Page 229 - DECO303_INDIAN_ECONOMY_ENGLISH

Indian Economy

Notes 13.2.1 Challenges of Small Scale Industry

You must understand that the following recommendations address these challenges:
To formulate Industrial Clusters under Public Private Partnership (PPP), the government
of Punjab must establish industry-specific Task Forces in collaboration with industry
relations for instance CII, PHDCC, and FICCI to study the best practices by other states of
India or other nations, and come up with concrete proposals on cluster development
without losing much time.

To evaluate why Punjab has failed to benefit from Central Schemes such as Textile
Technology Parks, Food Parks, Special Economic Zones, Cluster Development, etc., the
government of Punjab must set up a High-Powered Administrative Review Committee
with Chief Secretary as Chairman and principal Secretaries of the major economic
departments as members. A Secretary level officer should be put in place in the Chief
Minister’s office to track the opportunities provided by these structures and get the
administrative machinery in the state to react to exploit these opportunities.

The government of Punjab should proactively appeal a large plant for automotive
manufacture because of its prospective for positive downstream impacts on the numerous
small scale auto-component manufacturers.

!
Caution To modernise and rejuvenate the small scale units in light engineering, leather,
hand tools, sports goods, hosiery, etc., the strategy recommends the development of
modern clusters and/or attracting a large scale plant in automotive which can facilitate
the technological up gradation of the component suppliers through vendor development.

Self Assessment

Fill in the blanks:
4. The organisational structure for SSIs was set up in the …………………… with the
establishment of a Small Scale Industries Board in 1954.

5. The promotion of the …………………… in India has been an important thrust of industrial
policy since independence though the focus of concern changed with the priorities of each
five year plan.

6. Punjab occupies a place of pride in the …………………… of India which is attributable to
its small-scale industrial sector.
7. The state inherited a very weak industrial base when partitioned in 1947 and suffered
further erosion when it was reorganized in …………………….
8. The potential of SSIs to generate …………………… has remained the strongest argument
in their favour.

13.3 State and Industrial Development

In this section, you will learn about the state and industrial development. The industrial sector
has shown impressive growth in 1980 to 1997, covering the Sixth, Seventh and Eighth Five Year
Plans, but declined in 1997 to 2000, the first three years of Ninth Plan. In 1980-2000, employment
grew three times, the number of industrial units five times, investment and production 18 times,
both in the large and medium and small scale sector. Small-scale industry (SSI) accounts for 80%

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