30-04-2014, 10:25 AM
Policy Support To Small Scale Industries
INTRODUCTION
After attaining independence in 1947 India adopted mixed economic planning as a method to achieve economic development. Along with the Large Scale sector the thrust was on Small Scale sector because of it decentralized, its small size, use mainly indigenous technology, employment intensity and its suitability for rural area with limited techno-economic structure.
Industrial policies over the year have focused to promote SSIs through various incentives related to financial, fiscal and infrastructure measure; along with a heavy industrial base.
The various provisions under Industrial Policy Resolutions formulated by the government in assisting the small scale industries (SSI)
The various fiscal incentives for SSIs
INDUSTRIAL POLICY RESOLUTION AND SSIs
INDUSTRIAL POLICY RESOLUTION 1948
SSIs are particularly suited for the utilization of local resources and creation of employment opportunities .
The primary responsibility for developing small industries by creating infrastructure has been provided to state government .
Central government frame the broad policies and coordinates the efforts of State Government for development of SSIs.
INDUSTRIAL POLICY RESOLUTION 1956
It stated that besides continuing the policy support to cottage, village and small industries by differential taxation or direct-subsidies, the aim of state policy would be that the development of this sector is integrated with that of large scale industry.
The focus was to improve the competitive strength of SSIs.
1 to achieve this 128 items were exclusively reserved for production in SSIs, and 166 items were reserved for exclusive purchase by government from this sector.
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