PRESENTED BY :-

ANAS AHAMAD (PGDM – AIMA)

 Year 1950
Size of Gross Investment in fixed assets in plant and
machinery, land, building etc. (not exceeding Rs. 5 lakhs and
strength of workforce (employment less than 50 workers / day
using power or less than 100 workers / day without use of
power).
“Eligibility criteria based on investment in Machinery
and Equipment only.”
 A recent World Bank Report states: “There is now widespread
recognition within India that vibrant SMEs are potentially a
key engine of economic growth, job creation and greater
economic prosperity”.

 10th Plan Document of Govt. of India states: “Growth as

planned will come from a sharp step-up in industrial and
services growth, spurred by SMEs”.
 SSIs are generally less capital-intensive and more labour-intensive.
 Are best suited for countries like India, China and most of the developing
world having abundant supply of low-cost manpower and bountiful natural
resources
 Have provided seed bed for Enterprise Development in the country
 Provide large scale employment, ensure equitable distribution of income and
facilitate effective mobilization of resources of capital and skills, which would
otherwise remain unutilized, particularly in rural and backward areas.
 India has already established a niche in SME Development Strategy and
providing excellent support in product development, R&D, financial
instruments, Infra-structure, marketing and export development
 Consequently, India is fast emerging as a global hub for labour-intensive
manufacturing and knowledge-oriented businesses.
 No. of Production (Rs. Billion)
No. of Unregistered Total SSI Employment
Year
Registered SSI SSI working working Units (Million
working Units (Millions) At current At constant Persons)
Units
(Million) prices prices (1993-
(Millions)
94 prices)

1990-1991 0.79 6.00 6.79 635.18 682.95 15.834

1991-1992 0.87 6.19 7.06 730.72 791.80 16.599
1992-1993 0.99 6.36 7.35 855.81 935.23 17.484
1993-1994 1.06 6.59 7.65 988.04 988.04 18.264
1994-1995 1.16 6.80 7.96 1222.10 1091.16 19.140
1995-1996 1.16 7.12 8.28 1482.90 1216.49 19.793
1996-1997 1.20 7.42 8.62 1684.13 1353.80 20.586
1997-1998 1.20 7.77 8.97 1891.78 1478.24 21.316
1998-1999 1.20 8.14 9.34 2129.01 1594.07 22.055
1999-2000 1.23 8.48 9.71 2342.55 1707.09 22.910
2000-2001 1.31 8.80 10.11 2612.89 1844.28 23.909
2001-2002 1.37 9.15 10.52 2822.70 1956.13 24.909
2002-2003 1.59 9.36 10.95 3119.93 2106.36 26.021
2003-2004 1.70 9.70 11.40 3514.27 2265.81 27.142
2004-2005 1.85 10.11 11.86 4182.63 2515.11 28.257
Source : SIDO’s Half Century y DCSSI, Govt. of India, 2004, and Economic Survey, Govt. of India, 2006-2007, Feb. 2007
 Year SSI Sector Growth Rate Total Industrial 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
1999-2000 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
2004-05 9.96 8.04
Source: SIDO Half Century by DCSSI, Govt. of India 2004 and Annual Report of the Ministry of SSI 2005-06
 Rs. in Crores
As at end March Total advances by Total Advances to Proportion of SSI to
Banking Sector SSI Sector Total Advances
1999 246203 42674 17.30
2000 292943 45788 15.63
2001 469153 56002 1.94
2002 536727 57199 10.66
2003 669534 60394 9.02
2004 764383 65855 8.62
2005* 972587 76114 7.83

Source : RBI Report on Trend and Progress of Banking in India

* Provisional
  Ownership pattern :
 SSI units : 12.3 million ◦ Proprietorships : 78%
◦ Partnerships : 16%
 Employment generated in SSIs ◦ Corporate & Others : 6%
: 29.5 million  Industrial Units : 96%
 Production : At current  Service Enterprises : 3%
Princes Rs. 4762.01 billion
 Ancillary Units : 1%
 Exports : Rs. 1215 billion
 Produces Diverse range of
 SSIs account
products (more than 8000-
◦ Industrial Production : 40% consumer items, capital goods
◦ Exports : 35% (50% of and intermediates)
Direct & Indirect)
◦ GDP Share : 7%
 Problems Faced by SSIs as Barriers to Growth

Market Related 70%

Market Related 70%

Finance Related 25%

Government Policy Related 12.78%

Power Related/Infrastructure 14.0%

Technology 14.60%
 To facilitate growth of this sector with changing economic
scenario
 To facilitate growth within the framework of social and

economic policy of the country

 To encourage technology modernization

 To promote entrepreneurship among technically qualified

persons
 To improve product standards

 To create opportunities for in house R&D

 To provide greater export thrust

HEALTH TECHNOLOGY INFORMATION TECHNOLOGY

 Personal Health Care      Media & Entertainment

 Preventive Health Care      Contents,
 Yoga & Naturopathy      Animation,
 Herbal Therapies      Games,
 Environmental Health  Gaming.
 Food Supplements
 Food, Inspection and Testing
etc.
 Medical Waste Management
 Hospital Supplies & Staffing
Services
FASHION TECHNOLOGY DESIGN TECHNOLOGY

 Personal Embellishment (Face, • Interiors - (Furniture & Furnishing –

Hair, Hands, Feet, Cosmetics, homes, work places, community,
Perfumes etc.) hospitals, schools, shopping places,
 Glamour & Limelight recreation, sports)
• Exteriors - (Architectural)
 Creative • Dies and tools
 Fashion Accessories (purses, • Watches
bags, carryon, watches etc.) • Jewellery
• Hospital equipments
 10th largest economy in the world - 4th in terms of PPP
 Will overtake Japan in PPP terms by 2010, to be 3rd largest in the
world
 Large entrepreneurial base and diversified manufacturing
structure
 Large reservoir of skilled labour at internationally competitive cost
 Vast pool of scientifically and technically qualified manpower of
20m
 A large domestic market - 300 m + strong middle class population
 having substantial purchasing power
 Largest democratic set - up
 A broad based and transparent legal framework including
arbitration
 Vast network of bank branches, financial institutions and
well-organized
 capital and money markets
 A network of technical and management institutes of
highest
 International standards for development of human
resources
 India has a record of meeting its international financial
obligations as
 Per schedule and has never been a defaulter
 No communication barrier, as English is the most prevalent
business Language
 Strong and vibrant small scale sector that is keen to
establish
 Strategic alliances with their foreign counterparts
 It can be seen that the policy framework is consistent since
independence

 The specific definition for medium enterprises augurs well for

graduation of micro enterprises to small and small enterprises to
medium enterprises

 With more budgetary allocation to service sector, SSIs will be able to

generate more employment opportunities to educated unemployed
youth

 The launching of Technology Mission will facilitate the Government to

work out a long term action plan to ensure organized growth of this
sector to face competition in liberalized services sector and knowledge
based economic scenario