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Govt. Policies Regarding Small Scale Enterprises: Be Presentation

The document discusses government policies in India regarding small scale enterprises from 1948 to the present. It outlines the key objectives and features of the Industrial Policy Resolutions of 1948, 1956, 1977, 1980, 1990, 1991, and 2007. The policies aimed to protect, support, develop, and promote small enterprises by reserving industries for small production, increasing investment limits, providing subsidies and training, and simplifying regulations to encourage growth of small businesses. Overall, the policies demonstrate the Indian government's long-standing focus on developing the small scale sector to boost employment, exports, and industrial development.

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Rishabh Jain
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68 views19 pages

Govt. Policies Regarding Small Scale Enterprises: Be Presentation

The document discusses government policies in India regarding small scale enterprises from 1948 to the present. It outlines the key objectives and features of the Industrial Policy Resolutions of 1948, 1956, 1977, 1980, 1990, 1991, and 2007. The policies aimed to protect, support, develop, and promote small enterprises by reserving industries for small production, increasing investment limits, providing subsidies and training, and simplifying regulations to encourage growth of small businesses. Overall, the policies demonstrate the Indian government's long-standing focus on developing the small scale sector to boost employment, exports, and industrial development.

Uploaded by

Rishabh Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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BE PRESENTATION

GOVT. POLICIES
REGARDING SMALL
SCALE ENTERPRISES
Submitted by :-

RAHIL SHARMA
SHUBHAM CHAWLA
NAMAN TYAGI
RISHABH JAIN

INTRODUCTION

Small 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 :1)
2)
3)
4)
5)
6)

Industrial
Industrial
Industrial
Industrial
Industrial
Industrial

Policy
Policy
Policy
Policy
Policy
Policy

Resolution
Resolution
Resolution
Resolution
Resolution
Resolution

(IPR)
(IPR)
(IPR)
(IPR)
(IPR)
(IPR)

1948
1956
1977
1980
1990
1991

INDUSTRIAL POLICY
RESOLUTION (IPR) 1948

In 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

a)

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
maintenance

d)
e)

Availability of power at lower prices


128 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) 1977

i.

ii.

iii.

FEATURES :504 items were reserved for production in


SSIs
The 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.

iv.

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) 1980

i.

ii.

FEATURES :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.

iii.

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) 1990

i.

ii.

iii.

FEATURES :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.

iv.

v.

Emphasis was laid to upgrade


technology to improve competitiveness
Small Industries Development Bank of
India was established to ensure
adequate flow of credit to SSIs.

MAIN OBJECTIVE :)

Employment generation

INDUSTRIAL POLICY
RESOLUTION (IPR) 1991

i.

ii.

iii.

iv.

FEATURES :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.

v.

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 2007

NEED :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 POLICIES


YEAR

INVESTMENT LIMITS

1950

Upto Rs.5.0 lakh in fixed assets

1960

Upto Rs.5.0 lakh in fixed assets

1966

Upto Rs.7.5 lakh in Plant & Machinery

1975

Upto Rs.10 lakh in Plant & Machinery

1980

Upto Rs.20 lakh in Plant & Machinery

1985

Upto Rs.35 lakh in Plant & Machinery

1991

Upto Rs.60 lakh in Plant & Machinery

1997

Upto Rs.300 lakh in Plant & Machinery

1999

Upto Rs.100 lakh in Plant & Machinery

2001

Upto Rs.100 lakh in Plant & Machinery

THANK YOU

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