Small Scale Industries.

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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

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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’.

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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

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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.

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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

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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.

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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,

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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

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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.

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(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

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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

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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.

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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
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.,

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 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.

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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.

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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
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:

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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.

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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.

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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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