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Indian Economy

Notes 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.

7.5 Industrial Policy Resolutions and SSIs

In this section, you will be acquainted with the industry policy resolution and SSIs. Government’s
approach and objective to industries in general and SSIs in specific are reflected in Industrial
Policy Resolutions.

7.5.1 Industrial Policy Resolution, 1948

You must understand that the government stressed the part of SSIs for composed industrial
growth. It was specified that SSIs are predominantly suited for the use of local resources and
formation of employment prospects. The main accountability for emerging small industries by
making organization has been provided to state governments. Central government surrounds
the broad policies and organises the struggles of State Governments for the development of
SSIs.

7.5.2 Industrial Policy Resolution, 1956

You must note that it is stated that other than enduring the policy support to cottage, village and
small industries by differential taxation or direct-subsidies, the goal of state policy would be
that the growth of this sector is combined with that of large scale industry. The emphasis was to
recover the economic strength of SSIs. To attain these 128 items were completely held in reserve
for production in SSIs, and 166 items were held in reserve for special acquisitions by government
from this sector.

7.5.3 Industrial Policy Resolution, 1977

It is important to note that this highlights that whatever can be shaped by SSIs must only be so
shaped. The main insertion of policy was actual raise of cottage, village and small industries
extensively detached in rural areas and small towns. This rational specified the following things:
(a) 504 items were held in reserve for select production in the small-scale industries.

(b) The concept of District Industries Centres (DICs) was familiarized so that in each region a
single activity could meet all the supplies of SSIs under one roof.
(c) Technological up gradation was emphasised in traditional sector.

(d) Special marketing preparations through the delivery of services, such as, product
adjustment, quality control, market survey, were laid down.

7.5.4 Industrial Policy Resolution, 1980

It is important to note that the policy absorbed on the need of endorsing SSIs through combined
industrial development between large and small sectors. Technologically backward districts
were recognized for faster growth of existing network of SSIs.

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