Discuss the role of
small scale industries in the Indian economy. Briefly explain the government
policy to encourage their development.
•
Industries
in India have been divided into two sectors- Small Scale sector and large scale
sector currently known as MSME sector.
•
In India
MSME development Act 2006 defines MSMEs on the basis of investment in plant and
machinery ( original cost, excluding land and building and the items specified
by the them ministry of small scale industries.
•
Manufacturing
sector
• Micro Does
not exceed Rs. 25 lakhs
• Small More
than Rs.25 lakhs and less than Rs. 5 crore
• Medium More
than Rs. 5 cr and less than Rs. 10 crore
•
Service
sector (investment in equipments)
• Micro
Does not exceed Rs. 10 lakhs
• Small
More than Rs.10 lakhs and less than Rs. 2 crore
• Medium
More than Rs. 2 crore and less than Rs. 5 crore.
Role of Small Scale
Industries:
•
Generation
of immediate employment opportunities with relatively low investment
•
Promotion
of more equitable distribution of income
•
Effective
mobilisation of capital
•
To
promote human skills
•
Export
promotion
•
Decentralisation
of industries
•
Promote
traditional village and cottage industries
•
To
utilise idle labour and support agricultural income
Government Efforts:-
Ø Prime Minister’s Employment Generation
Programme
Ø All India Census of MSMEs
Ø Credit Guarantee Scheme
Ø National Manufacturing Competitiveness
Programme
Ø MSE-Cluster Development Programme
(MSE-CDP)
Ø Credit Linked Capital Subsidy Scheme
Ø Entrepreneurship and Skill Development
Ø Rajiv Gandhi Udyami Mitra Yojana
Ø Performance and Credit Rating Scheme
Ø Financial assistance on bar code
Ø Employment exchange for industries
Ø Framework for revival and
rehabilitation of MSMEs
Ø A scheme for promoting innovation and
Rural enterprises
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