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Manufacturing Technology Insights | Tuesday, January 07, 2020
Small scale industries improve the growth of the country by increasing urban and rural growth and employment rate.
FREMONT, CA: Every small-scale industry plays a significant role in the Indian economy. Apart from employing crore of people, it has the added benefit of minimum capital requirements. The government also provides several tax benefits to SSI for this purpose. A small enterprise is known as small-scale industry if investment in plant & machinery ranges between $34,800 to $700,000.
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Here are some specific roles played by small scale industries:
SSI Provides Employment
By using labor-intensive techniques, SSIs provides employment opportunities to a large number of people. It reduces the unemployment problem to a high level. They employ people in the rural sector as well as in the unorganized industry, which is why the employment capital ratio is high for the SSI. This allocates employment patterns in all parts of the country and prevents the unemployment crisis.
SSI Facilitates Women Growth
SSI facilitates employment opportunities to women in India. It encourages entrepreneurial skills among women by giving special incentives to women entrepreneurs.
SSI Increases Production
India is considered as one of the world’s fastest-growing economies in the world. As per reports, SSIs contribute almost 40% of India’s gross industrial value, as industries produce goods and services worth over $55,700 for every investment of $14,000. In this way, the value addition in this output increases by over 10 percent. The number of Small Scale Industries in India increased from around 790,000 in 1980 to over 3,000,000 in 2000. SSIs are, therefore, actively responsible for the growth of India’s economy.
SSI Open New Opportunities
Small-scale industries provide different benefits and opportunities for investments. As they receive many tax benefits and rebates from the government. The opportunities to earn benefits from SSIs are prominent due to numerous reasons. Firstly, SSIs are less capital intensive. They even receive support and funding quickly. Secondly, procuring workforce and raw materials is additionally relatively easier for them. Even the government’s export policies favor them heavily.
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