BE PRESENTATION GOVT. POLICIES REGARDING SMALL SCALE ENTERPRISES

BE PRESENTATION

GOVT. POLICIES REGARDING SMALL SCALE ENTERPRISESSubmitted by :- RAHIL SHARMA SHUBHAM CHAWLA NAMAN TYAGI RISHABH JAIN INTRODUCTIONSmall scale industries have an important role in the development of the country.Contributes almost 40% of the gross industrial value added in the Indian economy.Contributes 45% of the total exports from India.Second largest employers of human resources after agriculture.Generate more employment opportunities per unit of capital invested than large-scale industries.In order to protect, support and promote small enterprises as also to help them become self-supporting, a number of government policies were established :-

Industrial Policy Resolution (IPR) 1948Industrial Policy Resolution (IPR) 1956Industrial Policy Resolution (IPR) 1977Industrial Policy Resolution (IPR) 1980Industrial Policy Resolution (IPR) 1990Industrial Policy Resolution (IPR) 1991INDUSTRIAL POLICY RESOLUTION (IPR) 1948In 1948 government accepted the importance of small-scale industries in the overall industrial development of the country.Realized that small-scale industries are particularly suited for the utilization of local resources and for creation of employment opportunities .But they had to face problems of raw materials , capital and skilled labour .Emphasis was on solving these problems with the co-operation of Central and State Govts.

MAIN OBJECTIVE :-

The main thrust of IPR 1948, as far as small-scale enterprises were concerned, was protection.INDUSTRIAL POLICY RESOLUTION (IPR) 1956 It stated that besides continuing the policy support to Small Scale Industries through differential taxation or subsidies , the aim would be that the development of this sector is integrated with that of Large Scale Industry.The focus was to increase the competitive strength of SSIs by providing :Adequate facilities for repair and maintenanceFinancial assistanceExtension of rural electrification

Availability of power at lower prices128 items were exclusively reserved for production in SSIs

MAIN OBJECTIVE :-

The IPR 1956 for small-scale industries aimed at Protection plus Development.INDUSTRIAL POLICY RESOLUTION (IPR) 1977FEATURES :-504 items were reserved for production in SSIsThe concept of District Industrial Centres (DICs) was introduced which stated that in each district a single agency could meet all the requirements of SSIs under one roof.Technological upgradation was emphasised in traditional sector.

Special marketing arrangements through the provision of services, such as, product standardization, quality control, market survey, were laid down.

MAIN OBJECTIVE :-

As per this resolution, the small sector was, to be protected, developed, and promoted.INDUSTRIAL POLICY RESOLUTION (IPR) 1980FEATURES :-The investment limits for small scale industries was raised from Rs.10 lakhs to Rs.20 lakhs and for ancillary units from Rs.15 lakhs to Rs.25 lakhs.Introduction of the concept of nucleus plants to replace the earlier scheme of the District Industry Centres in each industrially backward district to promote the maximum small-scale industries there.Promotion of village and rural industries to generate economic feasibility in the villages well compatible with the environment.

MAIN OBJECTIVE :-

Increase the industrial production through optimum utilization of installed capacity and expansion of industries.

INDUSTRIAL POLICY RESOLUTION (IPR) 1990FEATURES :-The investment limit in plant and machinery for small-scale industries was raised from Rs. 35 lakhs to Rs. 60 lakhs and for ancillary units from Rs. 45 lakhs to Rs. 75 lakhs.Reservation of items to be produced by SSIs was increased to 836.Special emphasis was laid on training of women and youth under Entrepreneurial Development Programme.

Emphasis was laid to upgrade technology to improve competitivenessSmall Industries Development Bank of India was established to ensure adequate flow of credit to SSIs.

MAIN OBJECTIVE :-

Employment generationINDUSTRIAL POLICY RESOLUTION (IPR) 1991FEATURES :-SSIs were exempted from licensing for all articles of manufacture.The investment limit for tiny enterprises was raised to Rs.5 lakh irrespective of location.Priority was given to small and tiny units in allocation of raw materials.Market promotion of products was emphasized through co-operatives, public institutions and other marketing agencies and corporations.Factoring services were to launch to solve the problem of delayed payments to SSIs.

MAIN OBJECTIVE :-

Simplify regulations and procedures by delicensing , deregulation and decontrolling. NORTH EAST INDUSTRIAL & INVESTMENT PROMOTION POLICY 2007NEED :-Due to the backwardness of North Eastern region.OBJECTIVE :-Encourage investment in industrial sector through fiscal and other incentives for economic growth of the region.Increase the number of industries to overcome backwardness.IMPACT OF GOVT POLICIESYEARINVESTMENT LIMITS1950Upto Rs.5.0 lakh in fixed assets 1960Upto Rs.5.0 lakh in fixed assets 1966Upto Rs.7.5 lakh in Plant & Machinery 1975Upto Rs.10 lakh in Plant & Machinery 1980Upto Rs.20 lakh in Plant & Machinery 1985Upto Rs.35 lakh in Plant & Machinery1991Upto Rs.60 lakh in Plant & Machinery 1997Upto Rs.300 lakh in Plant & Machinery 1999Upto Rs.100 lakh in Plant & Machinery2001Upto Rs.100 lakh in Plant & Machinery

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