Small Scale Industry1. •Important for Industrialization.

2. •Govt. has varies policies to develop SSI

3. •Gross IDEAS => GROSS investment of land,building plant etc.

4. •MINISTRY OF INDUSTRY

The TYPES…....of SSI

1) Conventional

2)Operational

3)National Income Accounting

Ceiling Limit for SSIs Sl No. Year Ceiling limit for SSI

1 1950 Capital assets up to Rs. 5 Lakhs

2 1958 Capital investment up to 5lakhs

3 1960 Gross value of fixed assets up to Rs. 5 Lakhs

4 1966 Value of plant and machinery up to Rs.7.5 Lakhs

5 1975 Plant and machinery up to Rs.10 Lakhs

6 1980 Up to Rs.20 Lakhs on Plant and machinery

7 1985 Up to Rs.35 Lakhs on Plant and machinery

8 1991 Up to Rs.60 on Plant and machinery

9 1997 Up to Rs.3 crore on Plant and machinery

Characteristics of SSI1 Capital investment is small

2 Owned by single

3 Family Owned industries

4 Workers are expected to do different types of jobs as need arises

5 Funded by owner’s savings and dependent on owners entrepreneurship

6 Profit margins are less

7 Innovations and risk bearing is HIGH

8 Management and Organization is POOR

Characteristics of SSIFew of them may grow as medium scale

industry Technology may become obsolete resulting in

closure of SSIGenerally found in urban or semi-urban areas.

In India plenty of labour is available and capital investment is less

“Small Scale Industries” have very good future in this scenario.

1) Innovative

2) Self Satisfaction

3) Caters to individual taste and styles

4) Small in operation

5) Strength of nation

6) Spread over wide areas

Need and Rationale of SSI

1. Creation of employment opportunities

2. Improvement in standard of living

3. Elimination of economic backwardness in rural and

undeveloped areas of the similar society

4. Reducing regional imbalance

5. To provide employment & create regular source of

income for the needy people in the society

6. To encourage entrepreneurship & self-reliance.

Objectives of SSIs :

Scope for the Small Scale Industry in India is very vast.

Even by the help of Govt. & its policies. It has covered

most socioeconomic fields of this arena. Some common

areas of scope to be listed are,

a) Manufacturing, Servicing & repairing.b) Construction.c) Financial.d) Retailing.e) Wholesale business.f) Transporting.g) Public Utilities.h) Communication.

1. Registered Small Scale Industries growth rate

also increased from 2.5 Lakhs during 1973-74 to

36 Lakhs in 2006-07

2. The production of goods improved from 7200

crore in 1973-74 to 700,000 crore in 2006-07

3. Employment increased from 40 Lakhs in 1973-74

to 200 lakhs in 2006-07

4. Accordingly exports rate also increased to

Rs.75,000 Lakhs

5. In this way SSI accounts for 35% in total

manufacturing, 80% in total employment and

38% of total exports of the country.

Role of SSI in Economic Development

1. It don’t require high level of technology.

2. Do not need high capital.

3. Source & capabilities of under employed & unemployed can be utilized to the full extent.

4. Projects related to SSI can be completed in short period , which can be productive for the higher end.

5. Using of locally available raw materials makes products economical.

6. They help in developing the rural areas.

7. They also help in economic growth of the country.

Advantages of SSI

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1.Selection of Industry type2.Arrangement of technology3.Study of equipment requirement4.Study of resource requirement5.Selection of land and premises6.Study of Investment requirement7.Study of Plant & equipment requirement8.Study of raw material & source of supply

requirement9.Study of economic viability pricing strategy,

financing and Breakeven analysis 10.Application for loan to financial institution11.Project report preparation

Steps to start SSI

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Steps to start SSI

12.Getting NOC and permission from local body (municipality/corporation/village panchayat)

13.The same above from Directorate of Industries14.Apply for power connection15.Recruit staff and workers16.Order for plant & machinery17.Order raw material18.Installing the machinery & Trial runs19.Production and sales20.Profits & pay creditors