Marketing Problem of Small Scale Industries in North East India

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Sant K. Gupta
Deptt. Of Commerce
S.D.JAIN GIRLS’ COLLEGE
Dimapur:Nagaland
Marketing Problem Of small scale industries in North East India INTRODUCTION

North Eastern region of India comprising the eight states of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura is endowed with vast natural resources and has enormous potential of development. The economic structure of north-east India is similar to the general economic structure of India as a whole. But because of its topography as well as social and political conditions it has a relatively backward economy.

The strategic importance of the region along with its sensitive geo political location extremely diverse nature of its population with different cultural, linguistic, religious and historical background make this region characteristically different from the rest of the country. In fact region is still backward as compared to other parts of the country and could not develop much industrially despite of having vast natural resources. The following table gives the idea for industrially backwardness for Northeast region.

ECONOMIC INDICATORS
SL.NO.PARTICULARSUNITNERALL INDIA
1CREDIT DEPOSIT RATIO%16.8-38.358.7
2PER CAPITA POWER CONSUMPTIONKWH97355
3INDUSTRIAL PRODUCTION% OF GDP2.1627
4UNEMPLOYMENT%127.7
5RAIL LENTHKM2578(4%)63140
6 ROAD LENTHLAKH KM1.74 (7%)25

SOURCE: - Annual Report 2006-07, Ministry of Development of N.E.Region

Small industries have acquired a prominent place in the socio-economy development of the country. It faces many serious problems, most of which are associated with the smallness of their operations. The measures of promote them too are, in general, of different variety from those needed for the development of large industries. These industries, sometimes grouped under the general heading of village and small industries cover a wide variety of activities. The sector is split up into eight sub-sector namely, khadi, village industries, handlooms, sericulture, handicrafts, coir, small-scale industries, and power looms. Of these the first six sub sectors constitute traditional industries and the last two, the modern small-scale industries. Modern small scale industries and power looms use modern technologies and are mostly urban oriented. Traditional industries, on the other hand are mostly rural and semi urban in character. The small sector is identified in terms of capital investment of not more than Rs. 60 lakhs are treated as small-scale units. For ancillary units (i.e., those supplying components etc., to large scale industries and the export oriented units), the limit of capital investment is higher at Rs. 75 lakhs. There is also the “Tiny Sector”. Capital investment covers only investment in plant and machinery. Land and factory buildings are excluded largely because of the wide variations in the prices of land at different places. As per this classification all industries with capital investment higher than specified for small-scale units are large-scale industries. Northeast region are rich in forest, forest products, horticulture and mineral resources. In spite of its rich resources, the region is still industrially backward. It has been observed that per unit investment in NE region is only Rs. 0.88 lakhs as against Rs.0.95 lakhs in the country. Per unit investment within the region itself varies considerably. The role of SSI’s is significant in overall growth and development of economy of our country. It provides vast scope for increasing employment. SSI’s are labour intensive and require less capital to start. It helps production of goods and meets the requirement of consumer. The following table shows the total employment and estimated output of NER and all India.

SSI UNITS IN NORTH EASTERN REGION

TOTAL EMPLOYMENT% EMPLOYMENTESTIMATED OUTPUR (IN RS. LAKH)% GROSS OUTPUT NER7750163.11505440.561.78
ALL INDIA24932763100.00282269980.00...
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