Small Scale Industry

Small  scale industries (SSI) are those in which manufacturing, service provision, and production are carried out on a small  scale. For example some of the small scale industries have the following ideas: Napkins, tissues, chocolates, toothpicks, water bottles, miniature toys, papers, and pens. These  industries are vital  to India’s social and economic growth. These businesses always make a one-time investment in machinery, facilities, and businesses, which can be done as a buy, a hire purchase, or at a lease. However, it does not surpass one crore rupees. 

Small-scale industry

Small scale industries are made up of small businesses that produce goods or services with the help of relatively limited machines and a small number of workers and employees. Essentially, the business must follow the guidelines put forth by the Indian government. For the time being, these are the limits:

1.For Goods Manufacturing Units, plant and machinery investments must be between 25 lakhs and five crores.

2.Service providers must invest between ten lakhs and two crores in machinery

Small-scale industries are the lifeblood of the economy in emerging countries like India. Because these are typically labour-intensive businesses, they provide a lot of jobs. They also aid in the economy’s per capita income and resource use. From a financial and social standpoint, they are a vital part of the economy.

Examples of Small-scale industry 

1.Bakeries

2.Candles

3.Stationery for the classroom

4.water bottles

5.leather belt

6.Toys for small children

7.Paper Bags

8.Printing and Xerox

9.T-shirt Printing\sPhotography

10.Salons and spas

Characteristics of small scale industry

1.Ownership of Small Scale Industries: Most of these businesses are owned by a single person. As a result, it is either a sole proprietorship or a partnership.

2.Management: In most cases, the owner/owners are in charge of both management and control. As a result, the owner is actively involved in the day-to-day operations of the company.

3 Small-scale industries have a limited geographic reach. As a result, they are able to meet local and regional demand.

4.Labor-intensive: These small-scale businesses rely heavily on labour and people to complete their tasks. As a result, their reliance on technology is quite low.

5.Flexibility: These units are better suited to shifting business conditions. So, in the event of unanticipated changes or developments, they are adaptable enough to keep going. This is an advantage that large industries do not have.

6.Resources-:They rely on local and easily accessible resources. This also benefits the economy by allowing for more efficient use of natural resources and less waste.

The Importance of Small Scale Industries in India’s Economy 

Total Production

These businesses produce over 40% of the total commodities and services produced in India’s economy. They are a major contributor to the economy’s expansion and strengthening.

Employment

Small-scale industries provide a significant amount of employment in the country. In the formal economy, the whole labour force is unable to find jobs. As a result, these labour-intensive businesses support a considerable share of the workforce.

Export Contribution

These small businesses create nearly half of the items exported from India (45-55 percent). Small-scale industries account for around 35% of direct exports and 15% of indirect exports. As a result, the growth and development of India’s export economy is heavily reliant on these Small businesses.

Public Health and Welfare

These industries are crucial for our country’s social growth and development, in addition to economic ones. These businesses are frequently formed by people from the lower or middle classes. They have the opportunity to amass fortune while also employing others. It aids in the distribution of money and adds to social advancement.

National Small Scale Industry Corporation

The  National Small Industries Corporation was established in 1955 as part of a central government initiative with the primary goal of meeting the machinery and equipment needs of small business owners. The lack of investible cash to purchase machinery and equipment has been identified as a major hurdle for entrepreneurs. Many entrepreneurs are unable to take advantage of business possibilities due to a lack of cash.

As a result, this corporation was formed to satisfy the needs of the entrepreneur. It rents out equipment, machinery, and plants on a pay-as-you-go basis. Entrepreneurs can buy both domestic and imported machinery under this programme.

Conclusion 

Small-scale industries have become increasingly significant in the country’s socioeconomic development. The number of small-scale industries increased from 28.03 lakhs in 1996-97 to 34.64 lakhs in 1997-98.