Small Scale Industries
Small Scale industries definition has undergone many changes from time to time since 1950. To the definition of SIS is on the basis of investment. In February 1997 the investment limit in S5I and ancillary industries were raised to Rs. 3 crore and that of tiny units to Rs. 25 Lakh. In 1999 the inventiveness limit of SIS was brought down to Rs. I crore.
(1) Production intermediate production. In our country the Population is more and due to this the demand for goods is more. Small scale industries helps to meet this demand.
(2) Employment argument .A the SSI are labor-intensive. it provides employment to many people. The problem of unemployment to certain extent may be reduced.
(3) Capital-light argument: In large scale industries we require huge Arno of investment, bur in SIS we can start the units with smaller amount of capital.
(5) Skill-light argument : Labor’s can be employed with lesser amount of training.
(5) Latent-resources can help in tapping the unexploited resources into use.
(6) Decentralization argument. helps in small town’s development, They an spread to different pans of the country. In case of large scale industries concentration is in big cities only. This can stop the labor migration from small to big cities .
(7) Equity argument: SSI industries helps encouraging small entrepreneur to enter Into the business. This may be vital, so as to reduced the gar between the rich and poor.
(8) Import light and Export promotion argument : As local resources are used in many lees burden on import bill. SIS are very beneficial as per as exports are concerned. In India its share in exports is increasing. In 2000-2001. Estimated billion $ worth exports were accounted.
(9) Less-industrial disputes arrangement industries there are very less number of industrial disputes, as the number of workers in 5S! an: very less compare to large scale industries.
(10) Support to Large-scale industrial men. Many large scale industries output is con as an input.
Hence SSIs and Large scale tries are interdependence mean that there are 110 problems. SSI; suffer;from many problems. In different countries of the worldview have played a vital role in their economies. After the localisation and globalization the role of SSI and its definition is changing in many parts of the world.