Role of small bussiness in indian economy.ppt 2007 sandhya
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The document discusses definitions of small business across different countries and criteria used to define them such as total capital investment, assets, employment levels, and sales turnover. It notes size does not always reflect an enterprise's true nature and other characteristics like ownership, management, technology, and geographical operations also differentiate small and large businesses. The role of small businesses in India's economy is described including importance in employment, capital optimization, regional development, and industrial production.
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The document discusses the contribution of small scale industries to economic development in India. It notes that small scale industries play a vital role in the economy by generating significant employment, requiring relatively low investment, and promoting entrepreneurship. Over the past few decades, the number of small scale industries has increased substantially as has their production value, exports, and employment. Small scale industries now account for 35% of manufacturing output, 80% of industrial employment, and 40% of total exports, demonstrating their important role in India's economic development.
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This document discusses the growth and patterns of industrialization in India post-independence. It covers several topics:
1. The period from 1951-1995 saw India establish its industrial base, with slow growth from 1965-1976 and recovery from 1976-1995.
2. Since 1991, India introduced new industrial policies and faced factors slowing growth from 1996-2002 and 2007-2012.
3. Manufacturing makes up the largest share of the economy at 75.53%, followed by mining and electricity. Industries are also classified based on the goods they produce and their ownership structure.
4. The manufacturing sector has seen changes in shares of different industries and rising capital intensity over time. Employment growth in organized manufacturing
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The document summarizes government policies in India that promote small scale industries. Key policies include:
1. Reservation of certain manufacturing items exclusively for small scale industries to boost production and employment.
2. Industrial policy resolutions from 1948-1991 that stressed the role of small scale industries, provided subsidies and credit, increased investment limits, and reserved more manufacturing items for the small scale sector.
3. The establishment of the Small Industries Development Bank of India to ensure adequate credit flow to small scale industries.
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This presentation helps students to understand meaning of SSI and importance and difficulties they face for doing their business as well as how government helping SSI.
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Industrial growth during India's planning period from 1951-2012 is summarized as follows:
(1) India pursued a policy of industrialization through five-year plans which led to the establishment of major industries like steel, fertilizer, and machine tools plants.
(2) During this period, India's industrial sector grew significantly, strengthening India's industrial base and ranking it as the 10th most industrialized country.
(3) However, industrial development also faced weaknesses like underutilization of capacity and increasing regional imbalances between states.
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Small businesses are defined differently around the world, but most commonly use size criteria like number of employees, assets, investment levels, production volume or sales turnover. Countries define small businesses based on these criteria, with some using a single factor and others a combination. In India, small businesses are currently defined as undertakings with plant and machinery investment up to Rs. 3 crores. Micro, small, and medium enterprises are classified by investment level in both manufacturing and services. Small businesses play an important role in the Indian economy through employment, capital optimization, regional development, and accounting for a major share of industrial output and exports.
small scale industries opportunities and challlenges
[1] The document discusses small scale industries (SSIs) in India, which are defined as industrial undertakings with capital investment of less than Rs. 1 crore.
[2] SSIs are the second largest employers in India after agriculture, employing around 2 crore people. They account for 6% of GDP, 95% of industrial units, and 34% of exports.
[3] While SSIs play an important role in the Indian economy, they also face challenges such as problems securing financing, marketing, raw materials, and developing managerial and technical skills.
capital output ratio
The document discusses capital output ratio (COR) and incremental capital output ratio (ICOR). COR is a measurement of the amount of capital required to produce a given level of output over a period of time. Countries with abundant natural resources tend to have a lower COR since they can substitute capital with resources. ICOR assesses the marginal investment needed to generate the next unit of production, with a higher ICOR indicating less production efficiency. While COR and ICOR provide useful information, they have limitations since capital and output cannot be precisely measured and are influenced by other variable factors. As such, specific ratios should be interpreted cautiously when estimating capital requirements.
Small Scale Industries.
This document discusses small scale industries in India. It defines small scale industries as those with investments in plant and machinery up to Rs. 1 Crore that produce a variety of goods and services. Small scale industries play a vital role in India's economy by generating employment, utilizing local resources, and promoting balanced economic growth. They are an important sector from both financial and social perspectives. The document outlines the classification, objectives, examples, characteristics, and importance of small scale industries in India's development.
Pakistan Trade Issues
Lower transaction costs, less documentation requirements, avoiding customs fees and taxes, and quick payment encourage informal trade in Pakistan. The size of Pakistan's informal economy is estimated between 27-91% of the formal economy. Informal trade harms the local economy by hurting formal businesses and reducing tax revenue. Factors like weak rule of law, high tariffs, and lack of trust in the tax system allow the informal economy to thrive. While challenging to measure, Pakistan's informal economy is a significant issue that reduces economic growth and strengthens criminal networks.
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This document summarizes structural changes in the Indian economy as reflected by statistics over the years. It notes that international trade as a percentage of GDP, savings and investment rates, and private sector investment have increased. Infrastructure investment has also grown, with more coming from private sectors and states. Some public sectors have been privatized. The document also discusses increasing private sector involvement in education and estimates costs of achieving universal elementary education. It highlights both the useful role of statistics but also potential for misuse and manipulation.ย
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This document discusses small-scale industries (SSI) in India. It outlines how the ceiling limit for what constitutes an SSI has increased over time. SSIs are important for industrialization and the government has various policies to support their development. Key benefits of SSIs include utilizing available labor and requiring relatively low capital investment. While some SSIs may grow larger, others are at risk of becoming obsolete. The document also outlines the scope and common areas that SSIs cover in India, as well as their growth and impact on employment and exports. Steps for starting an SSI are provided.
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- Small and medium enterprises play a vital role in the Indian economy by contributing nearly half of industrial output, exports, and employment. They produce over 8,000 products and create one million jobs annually.
- The document analyzes the performance of MSMEs in India with respect to their contribution to GDP and various industries. It also defines MSME classifications and discusses factors affecting their growth like lack of market knowledge, infrastructure, financing, and technology.
- Government efforts to promote MSMEs include industrial services, credit facilities, training, and incentives. Analysis shows constant high growth rates from 2007-2012 and increasing employment in the sector. In conclusion, MSMEs significantly contribute to the economy but lack of awareness among
The role of small scale industries in india
Small scale industries play an important role in the Indian economy by contributing significantly to industrial output, exports, and employment. They account for about 40% of industrial output and create the largest number of jobs after agriculture. Food products, non-metallic mineral products, and metal products are some of the largest employment generating small scale industries in India.
Ppt on small scale industries ashutosh & amit gautam
best of luck from amit gautam and ashutosh
guru nank dev university college ladowali road jalandhar city
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Capital formation through investment in physical capital like machinery and equipment, as well as inventory, has been a key driver of economic growth in India over the past several decades. Gross fixed capital formation and changes in inventories have both increased substantially since the 1950s. While public investment was initially dominant, private investment has grown to contribute more than half of total capital formation in recent years. Increasing capital formation has helped raise India's annual GDP growth rate and productive capacity over time.
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1. The period from 1951-1995 saw India establish its industrial base, with slow growth from 1965-1976 and recovery from 1976-1995.
2. Since 1991, India introduced new industrial policies and faced factors slowing growth from 1996-2002 and 2007-2012.
3. Manufacturing makes up the largest share of the economy at 75.53%, followed by mining and electricity. Industries are also classified based on the goods they produce and their ownership structure.
4. The manufacturing sector has seen changes in shares of different industries and rising capital intensity over time. Employment growth in organized manufacturing
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The document discusses Micro, Small and Medium Enterprises (MSMEs) in India and the support provided by the Ministry of MSME and other organizations. It outlines the definition of MSMEs based on the 2006 and 2018 Acts, describes bodies that work with the Ministry like Khadi and Village Industries Commission, and covers topics like rural industrialization, types of village industries, and government support programs.
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The document summarizes government policies in India that promote small scale industries. Key policies include:
1. Reservation of certain manufacturing items exclusively for small scale industries to boost production and employment.
2. Industrial policy resolutions from 1948-1991 that stressed the role of small scale industries, provided subsidies and credit, increased investment limits, and reserved more manufacturing items for the small scale sector.
3. The establishment of the Small Industries Development Bank of India to ensure adequate credit flow to small scale industries.
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This presentation helps students to understand meaning of SSI and importance and difficulties they face for doing their business as well as how government helping SSI.
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Industrial growth during India's planning period from 1951-2012 is summarized as follows:
(1) India pursued a policy of industrialization through five-year plans which led to the establishment of major industries like steel, fertilizer, and machine tools plants.
(2) During this period, India's industrial sector grew significantly, strengthening India's industrial base and ranking it as the 10th most industrialized country.
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The big push theory argues that economic development requires a minimum level of comprehensive investment in mutually supporting industries to take advantage of economies of scale and externalities. It identifies three types of indivisibilities - in production, demand, and savings - that must be overcome through a large investment package rather than gradual increases. Social overhead capital, like infrastructure, requires huge initial investments but leads to lower costs and indirect contributions to development over the long term. Underdeveloped countries face challenges achieving the necessary savings levels for a big push and must rely on outside sources.
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This document discusses industrial efficiency, defining it as maximizing output with minimum resources. It outlines elements that contribute to efficient industrial structures like employee morale and communication. It also lists eight stages of industrial efficiency including identifying ethical frameworks and explaining sales strategies. The document emphasizes that efficiency is important for factors like economic growth and development. It contrasts efficiency with effectiveness and provides models and guidelines to improve efficiency among employees and organizations.
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Dualism refers to the state of having two main parts or aspects. Dualism theories assume a split between two sectors of an economy - a traditional subsistence sector focused on small-scale agriculture and handicrafts, and a modern sector focused on capital-intensive industry and export agriculture. Economic dualism broadly refers to the coexistence of two or more separate economic systems within one country, divided by different levels of development and technology. Dual economies are common in less developed countries, where one sector serves local needs and another exports globally.
Small Business and Role of Small Business in Indian Economy
Small businesses are defined differently around the world, but most commonly use size criteria like number of employees, assets, investment levels, production volume or sales turnover. Countries define small businesses based on these criteria, with some using a single factor and others a combination. In India, small businesses are currently defined as undertakings with plant and machinery investment up to Rs. 3 crores. Micro, small, and medium enterprises are classified by investment level in both manufacturing and services. Small businesses play an important role in the Indian economy through employment, capital optimization, regional development, and accounting for a major share of industrial output and exports.
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[1] The document discusses small scale industries (SSIs) in India, which are defined as industrial undertakings with capital investment of less than Rs. 1 crore.
[2] SSIs are the second largest employers in India after agriculture, employing around 2 crore people. They account for 6% of GDP, 95% of industrial units, and 34% of exports.
[3] While SSIs play an important role in the Indian economy, they also face challenges such as problems securing financing, marketing, raw materials, and developing managerial and technical skills.
capital output ratio
The document discusses capital output ratio (COR) and incremental capital output ratio (ICOR). COR is a measurement of the amount of capital required to produce a given level of output over a period of time. Countries with abundant natural resources tend to have a lower COR since they can substitute capital with resources. ICOR assesses the marginal investment needed to generate the next unit of production, with a higher ICOR indicating less production efficiency. While COR and ICOR provide useful information, they have limitations since capital and output cannot be precisely measured and are influenced by other variable factors. As such, specific ratios should be interpreted cautiously when estimating capital requirements.
Small Scale Industries.
This document discusses small scale industries in India. It defines small scale industries as those with investments in plant and machinery up to Rs. 1 Crore that produce a variety of goods and services. Small scale industries play a vital role in India's economy by generating employment, utilizing local resources, and promoting balanced economic growth. They are an important sector from both financial and social perspectives. The document outlines the classification, objectives, examples, characteristics, and importance of small scale industries in India's development.
Pakistan Trade Issues
Lower transaction costs, less documentation requirements, avoiding customs fees and taxes, and quick payment encourage informal trade in Pakistan. The size of Pakistan's informal economy is estimated between 27-91% of the formal economy. Informal trade harms the local economy by hurting formal businesses and reducing tax revenue. Factors like weak rule of law, high tariffs, and lack of trust in the tax system allow the informal economy to thrive. While challenging to measure, Pakistan's informal economy is a significant issue that reduces economic growth and strengthens criminal networks.
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This document discusses small-scale industries (SSI) in India. It outlines how the ceiling limit for what constitutes an SSI has increased over time. SSIs are important for industrialization and the government has various policies to support their development. Key benefits of SSIs include utilizing available labor and requiring relatively low capital investment. While some SSIs may grow larger, others are at risk of becoming obsolete. The document also outlines the scope and common areas that SSIs cover in India, as well as their growth and impact on employment and exports. Steps for starting an SSI are provided.
Performance analysis of msme with respect to indian
- Small and medium enterprises play a vital role in the Indian economy by contributing nearly half of industrial output, exports, and employment. They produce over 8,000 products and create one million jobs annually.
- The document analyzes the performance of MSMEs in India with respect to their contribution to GDP and various industries. It also defines MSME classifications and discusses factors affecting their growth like lack of market knowledge, infrastructure, financing, and technology.
- Government efforts to promote MSMEs include industrial services, credit facilities, training, and incentives. Analysis shows constant high growth rates from 2007-2012 and increasing employment in the sector. In conclusion, MSMEs significantly contribute to the economy but lack of awareness among
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The role of small scale industries in india
Small scale industries play an important role in the Indian economy by contributing significantly to industrial output, exports, and employment. They account for about 40% of industrial output and create the largest number of jobs after agriculture. Food products, non-metallic mineral products, and metal products are some of the largest employment generating small scale industries in India.
Ppt on small scale industries ashutosh & amit gautam
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Micro, small and medium enterprises (MSMEs) play a crucial role in the Indian economy. They contribute 30% of India's GDP and around 45% of manufacturing output, employing over 11 crore people. However, MSMEs face several challenges including lack of access to adequate and timely credit due to insufficient collateral, outdated technology, infrastructure issues, and marketing difficulties due to limited resources and competition from large firms. The government has implemented various policies to address these problems and strengthen MSMEs, which are vital to employment, production and exports in India.
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Micro, Small and Medium Enterprise (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country. The researcher has tried to find out the possible difficulties that small enterprises face in the market. The reasons behind the failure of maximum small enterprises in Indian market. The market policies which effect such businesses and also the steps taken by the government to relief the small market enterprises. Some of the important policies have been discussed in the paper introduced by the government or which already exists. The researcher has tried to give solutions to solve such problems incurred by the SME'. The researcher has tried to find the existing governmental policies which will ease in doing business and also provide suggestions to solve the problems being faced by such business organisations. Arihant Agrawal"Difficulties Small Business Face Due to Marekt Conditions" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-5 , August 2018, URL: http://www.ijtsrd.com/papers/ijtsrd17022.pdf http://www.ijtsrd.com/management/operations-management/17022/difficulties-small-business-face-due-to-marekt-conditions/arihant-agrawal
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The document discusses small scale industries in India. It notes that small scale industries are a dynamic and vibrant sector of the Indian economy, holding the key to prosperity. The objectives of developing small enterprises include generating employment, eradicating unemployment, encouraging development in rural areas, and ensuring equitable distribution of wealth. Small industries contribute significantly to manufacturing, trading, and services. They have grown enormously over the past decades in number, production, employment, and exports. Small enterprises play a major role in India's economic development and exports through job creation, regional growth, and mobilizing local resources.
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