Small-scale industries play an important role in the economy of our country. Discuss.
Small-scale industries play an important role in the economy of our country. Discuss.
Small-scale industries play an important role in the economy of our country, as explained below:
(i) Generate Employment Opportunities SSIs are labour intensive, therefore, they have generated huge employment opportunities in the country.
(ii) Favourable Employment Capital Ration: According to all India Census of small scale industries, an investment of Rs. 10 Lakh generated employment for 14 persons in small scale sector and for only 2 persons in large scale sector.
(iii) Self Employment: SSIs are a suitable source of self-employment for millions of unemployed in the country.
(iv) Less Capital is Required: SSIs are generally less capital intensive, implying the these can be established with a limited amount of capital.
(v) Promotes Exports: SSIs produce goods which are in great demand in foreign countries, thus contributing to the export of the country.
(vi) Promotes the Handicraft Industry: The traditional village and cottage industries are clubbed with modern small-scale industries, thereby providing the artisans and handicraftsmen with a means of living and also preserving and promoting the handicraft industry of our country.
(vii) Fulfilling the Needs of Medium and Large Industries: SSIs work as ancillary units to fulfill the requirements of medium and large industrial units for materials components, consumables, etc.
(viii) Investment Output Ratio at par with Large Industries: The investment-output ratio of SSIs is almost at par with the large scale units.
Small-scale industries play an important role in the economy of our country, as explained below:
(i) Generate Employment Opportunities SSIs are labour intensive, therefore, they have generated huge employment opportunities in the country.
(ii) Favourable Employment Capital Ration: According to all India Census of small scale industries, an investment of Rs. 10 Lakh generated employment for 14 persons in small scale sector and for only 2 persons in large scale sector.
(iii) Self Employment: SSIs are a suitable source of self-employment for millions of unemployed in the country.
(iv) Less Capital is Required: SSIs are generally less capital intensive, implying the these can be established with a limited amount of capital.
(v) Promotes Exports: SSIs produce goods which are in great demand in foreign countries, thus contributing to the export of the country.
(vi) Promotes the Handicraft Industry: The traditional village and cottage industries are clubbed with modern small-scale industries, thereby providing the artisans and handicraftsmen with a means of living and also preserving and promoting the handicraft industry of our country.
(vii) Fulfilling the Needs of Medium and Large Industries: SSIs work as ancillary units to fulfill the requirements of medium and large industrial units for materials components, consumables, etc.
(viii) Investment Output Ratio at par with Large Industries: The investment-output ratio of SSIs is almost at par with the large scale units.
