Industrial growth

njhopy;Jiw tsh;r;rp
Industrial Sector
njhopy; Jiw
Need for Industrialization
njhopy; kakhf;fypd; Njit (Need
 Industrial sector through its forward and for Industrialisation)
backward linkages with other sectors plays  njhopy;JiwahdJ> ,ju
a very important role in achieving rapid JiwfSldhd jdJ Kd;Ndw;wk;
growth and development. kw;Wk; gpd;dilT njhlh;fspdhy;>
tpiuthd nghUshjhu tsh;r;rp kw;Wk;
Nkk;ghl;bw;F Kf;fpa gq;F tFf;fpwJ.
 Most modern and rich countries have well
developed industrial sector through their  jdJ njhopw;Gul;rpapdhy; jw;fhy
early industrial revolution. nry;te;j ehLfs; ed;F tsh;r;rpAw;w
njhopw;Jiwiag; ngw;Ws;sJ.
 Industrialization means widespread  “njhopy; kakhf;Fjy;” vd;gJ mjpf
development of manufacturing vast msT cw;gj;jp nra;Ak; njhopy;Jiw
quantities of goods, employing a large gutyhf;fk;, mjpf egh;fis Ntiyf;F
mkh;jJ
; jy;, gd;dhl;Lr; re;ijia
number of people, promoting Cf;Ftpj;jy;, jdpj;jpwd; Nkk;ghL,
international market, characterization mwptpay;, njhopy;El;gk;, cw;gj;jpia
Nkk;gLj;j kpd; mZ rhjdq;fs;,
of specialized skill, science, technology, fzpdp njhopy;El;gk; Nghd;wtw;wpd;
increasing application of electrical, nray;ghLfs; mjpfhpf;fr; nra;jd.
electronic, computer technologies to ,t;thwhd Kidg;ghd njhopy;
kakhf;Fjy; ,y;yhikahNyNa gy
enhance productivity. ehLfs; gpd;dilT ngw;W Vo;ik
epiyapy; cs;sd.
 Absence of such rigorous  ,t;thwhd Kidg;ghd njhopy;
industrialization is the main reason for
kakhf;Fjy; ,y;yhikahNyNa gy
the backwardness of many poor
countries too. ehLfs; gpd;dilT ngw;W Vo;ik
epiyapy; cs;sd.
 Hence, the modern development
strategies attach more emphasis to  vdNt> etPd tsh;rr ; p epiyfspy;
rapid industrialization to achieve faster tpiuthd tsh;rr; piaAk;
growth and progress. The following are nghUshjhu Nkk;ghl;ilAk;
some of the important needs for the ngWtjw;F njhopy; Jiwapd;
industrial sector. Kf;fpaj;Jtk; czh;j;jg;gLfpwJ.
gpd; tUgit njhopy; Jiwapd;
mtrpaj;ij czh;j;JfpwJ.
Raising National Income ehl;L tUkhdj;ij cah;j;Jjy;
Vigorous industrialization ensures a solid njhopy; kakhf;Fjy; %yk; ehl;L
and sustained base to increase the tUkhdj;ij cah;tjhy; nghUshjhuk;
national income of an economy. A larger rPuilfpwJ. njhopy; Jiwapy;
share of national income of industrially Kd;Ndwpa ehLfspy; ehl;L
advanced economies comes from tUkhdj;jpd; ngUk; gq;F
industrial sector. njhopy;JiwaplkpUe;J tUfpwJ.
Employment Opportunities Ntiytha;g;Gfs; (Employment
Availability of surplus labour and Opportunities)
unemployment are the major challenges of tsUk; epiyf;F cghpahd ciog;Gk;
development strategy. Industrialization uses (mjpf kf;fs; njhif) Ntiyapd;ikAk;
the productive resources of the economy and (Unemployment) xU ngUk;rthyhFk;
expands employment opportunities which in (Challenge) njhopy;kakhf;Fjy;, ehl;bd;
turn will improve the income and wellbeing cw;gj;jp tsq;fis ed;F gad;gLj;jpf;
of the people. nfhs;tjhy;> Ntiy tha;g;Gg; ngUfpwJ.
,jdhy; kf;fspd; tUkhdk; cah;e;J
tho;ifj; juKk; Nkk;gLfpwJ.
Higher Living Standard cah;thd tho;f;ifj; juk; (Higher
The increasing national income through Living Standard)
industrialization helps to meet the njhopy; kakhf;Fjy; %yk; ehl;L
demands of the people for industrial tUkhdj;ij cah;tjhy; njhopy;
nghUl;fspd; kPJ kf;fSf;F ehl;lk;
products. It is also expected to improve the
Vw;gLfpwJ. ,jdhy;, kf;fspd; ‘jyh
standard of living of the people by increasing
tUkhdk;’ cah;fpwJ. vdNt
their per capita income. This is possible tho;ifj;juk; Nkk;gLfpwJ.,J
only through a well designed growth process. jpl;lkpl;l tsh;r;rpg; ghijapd; %yNk
rhj;jpakhfpwJ.
 Vw;Wkjpia Cf;Ftpj;jy; (Promoting
Promoting Exports
Exports)
Industrially advanced countries are able to
njhopy; tsh;r;rpapy; Kd;Ndwpa ehLfs;,
export more and earn large foreign exchange.
mjpf Vw;Wkjpia nra;tjdhy;
The income elasticity of industrial goods is
mjpfg;gbahd me;epar; nrythzpia <l;l
very high than that of the primary goods.
KbfpwJ. njhopy; nghUl;fspd; ‘tUkhd
Hence, exports can be promoted to earn
nefpo;r;rp; mbg;gilg; gz;lq;fisf;
adequate foreign exchange by producing
fhl;bYk;, kpf mjpfkhf cs;sJ.
advanced industrial goods.
vdNt> Kd;Ndwpa njhopy; nghUl;fis
cw;gj;jp nra;tjd; %yk; Vw;Wkjp
Cf;ftpf;fg;gl;l NghJkhd
msT me;epar; nrythzpia <l;l
KbfpwJ.
Capital Formation
 Expanding employment opportunities, %yjd Mf;fk; (Capital Formation)
income generation through rapid  Ntiytha;g;Gfis ngUf;Fjy;>
tpiuthd njhopy; kakhf;Fjypdhy;
industrialisation will also lead to
Vw;gLk; tUkhdg; ngUf;fk; Mfpad
increased saving and capital formation nghUshjhuj;jpy; Nrkpg;G kw;Wk;
in the economy. %yjd Mf;fj;ij ngUf;FfpwJ.
 This will help to diversify and expand  NkYk;> ,jdhy; Vw;gLk; mjpf
the industrial base further through KjyPl;bdhy; njhopy; Jiwfs; gy
higher investment. tiffspYk; Kd;NdWfpwJ.
Technological Progress njhopy;El;g tsh;r;rp (Technological
 Industrial sector will also promote Progress)
technological progress through its  tsh;rr; p kw;Wk; tphpthf;fj;jhy;
course of development and expansion. njhopw;Jiw njhopy;El;g
 The technological advancements and tsh;rr; papidAk; Cf;Ftpf;fpwJ.
their dynamic contents provide the  ,e;j njhopy;El;g tsh;r;rpAk; mjd;
required elements to strengthen the ,af;f hPjpahd nghUslf;fKk;
economy as a whole. ehl;bd; xl;Lnkhj;j
nghUshjhuj;ij gyg;gLj;JfpwJ.
Patterns of Industrial Development
njhopy; Kd;Ndw;wj;jpd; tiffs;
 The pre-independent India, mostly
(Patterns of Industrial development)
characterised by backwardness, did
 tpLjiyf;F gpd;dh; ,e;jpa gpd;jq;fpa
not have an organized industrial sector. epiyapNyNa ,Ue;jJ. ,q;F
 The Second World War made small Kiwahd njhopy;Jiw VJk; ,y;iy.
beginning in the industrial  ,uz;lhk; cyfg; Nghh; njhopy;
development. tsh;r;rpapy; xU rpW Kd;Ndw;wj;ij
Vw;gLj;jpaJ.
 Still the share of industries in the
 ,Ug;gpDk; ehl;l tUkhdj;jpy;
country’s national income was njhopy;Jiwapd; gq;F kpfTk;
relatively small. FiwthfNt ,Ue;jJ.
There had been a marked shift in
 tpLjiyngw;w ,e;jpahtpy; ,
the advancement of the industries Ie;jhz;L jpl;lq;fs;
after the implementation of five mky;gLj;jg;gl;l gpd;G njhopy;
year Plans in the independent Jiwapy; Fwpg;gplj;jf;f khw;wk;
India. Vw;gl;lJ.

 jw;fhy ,e;jpahtpd;
The significant role of jpl;lkpLgth;fshy; tpiuthd
industrialization as the major nghUshjhu tsh;rr ; pAk; xl;Lnkhj;j
channel of rapid economic growth tsh;rr; pAk; njhopy; kakhf;Fjy;
and all round development has %yNk KbAk; vd;gJ czug;gl;lJ.
been recognized by the planners of
modern India.
 Besides rapid growth and prosperity,  tpiuthd tsh;rp; kw;Wk; Kd;Ndw;wk;
the Indian strategy of development jtpu nghUshjhu ehl;Lilikahjy;
planning, inspired by economic <h;ff
; g;gl;l tsh;rr
; p jpl;ljpd; ,e;jpa
nationalism, aimed at achieving self- epiyghlhdJ nghJ Jiwapd;
newpfhl;LjYld; jd;dpiwT ngw
sufficiency under the direction of
tpUk;gpaJ.
public sector.
 NkYk; ,jd; topNa ngw;w
 It also aimed to translate the nghUshjhu tsh;r;rpia midthpd;
economic growth into improved tho;f;ifj; juj;ij cah;j;j
standard of living of the masses. gad;gLj;jpf; nfhz;lJ.
 Maximum production and full  mjpf msT cw;gj;jp kw;Wk;
employment, and the attainment of Ntiy tha;g;G nghUshjhu
economic equality were the long rkj;Jtk; miljy; Mfpait Kjy;
term objectives declared by the First Ie;jhz;Lj; jpl;;lj;jpd; ePz;l fhy
Nehf;fq;fshFk;.
Five Year Plan.
 The policies aimed at achieving  ,jd; nfhs;iffs; , tsh;rr ; p
economic growth with distributive kw;Wk; gfph;khd ePjp (distributive
justice. justice) Mfpatw;wpd; Nehf;fq;fshf
 Then the rapid development of nfhz;lJ.
industries and their diversification are  vdNt, njhopw;rhiyfspd; tphpthd
considered to be absolutely necessary Kd;Ndw;wk; kw;Wk; gy;Jiwg;
for development. ngUf;fk; tsh;rr ; pf;F mbg;gilapy;
 The experience of state dominated Njit vd jPh;khdpf;fg;gl;lJ.
development planning for a period of  fle;j 40 Mz;Lfspy; muNr
more than five decades has brought out gq;Nfw;w tsh;rr ; pj; jpl;lj;jpd;
many significant achievements in the %ykhf ehk; ngw;w mDgtk;
growth and structure of Indian ,e;jpa njhopy; kw;Wk; fl;likg;gpd;
industries. tsh;r;rpapy; kpfg;nghpa Kf;fpakhd
rhjidfis nfhz;L te;Js;sJ.
 ‘Growth with social justice’ has been  ‘rKjha ePjpAD}Nl’ tsh;r;rp(Growth
the main objective of planning since with Social Justice) vd;gJ 1915y;
1951. Vw;glj;jg;gl;l jpl;lkpLjypd; Kf;fpa
Nehf;fkhf njhlh;e;J te;J nfhz;L
cs;sJ.
 It has been defined to be in built in the
production process so that the major
beneficiaries of the development  rKjhaj;jpd; ngUthhpahd kf;fs;
planning are the majority of the people gad;ngWk; tifapy; tsh;rr ; pg;
and the rapid and diversified ghij khw;wpaikf;fg;gl;lNjhL
industrialization serves the needs of NghJkhd Ntiytha;g;G ngUf;fp,
the masses by generating adequate tUkhdg; gfph;tpid nra;J>
employment and income distribution. tpiuthd njhopy; tsh;rr ; papd;
%yk; midthpd; eyDk;
ghJfhf;fg;gl;lJ.
 The new policy environment focused  fyg;Gg; nghUshjhuj;jpd; topNaahd
on a mixed economy framework where ‘Gjpa njhopy; nfhs;if ehl;bd;’
the public sector will play a major role njhopy;fspy; nghJj;Jiw kpfg;nghpa
in building the industrial base of the gq;fpid tfpg;gjhy; tsh;r;rpia
economy with the objectives of KLf;fp tpLjy;> Ntiy tha;g;ig
accelerating growth, generating ngUf;Fjy;, tl;lhu Vw;wj;jho;Tfis
employment, reducing regional Fiwj;jy;, nghUshjhu rf;jp
Ftpg;gpid Nrhjid nra;jy;>
disparities, checking concentration of
jw;rhh;gpid miljy; Mfpatw;iw
economic power and achieving self- Nehf;fq;fshff; nfhz;L nghJj;Jiw
reliance. njhopy;fspy; Kd;Ndw;wk; Vw;gl;lJ.
Significance of Public Sector nghJj;Jiwapd; Kf;fpaj;Jtk;
 The pattern of industrial growth  njhopw;Jiw tsh;rr ; papd;
depends on the relative roles of private tifahdJ jdpahh; kw;Wk;
and public sector. nghJj;JiwfspilNa epyTk;
 Public sector means the part of the rk;ge;jg;gl;lg; gq;fpidg; nghWj;jJ.
economy that is publicly owned as  ‘nghJj;Jiw’ vd;gJ
distinct from those owned by private nghUshjhuj;jpd; xU gq;fpid
individuals or firms. ‘muNr’eph;tfpj;Jf; nfhs;tjhFk;.
 It has a number of absolutely essential  jdpahh; Jiw> jdp egNuh my;yJ
functions. epWtdq;fNsh nrhe;jkhf Vw;W
nfhs;tjhFk;.
 By employing productive resources,  mJ kpf Kf;fpakhd gy gzpfis Mw;wp
the public sector provides most of the tUfpwJ. cw;gj;jp tsq;fis
public goods, like primary education, Ntiyf;fkh;jj; pf; nfhz;L ‘nghJj;
public health, drinking water, social Jiwfs;’ nghJkf;fSf;F Ntz;ba gy
trjpfshd Muk;gf;fy;tp, nghJr;
services, child nutrition, women and Rfhjhuk;, FbePh; , r%fg; gzpfs;,
labour welfare, social security, Foe;ijr; rj;JzT, ngz;fs; kw;Wk;
sanitation, poverty eradication, road, njhopyhsh; eyd;, r%fg; ghJfhg;G,
defence, etc. cly;eyk;, tWik xopg;G> rhiy
Nghf;Ftuj;J, ghJfhg;G Nghd;wtw;iw
mspj;J tUfpwJ.
 All of them will facilitate the overall
development of the economy and
people.  Nkw;$wpa midj;Jk; nghUshjhuj;jpd;
xl;Lnkhj;j tsh;rr ; pf;Fk;, kf;fspd;
tho;f;ifj; juk; cah;Tf;Fk; toptif
nra;Ak;.
 As privately owned organizations or  nghJj;Jiw nghWg;Gld;
firms will not provide these public nghJkf;fSf;F gz;lq;fis
goods, the public sector has to assume toq;Ftijg; Nghy jdpahh;
such responsibility. mikg;Gf;fNsh my;yJ
 Thus, the mixed economy consisting epWtdq;fNsh nrayhw;Wtjpy;iy.
both the private sector and public  ,t;thW “jdpahh;j; JiwAk;,
sector, has been the feature of many nghJj; Jiwapy; Nrh;e;J
modern states. nray;gLk;. “fyg;Gg; nghUshjhuk;”
 The post-Independent Indian State mNef jw;fhy ehLfs; filgpbf;Fk;
assumed a greater role in the topKiwahFk;.
reconstruction of the country that  tpLjiyg; gpd;dh; nghUshjhuj;ij
includes regulation, facilitation and xOq;FKiwg;gLj;jpAk; eyj;
welfare promotion. jpl;lq;fSf;F toptif nra;Jk;
,e;jpa muR khngWk; gq;fhw;wpaJ..
 To meet these requirements, the  ,j;jifa Njitfis epiwNtw;w
Indian State adopted the public sector ,e;jpa murhdJ nghJj;Jiwf;F
dominated, heavy industry based Kf;fpaj;Jtk; nfhLj;J cw;gj;jpia
import substituting development cUthf;fp Vwj;jho 45 Mz;Lfshf
planning over five decades since tsh;r;rpj; jpl;lj;jpw;F mbNfhypaJ
independence.  gy tsh;e;j kw;Wk; tsUk;
 Public sector is playing a significant ehLfSf;F cs;ehl;L cw;gj;jpapy;
role in terms of its contribution to GDP (GDP) mjpd gq;fpid nghJj;Jiw
in many developed as well as epWtdq;fs; Fwpg;gplj;jf;f msT
developing countries. je;J tUfpwJ.
 The promotion of public sector  tsh;r;rpj; jpl;lj;jpd; topNaahd
through development planning is nghJj;Jiw Nkk;ghL vd;gJ
basically used to direct the resources mbg;gilapy; tsq;;fis cj;jk
towards optimum utilization and msT gad;gLj;jpf; nfhs;tJk;
equitable distribution. rkkhfg; gq;fpLtJk; MFk;.
 India too adopted similar development  murpay; rhrd flikahd
strategy of expanding public sector to
“rKjhaj;jpd; nghUs;rhh; tsq;fs;
the commanding heights of the midj;Jk; nghJeyid
economy to meet the constitutional
obligation that “the material resources mbg;gilahff; nfhz;L gq;fpl
of the community are so distributed as nra;jy; Ntz;Lk;” vd;gij ,e;jpa
best to subserve the common good”. ehLk; czh;e;J nghJj;Jiw
Since Independence, public sector epWtdq;fis mjpf msT
played an important role to be the tphpthf;fk; nra;jJ.
principal driving force behind steady
growth of the fifties, sixties and
seventies and eighties.
 All such contributions have helped the  njhopy; Jiwapy; nghJj;Jiwapd;
economy in many ways. KjyPL, tYthd gy epiy
njhopy; Mjhuj;ij cUthf;fpaJ.
 ,J nghUshjhuj;jpw;F gy
 It has promoted small scale and topfspy; cjtpGhpe;jJ. gpd;dilT
ancillary industries as a result of the (Backward) kw;Wk; Kd;Ndw;wk;
backward and forward linkages. (Forward) njhlh;gpd; (linkages)
fhuzkhf rpWnjhopy; kw;Wk;
 It has promoted agro-based industries Jizj; njhopy;fs; tsh;r;rpAw;wd.
and supported agriculture sector by  ,J Ntshz; mbg;gilapyhd
providing many inputs like fertilizer, njhopy;fis tsh;rr ; pAwr;
power, etc. nra;tNjhL> Ntshz; njhopYf;F
mtrpakhd ,LnghUs;fs;> ,urhad
cuq;fs;, kpd;rhuk; Nghd;wtw;iw
mspj;J Ntshz; njhopy; rhh;e;j
njhopy;fis tsh;jj ; d.
 It has created a sound infrastructural  ,jdhy;> cs;fl;likg;G Nkk;ghl;L
base to help the private sector. jdpahh;j; Jiwf;F cjtpaJ.
 Public sector has exerted a greater  nghJj;Jiw mjpf Ntiy
influence on the welfare of the people tha;g;gspj;jjd; %yk; kf;fspd;
through its vast employment eydpy; khngUk; mf;fiw
opportunities. nfhz;Ls;sJ.
 However, all these development  vdpDk;> 1990 re;ijg; nghUshjhuk;
rationale have been criticized since kw;Wk; jdpahh; Jiw gw;wpa
nineties by the proponents of market rpe;jizahsh;fs; Nkw;fhZk;
economy and private sector. Still public tsur;rpia Fiw $wpdhh;.
sector plays many critical roles. ,Ug;gpDk; nghJj;Jiw mNef
Kf;fpa gq;F Vw;W gzpaw;wp
tUfpwJ
Pattern of Industrial Growth njhopy; tsh;r;rpapd; tiffs;(Pattern of
The specific pattern of industrial growth can Industrial Growth)
Fwpg;gpl;l tifahd njhopy; tsh;r;rp>
also be seen through the use based
gad;ghL mbg;gilapy; tifg;gLj;jg;gl;l
classification of industries. This classification njhopy;fisg; nghWj;J fhzg;gLk;.
consists of four major components viz. njhopy;fs; ehd;F kpf Kf;fpa gphpTfis
1. Basic goods such as cement, chemicals, nfhz;Ls;sJ.
fertilizers, etc. 1. mbg;gilg; gz;lq;fs; : rpnkz;l;,
2. Capital goods such as machineries, ,urhadg; nghUl;fs;, cuk;
Nghd;wit
machine tools, and engineering goods.
2. %yjdg; gz;lq;fs; : ,ae;jpq;fs;,
3. Consumer goods such as cycle, television, ,ae;jpu jsthlq;fs;, nghwpapay;
refrigerators, bikes, cars, food gz;lq;fs;
articles, soft drinks, etc. 3. Efh;Tg; gz;lq;fs; : kpjptz;b,
njhiyf;fhl;rp ngl;b> Fsph;rhjdg;
4. Intermediate goods such as paint, ngl;b, ,Urf;fu thfdk;. kfpOe;J,
plywood, pipe & tube, ancillary parts, etc. czTg; gz;lq;fs;, Fsph; ghdq;fs;
4. ,iltpidg; gz;q;fs; : ngapz;l;,
gpisTl;, igg; kw;Wk; Foha;fs;,
Jizg; nghUs;fs; Nghd;wit.
Steel Industry ,Uk;G v/Fj; njhopy; (Steel Industry)
 Steel industry, being the key industry,  ,Uk;G v/Fj; njhopy;fs; kw;w vy;yh
forms the base for almost all other njhopy;fSf;Fk; jpwTNfhyhf cs;sJ.
industries.  cw;gj;jp, Ruq;fj; njhopy;> fl;Lkhdk;,
 Manufacturing, mining, construction, kpd;rhuk;, Nghf;Ftuj;J kw;Wk; ,ju
power, transport and other infrastructures cs;fl;likg;G kw;Wk; gzpg;gphpTfs;
and service sectors are all using steel as midj;jpw;Fk; ,Uk;G v/F cs;sl P hfg;
their inputs. gad;gLfpwJ.
 Thus the development of steel had a  vdNt, ,Uk;G v/F njhopy; “jha;j;
multiplier effect on almost all other njhopy;” vd;W miof;fg;gLfpwJ.
sectors of the economy. Hence, it is  ,e;jpa ,Uk;G v/F njhopy; epWtdk;
popularly called as ‘mother industry’. (SAIL) 70tJfspd; ,ilf;fhyj;jpy;
 The Steel Authority of India (SAIL) was epWtg; ngw;wJ. ,jd; Kf;fpa gzpfs;
established in mid-seventies to extend %yg;nghUs;fis (raw materials) ngw
support regarding raw materials and cjtp nra;tJk; kw;Wk; mNef ,Uk;G
coordinate the development of many steel v/Fj; njhopy;fspd; tsh;r;rpf;F
industries. xUq;fpizg;ghsuhf nray;gLtJk;
MFk;.
Textiles netTj; njhopy; (Textiles)
• Textile industry is one of the oldest as  ,e;jpahtpy; netTj; njhopy; kpfTk;
nghpJkhd kw;Wk; goik tha;e;jJkhd
well as the largest industries in India.
njhopyhFk;. ,j;njhopy; ehl;bd;
• It has spread to almost all parts of the midj;J gFjpfspYk; gutpAs;sJ.
country. It has been well organized in  ,j;njhopy; ciog;ig Ntiyf;fkh;j;jpf;
terms of the labour employed and nfhs;tjpYk; ntspaPl;bid(Out-put)
turnover of the output. tpahghukhf;FtjpYk; ed;whf
• The major problems of the industry are xOq;FgLj;jg;gl;Ls;sJ.
non-availability of enough raw material  NghJkhd msT %yg;nghUs;
(cotton), increasing input costs, low fpilf;fhik, cs;sL P g; nghUs;fspd;
tpiyVw;wk;, rpW Miyfspd;
profitability of small mills, and high
Fiwthd ,yhgk;, etPdkhf;Fjypy;
cost of modernisation Vw;gLk; mjpf nryT Mfpait nerTj;
njhopy; re;jpf;Fk; kpf Kf;fpag;
gpur;ridfs; MFk;.
Cement rpnkz;l; Miyj; njhopy; (Cement)
• Cement is one of the emerging major • mjpf tsh;rr ; p tha;g;Gf;fs; cs;s
industries with greater development xU kpfg;nghpa njhopy; rpnkz;l;
potential. njhopy; MFk;.
• Cement, being the key raw material of • jw;NghJ cs;s ehl;bd; tsh;r;rpg;
the construction industry, plays a ghijapy; fl;Lkhd njhopy; kpf
significant role in the country’s current Kf;fpa gzpahw;wp tUtjhy; ,jw;F
phase of development. rpnkz;l; ngUk; fr;rhg; nghUshf
mikfpwJ.
• The industry is almost self-sufficient in
terms of raw materials, machinery, • ,j;njhopy; fr;rhg; nghUs;,
technology and increasing local ,ae;jpuq;fs;, njhopy;El;gk; kw;Wk;
ngUfptUk; cs;Sh; Njit
demand. Mfpatw;wpy; ‘jd;dpiwitg;
ngw;Ws;sJ’
Sugar rh;f;fiu
• rh;f;fiuj; njhopy; Ntshz;ikiar;
• Sugar industry is an important agro- rhh;ej
; xU Kf;fpaj; njhopy; MFk;.
based industry. nghUshjhuj;jpw;F ,jd; gq;fspg;G
• Its contribution to the economy is gytifahFk;.
manifold. • Ntiytha;g;gpd; %yk; tUkhdj;ijg;
ngUf;Fjy;, Nghf;Ftuj;J kw;Wk;
• This industry has been the source of njhiyj; njhlh;G trjpfis
rural development through ngUf;Ftjd; %yk; rh;f;fiu njhopy;
employment and income generation, fpuhkg;Gw tsh;r;rpf;F NgUjtpahf
and increased transport and ,Ue;J tUfpwJ.
communication facilities. • ,j;Jld; $l rh;f;fiu Miy njhopy;
gpw njhopy;fSf;F cs;sL P fis
• In addition, sugar industry also (inputs) mspf;fpwJ.
provides input for some other industry. • Vw;Wkjpapd; thapyhf
• It is also earning from abroad through may;ehLfspypUe;J me;epar;
nrythzpiaAk; ,j;njhopy; <l;bj;
exports. jUfpwJ.
• India has emerged as the largest sugar • cyfpNyNa mjpf msT rh;f;fiu
cw;gj;jp nra;Ak; ehlhf ,e;jpah
producing country in the world. tpsq;FfpwJ.
• It contributes 15 per cent of the world • cyf rh;f;fiu cw;gj;jpapy; 15
sugar production. tpOf;fhl;bid ,e;jpah ngw;Ws;sJ.
vdpDk; gd;dhl;L thzpgj;jpy;
• However, the share of India’s sugar in ,e;jpahtpd; rh;f;fiuj; njhopypd; gq;F
the international trade is very meagre kpfTk; FiwNt.
at 0.05 per cent. Underutilization of • mjhtJ 0.05 tpOf;fhL rh;f;fiu
capacity, unremunerative prices to Miyj; njhopy; vjph; Nehf;Fk; rpy
sugar cane cultivators, industrial gpur;ridfs;, Miyfspd; jpwid
sickness and industrial closure are KOikahfg; gad;gLj;jhik> fUk;G
cw;gj;jpahsh;fSf;Ff; Fiwthd
some of the major problems of the tpiy eph;zak; nra;jy;> njhopy; eypT>
sugar industry. njhopw;rhiyfis %Ljy;
MfpadthFk;.
Industrial Policies njhopy; nfhs;iffs;
• After independence, the first formal • tpLjiyf;Fg; gpd;dh; 1948 Mk; Mz;L
jPhk
; hdpf;fg;gl;l njhopw;nfhs;if
initiative towards industrialization was
Kjd;Kjypy; njhopy;kakhf;fYf;F
the declaration of the Industrial Policy mspf;fgl;l Cf;fnkdyhk;.
Resolution of 1948.
• njhopy; kakhf;Fjypy; xU kpfg; nghpa
• The major step towards khw;wk; vd;gJ 1951 Mk; Mz;L
industrialization has been attributed to nfhz;Ltug;gl;l (tsh;r;rp kw;Wk;
Industries (Development and xOq;FgLj;Jjy;) rl;lk; MFk;.
Regulation) Act 1951. • ,uz;lhk; Ie;jhz;Lj; jpl;lk;
• The Second Five Year Plan (SFYP) made njhopw;nfhs;if kw;Wk; ehl;bd;
a marked shift in the industrial policy tsh;r;rpapy; kpfg; nghpa khw;wj;ij
and development of the country. Vw;gLj;jpaJ.
• tpiuthd njhopy; tsh;r;rpapd; %yk;
• The main aim of the second plan was
nghUshjhu tsh;r;rpia KLf;fp
to accelerate the growth of the
tpLjNy ,uz;lhk; Ie;jhz;Lj;
economy through rapid jpl;lj;jpd; Kf;fpa Fwpf;NfhshFk;.
industrialization.
• The basic framework and direction for • 1950 Mk; Mz;L nfhz;Ltug;gl;l
murparpayikg;ignahl;b 1956 Mk;
such rapid industrialization was laid down Mz;L cUthf;fg;gl;l
by the Industrial Policy Resolution of 1956 njhopw;nfhs;ifj; jPhk; hdj;jpd;gb
in tune with many provisions of the 1950’s tpiuthd njhopy;kakhjypd; mbg;gil
jpl;lkpLjYk; newpgLj;JjYk;
Constitution. cUthf;fg;gl;;lJ.
• The resolution of 1956, having declared • 1956 Mk; Mz;L jPhk ; hdk; “ ehl;bd;
“the adoption of the socialistic pattern Nehf;fk; rkjh;k nghUshjhuj;ij
Vw;Wf; nfhs;Sjy;” vd;gjhFk;.
of society as the national objective” urged • ,jd;gb midj;J njhopy;fSk;
that all industries of basic and strategic (mbg;gil kw;Wk; njhopy;fs;) my;yJ
importance or in the nature of public r%fg; gad;ghl;L jd;ikAila
mbg;gil Kf;fpaj;Jtk; tha;e;j
utility services should be in the public njhopy;fs; nghJj;Jiwapd;
sector for planned and rapid development. nghWg;gpypUe;J ey;y Kiwapy;
• Thus, the State has, therefore, to assume jpl;lkpl;L tpiuthd tsh;r;rp milar;
nra;a Ntz;Lk;.
direct responsibility for the future • ,t;thW muR vjph;fhy
development of industries. njhopw;rhiyapy; tsh;r;rp Neub
nghWg;Ngw;f Nehpl;lJ.
Public Sector Restructuring nghJj; Jiwia khw;wpaikj;jy; (Public
Sector Restructuring)
• The macro economic policy reforms
• 1991 Mk; Mz;L Kjy; njhlq;fg;
launched from 1991 onwards have ngw;w Nghpay; nghUshjhu
restructured the public sector rPh;jpUj;jq;fs;> nghJj;Jiw
enterprises to a significant extent. epWtdq;fis Fwpg;gplj;jf;f mstpw;F
rPuikj;jJ.
• The process includes liberalization, • jhuskakhf;Fjy;, jdpahh;kakhf;Fjy;
privatization and globalization (LPG). kw;Wk; cyfkakhf;Fjy; Mfpatw;iw
• These new set of polices reduced the cs;slf;fpaJ.
then dominant role of public sector • ,g;Gjpa nfhs;iffs; nghJj;Jiwapd;
through various policy measures like ngUk;gq;fpid (mdominant role)
Fiwe;jJ. ,jw;F(nghJj;Jiwapd;
new Industrial Policy 1991, gq;F Fiwtpw;F) fhuzk; 1991 Gjpa
disinvestment, promotion of private njhopy; nfhs;if gq;F tpyf;fy;
and foreign investment. (disinvestment) jdpahh; kw;Wk;
may;ehl;L %yjdj;ij Cf;Ftpj;jy;
Nghd;wit MFk;.
New Industrial Policy 1991 1991 Mk; Mz;bd; Gjpa njhopy;
• The New Industrial Policy declared was nfhs;if
on July, 1991 with the major aim of • [_iy 1991 Mk; Mz;L Kjy;
loosening the barriers to entry for mKy;gLj;jg;gl;l Gjpa njhopy;
private firms to encourage competition nfhs;ifapd; kpf Kf;fpa Nehf;fk;
in the industrial sector. njhopy; Jiwapy; Nghl;bia
• It also aims to sustain growth in the Cf;Ftpj;jypd; %yk; jdpahh;
productivity and gainful employment epWtdq;fis mjpf msT
and to attain international cw;gj;jpapy; <Lglr; nra;jNy
competitiveness. MFk;.
• ,j;Jiw Ntiy tha;g;G kw;Wk;
cw;gj;jpapy; gd;dhl;L mstpy;
Nghl;bapl;L Kd;NdWk;
Nehf;fj;ijAk; nfhz;bUe;jJ.
The specific reforms related to the nghJ epWtdq;fis kWr;ruP ikj;jypd;
restructuring of public sector enterprises rpwg;G rPh;jpUj;jq;fs; gpd;tUkhW
(i)nghUshjhuj;jpy; jdpahh; Jiw
are as follows. gq;Nfw;ig Cf;Ftpj;jy;. nghJj;
(i) To encourage private participation in Jiwf;nfd njhopy;Jiwapy;
the economy. The areas of industry xJf;fg;gl;l gFjpfs; 17 ypUe;J 8
reserved for the public sector has been Mf Fwpg;gplj;jf;f msT
considerably reduced from 17 to 8. In Fiwf;fg;gl;lJ. Fwpg;ghf njhiyj;
particular, telecommunication, power, njhlh;G , kpd;rhuk;, tpkhdg;
air transport, petroleum, sectors were Nghf;Ftuj;J, ngl;Nuhypak; Nghd;w
Jiwfs; jdpahUf;F jpwe;Jtpl;ld.
opened for private sector.
(ii)gq;F tpyf;fy;(disinvestment
(ii) The disinvestment of shares of some share)nfhs;if %yk;
public sector enterprises in order to nghJj;Jiwapd; tsq;fis
raise the resources and to encourage ngUf;FtJld;; nghJj;Jiw
private participation in the public epWtdq;fspy; jdpahh; gq;Nfw;igAk;
sector enterprises. Cf;Ftpj;jy;
(iii) Public enterprises which are sick, will (iii)eype;j njhopy; epWtdq;fSf;F (Sick
be referred to the Board of Industrial insudtries), kWtho;T
nfhLf;fTk;,kWr;rPuikf;fTk; njhopy;
and Financial Reconstruction for
kw;Wk; epjp kWf;fl;likg;G FOtp;w;F
rehabilitation or reformulation. (board of Induatrial Financial
(iv) An improvement of performance and Reconstruction (BIFR) ghpe;Jiu nra;jy;
accountability has to be ensured (iv)jpwd; ngw;w nghJj;Jiw
through epWtdq;fis (PSU) kl;Lk; GJg;gpj;J
new rules and only potentially viable Gjpa rl;ljpl;lq;fs; %yk; mjd;
public sector undertakings (PSUs) can nray;ghLfisAk; kjpg;gPL nra;jy;
be revived. (v)‘Mz;L epjp epiy mwpf;if’%yk;
eyptile;j nghJj;Jiw
(v) Budgetary support to sick public sector epWtdq;fSf;F mspf;fg;gLk; Mjuit
industries will be reduced drastically. gbg;gbahf tpyf;fpf; nfhs;Sjy;
(vi) Only potentially viable PSUs can be (vi)ed;whf nray;glf;$ba nghJj;Jiw
revived and others will be closed epWtdq;fis (Public Sector Undertaking
down. PSU ) kl;LNk itj;Jf; nfhz;L kw;w
epWtdq;fis %btpLtJ MFk;.
Disinvestment of Public Enterprises nghJ epWtdq;fspd; gq;F tpyf;fy;
(Disinvestment of public
• The process of industrial restructuring
Enterprises)
continued in response to the new
• 1991 Mk; Mz;bd; Gjpa njhopy;
industrial policy of 1991. nfhs;ifapdhy; njhopy; kWr;rPuikg;G
• The new policy suggested the partial njhlu;e;jJ.
disinvestment of public sector without • ,g;Gjpa nfhs;if gq;F tpyf;fypy;
fixing any ceiling. mjpf msT(Ceiling) vijAk;
epu;zapf;fhky;. nghJj;Jiw
• The objective of disinvestment is to epWtdq;fs; gq;F tpyf;fy; nra;J
mobilise enough resources by way of nfhs;s gupe;Jiu nra;jJ.
withdrawing from some sector in order • gq;Ftpyf;fypd; Nehf;fk; Kf;fpa
to invest in priority areas like gFjpfshd r%fj; JiwfSf;F mjpf
particularly social sectors. mstpy; KjyPL nra;Ak; nghUl;L NtW
rpy JiwfspypUe;J gq;F tpyf;fiy
Nkw;nfhz;L tsq;fisj; jpul;Ljy;
MFk;.
 • ,t;thW jpul;bat tsq;fis tpUg;g
• The mobilized resources are used to repay Xa;T ngw;wtu;fSf;F(VRS) njhif
the public debt of the government to pay toq;Fjy;> njhopyhsu; gzpePf;fj;jpw;F
for various VRS schemes, labour gad;gLj;Jjy;> njhopw;rhiyfSf;F
retrenchment and redeployment schemes Ntiyf;fku;j;jg;gl;Nlhu; (redeployment)
under the exit policy. Nghd;wtu;fSf;F toq;Fjy; jdpahu;j;
• The other objectives include the Jiwia tsu;r;rpAwr; nra;jy;>
promotion of private sector, enhancement jpwidAk; Nghl;biaAk; Nkk;glr;
of efficiency and competition. nra;jy; Mfpad gq;F tpyf;fypd;
Though the policy of disinvestment is NtW rpy Nehf;fq;fshfTk; ,Ue;jJ.
criticized vehemently by the left parties • ,lJ rhupf; fl;rpfSk;>
and trade unions, the government is njhopw;rq;fq;fSk; gq;F tpyf;fy;
moving towards further disinvestment of nfhs;ifia Fiw$wpa NghjpYk;
many Public Sector enterprises including murhdJ njhlu;eJ ; gq;F tpyf;fy;
the strategic and profit making nfhs;ifia nghJj;Jiw kw;Wk;
enterprises. yhgkPl;L;k; JiwfspYk; nray;gLj;jp
tUfpwJ.
Liberalization and Privatization jhuhskakhf;fYk; kw;Wk;
• Liberalism means the order of the jdpahu;kakhf;fYk; (Lineralisation and
market or capitalist economy relying Privatisation)
predominantly on competition and • jhuhskakhf;Fjy; vd;gJ “ re;ij
private sector. Kiw my;yJ Kjyhspj;Jt
• It envisages free trade, full nghUshjhuk; Nghl;biaAk; jdpahu;j;
convertibility and non-discriminatory JiwiaAk; Kw;wpYk; rhu;e;jpUj;jy;”
tariffs. MFk;.
• Liberalisation policies aim at • ,J jilapyh thzpgk;> Ngjkw;w Rq;f
minimizing the roles and functions of tup kw;Wk; KO gq;Nfw;gpid Vw;wy;
the government in the economy to Mfpatw;iw nfhz;bUe;jJ.
promote private sector. • jhuhskakhf;Fjy; nfhs;if jdpahu;j;
Jiwia Cf;Ftpf;Fk; nghUl;L murpd;
gq;fpid nghUshjhu eltbf;iffspy;
kpff; Fiwthd msNt nray;gLj;Jjy;
MFk;.
• It aims at more external capital inflows • NkYk; ntspapypUe;J %yjdj;ij
to finance the current account deficit, tuNtw;wy;> %yjd Mf;fj;ijg;
to augment capital formation to ngUf;Fjy;> Vw;Wkjp tUkhdj;ij
generate exports earnings to raise mjpfupj;jy;> %yjdg; gad;ghl;bd
efficiency of capital used in India to jpwid mjpfupj;jy; ,jd; %yk;
improve the quality of the products. Vw;Wkjpg; nghUl;fspd; ju Nkk;ghL
• In India, the forms of liberalisation cWjp nra;ag;gLjy; MfpadTk; MFk;.
policy initially have been on general • ,e;jpahtpy; jhuhskakhf;fy;
liberalisation of controls or Muk;gj;jpy; re;ijf; fl;Lg;ghl;bidAk;
marketisation and deregulation my;yJ re;ij xOq;fpd;ik %yk;
followed by privatization. jdpahu; kakhf;FtijAk; Fwpf;Fk;.
• Privatization policy has been adopted • jhuhskakhf;fypd; xU gFjpahfNt
as a part of the liberalisation. jdpahu;kakhf;fy; Vw;Wf;
nfhs;sg;gl;lJ.
• Privatization is defined as transfer of • jdpahu; kakhf;fy; vd;gJ
ownership from public sector to njhopw;rhiyfis
private sector. nghJJiwapypUe;J jdpahUf;F
• It is the process of reducing the role of cupik khw;wj;ij Fwpg;gpLtjhFk;.
State or public sector in the economic ,J (Transfer of Ownership).
activities of a country. • ehlbd; nghUshjhu
• Privatisation is expected to ensure eltbf;iffspy; murpd; gq;fpidf;
efficiency in the allocation of resources Fiwf;Fk; xU topKiwahFk;.
and promote faster growth. • mjpfkhd tsu;r;rpiag;
ngUtjw;fhf> jdpahu; Jiw
tsq;fis KOikahfg;
gad;gLj;Jjypd; %yk; tsu;r;rp
cWjp nra;ag;gLfpwJ.
• In India, the process of intense • 1991 Mk; Mz;L Kjy; jdpahu;
privatization has been initiated since kakhf;Fjy; Cf;Ftpf;fg;gl;lJ.
1991. • ,k;Kiw Nkw;nfhs;sg;gl;ljd;
• The various methods through which it tiffs; KiwNa gq;Ftpyf;fy;
has been undertaken includes Kiw> nghJJiwia jdpahUf;Ff;
disinvestment measures (i.e. setting nfhLj;jy;> nghJj;Jiwapy; jdpahu;
the public ownership to private Jiwia jhuhskhf (deregulation
sector), deregulation and delicensing and delicencing) Eioar; nra;jy;>
measures for the entry of private Nkyhz;ikia
sector industries into the reserved nghJj;JiwapypUe;J jdpahu;j;
public sector domains, surrendering Jiwf;F nfhLj;jy;> nghJ
the control and management of public KjyPl;il jLj;J epWj;Jjy;
sector enterprises to the private sector Nghd;witahFk;.
and by halting any further public
investment and diversification.
• The following are the integrated fPo;fhZk; Af;jpfs; vl;lhk; Ie;jhz;Lj;
strategies devised by the Eighth Plan jpl;lj;jpd; nghJj;Jiw
for public sector restructuring: rPu;jpUj;jq;fshFk;
1. Restructuring involving modernization, 1. kWr;ruP ikg;G> <Lglr; nra;jy;>
etPdkhf;Fjy;> gFj;jwpTr;
rationalisation, product-mix changes, nray;ghLfs;> cw;gj;jpf; fyit
selective exit and privatisation. khw;wk> jd;ik
2. Increase in autonomy and performance ntspNaw;wk;(Selective Exit) kw;Wk;
accountability through the system of jdpahu; kakhjy;;.
Memorandum of Understanding 2. Vohk; Ie;jhz;Lj; jpl;lj;jpy;
(MOU) between the administrative nfhz;Ltug;gl;l Gupe;Jzu;T
ministries and central public xg;ge;jk %yk; (MOU); epu;thf
enterprises launched in the Seventh mikr;Rg;gzp kw;Wk; kj;jpa
Plan. nghJj;Jiw wpWtdq;fs; jq;fs;
jd;dpr;ir nray;ghLfis
mjpfupj;J tpiuTgLj;jpaJ.
3. Changes in management practices at 3. Fwpg;gpl;l epWtd mstpy; jpwd;
specific enterprises level to promote Nkk;ghL> jpwikahd jiyik<
efficiency, dynamic leadership, tsk; kw;Wk; Gj;jhf;fk; thapyhf
resourcefulness and innovation. Nkyhz;ikia khw;wpaikj;jy;.
4. A major effort by state governments to 4. nghJj;Jiwapy; ngupa khw;wj;ij
promote reforms in public sector. nfhz;Ltu khepy muRfs;
5. Technology upgradation through an Kaw;rpj;jd.
integrated R & D effort and import of 5. Muha;r;rp kw;Wk; tsu;r;rp (R&D)
technology. thapyhf njhopy;Wl;g ,wf;Fkjp>
6. Re-orientation of approach in njhopy;El;g Nkk;ghL.
ministries and other government 6. jhuhskakhf;Fjy; kw;Wk;
agencies regarding liberalisation and ntspr;re;ij Kiwia gw;wp muR
dismantling of regulations. kw;Wk; mikr;rfq;fSf;F Nghjpa
Gj;jhf;fg; gapw;rp mspj;jy;.
Industrial Finance njhopy;epjp (Industrial Finance)
• Finance is the backbone of industrial • ‘epjp’> njhopy; tsu;r;rpf;F
development. KJnfYk;ghFk;.
• The financial requirement of industries • njhopw;rhiyfspd; ‘epjp’j; Njit
may be for the short term to meet vd;gJ FWfpa fhy mstpy;
‘working capital’ requirements. ‘eilKiw %yjdk;’. (Working
• Or it may be for a long term to meet capital) Njitiaf; Fwpg;gjhFk;.
the ‘fixed capital’ requirements. To • (m) ePz;l fhy mstpy; epue;ju
meet such requirements the industries %yjd (Fixed Capital) Njitiaf;
raise finance from different sources. Fwpg;gjhFk;. ,t;thwhd Njitia
epiwNtw;w njhopw;rhiyfs; gy
topfspy; epjpia vOg;GfpwJ.
Internal Sources cs;top (Internal Source)
• Internal sources of industrial finance • njhopy; epjpf;fhd cs;top vd;gJ
rpWnjhopy;fisg; nghWj;jtiu
consist of funds mobilized from own jhNd jpul;bf;nfhz;l epjp MFk;.
sources as in the case of small scale NgusT njhopiyg; nghWj;jtiu
units, paid-up capital in the form of gq;F%yjdk;> re;jhj; njhif
equity shares subscription as in the Nghd;wtw;wpd; %yk; nrYj;jg;gl;l
case of large units, own surpluses and %yjdj;ijf; Fwpg;gjhFk;.
reserve funds of industries. njhopw;rhiyfspy; nrhe;jkhd
cgupiaAk; itg;GepjpiaAk; ,J
Fwpf;Fk;.
External Sources ntsp top (External Source)
• External sources of industrial finance • ntsp topahf ngwg;gl;l njhopy;
include raising of borrowed finance epjp vd;gJ nghJkf;fsplkpUe;J
from sources such as public deposits, ngwg;gl;l itg;Gepjp> rkr;rPu;
equity capital, debenture issues and Kyjdk;> fld;gj;jpuk;> tzpf
availing loans from commercial banks tq;fpfsplkpUe;Jk; ,ju epjp
and other financial institutions. epWtdq;fsplkpUe;Jk; ngwg;gl;l
fld; Nghd;wit MFk;.
Financial Institutions epjp epWtdq;fs;
• The short term financial requirements • FWfpa fhy epjpj; Njitfis
can be met from internal sources like nghJitg;G gq;F %yjdk; kw;Wk;
public deposits, share capital and tzpf tq;fpfspd; fld;
commercial bank loans. Nghd;wtw;wpd; %yk; epiwNtw;wpf;
• However, for long term requirements, nfhs;syhk;.
industries will approach specialized • vdpDk; ePz;lfhy NjitfSf;F
‘financial institutions’. njhopw;rhiyfs; ‘rpwg;G tha;e;j’
• Financial institutions in developing epjp epWtdq;fisNa mZf
countries are also referred to as Ntz;bAs;sJ.
development banks. • tsUk; ehLfspy; ,e;epjp
epWtdq;fs; tsu;r;rp tq;fpfs; vd;W
miof;fg;gLfpd;wd.
At National Level ehl;L mstpy;(At National Level)
1. Industrial Finance Corporation of India 1. ,e;jpaj; njhopy; epjpf; fofk;
(IFCI) (IFCI)
2. Industrial Development Bank of India (IDBI) 2. ,e;jpaj; njhopy; Kd;Ndw;w tq;fp
(IDBI)
3. Industrial Credit and Investment
Corporation of India (ICICI) 3. ,e;jpaj; njhopy; fld; KjyPl;Lf;
fofk; (ICICI)
4. Industrial Investment Bank of India (IIBI)
4. ,e;jpaj; njhopy; KjyPlL ; tq;fp
5. National Small Industries Corporation
(IIBI)
(NSIC)
5. Njrpa rpWnjhopy; fofk; (NSIC)
At State Level khepy mstpy;(At State Level)
1. Tamil Nadu Industrial Investment 1. jkpo;ehl;L njhopy; KjyPl;Lf;
Corporation (TIIC) (First of its nature to fofk;(TIIC)(1949 Kjy;)
be set up in India in 1949) 2. khepy epjpf; fofk;(SFC)
2. State Financial Corporations (SFC)
3. khepy njhopy; tsu;r;rpf;
3. State Industrial Development fofk;(SIDC)
Corporations (SIDC)
At Intermediate Level ,ilepiyastpy;(At the Intermediate
1. Unit Trust of India (UTI) Level)
2. Life Insurance Corporation of India (LIC) 1. A+dpl; bu];l; M/g; ,e;jpah (UTI)
3. General Insurance Corporation of India 2. ,e;jpa MAs; fhg;gl P ;Lf; fofk;(LIC)
(GIC) 3. ,e;jpa nghJ ,d;Rud;];
fofk;(GIC)
Role of Small Scale Industries in nghUshjhu tsu;r;rpapy; rpWnjhopy;
Economic Development epWtdq;fspd; gq;F
• xU ehl;bd; nghUshjhu
• Small Scale Industries (SSIs) play an Kd;Ndw;wj;jpw;F rpW njhopy;fs;
important role in the economic jiyaha gq;F tfpf;fpd;wd.
development of a country. • cw;gj;jp> Ntiytha;g;Gg; ngUf;fk;>
• Their role in terms of production, Vw;Wkjpapd; gq;F> tUkhdj;ij
gfpu;e;jspj;jy; Mfpatw;wpw;F
employment generation, contribution to rpWnjhopy;fspd; gq;F Fwpg;gplj;jf;f
exports and facilitating equitable msT cs;sJ. rpWnjhopy;fis
distribution of income is very critical. ,Utiffshfg; gpupf;fyhk;.
The small scale sector consists broadly of 1) njhd;ik tha;e;j fpuhk kw;Wk;
1) the traditional cottage and household Fbirj; njhopy;fSk; mjhtJ> fju;
fpuhkj; njhopy;> iftpidj; njhopy;>
industries viz., khadi & village industries, ifj;jwp nerT> gl;Lg; GO tsu;jj ; y;>
handicrafts, handlooms, sericulture and fapWj; njhopy;fs; Nghd;wit rpwe;j
coir industries; and vLj;Jf;fhl;Lfs; MFk;.
2)modern small scale industries. 2) etPd rpW njhopy; epWtdq;fs;
The Industries (Development & njhopy;fs;(tsu;r;rp kw;Wk;
Regulation) Act 1951 defines SSI having xOq;FKiwg;gLj;Jjy;) rl;lk; 1951
less than 50 workers with the aid of rpWnjhopy;fis (SSI) kpd;dpizg;Gld;
power or less than 100 workers working nray;gLk; rpWnjhopw;rhiyfs; 50\
without the aid of power. egu;fSlDk;> kpd;rhu cjtpapd;wp
nray;gLk; rpW njhopy;fSf;F 100
egu;fs; tiu Ntiy nra;ayhk; vd
tiuaiw nra;Js;sJ.
The following are some of the specific gpd;tUgit(SSI) rpWnjhopy;fspd; kpf
contributions of SSIs. Kf;fpa gq;F MFk;.
1. The contribution of SSIs to the 1. cw;gj;jpj; Jiw kw;Wk; nkhj;j
manufacturing sector and GDP as a whole cs;ehl;L cw;gj;jpapd; (GDP)
is significant in terms of its share in total xl;Lnkhj;jj;jpw;F rpWnjhopy;fspd;
value added. gq;F Fwpg;gplj;jf;f msT cs;sJ.
2. SSI performs a very significant role in 2. ePzl ; fhyj;jpw;F Ntiy tha;g;ig
generating employment opportunities in a cUthf;ff;$ba JiwahfTk;> rpW
sustainable manner.
njhopy; Jiw tpsq;FfpwJ.
3. SSI can play a role in mitigating the
problem of imbalance in the balance of 3. thzpgr; nrYj;J rkrpiyapy; cs;s
payment accounts through its export rkepiyapd;ikia Nghf;Ftjw;F
promotion. rpWnjhopy;fs; jdJ Vw;Wkjpia
4. While the large scale industries are Cf;Ftpg;gjd; %yk; cjtp GupfpwJ.
expected to increases the inequities of 4. NgusTj; njhopy;fs; tUkhd Vw;wj;
income and concentration of wealth, SSI is jho;TfisAk;> ‘nry;tf; Ftpg;G’f;Fk;
expected to help widespread equal toptFf;Fk; epiyapy;> rpWnjhopy;fs;>
distribution of income and wealth. nry;tk; kw;Wk; rkkhd tUkhdg;
gfpu;tjw;F cjtp GupfpwJ.
5. SSI may provide opportunities to a large 5. eype;j> tha;g;ig ,oe;j> jpwikahd
number of capable and potential njhopy; Kay;Nthu;fSf;F mjpf
tha;g;Gfis rpWnjhopy;fs;
entrepreneurs who are deprived of toq;Ffpd;wd.
appropriate opportunities. 6. Nghjpa %yjdj;ij cw;gj;jpg;
6. It can help to release scarce capital towards gad;ghl;bw;F nfhLj;J cjTfpwJ.
productive use. 7. rpWnjhopy;fs; Gjpa nryTf;F Vw;w
njhopy; El;gj;ij gad;gLj;Jtjhy;>
7. SSI can reap the benefits of lean cw;gj;jpf;F Vw;w ed;ikfs;
production and can find new cost-efficient Vw;gLfpd;wd.
techniques of lean production. 8. rpWnjhopy;fs; tsq;fis KOikahf
8. As small units can use resources more gad;gLj;jpf; nfhs;Sk;. ,jpy; mjpf
fopT(wastage) ,Uf;f tha;g;gpy;iy.
efficiently to the full capacity without any rpWnjhopy;fs; mjpf xjf;fPlL ; jpwid
wastage, they may have higher allocative ngw;Ws;sd.
efficiency. 9. rpWnjhopy;fspy; ,lu;ghLfs; FiwT.
9. As the element of risk is minimum in small vdNt> mjpf tsq;fis
ngUkstpyhd ciog;Gr; rf;jpfs;(Huge
scale sectors, more resources will be Labour Force) gad;gLj;jpf; nfhs;s
employed by large number of labour force. KbAk;.
Problems of Small Scale Industries rpWnjhopy;fspy; fhzg;gLk;
SSIs are facing many problems. The gpur;ridfs;(Problems of Small Scale
following are some of their major problems. Industries)
rpWnjhopy;fs; mNef gpur;ridfis
a) Scarcity of inputs
re;jpf;fpd;wd. gpd;tUgit mtw;Ws; kpf
b) Inadequate capital Kf;fpakhdit MFk;. mitahtd
c) Marketing a) cs;sPLfspy; gw;whf;Fiw
d) Under-utilization of capacity b) %yjdg; gw;whf;Fiw
e) High cost of production c) re;ijg;gLj;Jjy;
d) jpwd;fis KOikahfg; gad;gLj;jhik
e) kpf mjpfkhd cw;gj;jpr; nryT
Important Industrial Policies Prior 1991f;F Ke;ija Kf;fpa njhopw;
to 1991 nfhs;iffs;
 Industrial Policy Resolutions 1948  1948d; njhopw; nfhs;if jPu;khdk;
Industrial Policies njhopw;nfhs;ifs;
Industrial Policy 1948: njhopw;nfhs;if – 1948
Center’s Monopoly: Government of ika murpd; Kw;Wupik: ,uapy;Nt.
India’s Monopoly shall include Railways, ,uhZtj;jsthlq;fs;> mZMw;wy;> jghy;Jiw
Arms and Ammunition, Atomic Energy, Nghd;wit ,e;jpa murpd; Kw;Wupikapd; fPo;
Postal Department. nray;gLk;. khepy murpd; Kw;Wupik: ,aw;if
State’s Monopoly: State Monopoly shall tsq;fshd epyf;fup> v/F> tpkhd cjpupghfq;fs;
include natural resources like coal, steel, jahupg;G> thfd cw;gj;jp> fk;gpy;yh njhlu;G
manufacture of aircraft, cement, rubber, rhjdq;fs; kw;Wk; vz;nza; tsq;fs; Nghd;wit
automobile, wireless apparatus (Radio khepy murpd Kw;Wupikapd; fPo; nray;gLk;
Receiving Sets) and Mineral oil Xoq;Fglhj jdpahu; mikg;Gfs;: Nkw;fhz;
,uz;by; cs;slq;fhj Vida njhopy;fspy;
jdpahu; mikg;Gfs; kw;Wk; $l;LwT mikg;Gfs;
<Lglyhk;
1. Industries were classified into 1. ,e;jpaj;njhopy;fs; ehd;F tiffshfg;
four groupssuch as public sector gpupf;fg;gl;ld. mit nghJj;Jiw
(strategic industries), public–cum (%yj;njhopy;fs;)> nghJ kw;Wk;
jdpahu;Jiw(Kf;fpa njhopy;fs;)>
–private Sector (key industries), fl;Lg;gLj;jg;gl;l jdpahu; Jiw jdpahu;
controlled private sector, private and kw;Wk; $l;LwT epWtdq;fs;.
co-operative sectors.
2. ,f;nfhs;if Fbirj; njhopy;fs; kw;Wk;
2. This policy endeavoured to protect rpwpa mstpyhd njhopy;fisg; ghJfhf;f
cottage and small scale industries. Kaw;rp Nkw;nfhz;lJ.
3. The central and state governments 3. ,Ug;Gg; ghijfs; kw;Wk; ,Uk;Gj;jhJ
had a virtual monopoly in rail roads Kjyhd fdpk tsq;fSf;fhd gpuj;jpNaf
cupikapy; khepy kw;Wk; kj;jpa muRfs;
and exclusive rights to develop VfNghfk; ngw;W ,Ue;jd.(Mdhy; ,g;NghJ
minerals, iron ore etc. epiyik khwpf;nfhz;L tUfpwJ)

4. The Government encouraged the 4. ,e;jpa muR> gpw ehLfspypUe;J fpilf;ff;

significance of foreign capital for $ba ntspehl;L KjyPlb ; d; Kf;fpaj;Jtj;ij
industrialization but the government Cf;Ftpj;jhYk; mjd; KOf; fl;Lg;ghL
decided that the control should ,e;jpau;fspd; fuq;fspNyNa ,Uf;f Ntz;Lk;
vd;W KbT nra;jJ.
remain with Indian hands.
 Industrial Policy
1956 njhopw;nfhs;if jPu;khdk;
Resolution 1956
1. 1956Mk; Mz;L njhopw;Jiw jPu;khdf;
1. The Industrial Policy of 1956 sought nfhs;if> nghJj;Jiwf;F Kf;fpaj;Jtk;
to give a dominant role to public nfhlj;jJ. mNj Neuj;jpy; jdpahu;
sector. At the same time, it assured a JiwiaAk; epahakhd Kiwapy; top
fair treatment to the private sector. elj;jpaJ.
2. The Government would support and 2. murhq;fk; Fbirj; njhopy; kw;Wk;
rpWnjhopy;fis Cf;Ftpj;J Neub khdpak;
encourage cottage and small scale
mspj;jJ. ngUksT cw;gj;jp epWtdq;fspd;
enterprises by restricting volume of cw;gj;jpia fl;Lg;gLj;j gy;NtW tpjkhd
production in the large scale sector by tupfisAk; muR tpjpj;jJ.
differential taxation or by direct •
subsidies.
3. This industrial policy emphasized 3. tsu;r;rpfshy; tl;lhu Ntw;Wikiaf;
the necessity of reducing the Fiwf;f ,e;j njhopw; nfhs;if
regional disparities in levels of typAWj;jpaJ.
development. 4. ,e;jpa KjyPLfspd; Njitia muR
4. The Government recognized the Gupe;jpUe;jJ.
need for foreign capital for
progressive Indianisation of
foreign concerns.
Industrial Resolution Policy – 1956 njhopw;nfhs;if 1956
 Shaped by the Mahalanobis Model of growth, kfyNdhgpyp] tsh;r;rp khjpupapd; mbg;gilapy;
which suggested that emphasizes on heavy industries mikf;fg;gl;lJ. ,J ePz;lfhy nghUshjhu
would lead the economic towards a long term higher tsh;r;rpf;F fduf njhopy;Jiwapd;
growth path. Kf;fpaj;Jtj;ij czh;jJ ; fpwJ. njhopw;nfhs;if
 The Industries Policy Revolution – 1936 classified 1956y; %d;W tifahfg; gphpf;fg;gl;lJ.
industries: into three categories 17 njhopy;fs;:
17 Industries: ,uapy;Nt thd;top Nghf;Ftuj;J> ,uhZtj;
 Exclusively under the domain of the jdahlq;fs; kw;Wk; ntbkUe;Jfs;> ,Uk;G kw;Wk;
Government. These included alike railways, air v/F> mZMw;wy; Nghd;w njhopy;fs; ,jpy;
transport, arms and Ammunition and steel and mlq;Fk;.
atomic energy 12-njhopy;fs;:
12 Industries : khepy muR nrhe;jkhff; nfhz;bUf;Fk; ,e;j
 which were envisaged to be progressively njhopy;fSf;F jdpahh;Jiw Jizahf ,Uf;Fk;
State owned by Private Sector was expected to vd vjph;ghf;fg;gl;lJ.
supplement the efforts of the State. %d;whtJ gphpT:
 The third category contained all the Nkw;fhz; njhopy;fs; jtph;jJ
; Vida njhopy;fs;
remaining industries and it was expected that jdpahh;JiwNah my;yJ muRj;JiwNah
private sector would initiate development of these tsu;r;rpia Nehf;fkhff; nfhz;L nray;gl
industries but they would remain open for jilapy;iy.
the state as well
 Large Scale Industries ngupa mstpyhd njhopw;rhiyfs;
 The term “Large scale industries” refers  ngupa mstpyhd njhopw;rhiy vd;gJ
to those industries whichrequire huge
ngupa cs; fl;likg;G mjpf
infrastructure, man-power and a have
influx of capital assets. kdpjrf;jp> mjpf %yjd
 The term ‘large scale industries’ is a nrhj;Jf;fis cs;slf;FtjhFk;.
generic one including various types  ,J gy njhopw;rhiyfis
ofindustries in its purview. fz;fhzpj;J xNu njhopw;rhiyapd;
fPo; cs;slf;FtjhFk;.
 All the heavy industries of India like the  ,Uk;G kw;Wk; v/F njhopw;rhiy> nerT
iron and steel industry, textile industry, njhopw;rhiy> Ml;Nlhnkhigy; njhopw;rhiy
automobile manufacturing industry fall Nghd;w fduf njhopw;rhiyfs; midj;Jk;
under the large scale industrial arena. ngupa mstpyhd njhopw;rhiyfs; MFk;.

 However in recent years due to the IT  fle;j rpy tUlq;fshf jfty; njhopypd;
boom and the huge amount of revenue mgupkpj tsu;r;rp kw;Wk; mjd; mjpf tUkhd
generated by it the IT industry can also cUthf;fk; Nghd;w fhuzq;fspdhy;> jfty;;
be included within the jurisdiction of njhopy;El;g njhopy;fSk; ngupa mstpyhd
the large scale industrial sector. njhopy;fspd; tifapy; Nru;f;fg;gl;Ls;sJ.
 Indian economy is heavily dependent on  ,e;jpa nghUshjhukhdJ nghUshjhu
theselarge industries for its economic tsu;r;rp ntspehl;L gz cUthf;fk;> mjpf
growth, generation of foreign currency egUf;F Ntiy tha;g;G toq;Fjy;
and for providing job opportunities to Mfpatw;wpw;F ngUk; njhopw;rhiyia
millions of Indians. ngupJk; ek;gpAs;sJ. ngUk; epWtdq;fNsh
mjpf ,yhgk; rk;ghjpg;gijNa Nehf;fkhff;
 The following are the major large scale nfhz;bUf;Fk; vd nghUspay; Nfhl;ghLfs;
industries in India. $wpAs;sd.
 gpd;tUgit ngupa mstpyhd
njhopw;rhiyahdit MFk;.
1. Iron and steel industry 1. ,Uk;G v/F njhopw;rhiy

 First steel industry at Kulti, Near Jharia,  Kjy; v/F njhopw;rhiy [hhpahtpYs;s
West Bengal - Bengal iron works Fy;b vd;Dlkplj;jpYk; Nkw;F tq;fhsj;jpy;
company in 1870. cs;s “tq;fhs ,Uk;G njhopy;” fk;ngdp
1870 Mk; Mz;L epWtg;gl;lJ.
 First large scale steal plant TISCO at
Jamshedpur in 1907 followed by IISCO  1907-y; nghpa mstpyhd ,Uk;G v/F
at Burnpur in 1919. Both belonged to njhopw;rhiy (TISCO) [hk;n\l;G+hpYk;>
private sector. mjid njhlh;e;J JJSCO njhopw;rhiy
1919 ghd;G+hpYk; njhlq;fg;gl;ld. ,it
,uz;Lk; jdpahh; Jiw MFk;.
 The first public sector unit was  Kjd; Kjypy; epWtg;gl;l nghJj;Jiw
“Vishveshvaraya Iron and Steel works” epWtdk; gj;uhtjpapy; cs;s tp];Nt];ua;ah
at Bhadrawati. ,Uk;G v/F njhopy; MFk;.

 All these are managed by SAIL (at

present all important steel plants except  Nkw;$wg;gl;l midj;Jk; SAIL My;
TISCO, are under public sector) eph;tfpf;fg;gLfpd;wd jw;NghJ> TIGCO jtpu
kw;w midj;J Kf;fpa ,Uk;G v/F
epWtdq;fs; nghJj;Jiwapd; fPo;
,aq;Ffpd;wd.
 Steel Authority of India Ltd (SAIL) was  ,e;jpa v/F epWtdk; (SAIL) 1974-y;
established in 1974 and was made epWtg;gl;lJ. kw;Wk; v/F Jiwia
responsible for the development of the Nkk;gLj;Jk; nghWg;Gk; mjw;F
steel industry. mspf;fg;gl;lJ.

 Presently India is the eighth largest steel  jw;NghJ ,e;jpa v/F cw;gj;jpapy; cyf
producing country in the world. mstpy; vl;lhtJ cahpa ,lj;jpYs;sJ.
Public sector steel plants nghJj;Jiwapy; v/F epWtdk;
2. Jute industry 2) rzy; njhopy;
 Jute industry is an important industry  ,e;jpah Nghd;w ehl;bw;F rzy; njhopy; kpf
for a country like India, because not only Kf;fpakhdjhFk; fhuzk; ,j;njhopy; %yk;
it earns foreign exchange but also ntspehl;L nrythzp <l;lg;gLfpwJ. NkYk;
provides substantial employment ,j;njhopy; fzprkhd Ntiy tha;g;ig
opportunities in agriculture and mspf;fpwJ
industrial sectors.
Its first modernised industrial unit  1855 y; Nkw;F tq;f khepyj;jpYs;s Nu\;uh
was established at Reshra in West vDk; Chpy; etPdkag;gLj;jg;gl;
njhopw;rhiy Kjy; Kiwahf
Bengal in 1855.
cUthf;fg;gl;lJ

The jute industry in the country is  ,e;jpahtpd; rzy; njhopy;> ghuk;ghpakhf

traditionally export oriented. India Vw;Wkjp nra;J tUfpwJ. cyf mstpy;
ranks number one in the raw jute ,e;jpah fr;rh rzy; cw;gj;jpapYk; rzy;
and jute goods production and nghUl;fs; jahhpg;gpYk; Kjyplj;jpYk; rzy;
nghUl;fs; Vw;Wkjpapy; ,uz;lhkplj;jpYk;
number two in export of jute cs;sJ.
goods in the world.
3. Cotton and textile industry 3) gUj;jpAk; nerTj; njhopYk;
 Oldest industry of India, and employs  ,e;jpahtpy; nerTj; njhopy; kpfg;
largest number of workers. goikahdjhFk;. mjpf njhopyhsh;fisak;
nfhz;l JiwahFk;.
 It is the largest organised and broad
based industry which accounts for 4% of  ,j;JiwahdJ xU xOq;fikf;fg;gl;l nghpa
GDP, 20% of manufacturing value-added mstpshdJk; gue;Jgl;l mstpYk;
and one third of total export earnings. tsh;e;Js;sJ. nkhj;j cs;ehl;L cw;gj;jpay;
4%k; kjpg;Gf; $l;lg;gl;l cw;gj;jpy; 20%k;
Vw;Wkjp tUthapy; %d;wpy; xU gq;Fk;
,j;Jiwapd; %yk; fpilf;fpwJ.
The first Indian modernised cotton  nfhy;fj;jhtpw;F mUfpYs;s FNsh];lh;
cloth mill was established in 1818 JiwKf efhpy; 1818-y; Kjy; etPd Jzp
cw;gj;jp Miy mikf;fg;gl;lJ. MapDk;
at Fort Gloaster near Calcutta. But
,t;thiy rpwg;ghf ,aq;ftpy;iy.
this mill was not successful.
 mLj;jjhf 1854-y; Kk;igapy; Nf.[p.vd;
The second mill named “Mumbai’s NlNgh; (DABER) vd;gtuhy; “Kk;igapd; E}w;G
Spinning and Weaving Co.” was kw;Wk; nerT fk;ngdp (MUMBAI’S SPINNING
established in 1854 at Bombay AND WEAVING CO) cUthf;fg;gl;lJ.
byKGN Daber.
4. Sugar industry 4) rh;f;fiu njhopy;
 Sugar industry is the second  ,e;jpahtpy; Ntshz; rhh;Gj; njhopy;fspy;
gUj;jp njhopYf;F mLj;jgbahf rh;f;fiuj;
largest industry among
njhopy; cs;sJ.
agriculture-based industries in
India.
 cyf mstpy; ,e;jpah nghpa mstpyhd
 India is now the largest producer rh;f;fiu cw;gj;jpahsuhfTk; nghpa
and consumer of sugar in the mstpyhd Efh;NthuhfTk; ,Uf;fpwJ.
world. Maharashtra contributes rh;f;fiu cw;gj;jpapy; ,e;jpa mstpy;
over one third of the Indian total %d;wpy; xU gq;F kfhuh\;buh khepyk;
kl;LNk. mLj;jg;gbahf cj;jpugpuNjr
sugar output, followed closely by
khepyk;.
Uttar Pradesh.
5. Fertiliser industry 5) cuj; njhopy;

 ,e;jpahtpy; iel;u[id gad;gLj;jp

India is the third largest produce jahhpf;Fk; cuj;njhopyhdJ cyfpd;
of nitrogenous fertilisers in the %d;whtJ cuj;njhopyhdJ cyfpd;
world. %d;whtJ nghpa njhoyhFk;.
 6. Paper industry 6) fhfpj; njhopy;

o The first mechanised paper mill was set o 1812-y; tq;fj;jpYs;s nruhk;G+h; Chpy;
up in 1812 at Serampur in West Bengal. ,ae;jpuj;jhy; nray;gLk; fhfpj Miy
,ae;jpuj;jhy; nray;gLk; fhfpj; Miy
o The paper industry in India is ranked cUthf;fg;gl;lJ.
among the 15 top global paper
industries. o cyfpYs;s fhfpj njhopw;rhiyfspd;
gl;baypy; ,e;jpah 15-tJ ,lj;jpy; cs;sJ.
7. Silk industry 7) gl;Lj; njhopy;
 India is the second-largest(first being  ,aw;ifahd gl;Lj; jahhpg;gpy; ,e;jpah
China) country in the world in producing ,uz;lhkplj;jpy; cs;sJ rPdh Kjyplk;.
natural silk. At present, India produces jw;NghJ cyf mstpy; 16% cw;gj;jpia
about 16% silk of the world. ,e;jpah nfhz;Ls;sJ.

 India enjoys the distinction of being the  ,e;jpah kl;LNk fPo;ff

; z;l tzpf
only country producing all the five mbg;gilapyhd 5 tifahd gl;Lj;Jzpfis
known commercial varieties of silk viz cw;gj;jp nra;fpwJ. mjhtJ ky;nghp gl;L>
Mulberry, Tropical Tussar, Oak Tussar, Eri ntg;g kz;ly l];rh; gl;L> Xf; l];]h;> gl;L
and Muga. vhp kw;Wk; Kfh gl;L Mfpad.
8. Petroleum and natural gas 8) ngl;Nuhypak; kw;Wk; ,aw;if vhpthA
 First successful Oilwell was dug in  m];]hk; khepyj;jpYs;s bf;gha; (DIGBOI)
India in 1889 at Digboi, Assam. vDk; Chpy; 1889-y; ntw;wpfukhf
Kjy;Kiwahf vz;nza; fpzW
 At present a number of regions with Njhz;lg;gl;lJ
oil reserves have been identified and  jw;NghJ ehl;bd; gy;NtW gFjpfspy; vz;nza;
oil is being extracted in these regions ,Ug;gplq;fs; milahdk; fhzg;gl;L
vz;nza;ia ntspapy; vLg;gjw;fhd gzpfs;
ele;J tUfpd;wd.
 For exploration purpose, Oil and
Natural Gas Commission (ONGC) was  ,j;jifa vz;nza; kw;Wk; vhpthA tsq;fis
established in 1956 at Dehradun, vLg;gjw;fhf cj;jufz;l khepyj;jpy; cs;s
Uttarakhand nl`;uh^d; (DEHRADUN) efhpy; 1956-y;
vz;nza; ghpthAf; fofk; ONGC
cUthf;fg;gl;lJ.
 rpwpa mstpyhd njhopw;rhiyfs;
Small Scale Industries
 ,e;jpa nghUshjhu Kd;Ndw;wj;jpy; rpW
 Small scale industries play an important njhopy;fs; Kf;fpa gq;F tfpf;fpd;wd.
role for the development of Indian nkhj;j Gj;jhq;fspy; 60 Kjy; 70 rjtPjk;
economy in many ways. About 60 to 70 rpW njhopy;fs; %ykhf fpilj;jitNa.
percent of the total innovations in India ,d;iwa nghpa njhopy;fspy;
comes from the SSIs. Many of the big ngUk;ghd;ikahd njhopy;fs; rpW
businesses today were all started small njhopy;fshf cUthf;fg;gl;L gpd; tsh;e;J
and then nurtured into big businesses. nghpa njhopy;fshf khwpAs;sd.
Role of SSIs in Economic Development nghUshjhu Kd;Ndw;wj;jpy; rpW njhopy;fspd;
1. Provide Employment gq;F
 SSIs uselabour intensive techniques. Hence, 1) rpW njhoy;fs; %yk; Ntiy tha;g;G
they provide employment opportunities to  rpW njhopy;fs; mjpf njhopyhsh;fis
a large number of people. Thus, they gad;gLj;Jk; cj;jpia gad;gLj;Jfpd;wd.
reduce the unemployment problem to a ,jdhy; mjpf Ntiytha;g;G nfhLf;Fk;
great extent. Jiwahf cs;sJ. ,jd; %ykhf
 SSIs provide employment to artisans, Ntiyapy;yh jpz;lhl;lk; nghpa mstpy;
technically qualified persons and FiwfpwJ.
professionals, people engaged in traditional  iftpidQh;fs;> njhopy; El;g gapw;rp
arts, people in villages and unorganized ngw;wth;fs; njhopy; Kidgth;fs; ghuk;ghpa
sectors. fiyQh;fs;> fpuhkg;Gw kf;fs; kw;Wk;
 The employment-capital ratio is high for mikg;Gk; rhuh epWtdq;fSf;F Ntiy
the SSIs. tha;g;ig rpW njhoy; Jiw mspf;fpwJ.
 rpW njhopy;Jiwapy; ciog;;G KjyPlL ;
tpfpjk; mjpfk;
2. Bring Balanced Regional 2) rpW njhopy; jUk; rkkhd kz;ly
Development tsh;r;rp
 SSIs promote decentralized rpW njhopy;fs; ngUk;ghYk;
development of industries as gpd;jq;fpa gFjpfspYk;> fpuhkg;Gwg;
most of the SSIs are set up in gFjpfspYk; miktjhy; ,tw;wpd;
backward and rural areas. jhf;fk; gue;Jgl;l tsh;r;rpia
They remove regional disparities mspf;fpwJ.
by industrializing rural and fpuhkk; kw;Wk; gpd;jq;fpa
backward areas and bring gFjpfspy; njhopy; tsh;r;rp
balanced regional development. Ntw;Wikia fisa cjtp
nra;fpwJ.
 They help to reduce the problems of  rpW njhopy;fspd; tsh;rr
; papdhy;> kf;fs;
congestion, slums, sanitation and njhif neUf;fk; Nrhpfspd; tsh;rr ; p>
pollution in cities. They are mostly Rfhjhukpd;ik> khRghL Mfpait
found in outside city limits. FiwfpwJ.
 They help in improving the standard of  ,it ,e;jpahtpd; Gwefh; gFjp kw;Wk;
living of people residing in suburban fpuhkg;Gw gFjpfspYk; thOk; kf;fspd;
and rural areas in India. tho;f;ifj; juj;ij cah;j;Jfpwj.
 The entrepreneurial talent is tapped in  ,jdhy; ehl;bd; gy;NtW gFjpfspy;
different regions and the income is also njhopy; KidNthh; cUthfTk; mth;fs;
distributed instead of being jpwik ntspg;glTk; tha;g;ghfpwJ.
concentrated in the hands of a few mNjhL tUkhdk; Fwpg;gpl;l xU rpy
individuals or business families. tzpf FLk;gq;fsplk; kl;Lk; Ftpahky;
gyuJ iffspy; gut tha;g;gspf;fpwJ.
3. Help in Mobilization of Local Resources 3) cs;Sh; tsq;fis gad;gLj;j rpWnjhopy;
• SSIs help to mobilize and utilize local cjtp nra;fpwJ
resources like small savings, • rpW Nrkpg;G> njhopy; KidNthh; jpwik
entrepreneurial talent etc., of the Nghd;w cs;Sh; rhh;ej; tsq;fs; gad;ghlw;W
entrepreneurs, which might otherwise tPzhfhky; mJ ntspg;glTk; gyUf;Fk;
remain idle and unutilized. gad;glTk; rpW njhoy; fhuzkhfpwj
• They pave way for promoting • iftpidg; nghUl;fs; jahhpg;Nghhpd;
ghuk;ghpa FLk;gj; jpwd;fis tsh;f;f rpW
traditional family skills and
njhopy; cjTfpwJ. tsh;e;j ehLfspy;
handicrafts. There is a great iftpidg; nghUl;fSf;F kpFe;j tuNtw;G
demand for handicraft goods in nghUl;fSf;F kpFe;j tuNtw;G ,Uf;fpwJ
developed countries. vd;gJ Fwpg;gplj;jf;fJ.
• They help to improve the growth of • ,e;jpahtpd; fpuhkq;fspYk; rpW efuq;fspYk;
local entrepreneurs and self cs;s cs;Sh; njhopy; efuq;fspYk; cs;s
cs;Sh; njhopy; KidNthh;fisAk; Ra
employed professionals in small njhoy; nra;Nthh;fisAk; tsh;j;njLf;f rpW
towns and villages in India. njhopy; cjTfpwJ.
4. Pave for Optimisation of Capital 4) %yjd gad;ghL KOikngw rpW njhopy;
 SSIs require less capital per unit of output. top tFf;fpwJ
They provide quick return on investment  rpW njhopy; %yjdj;jpd; Njit FiwNt
due to shorter gestation period. The ,j;Jiwapy; nra;j KjyPlb ; w;F fhj;jpUg;Gf;
payback period is quite short in SSIs. fhyk; (gestation Period) kpf Fiwthf
,Uf;Fkhjyhy; tUkhdk; tpiutpy; tu
tha;g;G cs;sJ. jpUg;gpr; nrYj;Jjy;
fhyKk; rpW njhoy; epWtdq;fSf;Fk; kpf
FWfpajhf cs;sJ.
 SSIs function as a stabilizing force by  mjpf ntspaPL %yjd tpfpjj;ijAk; mjpf
providing high output-capital ratio as Ntiytha;g;G %yjd tpfpjj;ijAk;
well as high employment capital ratio. epiyg;gLj;Jk; rf;jpahf rpWnjhoy; Kiw
 They encourage the people living in cs;sJ.
rural areas and small towns to mobilize  fpuhkg;Gw kf;fisAk; rpW efh; tho;
savings and channelize them into kf;fisAk; Nrkpg;gpd; gf;fk; jpUg;gTk;
industrial activities. njhoy; rhh;e;j eltbf;iffspy; <LglTk; rpW
njhopy; Jiw Cf;fg;gLj;JfpwJ.
 5.Promote Exports 5) rpWnjhopy;Jiw Vw;Wkjpia cUthf;FfpwJ
 SSIs do not require sophisticated machinery.  rpWnjhopy;Jiwf;F mjpetPd ,ae;jpuq;fs;
Hence, import the machines from abroad is Njitapy;iy. vdNt ntspehl;bypUe;J
not necessary. ,ae;jpuq;fis ,wf;Fkjp nra;a mtrpakpy;iy.

 On the other hand, there is a great demand  mNj Ntisapy; rpW njhoy;Jiwapd;
for goods produced by SSIs. Thus they nghUl;fSf;F mjpf Njit cs;sJ. ,J
reduce the pressure on the country’s ehl;bd; me;jpa nrythzp kPjhd mOj;jj;ij
balance of payments. Fiwf;f cjTfpwJ. MdhYk; ngUe;njhopy;fspd;
mstpw;F tpsk;guk; nra;a ,ayhkYk; %yjdk;
 However, with recent past large scale industries jpul;l ,ayhkYk; rpWnjhopy;fs; rpije;J
are able to borrow large funds with low interest tUtijAk; fhzKbfpwJ.
rate and spend large sums on advertisements.
Hence SSSs are gradually vanishing.

 SSIs earn valuable foreign exchange through

exports from India.
6. Complement Large Scale Industries 6) nghpa mstpdhd njhopy;fSf;F rpW
 SSIs play a complementary role to large njhopy; epWtdq;fspd; gq;F
scale sector and support the large scale  rpW njhopy; epWtdq;fs; nghpa njhopy;fspd;
industries. tsh;r;rpf;F MjuT jUfpd;wd.

 SSIs provide parts, components,  nghpa mstpyhd njhopw;rhiyf;F mUfpy;

accessories to large scale industries and mike;J rpW njhoy; epWtdq;fs;
meet the requirements of large scale cjphpghfq;fs; cl;$Wfs; kw;Wk; nghpa
industries through setting up units near njhopy;fSf;Fj; Njitahd midj;Jg;
the large scale units. ghfq;fisAk; jahhpj;J toq;fp cjTfpd;wd.

 SSIs serve as ancillaries to large scale  nghpa epWtdq;fSf;Fj; Jiz

units. epWtdq;fshf nra;y;gLfpd;wd.
7. Meet Consumer Demands 7) rpW njhopy; epWtdq;fs; Efh;Nthh;
Njitfis epiwNtw;Wfpd;wd (re;jpf;fpd;wd)
 SSIs produce wide range of products
required by consumers in India.  ,e;jpahtpy; Efh;NthUf;Fj; Njitahd
gy;NtW nghUl;fis rpW njhopy;
epWtdq;fs; jahhpf;fpd;wd.
 Hence, they serves as an antiinflationary
force by providing goods of daily use.
 md;whlj; NjitfSf;fhd nghUl;fisj;
jahhpg;gjhy; gw;whf;FiwAk; gztPf;fKk;
Fiwf;fg;gLfpd;wd.
8. Develop Entrepreneurship
 SSIs help to develop a class of entrepreneurs in the society. They help the job seekers to
become job givers.

 They promote self-employment and spirit of self-reliance in the society.

 SSIs help to increase the per capita income of India in various ways.

 They facilitate development of backward areas and weaker sections of the society.

 SSIs are adept in distributing national income in more efficient and equitable manner
among the various participants of the society.
Micro, Small and MediumEnterprises FW> rpW kw;Wk; eLe;ju epWtdq;fs; (MSMEs)
(MSMEs)
 je;Nghija fhyj;jpy; gy;NtW tifahd
 As on now, the following monetary njhoy; gphpTfis tifg;gLj;j gpd;tUk; gz
limits have been used for defining KjyPl;L vy;iyfs; gad;gLj;jg;gLfpd;wd.
different kinds of industrial service ,Ue;jhYk;> ,it fhyj;jpw;Nfw;whw; Nghy;
units. However, these limits are subject khwf;$bait.
to changes over time.
Manufacturing Enterprises cw;gj;jp epWtdq;fs;
a. Micro Manufacturing Enterprises: m) FW cw;gj;jp epWtdq;fs;:
The investment in plant and machinery njhopw;rhiy kw;Wk; cgfuzq;fSf;fhd KjyPL
does not exceed Rs.25 lakhs. &gha; 25 ,yl;rj;jpw;F kpfhky; ,Uf;f Ntz;Lk;.

b. Small Manufacturing Enterprises: M) rpW cw;gj;jp epWtdq;fs;:

njhopw;rhiy kw;Wk; cgfuzq;fSf;fhd KjyPL
The investment in plant and machinery
is more than twenty five lakh rupees but &gha; ,Ugj;ije;J ,yl;rj;jpw;F mjpfkhfTk;
does not exceed Rs.5 crores. [e;J Nfhbf;F kpfhkYk; ,Uf;f Ntz;Lk;.

,) eLj;ju cw;gj;jp epWtdq;fs;:

c. Medium Manufacturing Enterprises:
njhopw;rhiy kw;Wk; cgfuzq;fSf;fhd KjyPL
The investment in plant and machinery
Ugha; [e;J Nfhbf;F mjpfkhfTk; &gha; gj;J
is more than Rs.5 crores but not
Nfhbf;F kpfhkYk; ,Uf;f Ntz;Lk;.
exceeding Rs.10 crores.
Service Enterprises Nrit epWtdq;fs;
a. Micro Service Enterprises: m) FWNrit epWtdq;fs;:
The investment in equipment does not cgfuzq;fSf;fhd KjyPL &gha; gj;J
exceed Rs.10 lakhs. ,yl;rj;jpw;F kpfhky; ,Uf;f Ntz;Lk;.

b. Small Service Industries: M) rpWNrit epWtdq;fs;:

The investment in equipment is more cgfuzq;fSf;fhd KjyPL &gha; gj;J
than Rs.10 lakhs but does not exceed ,yl;rj;ij tpl mjpkhfTk;> ,uz;L Nfhbf;F
Rs.2 crores.
kpfhkYk; ,Uf;f Ntz;Lk;.

c. Medium Service Enterprises:

,) eLj;ju Nrit epWtdq;fs;:
The investment in equipment is more
than Rs.2 crores but does not exceed cgfuzq;fSf;fhd KjyPL &gha; ,uz;L
Rs.5 crores. Nfhbia tpl mjpfkhfTk; [e;J Nfhbf;F
kpfhkYk; ,Uf;f Ntz;Lk;.
Industrial Sector Reforms njhopw; Jiwr; rPh;j;jpUj;jq;fs;

 The Prime Minister of India announced  Gjpa njhopw;nfhs;ifa [_iy 24> 1991-y;
the new industrial policy on July 24, ghuj gpujh; mwptpj;jhh;.
1991.
 Gjpa nfhs;if njhopy;Jiwapy; fzprkhf
 The new policy radically liberalized the fl;Lg;ghLfisj; jsh;jj
; paJ.
industrial policy itself and de-regulated
the industrial sector substantially.
 The primary objectives of the industrial  njhopw;nfhs;ifapd; Kjd;ikahd
policy were to promote major industries Nehf;fq;fs; mjpfhuj;jpd; gpbapy; ,Uf;Fk;
from the clutches of bureaucrats, to gy njhoy;fis Kd;Ndw;WtJ> ntspehl;L
abolish restrictions on foreign direct Neub KjyPLfspy; cs;s fl;Lg;ghLfis
investment, to liberate the indigenous xopg;gJ. MRTP – rl;lf; fl;Lg;ghLfspypUe;J
enterprise from the restrictions of MRTP cs;ehl;L epWtdq;fis jsh;jJ ; tJ>
Act, to maintain a sustained growth in cw;gj;jpj; jpwdpYk;> Ntiytha;g;gpYk; ePbj;j;
productivity and employment and also tsh;rr; piag; guhkhpg;gJ kw;Wk; rh;tNjr
to achieve international Nghl;bfis vjph;nfhs;tJ MfpadthFk;.
competitiveness.
Important Initiatives by the Government njhopw;nfhs;ifapy; muR vLj;j Kf;fpa Kaw;rpfs;
towards Industrial Policy njhopw;nfhs;if gpd;tUk; khw;wq;fis njhopy;
The policy has brought changes in the following fl;Lg;ghl;by; nfhz;Lte;jJ.
aspects of industrial regulation:
1. njhopy; chpkq;fs; tpyf;fk; nra;ag;gl;ld.
1. Industrial delicensing
2. njhopy; Jiwapy; cs;s xJf;fPli
; l ePf;Fjy;
2. Dereservation of the industrial sector
3. nghJj;Jiwf; nfhs;if (fl;Lg;ghLfs; ePf;fk;
3. Public sector policy (dereservation and kw;wk; rPh;j;jpUj;jq;fs;) nfhz;Ltug;gl;lJ.
reform of PSEs)
4. MRTP – rl;lk; xopg;G
4. Abolition of MRTP Act
5. me;epa KjyPl;Lf; nfhs;if kw;Wk; me;epa
5. Foreign investment policy and foreign njhopy;El;gf; nfhs;if nfhz;Ltug;gl;lJ.
technology policy.
Thank You