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Unit 7: Indian Industries

Following measures were specified in the policy: Notes
(a) Investment limit was elevated for tiny, small, and ancillary units to ` 2 lakh, ` 20 lakh, and
` 25 lakh, respectively.

(b) “Nucleus plants” in each technologically diffident district substituted the “district industries
centers.” These were to focus on collecting the products of SSIs and to crop contributions
needed by large number of small units.
(c) Reservation of items and marketing provision for small industries was to endure.
(d) Obtainability of credit to rising SS units was sustained.
(e) Buffer stocks of critical inputs were to continue.

(f) Agricultural base was to support by providing favoured treatment to agro based industries.
(g) An early cautioning system was to create to circumvent sickness and take suitable remedial
measures.

7.5.5 Industrial Policy Resolution, 1990

You must note that the main features of this Resolution are as follows:
(a) It raised the asset maximum in plant and machinery for SSIs.
(b) It shaped dominant investment funding for this sector in rural and backward areas. Also,
help was decided to women entrepreneurs for spreading the entrepreneurial base.
(c) Reservation of items to be formed by SSIs was amplified to 836.
(d) Small Industries Development Bank of India was recognized to safeguard satisfactory
flow of credit to SSIs.
(e) Stress was repeated to upgrade skill to recover competitiveness.
(f) Special stress was placed on training of women and infancy under Entrepreneurial
Development Programme.
(g) Activities of Khadi and Village Industries Commission and Khadi and Village Industries
Board were to expand.

7.5.6 Industrial Policy Resolution, 1991

It is essential to know that the basic thrust of this resolution was to simplify regulations and
procedures by delicensing, deregulating and decontrolling. Its salient features are:
(a) SSIs were released from certifying for all articles of manufacture.

(b) The investment boundary for tiny creativities was raised to ` 5 lakh regardless of location.
(c) Equity participation by other industrial activities was allowable up to a limit of 24 per cent
of shareholding in SSIs.

(d) Factoring services were to presentation to resolve the problem of delayed payments to
SSIs.
(e) Priority was rendered to small and tiny units in distribution of indigenous and raw
materials.
(f) Market campaign of products was stressed through co-operatives, public institutions and
other marketing actions and corporations.

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