2. SSI means small scale industries, which is
an industrial undertaking with the
investment not exceeding Rs.100 lakhs in
plant and machinery. In cases of auxiliary
industries the investment ceiling on plant
and machinery is also Rs.100 lakhs.
2
3. ļ½
ACCORDING TO FISCAL COMMISSION -1950: āA UNIT OPERATING
WITH HIRED LABOUR , USUALLY 10 TO 50 HANDS ā.
ļ½ ACCORDING TO SSI BOARD -1955:ā A UNIT EMPLOYING LESS THAN
50 PERSONS IF POWER AND LESS THAN 100 PERSONS WITHOUT
THE USE OF POWER AND WITH A CAPITAL INVESTMENT RUPEES 5
LAKHā.
3
4. ļ½ Before Independence, the present small scale
industry was meant to denote the village and the
urban cottage industry.
ļ½ This group included a variety of industries ranging from
manufacturing of Iron safes, locks, carpets, marble
jigs, baskets, hand-loom cloth and the like.
ļ½ In fact, at that time the term ācottage and Small scale
industriesā was used in juxtaposition to large scale industries,
which were established under the British patronage.
ļ½ They received encouragement and support during the freedom
movement.
ļ½ The small scale industries found a prominent place in the
economic programme envisaged by the Indian
National Congress.
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5. After 1947
ļ½Jawaharlal Nehru maintained separate entities of small scale industries. He
was of the view that a small industry was the middle sector and it would
overlap both the cottage and the large industries.
1977 industrial Policy
ļ½The basic policy support of SSI sector had its roots in the Industrial Policy
Resolution 1977, laid emphasis on reservation of items.
ļ½The reservation economically viable and technologically feasible products to
be exclusively manufactured by small scale industry began with a list of 47
items which was gradually extended to too many products.
ļ½At Present 812 items are in the reserved list.
ļ½The limit on the fixed capital investment for SSIās was Rs 7.5 lakhs and for
ancillaries it was Rs 10 lakhs. After the Industrial Policy, the ceiling for
investment for SSIās was raised to Rs 60 lakhs and Rs 70 lakhs for ancillaries .
5
10. PersonĀ or firm thatĀ buysĀ large
Ā quantityĀ of goodsĀ from various
Ā producersĀ orĀ vendors,Ā warehousesĀ
them, and resells toĀ retailers.
AĀ businessĀ orĀ personĀ thatĀ sellsĀ goodsĀ to
theĀ consumer, as opposed to
aĀ wholesalerĀ orĀ supplier, who normally sell
their goods to another business.
Commission agents thrive in a variety of
businesses. International agents work in
the export/import arena. Insurance and real
estate agents also often work on a sales-
based commission.
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12. In India ,village & small industries sector consists of both
the traditional & modern small industries . This sector
has 8 sub group which are
1. Handlooms
2. Handicraft
3. Coir
4. Sericulture
5. Khadi
6. Small scale industries
7. Village Industries
8. Power looms
13. Food and allied industries (9)
Wood and wood products (9)
Paper products (19)
Plastic products (53)
Chemicals and chemical products (7)
Natural essential oils (2)
Organic chemicals, drugs and drug
intermediates (33)
Other chemicals and chemical
products (67)
Glass and ceramics (27)
Mechanical engineering excluding transport
equipment (137)
Electrical machines, appliances & apparatus (17)
Electronic equipments and components (1)
Transport equipment boats and truck body
building (3)
Auto parts components and ancillaries and
garage equipments (36)
Bicycle parts, tricycles and perambulators (41)
Miscellaneous transport equipment (4)
Sports goods (7)
Stationery items (13)
Others (21)
16. ļ½ It contributes almost
40% of the gross
industrial value
added in the Indian
economy.
ļ½ It has been
estimated that a
million Rs. of
investment in fixed
assets in the small
scale sector
produces 4.62
million.
16
17. Rural
ļ½Non-metallic products contributed
22.7% to employment generated in rural
areas. Food Products accounted for
21.1%, Wood Products and Chemicals
and chemical products shared between
them 17.5%.
Urban
ļ½As for urban areas, Food Products and
Metal Products almost equally shared
22.8% of employment. Machinery parts
except electrical, Non-metallic mineral
products, and Chemicals & chemical
products between them accounted for
26.2% of employment.
17
21. S. NO PRODUCT GROUP MAIN DESTINATION
1 READYMADE GARMENT USA,WEST ASIA,NORTH AFRICA
2 SPORTS GOODS UK,USA,GERMANY
3 SPICES EAST ASIA, UNION ,NORTH AFRICA
4 LEATHER &LEATHER ITEMS GERMANY , UK, ITALY,USA,FRANCE
5 WOOL& WOOLEN KNITED GARMENT EUROPE,BANGLADESH ,JAPAN ,SHRI
LANKA , BHUTAN ,
6 PROCESSED FOOD ITEMS EUROPE,BANGLADESH ,JAPAN, USA
7 TABACCO AND TABACCO ITEMS EAST EUROPE
8 ELECTRONIC ITEM AND COMPUTER
SOFTWARE
USA , UK , HONGKONG ,UAE,JAPAN
9 CASHEW ITEM USA ,UK , JAPAN ,NETHERLAND
10 MARINE PRODUCT UK,USA,GERMANY
EUROPE,BANGLADESH
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27. SEED BED REFERS TO
PREPARING THE SOIL
FOR SOWING OF SEEDS
FOR A GOOD CROP. AS
IT PROVIDES
CONDUCIVE
CONDITIONS FOR THE
DEVLOPMENT AND
GROWTH OF
ENTREPRENEURS
E.g:-AMUL,TOPS,VARDHMAAN, HIMALYA.PVT.LTD
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28. ļ½ To sum up we can say that SSI serves as a seed
bed of entrepreneurship as it provides conducive
conditions for the development and growth of
entrepreneurs . Small entereprises require low
investment and simple technology and use local
resources to meet local demands through
personal contacts.
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