Small scale industries (SSI) have a significant role in the Indian economy in view of its contribution to production, employment, and export. However, since 1991 small scale industries in India find themselves in an intensely competitive environment due to globalization, domestic economic liberalization, and dilution of sector specific protective measures. The formation of World Trade Organization in 1995 also forced the member countries (including India) to drastically scale down the restrictions on import. This article analyzes the various factors influencing the growth of small scale industries in India. Information Technology (IT) is one of the significant factors, which is, in general, not used by the small scale industries in India for their production and business process, in the growth of small scale industries in India. Further on the basis of Nolan's 'Stages of growth model' the stages of use of information technology in small scale industries are studied.
Small Scale Industry in India: An Analysis in the Context of Liberalization
Small and Micro producers are crucial in developing economies, and their role is even greater in the largely rural economies of South Asia. In India as well, the sector is the second largest employer, after agriculture, and accounts for nearly 6 percent of the country's GDP. India was an exception in that it gave the small-scale sector large incentives, and protection, in the period 1948-1991, going to the extent of reserving certain production lines solely for the sector. In the historical context of this, this paper shall attempt to analyze the issues peculiar to a 'smalls scale of production' in India in an increasingly globalised scenario. It shall also look at some of the other issues plaguing the sector such as credit availability and maintaining quality standards.
Movement of toxic metals from small-scale industrial...