these are mainly situated in backward areas and also provide employment.

Answer 3

examples of small scale industry