Mohit Gupta. Shipra Sharma. Vikram Aditya. Resource 4 Business. Monica Khudabadi. Mohd Imtiaz. Don Rocker. EKAI Center. Share the Knowledge. Bhavesh Kothari. Anonymous xvmss2D. Lovenish Verma. Siddharth Doshi. Popular in Industry. Sumbodo Samsoni. Enrique Murgia. Romul Chiorean. Xiao Yun Yap. Surplus Record. Nishant Neogy. All these new measures introduced in post-reform era would definitely benefit the entire SSI sector which employs over 1.
The small scale industry with its inherent dynamism needs to be given vital inputs to boost its performance. The promotion of small scale units ensured greater participation and wider diversification of the production process and ensured dispersal throughout the country.
De-regulation, de-bureaucratization and simplification of rules, regulation and procedures in connection with the establishment and maintenance of these small scale units. Recognizing industry related services and business enterprises within small scale industries, irrespective of their location with investment upto Rs. Arranging adequate and regular flow of credit on a normative basis and to improve the quality of its delivery for smooth and viable operation of the small scale sector.
Establishing a special monitoring agency in order to look after the genuine credit needs of the small-scale industrial sector. Ensuring market promotion of the products produced by small sector through co-operatives, public institution and other specialised professional or marketing agencies and consortia approach. In the mean time, the Government have taken the following steps for the promotion of small- scale industries pursuant to the policy measures announced on 6 August, It has been re-promulgated in January Recently various procedural simplifications including new registration forms have been introduced.
In order to ensure prompt payment to small scale units a new legislation, viz. Interest on the Delayed Payments Act, , has been enacted by Parliament. A scheme has been formulated to train unemployed non-technical graduates so as to augment the availability of managers at affordable rates for the SSI sector and reduce educated unemployment.
The tiny industries sector, the majority among the SSI units, was at present passing through a bad phase which needed to be improved to keep pace with economic reforms. The Government has also announced the setting up of an expert committee to look into the problems and difficulties of SSI units in the country and their solution. In the post-liberalisation scenario, the small industries sector has to face global competition and, thus, inherent strengths ought to be suitably moulded to adapt to the changed circumstances through up-gradation of technology and by forging closer ties between domestic and foreign enterprises.
It is for the first time that a separate policy has been announced. It is important to note that the policy has announced the continuation of the reservation policy for the SSI sector. But this policy failed to redress the serious problems of large number of sick units in the small sector. The new policy has legitimized the sub-contracting operation of big business by the large business houses and foreign firms to have an ownership stake. The proposal of the new policy to allow equity participation by other industrial undertaking including foreign companies is intended to help build up linkage between the SSI and LMSI large and medium sectors.
But this may lead to an intrusion to SSI sector by the large sector. The new policy has completely stopped the concessional finance for the SSI sector. The priority sector status is also likely to be withdrawn. Fund is a major constraint for the SSI sector. It is the timely and adequate credit that is very much needed by the sector. The new policy also proposed to raise the eligibility limit of investment up to Rs. Accordingly, more SSI units will be able to get financial assistance under these two schemes.
Other measure like introduction of factoring service through commercial banks, enactment of legislation of reducing the delay in payment of bills of the SSI units etc. It will however depend on quick implementation of the proposed measures.
This enterprise provides employment to around The process of economic liberalisation and market reforms exposed the Indian MSEs to increasing levels of domestic and global competition and has also opened up attractive possibilities of access to larger markets and also stronger and deeper linkages of MSEs with larger enterprises. Under this changed environments, the MSEs should achieve sustained growth by enhancing technological capabilities so as to improve the quality of products and services to global standards and also seeking ways of innovation.
In , the Government has undertaken initiatives and measures to enable in MSEs enhance their competitive strength, address challenges of competition and also to avail the benefit of global market. Whereas a cottage industry has only a few specific types of machinery and the workers are mostly family members.
Types of the factory can be categorized depending upon the number of workers working on it and what kind of machinery is used there. In the Indian economy, small scale industry and cottage industries play an important role because of their employment generation potential. It also contributes to increasing the industrial output and the total net export of the country. There is no proper difference or distinction between a cottage and small scale industry.
But it is assumed that most of the workers are cottage industries are family members, whereas small scale industry needs to heir some outside workers. The investment amount in both industries are nearly the same, and both can be carried out is a small area of land. This act classified all types of industries into two types: First Manufacturing Enterprise and second Service enterprise.
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