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Introduction
India is a good place to start a business since it has a lot of natural resources and a vast workforce. When we look at how a huge company grows, we usually see the expansion of a small, isolated space. Mark Zuckerberg, for example, founded Facebook in his dorm room. Capital and networking, on the other hand, are frequently key roadblocks in the growth of many small firms. While most entrepreneurial enterprises start out with great ambitions, a lack of capital is a major roadblock to success.
MSMEs are defined and classified as small scale industries under the Micro, Small & Medium Enterprises Development Act of 2006. In the case of manufacturing businesses, these categories are based on investment in plants and machinery, while in the case of service sector companies, they are based on investment in equipment. Many of these tiny businesses are now supported by the government through subsidies and funding. Because of the items they create, these small scale industries play an important part in India’s secondary economy.
Tiny manufacturing enterprises have the best advantage of being able to be established from home or, at the most, in a small rented area. The capital outlay is minimal, and it does not necessitate the purchase of expensive apparatus or equipment.
The following is a list of India’s top small-scale industries:
1. Chocolate
Chocolates produced at home have always been a popular treat among people of all ages. Chocolate is produced by a vast number of small businesses, particularly in hill station areas. The chocolate market in India is expected to be worth roughly Rs172 billion by the end of 2020, according to Mintel, a market intelligence firm. Chocolate is no longer a luxury or a speciality item in India, since per capita income has increased, and the ordinary Indian now consumes it on a regular basis.
- Toilet Paper And Paper Napkins
Food, hospitality, and entertainment, three of India’s fastest-growing industries, are rapidly using paper napkins and toilet paper. A paper napkin manufacturing plant with a capital investment of Rs. 10 lakhs can generate an annual sales turnover of Rs. 1 crore and a profit of Rs. 5-8 lakhs after all expenses. VAT registration is frequently required in certain industries in addition to business registration.
- Disposable Napkins
One of the most popular options among NGO-run small scale companies is sanitary napkins. It has a two-fold benefit in many rural areas: it employs women and raises awareness about the importance of using safe and clean menstrual products. The emergence of films like Padman has brought these industries to the notice of the general public. These industries will cost between 3-35 lakhs to establish, depending on the size, machinery, and the number of staff.
- Making Candles
The candle-making enterprise only requires a capital investment of roughly Rs.50000. It helps a lot of women by providing job options in remote areas. From Diwali to Christmas, lights and candles are an important feature of many Indian ceremonies. The candle-making sector in India is rapidly expanding in terms of both production and diversification. Candles are no longer limited to a straight cylindrical shape, and nearly every industry now produces scented candles.
- Phenyl Production
Phenyl is a highly regarded cleaning product that is widely utilised in households, hospitals, restaurants, and manufacturing facilities. Despite the arrival of several alternative products on the market, phenyl remains the most often utilised substance.
- Disposable Plates and Cups
In 2020, the Indian paper cup market had a volume of 265 billion units, and it is predicted to increase at a CAGR of 2% between 2021 and 2026. By 2026, the small scale sector is expected to achieve a volume of almost 295 billion units. The COVI-19 epidemic, as well as an increase in the ordinary Indian’s disposable income, are chiefly responsible for this increase.
- Notebooks that have been excised
The use of excise notebooks has risen steadily over time. Between 2010 and 2015, the market experienced enormous expansion, with a double-digit CAGR in terms of sales.
8. Spices
Spices have an important role in Indian cuisine. As a result, there will always be a high need for spices. However, India’s spice business is so large that it also caters to foreign needs. Spices worth $3.65 billion were exported from India in the fiscal year 2020. The sector is extremely profitable, with annual revenue of over 40000 crores.
- Oils And Soaps
Small scale enterprises making soaps and oils are prospering because of an increasing number of customers opting for organic products. Due to a significant trend towards a chemical-free lifestyle, there is a huge demand for cold-pressed soaps and oils today. In addition, many of these tiny businesses offer a wide range of scents, and some even customise goods.
- Incense and Camphor Sticks
India is the world’s largest manufacturer of incense sticks, which it sends to a number of countries. For the next several years, the agarbatti or incense stick market is predicted to rise at a CAGR of more than 8% in terms of volume. The demand for pharma grade camphor is also rising among Indians, owing to a growing trend of self-medication. In India, however, 98 percent of the camphor is used for religious purposes.
Conclusion
We can conclude from the above topic that there are some small sector industries which have helped India in boosting its economy. Small-scale industries have become increasingly significant in the country’s socio-economic development. In 1996-97, there were 28.03 lakhs of small-scale industries, which climbed to 34.64 lakhs in 2001-02.
