Small Industry
SMALL -SCALE INDUSTRY
Small –scale industries plays a key role in the industrialisation of a developing country .This is because they provide immediate large-scale employment and have a comparatively higher labour –capital ratio: they need a short gestation period and relatively smaller market to be economic; they need lower investments ,offer a method of ensuring a more equitable distribution of national income and facilitate an effective mobilization of resources of capital and skill which might otherwise remain unutilized ;and they stimulate the growth of industrial entrepreneurship and promote a more diffused pattern of ownership and location.
Small –scale industries contribute significantly to social and economic development objectives such as labour absorption ,income distribution ,rural development ,poverty eradication, regional balance and promotion of entrepreneurship.Infact,they play an important role in the process of a country’s industrial development.
Since the time of independence, the small-scale sector in India has been a major contributor to country’s Gross Domestic Product (GDP). This traditional sector in India is considered to have huge growth prospect with its wide range of products. With 40 percent share in total industrial output and 35 percent share in exports, the small-scale industrial sector in India is acting as Engine of Growth in the new millennium.
The definition for small-scale industrial undertakings has changed over time. Initially they were classified into two categories- those using power with less than 50 employees and those not using power with the employee strength being more than 50 but less than 100. However the capital resources invested on plant and machinery buildings have been the primary criteria to differentiate the small-scale industries from the large and medium scale industries. An industrial unit can be categorized as a small- scale unit if it fulfils the capital investment limit
Small –scale industries plays a key role in the industrialisation of a developing country .This is because they provide immediate large-scale employment and have a comparatively higher labour –capital ratio: they need a short gestation period and relatively smaller market to be economic; they need lower investments ,offer a method of ensuring a more equitable distribution of national income and facilitate an effective mobilization of resources of capital and skill which might otherwise remain unutilized ;and they stimulate the growth of industrial entrepreneurship and promote a more diffused pattern of ownership and location.
Small –scale industries contribute significantly to social and economic development objectives such as labour absorption ,income distribution ,rural development ,poverty eradication, regional balance and promotion of entrepreneurship.Infact,they play an important role in the process of a country’s industrial development.
Since the time of independence, the small-scale sector in India has been a major contributor to country’s Gross Domestic Product (GDP). This traditional sector in India is considered to have huge growth prospect with its wide range of products. With 40 percent share in total industrial output and 35 percent share in exports, the small-scale industrial sector in India is acting as Engine of Growth in the new millennium.
The definition for small-scale industrial undertakings has changed over time. Initially they were classified into two categories- those using power with less than 50 employees and those not using power with the employee strength being more than 50 but less than 100. However the capital resources invested on plant and machinery buildings have been the primary criteria to differentiate the small-scale industries from the large and medium scale industries. An industrial unit can be categorized as a small- scale unit if it fulfils the capital investment limit