Mba 1st Year 7th Paper

Topics: Organizational structure, Working capital, Asset Pages: 20 (5965 words) Published: January 6, 2013
The small scale industries play a vital role in the growth of the country. It contributes almost 40% of the gross industrial value added in the Indian economy. By less capital intensive and high labour absorption nature, SSI sector has made significant contribution to employment generation and also rural industrialization. Under the changing economic scenario, SSI has to face number of diverse problems like vast population, large scale un-employment and underemployment and scarcity of capital resources and the like. Hence, the government has been providing some special facilities through different policies and programmes to overcome the problems and for the growth and development of small scale industries. The efforts of the government have resulted in the phenomenal increase in the number of units in the Small scale sector. The government also introduced various schemes and incentives for the promotion of SSIs. Constant support to SSI sector by the Govt. in terms of infrastructure development, fiscal and monetary policies have helped to emerge as dynamic and vibrant sector of Indian economy. Over the past five decades, Government policies and schemes have been to protect the interests of the SSIs and facilitate its rapid development from time to time.

The government has introduced various policies and incentives for promotion of SSIs. The significant rise in the number of SSIs reflects that, it has been comparatively easier to establish a small enterprise as it requires a less amount of investment both in fixed and flexible capital assets. The small enterprises are growing at a much faster rate and thereby creating potentials for output, employment and exports. The scope for their growth has been enhanced greatly due to the adoption of more liberalized policy measures. • Reservation of Items for SSIs

• Vendor Development Programs
• Subsidies
• Incentives in Operations
• Ancillarisation
• Mini Tool rooms
• Testing Centres
• Sub -Contracting Exchanges
• Assistance Program Credit Guarantee Scheme
• Market Development Assistance Scheme
• Laghu Udyami Credit Card (LUCC) Scheme
• Scheme on Surveys, Studies and Policy Research
• Trade Related Entrepreneurship Assistance & Development for Women (TREAD) • Sub-Contracting Exchange for Ancillary Development
• Credit linked Capital Subsidy Scheme for Technology Up gradation • ISO-9000 Certification Reimbursement Scheme
• Participation in International Fairs
• Purchase and Price Preference Policy
• Small Industry Cluster Development Programme
• Integrated Infrastructure Development (IID Scheme
• National Entrepreneurship Development Board (NEDB)
• Composite Term Loan Scheme

Constant support to SSI sector by the Government in terms of infrastructure development, fiscal and monetary policies have helped this sector to emerge as dynamic and vibrant sector of Indian economy. • Small Industries Development Organisation (SIDO)

• National Small Industries Corporation (NSIC)
• SSI Board
• National Institute of Small Industry Extension Training (NISIET) • National Institute for Entrepreneurship & Small Business Development (NIESBUD) • National Research Development Corporation (NRDC)

• Small Industrial Bank of India (SIDBI)

At the State level, concerned Commissioners/Directors of Industries implement policies for the promotion and development of small scale, cottage, medium and large-scale industries. The Central policies for the SSI sector serve as the guidelines, but each State evolves its own policy and package of incentives. The State departments also oversee activities of the field offices, viz., District Industries Centers (DICs). In addition, at the State level includes State Financial Corporations, State Small Industrial Development Corporations, and Technical...
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