Small Scale Industries (SSI) have been playing an important role in the Indian economy for a long time. In India, SSI are defined in terms of investment in their fixed assets. This sector significantly contributes to production, employment generation and export promotion. In the gross industrial sector the value addition of SSI is about 40 percent. In rural India, the sector has created employment and, in turn, helped to eradicate rural poverty. The performance of the sector improved with time almost steadily, particularly in the field of employment generation. The sector s contribution was also not bad in export and production. But, things have started changing with the reform process from 1991. The policy of reform was actually a part of the process of globalization and liberalization and both were just to conglomerate the markets of different countries under the umbrella of a unified market economy. As a result, since 1991, the Indian market has started opening up for foreign giants and, in turn, exposed the SSI to severe competition. The major challenges faced by the SSI are non-availability of free loans, delayed payments, marketing, Industrial sickness, HR and technology, which are clearly visible through the decline of their overall performance. The government, realizing the situation, has started taking measures to support the sector through the provision of loans on priority basis, organizing fairs and participating in international fairs and providing funds for research and development. Different industries under the small scale sector are now trying to capture the factors for the future growth of the sector. The joint involvement of both the government and the private sector is going to face the challenges thrown by the global giants.
There are no reviews yet.