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INDIA
INDIAN SMALL BUSINESS
- At a
Glance
12.3 Million
SSI Units in India
29.5 Million
People employed in Small
Businesses.
4762.01 Billion
Production at current prices.
1215 Billion
Value of exports from Micro,
Small and Medium Units
What These Facts Mean…
7%
Share of small businesses in GDP
95 %
The proportion of Micro, Small and
Medium Units in the total industrial units in
India
40 %
Employment provided by small
businesses.
50 %
Percentage of exports accounted by
Small Business is indeed
the driving force of the
Indian Economy
Definition Criteria
• The common criteria used to measure the
size of business are
– The number of people employed
– The amount of capital invested
– The value of annual sales turnover.
• Independent Management
• Limited Investment
• Simple Technology
• Manufacturing
• Wholesale Trade
• Retails Trade
• Services
Rationale of Small Business
• Limited Demand
• Specialized Services
• Flexibility
• Employee Relations
• Direct Motivation
Role of Small Business in
Indian Economy
• Employment
• Balanced Regional Development
• Optimisation of Capital
• Mobilisation of Local Resources
• Exchange Earnings
• Egalitarian Society
• Feeder to Large Industries
• Social Advantage
Comparative Growth Rates of SSI
Sector and Total Industrial Sector
Year SSI Sector Growth Total Industrial
Rate Sector Growth
Rate
1993-94 5.65 6.00
1994-95 10.44 9.10
1995-96 11.49 13.00
1996-97 1.29 6.10
1997-98 9.19 6.70
1998-99 7.84 4.10
1999-00 7.09 6.70
2000-01 8.04 5.00
2001-02 6.06 2.70
2002-03 7.68 5.70
2003-04 8.06 6.09
Growth of SSI Sector
Year No of Units Output at Employment Export
(In lakhs Current (Rs Cr) Earnings (Rs
Prices Cr)
• Outdated Technology
Others 58 19.3
Total 301 100
Source : Second Census of Small Industries Report
Trends Of Lending By Banking
Sector To SSI
As at end March Total advances byTotal Advances to SSI Proportion of SSI to
Banking Sector Sector Total Advances
• Protective Measures
• Promotional Measures
• Institutional Measures
Protective Measures
• Reservation of products exclusively for small
sector. At present, the number stands at more
than 800.
• Industrial Estates
• Industrial Cooperatives
Industrial Policy Resolution ( 6th August,
1991)
Objective
• To impart more vitality and growth-impetus to the
sector to enable it to contribute its mite fully to
the economy, particularly in terms of growth of
output, employment and exports.
- Peter F Drucker