Small Scale Industries (SSI) in India

Small-Scale Industries (SSI) are production units with a capital investment of up to Rs. One Crore. Small-Scale industries can be categorize by

- Cottage Industries
- Agro-based industries
- Small Industries

Arguments in favor of SSIs

It presents an entirely distinct pattern of development and emphasis the importance of small industries in the Indian economic development, the IPR. 1956, stated: "They provide immediate large scale employment; they offer methods of insuring a more equitable distribution of national income and they facilitate an effective mobilization of resources of capital and skill which might otherwise remain unutilized. Some of the problems that unplanned urbanization tends to create will be avoided by the establishment of small centre of industrial production all over the country." There is the argument relating to allocation efficiency and the on-going debate about relative merits of lean production and mass production.

Advantages of Small-Scale Industries

- Labor intensive in nature
- Useless capital per unit of output
- Prevent congestion
- Suitable for people with limited resources
- Prevent concentration of economic power
- Lead to better distribution of incomes
- Help in putting idle resources to productive user
- Suitable for lean production
- Lead to allocate efficiency

Problems of Small-Scale Industries

- Problem of finance
- Problem of raw material
- Problem of power
- Problem of marketing
- Export difficulties
- Problem of technical know how
- Problem of industrial relations
- Growing sickness and mortality among these units

Suggestions for Growth

- Part gains be consolidated
- Development measures be spread
- A discriminating program of assistance be formulated
- Productivity need be improved
- Assistance programs needs be tacked
- Skill based needs be improved
- Inter-industry linkages be provided
- World class facilities need be provided
- Marketing assistance be provided
- Exports need be provided
- Market intelligence be sup pled
- Low-cost automation should be encouraged

Business Management Books

To know the advantages, problems, suggestions for growth of small scale industries, this website has gathered some of the finest books on business management.

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