In this post, you will learn about the role of small-scale industry. In a developing country like India, the character and status of small-scale industries is very important near poverty extinction, employment generation, rural development and making regional balance in elevation and growth of numerous development activities.
You must recognise that it is projected that this sector has been causative about 40% of the gross value of output shaped in the industrial sector and the group of employment by the small-scale sector is more than five times to that of the large-scale sector.
This evidently shows the reputation of small-scale industries in the monetary development of the country. The small-scale industry has been playing a significant role in the development process of Indian economy from the time of independence in spite of stiff struggle from the large sector and not very inspiring support from the government.
The following are some of the essential roles played by small-scale industries in India that you must keep in mind:
1. Employment Generation: The rudimentary difficulty that is challenging the Indian economy is the growing pressure of population on the land and the need to generate massive employment prospects. This problem is resolved to larger degree by small-scale industries for small-scale industries are labour concentrated in character. They produce huge number of employment prospects. Employment generation by this segment has shown a remarkable growth. It is a powerful tool of job formation.
2. Mobilisation of Resources and Entrepreneurial Skill: Small-scale industries can organise a good quantity of savings and entrepreneurial skill from rural and semi-urban areas continue unharmed from the clutches of large trades and put them into creative use by capitalizing in small-scale units. Small entrepreneurs also recover social well-being of a country by harnessing dormant, previously overlooked talent.
Thus, a massive amount of latent incomes are being prepared by the small-scale sector for the growth of the economy.
3. Equitable Distribution of Income: You must understand that small entrepreneurs arouse a redeployment of wealth, income and political control within societies in ways that are economically optimistic and without being politically upsetting.
Thus, small-scale industries safeguards reasonable distribution of income and wealth in the Indian society which is largely considered by more concentration of income and wealth in the prepared section keeping unorganised sector undeveloped. This is mostly due to the fact that small industries are general in comparison to large industries and are consuming large employment potential.
4. Regional Dispersal of Industries: There has been huge attentiveness of productions in a few large cities of dissimilar states of Indian union. People migrate from rural and semi-urban areas to these highly established focuses in search of employ and sometimes to earn an improved living which eventually leads to many evil significances of over-crowding, pollution, creation of slums, etc. This difficult of Indian economy is better resolved by small- scale industries which exploit local resources and carries about dispersal of industries in the various parts of the country therefore, encourages balanced regional development.
5. Provides Opportunities for Development of Technology: Small-scale industries have incredible volume to produce or absorb improvements. They deliver plenty opportunities for the growth of technology and technology in return, creates an environment favourable to the growth of small units. The entrepreneurs of small units play a strategic role in commercialising new developments and products. It also facilitates the transfer of technology from one to the other. Consequently, the economy reaps the benefit of improved technology.
6. Indigenisation:Small-scale industries make improved use of original structural and organization competences by drawing on a pool of entrepreneurial talent that is incomplete in the initial stages of economic growth. They deliver creative outlets for the innovative independent people. They also deliver a seed bed for entrepreneurial talent and a testing ground for new ventures.
7. Promotes Exports: You will find it interesting to note that small-scale trades have recorded a remarkable growth in export over the years. The value of exports of goods of small-scale industries has amplified to Rs. 393 crore in 1973-74 to Rs. 71,244 crore in 2002-03. This donates about 35% India’s total export. Therefore they support in growing the country’s foreign conversation reserves in that way reduces the pressure on country’s balance of payment.
8. Supports the Growth of Large Industries: The small-scale industries play a vital role in supporting greater industries and developments so that the deliberate activity of development work is timely attended. They provision the growth of large productions by provided that, components, accessories and semi-finished goods mandatory by them. In fact, small industries can breathe vitality into the life of large industries.
9. Better Industrial Relations: Better industrial relationships between the employer and employees supports in growing the competence of workers and dropping the incidence of industrial arguments. The loss of manufacture and man-days are reasonably less in small-scale industries. There is scarcely any strikes and lock out in these industries due to good employee-employer connection.
Certainly, growth in number of units, production, employment and exports of small-scale industries over the years are careful vital for the economic development and progress of the country. It is inspiring to mention that the small-scale initiatives accounts for 35% of the gross value of the yield in the manufacturing sector, about 80% of the total industrial employment and about 40% of total transfer of the country.
