role of ssi in economic development.ppt

8/9/2019 role of ssi in economic development.ppt

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Role of SSI in the economicdevelopment of India

FAUZAN AZEEM

ROLL NO. - 077


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Entrepreneur

Any person who takes a valid commercial activitwith the aim of earning a reward for the eortsor capital employed therein.

Fauzan Azeem


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SSI - Defnition

An industrial undertaking in which theinvestment in xed assets in plant and

machinery whether held on ownership termson lease or on hire purchase does not exceedRs 10 million.


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FACTS

No. o units:12.! millionRegistered:1. "# millionUnregistered:10.!# millionEmployment:2$.!$ millionrodu!tion:Rs. !%#1%$&& croresE"ports:Rs. 1%2!%!1&S#$re in %D:'. "1 (

S#$re in Industri$l produ!tion:".'' (S#$re in n$tion$l e"ports:!."(

No. o produ!t m$nu$!tured:


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An!ill$ry Industri$l Undert$(ing

An industrial undertaking which is engagedor is proposed to )e engaged in themanufacture or production of parts%components% su)*assem)lies% tooling or

intermediates% or the rendering of servicesand the undertaking supplies or renders orproposes to supply or render not less than '0per cent of its production or services% as thecase may )e% to one or more other industrialundertakings and whose investment in xedassets in plant and machinery whether held

on ownership terms or on lease or on hire*urchase does not exceed Rs.10 million.


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Tiny

Enterprises+nvestment limit in plant and machinery inrespect of tiny enterprises is Rs 2.' millionirrespective of location of the unit.

*omenEntrepreneursA,mall ,cale +ndustrial -nit +ndustryrelated service or )usiness enterprise%managed )y one or more womenentrepreneurs in proprietary concerns% orin which she they individually or /ointlyhave a share capital of not less than '1( as

artners ,hareholders irectors of rivate


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+',e!ti&es o SSI

56limination of economic )ackwardness of

rural under *developed regions in +ndia.5Attainment of self reliance.5Reduction of regional im)alance.5Reduction of disparities in income% wealth and

consumption54o)ili7ation of resources of capital and skilland their optimum utili7ation.53reation of greater employment opportunitiesand increased output% income and standard ofliving.5rovides employment and steady source of

income to the low income group.5


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Sm$ll S!$le Industries

Tr$dition$l odern

9hadi

:illage +ndustry

;andloom

3oir

3ottage %Artisan

,mall scale


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Ad&$nt$ges o SSI

53reates immediate and permanent

employment at relatively small cost.54eets su)stantial part of increased consumerdemand.54o)ili7ation of idle resources.

5,hort gestation period.5+ntegration with rural economy on one handand large scale enterprises on the other.5>avora)le capital output ratio.

568uita)le distri)ution of national income.5,ave foreign exchange )y producing in house.5=raining ground for local entrepreneurs.5o not re8uire high end technology.5a)or intensive and not capital intensive.


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erorm$n!e o SSI

ERF+RANCE

roduction 6xport6mployment @pportunities


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rodu!tion

5roduction? Rs. !%#1%$&& crores53ontri)utes almost !0( of the grossindustrial value added in the +ndian economy.5=he num)er of small*scale units has

increased from an estimated 0."# million unitsin the year 1$"0*"1 to over million in the

year 2000.


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Year Target Achievement

!!-!" #.0 #.!!"-!# $.0 $.%

!!#-!& 7.0 7.

!!&-!$ !. 0.

!!$-!% !. .&

!!%-!7 !. .#

!!7-!' ( '.

!!'-!! ( 7.7

!!!-00 ( '.%

"000-0)*+

( '.!0

*-*,oected )Ap,il-

ecem/e,+( a,1et not fi2ed atcon3tant p,ice3


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Employment

5rovides 2ndlargest employment opportunitiesnext to Agriculture56stimated that 100%000 rupees of investmentin xed assets in the small*scale sector

generates employment for four persons.5>ood products industry has ranked rst ingenerating employment% providing employmentto 0.!" million persons 1.1(B. =he next twoindustry groups were Con*metallic mineralproducts with employment of 0.!' millionpersons 12.2(B and 4etal products with 0.#

million persons 10.2(B.


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er unit employment

5;ighest 20B in units engaged in )everages%to)acco D to)acco products5Cext came 3otton textile products 1#B%Con*metallic mineral products 1!.1B

5er unit employment was the highest 10B inmetropolitan areas and lowest 'B in ruralareas.5;owever% in 3hemicals D chemical products%

Con*metallic mineral products and Easicmetal industries per unit employment washigher in rural areas as compared tometropolitan areasur)an areas.


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!$tion-ise Employment - Rur$l

Con*metallic products contri)uted 22.#( toemployment generated in rural areas. >oodroducts accounted for 21.1(% ood roducts and 4etal roducts almoste8ually shared 22."( of employment.54achinery parts except electrical% Con*metallic mineral products% and 3hemicals Dchemical products )etween them accounted

for 2&.2( of employment.


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St$te-ise Employment

Distri'ution


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Year Target(lakhnos.)

Achievement(lakhnos.)

Growthrate

!!"-!# "'.0 #&.0% #."'

!!#-!& ##.0 #!.#' #."'

!!&-!$ #'.% &%.$% $.$!!$-!% &&.& $".% &.#

!!%-!7 $0.$ %0.00 &.''

!!7-!' %$ %7."0 &.$0

!!'-!! 70. 7.$' ".%

!!!-00 7$.& 77.# #.##

Fig: Employment


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E"port

5!'(*'0( of the +ndian 6xports is contri)uted)y ,,+ ,ector.

5irect exports from the ,,+ ,ector account fornearly '( of total exports

5,mall*scale industrial units contri)ute around1'( to exports indirectly.5Farments% leather and gems% plastic products%processed food and /ewellery

T#e m$,or e"port m$r(ets $re US/ EU $nd0$p$n.


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Year Exports(Rs. Crores)

(at currentprices)

!!&-!$ "!40%')&.'%+

!!$-!% #%4&70)"$.$0+

!!%-!7 #!4"&!)7.%+

!!7-!' !&%).!7+

!!'-!! &'!7!)0."+

!!!-00)*+

$#!7$)0."+

E1+RTS


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+pportunity

5ess 3apital +ntensive56xtensive romotion D ,upport )yFovernment

5Reservation for 6xclusive 4anufacture )ysmall scale sector5ro/ect roles5>unding * >inance D ,u)sidies

54achinery rocurement5Raw 4aterial rocurement54anpower =raining5=echnical D 4anagerial skills

5=ooling D =esting support


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5Frowth in demand in the domestic market si7e

due to overall economic growth5+ncreasing 6xport otential for +ndianproducts5Frowth in Re8uirements for ancillary unitsdue to the increase in num)er of greeneldunits coming up in the large scale sector. ,mallindustry sector has performed exceedingly well

and ena)led our country to achieve a widemeasure of industrial growth anddiversication.


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#e rodu!t %roup $tri"

=here are a)out twenty*one ma/or industrygroups in the small scale sector. =hese are?

* >ood roducts

* 3hemical D 3hemical roducts* Easic 4etal +ndustries* 4etal roducts* 6lectrical 4achinery D arts

* Ru))er D lastic roducts* 4achinery D arts 6xcept 6lecetricalgoods* ;osiery D Farments *


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* aper roducts D rinting* =ransport 68uipments D arts

* eather D eather roducts* 4iscellaneous 4anufacturing +ndustries* @ther ,ervices D roducts* Eeverages% =o)acco D =o)acco roducts

* Repair ,ervices* 3otton =extiles* i)re =extiles* Gute% ;emp and 4esta =extiles


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S!$le se!tor #$s emerged $s $ m$,orsupplier o m$ss !onsumption items li(e* leather and leather goods* plastic and ru))er goods* ready*made garments* hosiery goods% sheet metal goods

* stationery items * soap and detergents* domestic utensils* toothpaste and toothpowder* safety matches

* preserved foods and vegeta)les* wooden and steel furniture* paints and varnishes etc.


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Reser&ed Items or E"!lusi&e$nu$!ture

5>irst time in 1$ with the reservation of !# it5>e)ruary% 1$#0 * ''5>e)ruary% 1$#1 * 12"5Covem)er% 1$#1 * 12!

5>e)ruary% 1$#! * 1##5Gune% 1$#& * 1"05April% 1$#" H '0!54arch% 200' * '0& items are reserved

54ay%200& * 2&


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5=RAC,@R= 6J-+46C= &1B5663=R+3A 4A3;+C6,% A+AC36, D

AARA=-, 1#B5663=R@C+3 6J-+46C=, AC3@4@C6C=, 1B5=RAC,@R= 6J-+46C= E@A=, AC

=R-39 E@K E-++CF B5E+3K36 AR=,% =R+3K36, AC6RA4E-A=@R, !1B54+,36AC6@-, =RAC,@R= 6J-+46C=

!B5,@R=, F@@, #B5,=A=+@C6RK +=64, 1B5@=;6R, 21B


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Food $nd AlliedIndustries5ickles D chutneys % Eread% astry% ;ard)oiled sugar candy5Rapeseed @il except solvent extractedB %4ustard @il except solvent extractedB %,esame oil except solvent extractedB5Fround nut oil except solvent extractedB%Fround and processed spices other than spice

oil and @leo resin spices


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*ood $nd *ood rodu!ts

5,awn tim)er %


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l$sti! rodu!ts

5 >ull :3 footwear chappals% sandals and

shoes% Acrylic sheets except )y continuousextrusion process.

5 >i)re*Flass reinforced plastic productsother than the following?

1.,43 D 43 and its mouldings.2.3ontinuous >ilament R sheets )y continuous process5 ,pectacle frames )y fa)rication or )y

in/ection moulding

5 olypropylene )ox strapping% olythylene


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INANCIA) SU+RT EASURES

5,u)sidi7edcheap credit568uity participation exceeding 2! percent of the total shareholding.5A imited artnership Act was )eintroduced5,mall +ndustries evelopment Eank of+ndia *,+E+

INFRASTRUTURA! FAI!ITI"S


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INFRASTRUTURA! FAI!ITI"S

Scheme of Integrated InfrastructuralDevelopmentTechnology Development Cell (TDC) To

provide technology inputs to improve productivityand competitiveness of the products of the small

scale sector.Adeuacy and euita!le distri!ution of

indigenous and imported ra" materialsA proper and adeuate arrangement for delivery

of total pac#age of incentives and services at the

District level "ill !e evolved and implemented.


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REGISTRATION

Benefts o Registering

- Credit prescription (Priority sectorlending), dierential rates o interestetc.

- Excise Exemption c!eme- Exemption "nder #irect $ax %a&s.- tat"tory s"pport s"c! as reser'ationand t!e nterest on #elayed Payments

ct. Pro'isional Registration Certifcate

(PRC)


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PROCEDURE FOR

REGISTRATION A unit can apply for $%C for any item that does not reuire

industrial license . &nit applies for $%C in prescri!ed application form. 'o field

enuiry is done and $%C is issued.

$%C is valid for five years. If the entrepreneur is una!le to set

up the unit in this period he can apply afresh at the end of fiveyears period.

nce the unit commences production it has to apply forpermanent registration on the prescri!ed form.


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DE-REGISTRATION

It crosses the investment limits.

It starts manufacturing any ne" item or items that

reuire an industrial license or other #ind of statutory

license.

It does not satisfy the condition of !eing o"ned

controlled or !eing a su!sidiary of any other industrial

underta#ing.


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T2AN3 4+U 55

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role of ssi in economic development.ppt