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Small Scale Industries.

  1. 1. 1 SMALL SCALE INDUSTRIES
  2. 2. 2 INTRODUCTION India is predominantly an agricultural country. Apart from agriculture, small scale & large scale industries have been also developed. Small scale industries are the backbone of our industrial structure as they provide a variety of non-traditional, low technology products. They are also engaged in the processing, preserving, manufacturing & servicing activities and play a vital role in balanced and sustainable economic growth. Thus, a proper development of small scale industries is essential for the healthy growth of economy. Small scale industries (SSI) are those industries in which manufacturing, providing services, productions are done on a small scale or micro scale. For example, these are the ideas of Small scale industries: Napkins, tissues, chocolates, toothpick, water bottles, small toys, papers, pens. Small scale industries play an important role in social and economic development of India. These industries do a one-time investment in machinery, plants, and industries which could be on an ownershipbasis, hire purchase or leasebasis. But it doesnot exceedRs. 1 Crore. Essentially small scale industries comprise ofsmall enterpriseswho manufacture goodsor services with the help of relatively smallermachines anda few workersand employees. Basically, the enterprise must fall underthe guidelines set by the Government of India. At the time being such limits are as follows,  For Manufacturing Units for Goods: Investment in plant and machinery must be between 25 lakhs and five crores.  For Service Providers: Investment in machinery must be between 10 lakhs and two crores. In developing countries like India, these small scale industries are thelifeline ofthe economy. These are generally labour-intensive industries, so they create much employment. They also help with per capita income andresourceutilization in the economy. They area very important sector of the economy from a financial and social point of view. The primary object of developing small scale industries in rural areas is to generate better employment opportunities, raise income levels & standards of living of people. Small scale industries are essential for providing subsidiary or alternate occupations and utilization of local labour & raw materials. They facilitate an effective mobilization of resources of capital and skill and also stimulate the growth of industrial entrepreneurship. Thus, the development
  3. 3. 3 of small scale industries is an integral part of the overall economic, social and industrial development of a country. CLASSIFICATION OF INDUSTRIES The earlier conceptof Industrieshas been changed to Enterprises. Enterpriseshave been classified broadly into two Categories as under: 1. Manufacturing Enterprises: The enterprisesengaged in the manufactureor production of goodspertainingto any industry specified in the first schedule to the industries or employingplantand machinery in the processof valueaddition to the final producthavinga distinct nameor character or useare referred to as “ManufacturingIndustries”. The ManufacturingEnterprisearedefined in termsof investmentin Plant& Machinery and are further classified into three categories such as: a) MicroEnterprises-An EnterprisewhereInvestmenton plant and machinery is upto Rs.25 Lakh is referred to a “Micro Enterprises”. b) Small Enterprises-They are those enterprises wherethe investmenton Plant and Machinery is above Rs.25 Lakh and is upto Rs.5 Croreis referred to as “Small Enterprises”. c) MediumEnterprises-The enterpriseswhere the investmenton Plant and Machinery is above Rs.5Croreand isupto Rs.10 Croreis referred to as “Medium Enterprises”. 2. Service Enterprises: The enterprisesengaged in providingor renderingof services and are defined in terms of investmentin equipment are referred to as “Service Enterprises”. They have been defined in terms of their Investmentin Equipmentand arefurther classified into Three categories as under: a) MicroEnterprises: An Enterprisewherethe Investmentin Equipmentis upto Rs.10Lakhis referred to as ‘Micro Enterprise’. b) Small Enterprises: An Enterprisewherethe investmentin Equipmentsisabove rs.10Lakhand upto Rs.2Croreisreferred to as ‘Small Enterprises’. c) MediumEnterprises: An Enterprisewhere the investmentin Equipmentis above Rs.2Croreand upto Rs.5Croreisreferred to as ‘Medium Enterprises’.
  4. 4. 4 OBJECTIVES OF SMALL SCALE INDUSTRIES The objectives of small scale industriesare: 1. To create more employmentopportunities withless investment. 2. To removeeconomic backwardnessof rural and less developed regionsof the economy. 3. To reduceregional imbalances. 4. To mobilize and ensureoptimum utilization of unexploited resourcesof the country. 5. To improvestandard of living of people. 6. To ensureequitable distribution of income and wealth. 7. To solve unemploymentproblem. 8. To attain self-reliance. 9. To adopt latest technology aimed at producingbetter quality productsat lower costs. 10. To help earn vital Foreign Exchange for the country throughExports of Goodsand Services of Small Enterprises. EXAMPLES OF SMALL SCALE UNITS There are about twenty-onemajor industry groupsin the small scale sector. These are listed below : 1. Food Products 2. Chemical & Chemical Products 3. Basic Metal Industries 4. Metal Products 5. Electrical Machinery & Parts 6. Rubber & Plastic Products 7. Machinery & Parts Except Electrical goods
  5. 5. 5 8. Hosiery & Garments - Wood Products 9. Non-metallic MineralProducts 10. Paper Products& Printing 11. TransportEquipments& Parts 12. Leather & Leather Products 13. MiscellaneousManufacturingIndustries 14. Other Services & Products 15. Beverages, Tobacco & Tobacco Products 16. Repair Services 17. Cotton Textiles 18. Wool, Silk, Synthetic Fiber Textiles 19. Jute, Hemp and Mesta Textiles 20. Other Services A survey of indicesof industrial production (IIP)maintained for these major industry groupsrevealswhat the sunriseindustriesare and on what segments the sun has set. SSI unitsproducean amazingvariety and type of products. Over 7500 products are known to be manufactured in this sector. Even in a particular product, there would exist a widerange of qualities or specifications catering to differentmarketsegments, particularly in consumer/household products. CHARACTERISTICS OF SMALL SCALE INDUSTRIES Following are the characteristics of small-scale industries: 1. Labour intensive: Small-scale industries are fairly labour-intensive. They provide an economic solution by creating employment opportunities in urban and rural areas at a relatively low cost of capital investment.
  6. 6. 6 2. Flexibility: Small-scale industries are flexible in their operation. They adopt quickly to various factors that play a large part in daily management. Their flexibility makes them best suited to constantly changing environment. 3. One-man show: A small-scale unit is generally a one-man show. It is mostly set up by individuals. Even some small units are run by partnership firm or company, the activities are mainly carried out by one of the partners or directors. Therefore,’ they provide an outlet for expression of the entrepreneurial spirit. As they are their own boss, the decision making process is fast and at times more innovative. 4. Use of indigenous raw materials: Small-scale industries use indigenous raw materials and promote intermediate and capital goods. They contribute to faster balanced economic growth in a transitional economy through decentralization and dispersal of industries in the local areas. 5. Localized operation: Small-scale industries generally restrict their operation to local areas in order to meet the local and regional demands of the people. They cannot enlarge their business activities due to limited resources. 6. Lesser gestationperiod: Gestation period is the period after which the return or investment starts. It is the time period between setting the units and commencement ol production. Small-scale industries usually have a lesser gestation period than large industries. This helps the
  7. 7. 7 entrepreneur to earn after a short period of time. Capital will not be blocked for a longer period. 7. Educational level: The educational level of the employees of small industries is normally low or moderate. Hardly there is any need of specialized knowledge and skill to operate and manage the SSI. 8. Profit motive: The owners of small industries are too much profit conscious. They always try to keep high margins in their pricing. This is one of the reason for which the unit may lead to closure. ROLE AND IMPORTANCE OF SMALL SCALE INDUSTRY IN INDIA In a developingcountry likeIndia, the role and importanceof small-scale industries is very significant towardspoverty eradication, employmentgeneration, rural developmentand creatingregional balance in promotion and growth of various developmentactivities. Small Scale Industries(SSIs) occupy an importantplace in the country’seconomy. About 60 to 70 percentof the total innovationsin Indiacomes from the SSIs. It is estimated that this sector has been contributingabout 40% of the gross valueof outputproduced in the manufacturingsector and the generation of employmentby the small-scale sector is more than five times to that of the large-scale sector. This clearly shows the importanceof small-scale industriesin the economic developmentof the country. The small-scale industry havebeen playingan importantrole in the growth process of Indian economy since independencein spiteof stiff competition from the large sector and not very encouragingsupportfrom thegovernment. The followingare someof the importantrole played by small- scale industriesin India.
  8. 8. 8 1. Employment Potential: Small-scale industries are labour intensive.A given amount of capital investedin small-scale industrial undertakings is likely to provide more employment. at least in the short run, then the same amount of capitalinvested in large-scale undertakings. The Encouragement of small-scale industries would serve to counteract the seasonalunemployment in agriculture and Thus to utilize labour which might otherwise go to waste. These industries offer limitless opportunities for self-employment.It is these self-employedpersons who are the backbone of the nation.Everyeffort must be made to strengthen the positionofthese proud and self-reliant persons in the country’s economy. 2. Less Capital Requirement: Small-scale industries are the capital-light example they need a relatively smaller amount of capitalthan that required by large-scale industries.Thus, one of the great advantages of small-scale industries is that they make possible economies in the use of capital.As capital is very scarce in under-developed countries. It May be used to Greater advantage in the early stages of development if it is used to expand transport and other public utilities,irrigation,and other agricultural requirements and those forms of large-scale industry where the advantages outstandinglygreat. 3. Latent Resources: Small-scale industries will fall into being capital that would not otherwise have come into existence.The spreading of small-scale industries over the countryside would encourage the habits of thrift and investment in rural areas.Moreover, the enterprising small manufacturerhas to scrape togethercapital where the can find it. He often manages to get it from relatives and friends.This capital probably would never have come into existence is productive capitalhad it not been for the small Enterprises 4. Skill Light: Another attractionofsmall-scale industries lies in their being skill light a large scale industry calls for a great deal of Management and supervisory skill foremen,
  9. 9. 9 engineers,Accountants, and so on. Like capital, these skills are also in very short supply in our country, and it is important to economies as much as possible in their use.Small-scale industries provide a way of doing this and at the same time provides industrialexperience and serves as a training ground for a large number of small-scale industries managers,at least some of whom develop the capacityfor managing large-scale undertakings. 5. Use of Local Resources: Small-scale industries are importing light like they useda relatively low proportion of importedequipment and materials as compared with the total amount of capitalused in them. Large-scale industries,on the other hand, require huge imports in the form of equipment and materials,upsetting the country’s Balance of payments thereby. A low import intensityin the capital structure of the small-scale industries reduces the need for foreign capital or foreign exchange earnings. Thus, obviates Balance of payments difficulties later and currently retains within the country large part of whatever induced effects may materialize. 6. Quick Production: Small-scale industries are the “quickinvestment type” like, those in which the time required between the investment of capital and the start of the flow of goods produced is relatively short.In a developing economywith strong inflationary pressure and need for a rapid rise in the living standards,the importance of such quick investment type Industries can hardly be exaggerated.The anti-inflationaryrequirements and the requirements of development are often in conflict but a compromise canbe found in the small- scale industries which have a high fruition coefficient andalso a short fruition lag. 7. Decentralization
  10. 10. 10 The development of small-scale industries will being about the decentralization of industries and will thus, promote the object of Balanced regional development. A major drawback in the industrialstructure of our country is that the regional distributionof industries is exceedingly uneven. On the other hand, there is a misappropriate net growth of large-scale industries in a few areas. 8. Equitable Distribution Small-scale industries and cottage industries have the additionaladvantage that small-scale industries they secure a more even distributionofincome and wealth.The development of large-scale industries tends to concentrate large income and wealth in a few hands, which is undesirable from the socialpoint of view, in that they involve exploitationof Man by man.They also create vested interestedwhich put obstacles in the way of the economymarching towards its goal of socialistic patternof society. 9. Mobility of Labour: By carrying the job to the worker, small-scale industries can overcome the difficulties of terrestrialimmobility. Moreover, unlike large Industries small-scale industries do not create problems of slum housing, health, and sanitation,etc. and the attendant disease,misery,and squalor. 10. Support of Large-Scale Industries: Another highly useful role of small-scale industries in developed and underdeveloped countries is the great support that the development of large- scale industries can obtainfrom small-scale industries. This is possible in the following ways: (1). Small-scale industries maymanufacturer small parts like cycle parts, which may letter be assembledby the large Industries.
  11. 11. 11 (2). The large-scale industry mayproduce semi-finishedgoods whichmay lead to being made into several types of finishedgoods in small-scale industries setups, such as agricultural implements and cutlery from iron and steel,household utensils from sheet metals. 11. Reduction of Dependence on Agriculture: The growth of Cottage and small-scale industries will divert surplus labour from our overburdened agriculture and thus bring about a more desirable occupationaldistribution. 12. Relieving Congestion in Urban Areas: By providing remunerative employment in the rural areas,these Industries will relieve congestionin overcrowded urban centers. 13. Sustaining Green Revolution: Small-scale industries can help sustainthe green revolutionin the countryside mainly through the development of agro-basedindustries and services,such as the productionof farm implements and equipment for foodprocessing industries and Agricultural Machinery repair and service workshops. Besides, the expansionof rural income as a result of the green revolutionis expectedto boost the consumerdemand for sophisticateditems suchas radios,TV sets, transistors,cycles, sewing machines and cosmetics,whichthe small-scale industries can conveniently meet. 14. Foreign Exchange Earning: From the point of Balance of payments,small-scale industries are justifiedon two Grounds. One, they do not require much foreign exchange resources for their establishment and to that extent place almost no extra burden on the balance of payment, position.Two,small-scale industries can contribute to the foreign
  12. 12. 12 exchange Kittyof the country by adding to exports.These industries are exporting traditionalas well as non-traditionalitems. 15. Production of Consumer Goods: Small-scale industries,predominantlyproducers of consumergoods,have a key place in the process of development. The industrializationofthe country, with emphasis on heavy industries,requires large capital investment,living little for large and consumergoods industries. In the process of industrialization,when the income increases the demand for consumergoods also increases. If the supply of consumergoods does not exist as it leads to price rise, which will thus not only lower the standard of living of the poor workers but will also jeopardize the very process of growth. 16. Political and Social Advantages: Small-scale industries can help in awakening the powerful dormant forces among masses for use in constructive activities. The freedom of work, self-reliance, self- confidence,enthusiasm to achieve,and all such traits of a healthy Nationcan be built around the materialactivities performedin these industries. 17. Preservation of Inherited Skill: Small-scale industries were helpful in the preservationof the inheritedskill of our artisans which would otherwise languish and disappear.A great many people in villages and small towns will be saved from the mechanical,monotonous and robot-like life associatedwithbig industrialcities.These non-economic factors cannot be concretizedinto cold statistics.Infact, these are the essence of life. DEVELOPMENT OF SMALL SCALE INDUSTRIES IN INDIA Makingthe best useof the naturalresourcesby employinghigh order of skilled and artistic talents through traditional handicrafts, Indiahas occupied a 4 permanentplace of pridein the world. BeforeIndustrialRevolution, theadventof modern largescale mechanized industry, imposition of restrictions on Indian trade by the British rulers and deteriorating socio-economic conditionsled to the decline of small scale industry. Butwith the provision of permanentplace in the nation'spolicy of economic
  13. 13. 13 developmentafter the attainment of Independence, ithas stayed a grand recovery and is now well entrenched on the path of progresstowardsgreat expansion. A brief review of progressof small sector before and after Independenceispresented below: Pre – Independence Cottage and small scale industrieshad flourished in Indiain early times. They were the principalsourcesof incomeand employment, and their productswerenoted for their excellence and artistic skill. At a time when the West Europe, the birth place of modern industrialsystem, was inhabited by uncivilised tribes, Indiawas known for the wealth of her rulesand for the high artistic skill of her craftsmen. Prof. Weber wrotethe skill of the Indiansin the production of delicate woven fabrics, in the mixing of colours, the workingof metals and preciousstones, the preparation of essences and in all manners of technical arts has, from very early times, enjoyed a world-widecelebrity. Ages ago, Muslimsof Dacca were famous, throughoutthe civilised world, for textile fabrics of inimitable fineness, tapestry glittering with gold gems, rich embroideries and brocades, carpets wonderfulfor themost brilliant hue, furnituremostelaborately carved, swords of formsand excellent temper are amongthe objects that provethe perfection of art in India. These observationssignify the glory and prominenceof the productsof cottage and small scale industries. The decay of these industrieshas been accelerated after the adventof the British though the seed was sown duringthe Mughalperiod itself. The importantfactors which worked towardsthis situation are presented below. a. With the disappearanceof the native courtsduringMughalperiod, the cottage and small industrieslost their patronage. b. The influxof many foreign influencesresulted in the declinein the demand for home-madegoods. c. The competition from machine-made goodsof the British industriesresulted in the fall in the demand for the Indian goods. d. Dueto the discouraging policy of the East IndiaCompany, theIndian artisans were forced to work in the work-shopsof companiesfor their livelihood as they could not find adequate demand for.their home- madegoods.
  14. 14. 14 e. Failure of the artisans to adjustto the changing condition resulted in the high cost of production of their productsand therefore, they werenot in a position to compete with the machine-madegoods of the British industries. In spite of these discouragingfactors, some of the cottage and small industrieshave shown remarkable progressand have survived the British rule. 6 Because, Indian agriculturists needed somesupplementary occupation to utilise their idle time and to augmenttheir low earnings. The cottage and small industriesprovided supplementary occupation for the idle agriculturists duringthe off-season. Therefore, a large number of repair services of differenttypesthat have followed in the wake of large scale industriesare indeed carried on in small establishments in the vicinity of larger industries. Further, the Indian artisan is by naturehome-living and conservative. This natureof the workersviz., illiteracy and poverty, lack of alternative means of employment, the socio-religious and religion factors, etc., have forced them to stick to their age-old ancestral profession. Post-Independence Scenario The Government of India which realised the socio-economic significance and the role of small scale industries has initiated several positive measures for their development. "The Industrial Policy pronouncements, the progressive allocations made in the Five-Year Plans, the establishment of different promoting and supporting organisations and the nationalisation of commercial banks reflect the spirit and effort of the government towards the creation of conducive environment and climate for the working and growth of small scale industries". In fact, the performance and progress achieved by the small scale sector are the result of various measures initiated by the government for then growth and efficient working. INDUSTRIAL POLICY AND SMALL SCALE INDUSTRIES The small industries have a specific role to play and it was underlined by the Industrial Policy, 1948 which stated that cottage and small scale industries are particularly suited for better utilisation of local resources and for the achievement of local self sufficiency in respect of certain types of essential goods. The government announced its second Industrial Policy in 1956 replacing the first Industrial Policy Resolution of 1948. The New Industrial Policy Statement of 1956 made it very clear that small scale industries provide immediate large scale employment, offer a method of ensuring a more equitable distribution of national income and facilitate an effective mobilisation of resources of capital and skill which might otherwise remain unutilized. When the Congress Party re-captured the power at the centre in 1980, it announced a New Industrial Policy in July 1980 and the government felt that the industrialization is the indicator of economic progress. The New Industrial Policy Statement, 1991 which was announced in July 1991 observed that the small scale industrial sector has emerged as a dynamic and vibrant sector of the economy during the eighties. At the end
  15. 15. 15 of the Seventh Plan period, it accounted for nearly 35 per cent of the gross value of output in the manufacturing sector and over 40 per cent "of the total exports from the country. It also provided employment opportunities to around 12 million people. The main features of this New Policy of 1991 are summarised below. Government of India has announced the increase in the investment limits in plant and machinery for small scale, ancillary and export - oriented units to Rs. 60 lakh, Rs. 75 lakh and Rs. 75 lakh respectively. Now, investment ceiling on plant and machinery is increased to Rs. 100 lakh. SMALL SCALE INDUSTRIES AND THE FIVE-YEAR PLANS  To protect the small scale sector, the First Five- YearPlan (1951-56)recommended common production programme. This was to ensure that while both large and small units make their contributions to the total requirement of the community, the small units would fulfil the targets set for them.  The Second Five-YearPlan(1956-61)gave prominence to heavy and basic industries. However, it did not neglect the small industries or producers. In fact, the basic philosophy of the Plan was not only to encourage small industries but also to establish an economic order with the small producers at the centre.  The Third Five-YearPlan (1961-66)aimed at greater diversification of the production in the small sector and a closer integration between the large and small sectors in specified items. Another scheme of the Plan was to reserve certain items exclusively for production in the small sector.  The Fourth Five-YearPlan(1969-74)accepted the Policy of Decentralised Growth of Industries. In July 1969, fourteen major commercial banks in the country were nationalised and this has helped to accelerate the flow of funds from the Banks to the small sector.  The Fifth Five-YearPlan (1974-79)opened a new chapter by laying emphasis on the removal of poverty by provision of many self-employment schemes through cottage and small scale industries which received their due share in the Plan allocation.  During the Sixth-FiveYearPlan(1980-85), the programmes for the village and small industries sector were designed to sub-serve many objectives such as Improvement in the levels of production capacity particularly of the artisans through measures like upgradation of skills and technologies and produceroriented marketing, etc.,
  16. 16. 16  During the Seventh Five-YearPlan (1985-90)period, added emphasis was given to industrial development strategy based on adequate infrastructure development incorporating the growth centre conceptand nucleus plant approachtogether with appropriate ancillarization. This approachaimed at dispersing industries away from urban concentration resulting in job opportunities in the rural areas nearer home.  During the EightFive-YearPlan(1990-95), a sum of Rs. 2,752.7 crore was allocated for the development of village and small industries. However, the actual expenditure was of the order of Rs. 7,094 crore.  Ninth Five-YearPlan(1997-2002)noted that the small sectoris presently producing about 8,000 items, out of which 821 (after the recent de - reservation of 15 items) are reserved exclusively for production by the small sector. However, out of the reserved items, it has been observed that as many as 200 are either not produced at all in the small sectoror their productionis insignificant. In the light of the above, summary of plan outlay for the small scale industrial sector during the last nine plans is presented below.
  17. 17. 17 From the above, it is obvious that the amount earmarked for the SSIs registered a continuous increase during the fifty years. Though the rate of increase varied from one plan to another, the increase was substantial.
  18. 18. 18 PERFORMANCE OF SMALL SCALE INDUSTRIES - A BRIEF REVIEW Small scale industries(SSIs) are viewed increasingly as an importantvehicle for meeting both the growth and equity objectives of developingeconomies. The last two decadeshave witnessed the steady re-emergence of SSIs in both industrialised and industrialisingcountriesreducing, to some extent, the importanceof economiesof scale in mass production. Thoughcorrelation between the size of the enterpriseand the stage of industrialisation is not universal, the growth and expansion of SSIs will have a positive impact on the rate of industrialisation in developingcountries. The employmentin SSI sector which is next only to agriculturehas also shown an upward trend growingat4.16 per cent. This moderate growth rate is mainly on account of technology advancementand consequentreduction in labour input(leading to improved labour productivity)in modern segmentof SSIs which account for about 83 per cent of the total production and little over 40 per cent of the employmentin SSI sector. The share of traditional sector in total employmenthasbeen quite high at
  19. 19. 19 60percentand amongdifferentsub sectors of traditional sector, handloom continues to be a major provider of employment. PROBLEMS OF SMALL SCALE INDUSTRIES The governments -both central and state have taken a number of steps to providea number of services to the SSIs. They are providingboth the direct services (such as, advisory services, industrialresearch services, developmentfinancial services, marketing aidsand provision of basic utilities and service), and indirect services (like, streamliningthe bureaucratic system, lessening the red tapism, etc.,) with a view to promotethe growth of SSIs. In spite of all these promotionalmeasures, many a number of production, marketingand financialproblemsstill continueto haunt the small scale industries. While some of the problemsare, more or less, common to a widerange of SSIs, others have particular - relevanceto a group of SSIs and to the unitsestablished and functioningin ruraland backward area. In this background, afew problemsfaced by the SSIs are identified below (without analysisas the same is made in chapter - III). Problemsof SSIs:
  20. 20. 20 Dueto the above problems, in addition to a large number of problems, the SSIs have not been able to realize their full potential and therefore, notcontributing their best for the overall developmentof the economy. Hence, the Governmentof Indiahas taken certain steps to ensurethe desired growth in the SSIs . MEASURE INITIATED BY THE GOVERNMENT OF INDIA Havingdeclared its faith in the efficiency of small industriesas a vehicle for rapid progress, the Governmentof India(Gol)introduced anumber of programmesfor developingthem. The followingare the someof the specific measuresinitiated by the government to overcomethe problemsof small scale industriesand to help them to achieve the improved overallperformance.
  21. 21. 21 ESTABLISHMENT OF DIFFERENT ALL INDIA BOARDS With a view to assist the SSIs in the country, the Governmentof Indiahas established a number of boards at the national level. They are presented below: Small Scale Industries Board (SSIB) Under the aegis of this Board, four regionalSmall IndustriesService Institutes (SISIs) - one each at Kolkatta, Mumbai, Chennaiand Faridabad have been set up to providetechnical services, and to advise and assist the SSIs in marketingand promotionalaspects. Directorate of Cottage and Small Scale Industries The role played by the State Directorates of Industriesis of great importance. The successfulimplementation of the programmes or the small scale industries depends, to a considerable extent, on the initiative, leadership and resourcefulnessof the Directorates of Industries. All India Handloom Board This Board wasset up in 1952 for dealingwith the problemspertainingto the developmentof handloom units. It rendersassistance in organising cooperativesin handloom textile industry, establishing sales emporiaand in providinggrantsand loans. The Central SilkBoard The Central Silk Board wasset up in 1949 asa statutory body and it wasreconstituted in 1952. TheBoard is entrusted with the responsibility of developingsericultureand the silk industry, and to act as a co-ordinating agency for the industry as a whole. Further, it providestechnical and financial assistance to the states. All India Handicrafts Board This Board helps research in new designsand patterns, and in improvingprocesses. HandicraftsBoard is running19 pilotcenters outof which four arefor training, three for training-cum-production, threefor research and experimentation, fivefor revivalof traditional crafts, and the remainingfour are for experimentalproduction.
  22. 22. 22 The Khadi and Village Industries Board It was started in 1953 to prepareand organiseprogrammesfor the developmentof khadi and village industries. The commission is encouragingthe useof power for purposeslikepulp makingfor manufactureof paper, crushingof non-edibleoilseeds, gur and khandasari, and the manufactureof sugar from palm. The commission undertakesresearch activities in its institute at Wardhato improveprocessesand develop new machineries.

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