Small Scale Industries Case Study

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CHAPTER 1
INTRODUCTION

1.1 OVERVIEW OF SMALL SCALE INDUSTRIES
In India, the small-scale industrial sector has been a key contributor to the Gross Domestic Product (GDP). This sector in India is measured to have a huge growth panorama with its wide range of products. With 40% contribution in total industrial output and 35% contribution towards exports, the small-scale industrial sector in India is performing as the engine of expansion.

1.1.1 SMALL-SCALE INDUSTRY: A CONCEPT
In the course of passing the years, the definition of small-scale industry has been modified many times. First, it deleted the employment factor from the point of view of promoting the official programme under successive plan periods. Secondly, it jumbled the fixed capital by redefining it to include machinery only in a phased manner. This change has necessitated the need to off-set the higher cost of machinery arising out of the rising prices and to a greater extent the opportunities to small-scale enterprises.
Presently, the Small Scale Industries are segregated into two categories- those using power with manpower less than 50 and those not using power with the manpower strength being more than 50 but less than 100. On the other hand, …show more content…

The problem of raw materials continues to plague the small scale industries (Malga1997) . Raw materials are available neither in sufficient quantity, nor of required quality and also not at normal price level. Being small customers, the producers are not able to go for bulk buying like the large industries. This leads to taking whatever quality is available in quality and at high prices. The small-scale industries face the acute problem of marketing their products. The challenges arise from such factors are production in small scale, lack of market knowledge, competition from technically more strong units, shortage of marketing amenities,

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