Abstraction:
For socio-economic development of any state, a strong Industrial base is desirable. Our late Prime Minister Mrs. Indira Gandhi one time remarked, “ Small graduated table industries offer many chances ; besides adding to production, they broaden the industrial base. They enable the procedure of modernisation every bit good as entrepreneurship to distribute to more parts and beds of society ” .
The natural resources need to be developed and utilised both as input to industrial production and as direct merchandises for the societal well being of the people. In the procedure of industrialisation accent is given to the three major groups of industries ; large-scale industries, small-scale industries and bungalow industries. The industrial development in a backward country can merely be achieved by the rapid development and publicity of little graduated table industries. Besides economic facets, the societal function of little scale units are rather important in accomplishing assorted societal ends such as remotion of poorness, attainment of autonomy, decrease in disparities in income, wealth and criterion of life and regional instabilities.
This research paper is an effort to analyze jobs and chances of little & amp ; medium-scale industries in J & A ; K, whose development is vitally linked with assorted programmes and policies designed to take poorness, unemployment and retardation of rural people. Small & A ; medium-scale industrial sector plays a dominant function in the economic development of both developed and developing states.
Keywords: Small Industries, Cottage Industry, National Income, GDP.
Introduction
In developing states little and average industries are particularly of import in context of employment chances, just distribution of national income, balanced regional growing and development of rural and semi urban countries. They provide immediate large-scale employment, offer a method of guaranting a more just distribution of the national income and facilitate effectual mobilisation of resources of capital and accomplishment which might otherwise stay unutilized. Small medium-scale industries play a really critical function even in industrialized and advanced states like the U.S.A. , the U.K. , Canada, and West Germany and more peculiarly in Japan. This sector is considered to be an engine of growing, particularly in a underdeveloped state like India due to their part to income coevals, employment, GDP and export net incomes.
Small and Medium Enterprises ( SMEs ) are demoing their impact on national and regional economic systems throughout the universe. They have been recognized in both developed and developing states as an effectual instrument for making employment chances with a little sum of capital investing. This survey is chiefly based upon the province of Jammu and Kashmir. It has an country of 2, 22,236sq kilometer. It is the 6th largest province of the state located between 32.17 grade and 36.58 degree north latitude and 37.26 grade and 80.30 grade east longitude in northern most portion of India. The province portions its boundary with Pakistan, Afghanistan and China from West to East and with Punjab and Himachal Pradesh in the south.A ) . It comprises of 14 territories, 59 tehsils, 119 blocks, three municipalities, 54 towns and notified country commissions. The province of Kashmir has three distinguishable climatic parts viz. , Arctic cold desert countries of Ladakh, temperate Kashmir vale and sub-tropical part of Jammu. Altitude varies widely between 1,000ft and 28,250ft above the sea-level in the state.A
Small Industries defined:
Small industries are those industries whose capital is supplied by the owner or through agencies like partnership or from funding bureaus setup for this purpose etc. These industries by and large use-
power driven machines and
employ modern methods of production
prosecute labour on pay, and
green goods for expanded market.
Their work form is on lasting footing. Such industries can be managed with small resources and in footings of returns provide much better consequences. Small graduated table industries, including traditional bungalow and small town industries and modern little endeavors have been given an of import topographic point in India ‘s economic planning for ideological and economic grounds.
In 1995, Government grouped little graduated table industries into two categories- those utilizing power but using less than 50 individuals and those non utilizing power but using less than 100 individuals. All SME had capital investing of Rs. 5 hundred thousand. This bound was revised to Rs. 10 hundred thousand in 1975 and Rs. 15 hundred thousand in 1980. In March 1985, the Government has once more revised the investing bound of little scale projects to Rs. 35 hundred thousand. As per the Industrial Policy Resolution of 1990, the investing bound for SMEs has been revised to Rs. 60 hundred thousand and correspondingly for accessory units from Rs. 45 hundred thousand to Rs. 75 hundred thousand. During 1997, on the recommendation of Abid Hussain commission, the Government has raised the investing bound on works and machinery for little scale industrial units and ancillaries from Rs.60/75 hundred thousand to Rs. 3 crore and that for bantam units from Rs. 5 hundred thousand to Rs. 25 lakh.9 The investing bound on works and machinery was reduced from Rs. 3 crore to Rs. 1 crore for little scale units in 2000. However the investing ceiling for bantam industries remained unchanged to Rs. 25 hundred thousand.
Harmonizing the proviso of micro, little and average Enterprise Development ( MSMED ) Act, 2006. the micro, little and average endeavors are classified into two classes-
( a ) Fabrication Enterprises – The endeavor engaged in the industry or production of goods refering to any industry specified in the First Schedule to the Industries ( Development and Regulation ) Act, 1951. The fabrication endeavors are defined in footings of investing in works and machinery.
( B ) Service Sector – The endeavors engaged in bring forthing or rendering of services and is defined in footings of investing in works and machinery. The bound for investing in little fabrication endeavors is more than Rs. 25 lakh but does non transcend Rs. 5 crore and that of service endeavors is more than Rs. 10 lakh but does non transcend Rs. 2 crore.
Traditional little graduated table industries includes Khadi and Handloom, Handicraft, Village industries, Bamboo based industries, Sericulture and coir etc. Modern little graduated table industries produce a broad spectrum of goods runing from relatively simple points to sophisticated merchandises such as telecasting sets, electronic control system, mixer bomber and assorted technology merchandises peculiarly as ancillaries to the big industries. The traditional little industries are extremely labour intensifier, while the modern little graduated table units use extremely sophisticated machinery and equipments.
The New Industrial Policy of 1991 announces a figure of steps to advance little graduated table industries. Soon, 836 points have been reserved for sole industry in the little graduated table sector. A new strategy of Central Investment Subsidy entirely for the little sector in rural and backward countries capable of bring forthing higher employment at lower capital cost would be implemented. Programs for modernisation and upgradation of engineering in the little graduated table sector to better their competitory strength will be implemented. A new Apex bank known as Small Industries Development Bank of India ( SIDBI ) has been established to steer demand based higher flow of recognition, both by manner of term loan and working capital to the bantam and rural industries. To assist the craftsmans working with Khadi and Village Industries Commission ( KVIC ) and KVI Board, particular Marketing organisation at the Centre and State degree has been created.
1.2 Purposes and aims of the survey:
Jammu & A ; kashmir is bestowed with rich natural- wood and agricultural resources. Most of the province ‘s wealth lies untapped yet and these could supply a strong base for industrial development. Despite tremendous latent potencies for puting up of assorted resource based industries, no important advancement could be achieved in the field of industrialisation in the province. The province is a leader in the production of apples, which constitutes 57 % of the states entire production at 13.5 metric metric tons per annum. It is the 6th largest manufacturer of walnut in the universe and bases foremost in the state in the production of walnut, accounting for 92 % of the production at 126,000 metric metric tons. The province produces 12 1000 metric tons of pears, 1200 metric tons of Prunus dulcis, 12 thousand metric tons of apricots, 10,607 metric metric tons of cherries in 2007-08 and 6.5 metric metric tons of Crocus sativus in 2008-09 from 15 metric metric tons every year.A
State has enourmous potency for nutrient processing and agro based industries.
Kashmir vale is described as a Eden on Earth. With its clean and pleasant environment, dense wood screen and rare species of vegetations and zoologies, the province offers first-class potency for eco-tourism and cultural touristry. The metropolis of Srinagar is besides celebrated for its house boats. Tourists frequently visit the province to acquire rid of the hot summers predominating in the different parts of the country.A
Wood carving, paper-machine, rugs, shawls and embellishment are the popular handcrafts of the province. This stateA has a huge mineral base. Limestone, gypsum, bauxite, marble, magnesite, dolomite, lignite, quartzite and coal are some the minerals found in the province. The province is besides known to possess big sedimentations of Sapphire.A
Earlier surveies on fabrication industries have revealed a inclination to concentrate more attending on the large companies to the disregard of little and average sized industries.
Research Methodology
In order to derive insight into concern conditions and direction patterns in little and average endeavors, relevant literature has been studied. This has been done with a position to understanding the composing, word picture and components of SME and their conditions, restraints and their direction patterns. As this research paper is based upon secondary informations, largely information has been gathered from published and unpublished plants on the related subjects, nose count studies, economic studies, diaries, intelligence documents, authorities and non authorities organisations ( NGOs ) associated with the industrial sector particularly the Directorate of Industries, Directorate of Economics and Statistics, Directorate of Agriculture and Minor Irrigation, DICs, SIDBI, JKEDI, KVIB, etc. assorted issues of Statistical Handbook of J & A ; K, assorted publications and studies of Development Commissioner, Ministry of SSI, New Delhi etc. were besides a major beginning for secondary information. Furthermore, web resources besides were an of import beginning of secondary information. In add-on, personal interviews and informal treatments were besides held with the authorities functionaries, policy shapers and NGOs to cognize their reactions and suggestions.
With a position to convey approximately sustained and balanced regional development of this part and besides to better the life, the present survey aims to concentrate on jobs and chances of industrial development particularly that of little graduated table industries in the province. In order to do the survey non merely of academic involvement but besides of practical public-service corporation, the following aims have been set.
To ask into and specify the features of SMEs.
2. To analyze the construction and growing of SMEs in the province.
3. To propose suited steps for the development of SMEs in J & A ; K.
4. To ask into the jobs faced by SMEs in J & A ; K.
1.3 Literature reappraisal: Literature Reappraisal:
SMEs are different from big organisations in several features like resource restrictions ( fiscal, human and technological ) , informal schemes, and flexible constructions ( Qian and Li, 2003 ) . They encourage perfect competition and just distribution of wealth. Besides this, they besides facilitate regional and local development as they accelerate industrialisation in rural countries by associating them with the more organized urban sector and assist accomplish just and just distribution of wealth by regional scattering of economic activities ( SME Bank 2009 ) . SMEs make a significant part towards GDP, gross aggregation in the signifier of revenue enhancements, furthering entrepreneurship civilization, employment chances, income coevals, skills development of human resources, poorness relief, and bettering the criterion of life and quality of life ( Qureshi and Herani, 2011 ) . SMEs are strategically of import in many developing states, peculiarly those located in the Asiatic part. The SME sector consists of more than 90 % of all houses outside the agricultural sector in the part ( Wattanapruttipaisan, 2003 ) . As per Unido ( 2006 ) , SMEs are believed to be particularly effectual occupation Godheads and bask the repute of being beginnings of income, supplying developing chances every bit good as of import basic services for deprived people ( UNIDO, 2006 ) . SMEs in developing states chiefly face issues associating to concern ordinances and limitations, finance, human resource capablenesss and technological capablenesss ( Asiatic SME acme, 2009 ) .
Specify the features of SMEs
Small industries are those industries whose capital is supplied by the owner or through agencies like partnership or from funding bureaus setup for this intent.
A SMEs have been classified into two types:
( a ) A Manufacturing Enterprises- The endeavors engaged in the industry or production of goods refering to any industry specified in the first agenda to the industries ( Development and ordinance ) Act, 1951 ) . The Manufacturing Enterprise isA defined in footings of investing in Plant & A ; Machinery.
( B ) A Service Enterprises: A The endeavors engaged in supplying or rendering of services and areA defined in footings of investing in equipment.
The bound for investing in works and machinery / equipment for fabricating / service endeavors, as notified, A vide S.O. 1642 ( E ) dtd.29-09-2006A are as under:
The construction and growing of SMEs in the province
Jammu Kashmir is a State where SMEs have immense possible to turn by springs and bounds. The cardinal countries like Agriculture, Forest, Minerals, Sports Goods, Jems & A ; Jewellery, Pharmaceuticals, Handicrafts, Light Engineering, Handloom, Sericulture, Horticulture & A ; Floriculture, and Food Processing etc. in the State clasp immense Numberss of SMEs units which have certain issues related to basic substructure and fiscal demands.
The jobs faced by SMEs in J & A ; K
These barriers include:
Lack of consciousness of criterions relevant to of import sectors of concern.
Largely the jobs are chiefly related to deficiency of proficient and fiscal resources and,
Lower entree to information,
Low engagement in commissions and,
Low execution and use of criterions,
SMEs do non hold accounting and fiscal information that hinders its effectivity,
Lack of concern vision sometimes,
Fiscal statement-based loaning and recognition marking. Another obstruction is deficiency of concern plans/ viability.
Suitable steps for the development of SMEs in J & A ; K.
Both public and private sector should seek to develop an overall contributing environment to entrepreneurship, invention and SMEs growing.
Access to finance should be promoted and co-operation between public and private sector fiscal establishments should be promoted.
The of import steps taken by the Indian Government should be aimed at supplying inducements for the private sector and bettering the working of market.
Entrepreneurs should besides be cognizant of the funding options available to them from authorities.
Microfinancing bureaus besides play a critical function for SMEs growing and prosperity.
Giving instruction sector proper attending and fiscal encouragement may besides assist SMEs growing and prosperity.
Decision:
This survey is confined to the little and average industries of J & A ; K province but it can be generalized to other provinces besides where focal point is upon developing little industries. Sustainability of SMEs chiefly depends upon funding along with many other factors. Borrower is sometimes unable to understand the footings and conditions of loan and besides processing of loan is besides really cumbrous procedure. Most SMEs have deficient financess and have comparatively little size of concern. The Indian SMEs sector plays a polar function in the state ‘s industrial economic system. It is estimated that in value, the sector histories for about 45 per centum of fabrication end product and about 40 per centum of entire exports. In recent old ages, the SME sector has systematically registered a higher growing rate than the overall industrial sector. The major advantage of the SME sector is its employment potency at a low capital cost. Harmonizing to available statistics ( 4th Census of MSME Sector ) , the sector employs an estimated 59.7 million people in 26.1 million endeavors.
