Essay Writing On Small Scale Industries In Tamilnadu

 Contribution of Small Scale Industry in Indian Economy

India is an emerging force in the economy. It has a population of more than one billion and nearly 40% of the population live below the poverty line and 70% of the population hang on agriculture for sustenance. India depends on the balanced economy in the field of agriculture and industries. Capital and finance from Indian government has been scarce, but the government has spurred alternatives in small scale industries and agriculture.

Indian economy is under developed economy and majority of its resources are either under-utilized or unutilized. There is a lot of labor in the country lying idle and the per capita income is low. When it comes to production, Indians rely on traditional methods and most of the techniques in agriculture and industries are outdated. Small scale industry is the only answer to the present economic state of India. Small Scale Industry [SSI] is an undertaking whereby the investment in fixed assets in machinery and plant whether on ownership basis, as a lease or hire purchase and does not go beyond one Crore.

Many times, entrepreneurs in the small scale industry are not required to acquire license from government to establish their firm in any part of a country.  SSI has been the best way of sustenance as it contributes 40% of the gross value output.  The small-scale sector has gone through rapid growth over the years and the number of units has increased tremendously nationwide.  Besides contributing to the progress of the Indian economy, there other great contributions of the industry include the following;

  • Large scale generation of employment

Small scale industries are labor demanding in nature and the have generated immeasurable employment opportunities in the nation. It was estimated that 100,000 rupees of investment in fixed assets in the SSI were capable of generating jobs for four people and this number has increased over the years. Small scale sector accounts for about 80% of the total employment in the industrial sector.

  • Utilization of local resources

Small scale enterprises utilize local resources like raw materials, entrepreneurial skills, savings and much more effectively. Without small scale industries, most of the local resources remain unutilized. SSI has also helped improve social well-being of many india communities by harnessing the unnoticed talents.

  • Facilitates entrepreneurial development

Small scale industry has contributed greatly in entrepreneurial development. Majority of SSI units provide self-employment to reduce overdependence on government and to educate the unemployed.  Majority of the undertakings of small scale sector spur a feeling of self-reliance on other people.

  • Guarantees balanced regional development

Small scale industry utilizes local resources and promotes decentralized development in rural areas and this makes it easy to achieve regional development. More so, SSI promotes equitable distribution of income with a nation regardless of the status of the picked out areas.

  • Provides opportunity for development and growth of technology

Small scale industry in India has become a great platform for generating innovations. The industry provides ample opportunities for development of substantial technology that helps in growth of small units within the nation.

  • Facilitate growth of large scale industries

Small scale industries support and spur growth of large scale industries in India. SSI provides resources to large scale companies as they play a complementary role.

Small scale industries have always played great roles in growth and development of economy in India. They provide wide range of products for mass consumption, conserve foreign exchange, and spur export and much more. The India government has contributed greatly to the growth of small scale industry. Besides offering loans, subsidiaries, it has pushed for skills development and better ways of rising productivity in these industries. Hence, the small scale industry in India has a dazzling future.

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1. All the MSMEs are offered various services and support under the single roof of the District Industries Centre.
2. This Centre caters to Promotion of MSMEs as also Registration and Development of Industrial Cooperatives.

3. Administration
The General Manager is the head of the District Industries Centre. The post of General Manager is of Joint / Deputy Director Level. The General Manager is assisted by the Project Manager, Manager (Credit), Manager (Economic Investigation)/ Manger (Village Administration) and an office Superintendent.

4. Monitoring of DICs
The functioning of DICs and their achievement is monitored by the Principal Secretary/ Industries Commissioner & Director Of Industries & Commerce. The Review of the General Managers is organized frequently to evaluate the performance and also help in resolving difficulties in implementation of different schemes.
5. To resolve the problems of industries/industrialists, there are two types of committee at the district level viz.

a) Single Window Clearance Committee (SWCC)
Entrepreneurs face many difficulties when they start new industries. They have to deal with many government agencies and get many clearances. SWCC helps them in guiding solving their problems at a Single Window. This committee is chaired by the District Collector. The General Manager of DIC is the Member Secretary and the connected line departments such as District Fire officer, Deputy Director (Health), Deputy Director (Town & Country Planning) are members of this committee.

b) District Enterprises Development Consultative Committee (DEDCC)
Government have recently Constituted the District Enterprises Clearance Committee Vide G.O Ms No 53 MSME (D2) Department dated 27.12.2012 The Committee is Chaired by the District Collector as the Chairman of this Committee and General Manager of DIC is the Member Secretary. The other members of the DIEC are President of District Panchayat, DDO, MP, MLAs, Prominent persons active in Industries in the district and members of all district level industries associations.

6. Activities of DICs

A. Registration
 Udyog Aadhar Memorundam
 Cottage & Handicrafts Registration

B. Incentive schemes

The following incentives are being extended to Micro, Small and Medium Enterprises in the State:-

I. Subsidy schemes for micro manufacturing enterprises:

II. Subsidy schemes for Industrially Backward Blocks and Agro Based Enterprises:

III. Special Capital Subsidy for Thrust Sector Enterprises

IV. Generator Subsidy

V. Back-ended Interest Subsidy

VI. Value Added Tax Reimbursement Subsidy

C. Implementation of Self Employment schemes

The following Schemes are being implemented in the State:-
 Prime Minister’s Employment Generation Programme (PMEGP)
 Unemployed Youth Employment Generation Programme.
 New Entrepreneur-Cum- Enterprise Development Scheme (NEEDS)


D. Co-operative.

E. Enforcement of Quality Control orders.

The Quality Control Order Enforcement Centre for Domestic Electrical Appliances functioning under the Commissionerate of Industries and Commerce is engaged in creating awareness among consumers in Tamilnadu to use quality electrical products. The electrical and electronic wing of the Commissionerate implements the Household Electrical Appliances (Quality Control) Order, 1981 and the Electrical Wires, Cables, Appliances, and Protection Devices and Accessories (Quality Control) Order, 2003. Contravention of the first Order is punishable under the Essential Commodities Act, 1955. The second Order prohibits manufacture / storage for sale or distribution of specified items without the Bureau of Indian Standard marking. Contravention of this order attracts penal action under Bureau of Indian Standards Act.
The General Manager, District Industries Centre of the concerned District and the Deputy Director (E&E), Quality Control Order Enforcement Centre, Chennai has been designated as the “Appropriate Authority” for the implementation of the provisions of these Orders.
To create better awareness among the general public, advertisement and press releases are issued from the offices of Deputy Director (E&E), Quality Control Order Enforcement Centre, Chennai and various other regional offices.

F. Steel & Steel Products (Quality Control) Order 2012.

The Ministry of Steel, Government of India have notified Steel and Steel Products (Quality Control) Order, 2012 and Steel and Steel Products (Quality Control) Second Order, 2012 to ensure that quality steel products reach the consumers. These orders cover 16 Steel products under Mandatory Bureau of Indian Standards Certification.
As per these orders “No person shall by himself or through any person on his behalf manufacture or Store for sale, Sell or Distribute any Steel and Steel Products specified in the schedule which do not conform to the specified standards and do not bear standard mark of the Bureau of Indian Standards. In the said order, the General Managers, District Industries Centres have been designated as the “Appropriate Authority” for implementation of the provisions of these orders.
In order to create awareness among the Manufacturers and Consumers about the notification issued by the Government of India for implementation of Steel and Steel Products Quality Control Order, the General Managers of District Industries Centres are taking action by giving wide publicity through Newspaper and also through Association Magazines.

G. Rehabilitation of Sick MSMEs.

The Rehabilitation of Sick Micro, Small and Medium Enterprises envisages assistance for conducting a diagnostic study of sick enterprises, scrutiny of the above study report by a sub-committee of the State Level Inter-Institutional Committee (SLIIC) constituted by the Reserve Bank of India and chaired by the Secretary, Micro, Small and Medium Enterprises Department for rendering rehabilitation assistance to sick Micro, Small and Medium enterprises, which meets on every quarter.
The Reserve Bank of India conducts the study on viability of sick units and the Banks provide financial assistance wherever possible along with other hand-holding steps like counseling the borrowers, analyzing the problems faced by the units etc.
The Government have constituted the State Level Rehabilitation Committee (SLRC) under the Chairmanship of the Secretary to Government, Micro, Small and Medium Enterprises Department to look into the problems and the extent of sickness of MSMEs so as to suggest measures for their rehabilitation. The above Committee has to meet on quarterly basis to review and monitor the implementation of the Rehabilitation Scheme of sick MSMEs in the State.

H. Micro Small Enterprises Facilitation Council:

The Government of Tamilnadu have constituted four Regional Micro and Small Enterprises Facilitation Councils at Chennai, Tiruchirappalli, Madurai and Coimbatore to facilitate speedy settlement of the payments of dues with respect to the goods supplied to major industrial undertakings by the micro and small enterprises in accordance with the Micro, Small and Medium Enterprises Development Act 2006.


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