|
| |
|
 |
|
| |
 |
|
| |
|
|
| |
|
| |
|
|
| |
|
|
| |
| Importance
of the Small-Scale Sector |
After Independence, emphasis was laid on the
development of small-scale industries (SSIs)
as part of planning and economic development
and as such this sector was expected to play
a major role in the Indian economy. This sector
is estimated to have contributed about 40
percent of the total industrial output and
accounts for about 35 percent of all direct
exports. As per the Economic Survey 2002-2003
there were a total of 33.12 lacs SSI units
employing around 185.64 lacs people, contributing
Rs. 6,39,024 crores as the total turnover,
and Rs. 69,797 crores towards exports in 2000-2001.
A total of 50% of the manufacturing employment
is from the small sector. |
| |
|
| |
| Main Financing
Agencies / Intermediaries |
SIDBI, NSIC, NABARD, commercial banks (especially
SBI), co-operative banks, regional rural banks,
NBFCs and the State Financial Corporations
are the main financing agencies for the Small-scale
sector. SIDBI is the main organization for
coordinating the functions of all the other
institutions that are engaged in the activity
of promoting and financing industries in the
small-scale sector.
|
| |
|
| |
| Financial
Needs of the Small-Scale Sector |
The nature of financial assistance provided
by the financing agencies can be classified
into three broad heads.
(a) Direct financing assistance –
purchase of capital goods, provision of
working capital funds, provision of utilities
(power/water) etc.
(b) Indirect financing – providing
infrastructure, assistance with marketing
and promotion of brand image, upgradation
of skills (e.g. Management skills), training
(e.g. updated quality / pollution control
methods)
(c) Meeting specific financial characteristics
e.g. funding sick or highly levered unit,
quick funding to meet deadlines, low cost
finance, provision of credit guarantee etc.
A large number of schemes have been developed
to meet each of these financing requirements.
|
| |
|
|
| |
|
|
|
|
|
|
| |
|
|
| |
|
|
|
