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Opportunity Small industry sector has performed exceedingly well and enabled our country to achieve a wide measure

of industrial growth and diversification. By its less capital intensive and high labour absorbtion nature, SSI sector has made significant contributions to employment generation and also to rural indust rialisation. This sector is ideally suited to build on the strengths of our trad itional skills and knowledge, by infusion of technologies, capital and innovativ e marketing practices. So this is the opportune time to set up projects in the s mall scale sector. It may be said that the outlook is positive, indeed promising , given some safeguards. This expectation is based on an essential feature of th e Indian industry and the demand structures. The diversity in production systems and demand structures will ensure long term co-existence of many layers of dema nd for consumer products / technologies / processes. There will be flourishing a nd well grounded markets for the same product/process, differentiated by quality , value added and sophistication. This characteristic of the Indian economy will allow complementary existence for various diverse types of units. The promotion al and protective policies of the Govt. have ensured the presence of this sector in an astonishing range of products, particularly in consumer goods. However, t he bug bear of the sector has been the inadequacies in capital, technology and m arketing. The process of liberalisation will therefore, attract the infusion of just these things in the sector. The opportunities in the small-scale sector are enormous due to the following fa ctors: Less Capital Intensive Extensive Promotion & Support by Government Reservation for Exclusive Manufacture by small scale sector Project Profiles Funding - Finance & Subsidies Machinery Procurement Raw Material Procurement Manpower Training Technical & Managerial skills Tooling & Testing support Reservation for Exclusive Purchase by Government Export Promotion Growth in demand in the domestic market size due to overall economic growth Increasing Export Potential for Indian products Growth in Requirements for ancillary units due to the increase in number of gree nfield units coming up in the large scale sector. Small industry sector has performed e xceedingly well and enabled our country to achieve a wide measure of industrial growth and diversification. Small Scale Industries in India enjoy a distinct position in view of their contr ibution to the socio-economic development of the country. The following points h ighlight their contribution Small industries in India account for 95 per cent of the industrial units in the country. They contribute almost 40 per cent of the gross industrial value added and 45 per cent of the total exports (direct and indirect exports) from India. Small industries are the second largest employers of human resources, after agri culture. They generate more number of employment opportunities per unit of capit al invested compared to large industries. They are,therefore, considered to be m ore labour intensive and less capital intensive. This is a boon for a labour sur plus country like India. Small industries in our country supply an enormous variety of products which inc lude mass consumption goods, readymade garments, hosiery goods, stationery items , soaps and detergents, domestic utensils, leather, plastic and rubber goods, pr ocessed foods and vegetables, wood and steel furniture, paints, varnishes, safet y matches, etc. Among the sophisticated items manufactured are electric and elec

tronic goods like televisions, calculators, electro-medical equipment, electroni c teaching aids like overhead projectors, air conditioning equipment, drugs and pharmaceuticals, agricultural tools and equipment and several other engineering products. A special mention should be made of handlooms, handicrafts and other products fr om traditional village industries in view of their export value. The contribution of small industries to the balanced regional development of our country is noteworthy. Small industries which produce simple products using sim ple technologies and depend on locally available resources both material and lab our can be set up anywhere in the country. Since they can be widely spread witho ut any locational constraints, the benefits of industrialisation can be reaped b y every region. They, thus, contribute significantly to the balanced development of the country. Small industries provide ample opportunity for entrepreneurship. The latent skil ls and talents of people can be channelled into business ideas which can be conv erted into reality with little capital investment and almost nil formalities to start a small business. Small industries also enjoy the advantage of low cost of production. Locally ava ilable resources are less expensive. Establishment and running costs of small in dustries are on the lower side because of low overhead expenses. Infact, the low cost of production which small industries enjoy is their competitive strength. Due to the small size of the organisations, quick and timely decisions can be ta ken without consulting many people as it happens in large sized organisations. N ew business opportunities can be captured at the right time. Small industries ar e best suited for customised production. i.e. designing the product as per the t astes/preferences/needs of individual customers, say for an example tailor-made shirt or trouser. The recent trend in the market is to go in for customised prod uction of even non-traditional products such as computers and other such product s. They can produce according to the needs of the customers as they use simple a nd flexible production techniques. Last but not the least, small industries have inherent strength of adaptability and a personal touch and therefore maintain good personal relations with both cu stomers and employees. The government does not have to interfere in the function ing of a small scale unit. Due to the small size of the organisation quick and t imely decision can be taken without consulting many people as in large sized org anisations. New business opportunities can be captured at the right time, thus p roviding healthy competition to big business which is good for the economy.

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