Small Scale and Cottage Industries
SMALL SCALE & COTTAGE INDUSTRIES (Their role, problems & prospects in India)
(AN OVERVIEW)
Small scale industries
Definition
The definition of small scale industries have changed from time to time. Earlier they were classified under two categories: * Using power with less than 50 employees. * Using no power, but strength of employees is more than 50, less than 100.
However according to the latest definition a industry is said to be a small scale industry if * Its investment in fixed assets like plants and equipments either held on ownership terms or on lease or on hire purchase is less than Rs 10 million. * It is also essential that the unit is not controlled by any other industrial unit.
CLASSIFICATION —
Two categories: 1) TRADITIONAL SMALL SCALE INDUSTRIES: * KHADI & HANDLOOM * VILLAGE INDUSTRIES * HANDICRAFT * SERICULTURE
2) MODERN SMALL SCALE INDUSTRIES: Produce goods include comparatively simple items to sophisticated products. * ELECTRICAL ITEMS * HARDWARE * SPORTS GOODS * STATIONARY ITEMS * CLOCKS, WATCHES * AUTOMOBILE PARTS * CHEMICAL PRODUCTS
KHADI INDUSTRIES * Khadi industries have been instrumental in generating large scale employment, particularly in rural areas, with low capital investment and short gestation periods. * The total employment provided in the country in khadi industry increased from 0.66 million in 1955 to 1.24 million in 1999-2000. * Nearly 40% of employment provided by this sector is to women and 32% to SCs and STs
VILLAGE INDUSTRIES
Village Industries is providing assistance by providing training to entrepreneurs for establishing Village Industries through: * Supply of improved tools and equipments, finance, workshed, raw materials * Marketing and organizing co-operative societies for groups. Village Industries are
(AN OVERVIEW)
Small scale industries
Definition
The definition of small scale industries have changed from time to time. Earlier they were classified under two categories: * Using power with less than 50 employees. * Using no power, but strength of employees is more than 50, less than 100.
However according to the latest definition a industry is said to be a small scale industry if * Its investment in fixed assets like plants and equipments either held on ownership terms or on lease or on hire purchase is less than Rs 10 million. * It is also essential that the unit is not controlled by any other industrial unit.
CLASSIFICATION —
Two categories: 1) TRADITIONAL SMALL SCALE INDUSTRIES: * KHADI & HANDLOOM * VILLAGE INDUSTRIES * HANDICRAFT * SERICULTURE
2) MODERN SMALL SCALE INDUSTRIES: Produce goods include comparatively simple items to sophisticated products. * ELECTRICAL ITEMS * HARDWARE * SPORTS GOODS * STATIONARY ITEMS * CLOCKS, WATCHES * AUTOMOBILE PARTS * CHEMICAL PRODUCTS
KHADI INDUSTRIES * Khadi industries have been instrumental in generating large scale employment, particularly in rural areas, with low capital investment and short gestation periods. * The total employment provided in the country in khadi industry increased from 0.66 million in 1955 to 1.24 million in 1999-2000. * Nearly 40% of employment provided by this sector is to women and 32% to SCs and STs
VILLAGE INDUSTRIES
Village Industries is providing assistance by providing training to entrepreneurs for establishing Village Industries through: * Supply of improved tools and equipments, finance, workshed, raw materials * Marketing and organizing co-operative societies for groups. Village Industries are