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Unit 13: Small Scale Industrial Sector in India

You must understand that despite these attempts of the government, 77,723 units in the Indian Notes
small scale industrial sector were witnessed to be sick in the year 2009-10. In the case of Punjab,
the number of sick units in the same period was 2,236. This depicts the gloomy picture of the
present status of the Indian small scale industrial sector. The sickness of small scale industries in
India in general and Punjab in specific occurred due to several reasons, such as the lack of
entrepreneurial skills, irregular supply power and raw material, lack of skilled labour, the
restricted role of financial institutions, insufficient market information, global competition,
changes in economic conditions, and the installation of technically faulty and out-dated
technology.

13.1 Role of Small Scale Industry

In this section, you will learn about the role of small scale industry. On the eve of independence,
Punjab had been moderately an industrially backward state, but state activity for the rehabilitation
of migrants, traders, entrepreneurs and workers involving large investment in infrastructural
sectors created essential environment for industrial development which continued through the
1950s and 60s.

Table 13.1: District Wise Concentration and Types of Industries in Punjab

Contd...

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