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Question-1

Name the major industries in the small scale sector.

Solution:
1 Food products
2 Chemical products
3 Basic metal industry
4 Metal products
5 Electrical parts and machinery
6 Rubber and plastic products
7 Machinery and parts
8 Hosiery and garment-wool
9 Non-metallic mineral products
10 Paper products and printing
11 Transport equipments and parts
12 Leather products
13 Miscellaneous manufacturing industries
14 Beverages, tobacco and tobacco products
15 Repair services
16 Cotton textiles
17 Wool. Silk, synthetic fibre and textile
18 Jute hemp and mesta textile
19 Other services

 

Question-2

Write short notes on the meaning of small business in India.

Solution:
In our country traditional and modern practice exist in small industries which are divided into eight various groups viz., handicraft, coir, handloom, khadi, sericulture, power looms, village industries and small industries. The power loom industry and small scale industry come under modern small industries whereas the rest come under traditional practice. Village and small industries give the maximum employment opportunity in India.

Question-3

Write short notes on the traditional industry

Solution:
Cottage Industries are also known as Traditional Industry. The criteria here for small scale industry is not defined by capital investment. However these cottage industries have certain characteristics which are as follows :

Cottage industries are organized through private resources

Local talents and families are used as labours

Simple equipments are used in this industry

The investment amount is very small

Simple products are produced in their own premises

Indigenous technology used in production

 

Question-4

Write short notes on the Administrative Setup for the Small Scale Agro and the Rural Industries.

Solution:
The Indian government created the ministry for small scale rural and agro industries for formulation of policies and co-ordination of central assistance to promote this industry in India. The ministry was divided into two in September 2001 as Ministry of Small scale Industry and Ministry of Agro and Rural Industries. Many policies, programmes and schemes have been incorporated by Ministry of Small scale industry for the promotion and growth of SSI. The small industries development organization (SIDO) is attached to this ministry which implements and monitors various program and policies formulated.

Question-5

What are the objectives of The National Commission for Enterprises in The Un-organized Sector<./FONT>

Solution:
The National Commission for Enterprises in The Unorganized Sector (NCEUS) it was formed in September 2004 with main objectives being

Measures to Improve productivity of small scale industries in the informal sector

To generate a sustainable employment opportunity in the rural sector

To enhance the competition of the small scale sector in global environment

To develop link between small sector and other sectors like credit, infrastructure, technology, raw material and arrange suitable up gradation for skill development

Potential for public and private partnership in imparting the skills for informal sector

Providing micro-finance for informal sector

Provision of social security for informal sector.

 

Question-6

What are the categories under which small businesses are categorized?

Solution:
(i) Small Scale Industry : These small scale industry undertakings have a fixed amount as investment where in the investment on fixed assets of plant and machinery should not exceed Rupees one crore. However to promote export and modernize such small industry the investment ceiling in plant and machinery is five crores.

(ii) Ancillary Small Industrial Unit : A small scale industry becomes an ancillary industry to another industry by supplying a minimum of 50 percent of its production to the other industry which is referred as parent unit. The ancillary small unit manufactures components, parts, tools, some assembling and intermediate products for the parent unit. These units apart from catering to the parent industry can also do their own business. These ancillary units have an advantage of definite demand through parent units. The parent unit generally gives financial assistance and technical guidance to these ancillary units.

(iii) Export Oriented Units: A small scale industry can enjoy status of export oriented business unit by exporting more than 50 percent of its production. The incentives offered by the government like export subsidies and other concessions are applicable to such export units.

(iv) Small Scale Industries Owned and Managed by Women Entrepreneur : An enterprise individually or jointly having share capital of not less than 51 percent which is run by a women entrepreneur in a small scale industry. These industries are given special concession by the government like low rate of interest for loans special schemes etc, as these units are managed by women.

(v) Tiny Industrial Units: An industry in which the investment in plant and machinery is not more than 25 lakhs is defined as tiny unit.

(vi) Small Scale Service and Business (industry related) Enterprise: An industry were the investment in fixed assets of plant and machinery excluding the land and building does not exceed 10 lakhs are small scale service and business industry.

(vii) Micro Business Enterprises: Those whose investment does not exceed one lakh are called micro business enterprise.

(viii) Village Industries: Industries in rural areas producing any kind of goods and rendering service with or without power where the fixed capital investment per head or worker does not exceed Rs.50000 or any other sum amount fixed by the central government from time to time are called village industries.

(ix) Cottage Industries: These are also known as Traditional Industry. The criteria here for small scale industry is not defined by capital investment. However these cottage industries have certain characteristics which are as follows :

Cottage industries are organized through private resources

Local talents and families are used as labours

Simple equipments are used in this industry

The investment amount is very small

Simple products are produced in their own premises

Indigenous technology used in production

 

Question-7

Write in detail about the WTO.

Solution:
The WTO (world trade organization) rules the present era and there are many changes as per global expectations. India is committed to the framework of WTO as it is one of the founder members of this organization. As a result Indian economy is getting integrated with global markets and the small businesses can explore their capabilities and develop new markets. They have to change themselves constantly to meet the global competition. With an innovative entrepreneurial spirit small industries have to adapt to the changing needs of the market driven economy. Government should act as a facilitator and not regulator to improve small scale sector. The government should come up with new strategies to promote partnership between small and large industries. The phrase "think globally and act locally" is apt for the small scale sector in our country.




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