Small Scale Industries: An Important Catalyst for the Growth of India’s Economy

  • SumoMe

A topic on business scenario in India is incomplete without mentioning of contributions of Tatas, Ambanis or Birlas… but uniformly important in stabilizing the economic growth of a country are its Small Scale Industries (SSI). Since independence, the small scale industries have rendered a major contribution to the gross domestic product of the country.

 

They play a vital role in changing the industrial scenario and strengthening the industrial sector tremendously. They assist the utilization of assets for productive purposes with minimal initial resources. SSIs have contributed greatly in nurturing private enterprise and in hastening the economic development by generating employment, exports, and reducing local unevenness.

 

This sector estimated to possess a huge potential in the growth of trade with the array of products it offers. With 40 percent share in total industrial output and 35 percent share in exports, small scale industries significantly contribute to the fiscal intensification of the country.

 

The adored possession of India, the khadi handloom is a favorite product of these industries. Household products to raw materials for large scale industries mark the range of produce by these industries. They are instrumental in transfiguring the areas of horticulture, sericulture, fishery, and garments with the products they supply. The fine handicrafts for example the stunning artworks of sandalwood or metal idols are all the works of craftsmen from these industries. The traditional small scale industries that have been at hand for a long time form the crafty portion and tap the above fields. The progression of traditional small scale industries have made the modern industries which produce the day to day goods like hosiery products, leather products etc to more refined items like television and radio sets, electronics managing system. Pickles, papads, Bread, oils, wooden furniture, Exercise books, Wax candles etc also form the products on demand…

 

In a nation like India small scale industries come as boons. They persuade entrepreneurship and help in employment of local populace. As per a report about 273 lakh people are working in small scale industries with a turnover of about 348,059 crores currently. The domestic talents are put to good use to produce commodities that have found market worldwide.

 

Small scale industries to a degree avert needless urbanization. The number of people migrating to cities in search of jobs shrinks by the employment options domestic industries create thereby reducing pollution and over population in cities and also helps in decentralized industrial expansion.

 

The main reason of a small scale industry is to achieve self reliance by utilizing the resources available and harnessing the skills of local people to lay a platform that yields a steady income.

 

The industries are characterized by the wise utilization of labor for the commodity production and the advantage lies in the fact that is consumption of ample laborers who are not qualified to work for the large scale industries and thus reducing unemployment and poverty in the country as well. Small Scale Industries help the financial system in promoting evenhanded development of industries across all the regions of the economy and also in the efficient distribution of money.

 

Thanks to the measures of the government which have always supported the small scale industries. Government has reserved certain products for manufacture in the small scale sector in areas where there is an economic justification for such an approach to encourage these industries, there are about 675 items reserved for the small industries presently.. There are about 115.2 lakh small scale industries in the country which have influenced the economy of the country by a great deal. Victory stories of countless women who held on to small scale industries are widespread in recent times. Physically handicapped, abandoned and even illiterate inhabitants have found new lives by means of the small scale business.

 

Commodities form foreign countries like china and Singapore have hit the small domestic industries with cheaper price and superior quality goods. With the rise in the costs of raw materials it is intricate to maintain the unwavering manufacture and sustain domestic industries complain many small industry holders; nonetheless they are doing an enormous trade in promoting export and international relations with their “Desi” caliber and talents.

 

Samhitha Raj

[Image courtesy: http://farm4.static.flickr.com/3260/2561001656_67ddcf9ea4.jpg?v=0]

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