DOI Prefix : 10.9780 | Journal DOI : 10.9780/22307850
Scroll to Top

Volume : III, Issue : VI, July - 2013

Growth And Structure Of Small Scale Industries In India

J. Sreenivasulu , S. RathnaKumari

DOI : 10.9780/22307850, Published By : Laxmi Book Publication

Abstract :

The small scale sector plays a very important role in the socio- economic development of the country. It has significantly contributed to the overall growth in terms of the Gross Domestic Product (GDP) employment generation and exports. It contributes almost 40% of the gross industrial value added in the Indian economy and has been recognized as one of the most appropriate means of developing the industrial economy of the backward countries. Small scale industries facilitate the tapping of resources including entrepreneurship, capital, labour and raw materials. They can mobilize rural savings which may otherwise remain idle or may be spent on luxuries or channeled into non productive ventures. The development of small scale sector has been important in India because the small scale units requires less capital outlay and at the same time provides more employment than the large scale sector. A small unit does not require highly sophisticated technology. It can therefore, be useful in backward areas where the people have yet to be trained to meet the challenge of sophisticated technology.The small scale industry has been given priority to generate more employment opportunities and to increase the income generation for bringing a transition in the development of the economy. It has also been pursued to promote the entrepreneurial talents to utilize local resources and factor endowments for increasing the output to meet the requirements for proving the quality of life of the people. The pursuit of economic liberalization and that of the industrial policy reforms envisages the technological capabilities and competitiveness. Institutional agencies have been setup for providing technical, infra-structural, financial and other services, and promotional measures providing the fiscal and financial concessions, subsidies, reservation of the products and priority in credit allocation have been adopted to augment the development of the small scale industrial units. For establishing small scale industries the known new capital structure, employment generation, location the industrial belt and other aspects of Industrial establishment are a must for any prospective entrepreneurs. There seems to be no other go except establishing small scale industries where attempt would necessarily provide the opportunity for the optimum utilization of local resources to serve the local needs.The large scale industry is urban based. It has resulted in the neglect of agriculture and industry in the rural areas Small Scale Industrial development is a means of reducing the prevailing imbalances. It helps in accelerating process of overall development of the state.

Keywords :


Article :


Cite This Article :

J. Sreenivasulu , S. RathnaKumari, (2013). Growth And Structure Of Small Scale Industries In India. Indian Streams Research Journal, Vol. III, Issue. VI, DOI : 10.9780/22307850, http://oldisrj.lbp.world/UploadedData/2646.pdf

References :

  1. 1.Government of India, Second Five Years Plan, Planning Commission, 1955-56 to 1960-61, New Delhi. 2.Government of India, Third Five Year Plan, Planning Commission, 1960-61 to 1965-66, New Delhi. 3.Government of India, Fourth Five Year Plan, Planning Commission, New Delhi. 4.Government of India, Sixth Five Year Plan, Planning Commission, 1980-85 and Fifth Plan (draft) 1974-79, New Delhi. 5.Government of India, Sixth Five Year Plan, Planning Commission, 1980-85, New Delhi. 6.Ibid., p.188. 7.Government of India, Seventh Five Year Plan, Planning Commission,1985-90, New Delhi. 8.Government of India, Seventh Five Year Plan, Planning Commission, 1985-90, pp.99-111. 9.Government of India, Eighth Five Year Plan, Planning Commission, 1992-97, New Delhi, p.132-134. 10.Government of India, Ninth & Tenth Five Year Plan, Planning Commission, 1997-2002, New Delhi. 11.Government of India, Tenth Five Year Plan, Planning Commission, 2002-2007, New Delhi. 12.Ibid, pp.49-55. 13.Small Industry Development Organization, Annual Reports, 1988-89, p.18. 14.Government of India, Ministry of Small Scale Industries, New Delhi, 2002, pp.53-54. 15.Dr.K.Kamala Kannan and Dr.N.Narnasivayam “Incentives for Small Scale Industries”, Third Concept, February 2007, p.30. 16.SIDO Annual Report, 2006-2007, www.smallindustries.com 17.Hand Book of Industrial Policy of Statistics 2003-05 and 2010-11 Development of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India, New Delhi. 18.“Special Group of Targeting Ten Million Employment Opportunities Per Year”, Planning Commission, Government of India, New Delhi, May 2002, p.60. 19.V.S.Varshyneya, “Bank Nationalization and After”, Yojana, 1986, July 16-31, p.4. . 20.P.D.Ojha, “Banking and Economic Development in India: Problems and Prospects”, Reserve Bank of India Bulletin, Jan, 1987, p.14. 21.Report of the Study Group to Frame Guideline for Follow-up of Bank Credit, Bombay, Reserve Bank of India, 1975. 22.Ibid., p.69. 23.Report of the Working Group to Review the System of Cash Credit, Bombay, Reserve Bank of India, 1979, p.1. 24.Reserve Bank of India Bulletin, Bombay: Nov.1992, pp.1881-1885.
  2. Government of India, Second Five Years Plan, Planning Commission, 1955-56 to 1960-61, New Delhi.
  3. Government of India, Third Five Year Plan, Planning Commission, 1960-61 to 1965-66, New Delhi.
  4. Government of India, Fourth Five Year Plan, Planning Commission, New Delhi.
  5. Government of India, Sixth Five Year Plan, Planning Commission, 1980-85 and Fifth Plan (draft) 1974-79, New Delhi.

Article Post Production

Article Indexed In

Comments :

Enter Name :  
Email ID :  
Comments :  

Previous Comments :

Creative Commons License
Indian Streams Research Journal by Laxmi Book Publication is licensed under a Creative Commons Attribution 4.0 International License.
Based on a work at http://oldisrj.lbp.world/Default.aspx.
Permissions beyond the scope of this license may be available at http://oldisrj.lbp.world/Default.aspx
Copyright © 2014 Indian Streams Research Journal. All rights reserved
Looking for information? Browse our FAQs, tour our sitemap, or contact ISRJ
Read our Privacy Policy Statement and Plagairism Policy. Use of this site signifies your agreement to the Terms of Use