GOVERNMENT SUPPORT TO SSI DURING 5 YEAR PLANS

Five year plan of India have played an important role in shaping government support
towards SSI. Let us see how the Five year plans have supported SSI through years.

First Five Year plan (1951-56)

Rs.48 crores was the plan outlay for SSI sectors which accounted for 48% of
total expenditures on industry.
By the end of first plan there were six boards to help the cause of SSI- All India
Handloom Board, All India Handicrafts Board, All India khadi and village
industries board, Small-Scale Industries Board, Coir Board, Central Silk Board.

Second Five Year Plan (1956-61)

Rs.187 crores was the outlay on SSI.
60 industrial estates were established all over the country for providing basic
facilities like power, water, transport in one place.
Number of items reserved for SSI sectors was increased.

Third Five year Plan (1961-66)

Rs.248 crores was the outlay on SSI sector
It stressed on the extension of coverage of small scale industries.

Fourth Five Year Plan (1969-74)

Rs.242 crores was earmarked for SSI sector
It stressed on consolidation of industrial estates and upgradation of facilities.

Fifth Five Year Plan (1974-79)

Rs.592 crores was the outlay of this plan
The main thrust of the plan was to develop SSI sectors in order to address
growing unemployment problems due to the ever-increasing population.

Sixth Five Year Plan (1980-85)

Rs.1945 crores was the outlay of this plan
The number of items reserved for SSI rector rose to a maximum of 836. This
was the height of Govt. protection.
409 items of raw materials were reserved for exclusive purchase from SSI's
Consultancy services to improve standards was initiated.

Seventh Five Year Plan (1985-90)

Rs.3,249 crores was the outlay of this plan.
The main thrust of the seventh plan was upgradation of technology to increase
competitiveness of small sector.

Eighth Five Year Plan (1992-97)

Rs.6,334 crores was the outlay of this plan
 The main thrust of the 8th plan was to generate more employment to improve
economic growth.
This plan proposed to establish tool rooms and training institutes.
'Single Window' concept for giving licenses and clearances for opening SSI's
was started.
Central Government with the help of various State Governments set up
integrated infrastructure development centre for tiny units.

Ninth Five Year Plan (1997-2002)

Foreign direct investment policy liberalized.
Disinvestment commission constituted
Technology Development Board set up to facilitate development of new
technologies and assimilation of imported technologies.
Special schemes to promote industrial development of hilly, remote and
inaccessible areas announced.
Sick industries Corp. Act, 1985 were amended.
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