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Unit 13: Small Scale Industrial Sector in India

of the total employment, contributes 40% to production and 60% to exports, with 20% investment Notes
of the industrial sector.
It is important for you to note that the regional disparities in industrialisation persist. Patiala,
Ludhiana and Ropar districts account for half the industrial production in the state. On the
contrary, Faridkot, Mansa and Muktsar districts have a share of less than 1% each.

The SSI sector, the backbone of the industrial economy in the state, is passing through a crucial
phase, prima on account of such factors as low level of technology resulting in low industrial
productivity and poor quality of products leading to competitive disadvantage both in domestic
and international markets. The small-scale sector has to attain the capability to produce quality
products, to compete in the international market. It has to renovate itself from a protective to a
competitive environment.

Notes Ludhiana, a district in the state of Punjab, has been adjudged as the best place for
doing business in India as per the World Bank Study, 2009. With the up-gradation of
Amritsar International Airport and another International Airport coming up in Mohali,
Punjab is geared to be one of the finest and easily accessible tourist as well as business
destinations in South Asia.

For the existence of industry and to support the tempo of growth, the broad measures
recommended are modernisation and technological up gradation through innovative R&D;
product adaptation; planned development of quality infrastructure; human resource development
through skills up gradation and training; market-oriented policy and institutional framework.
The state must follow a pro-active policy to encourage partnership with industry for both
utilising existing infrastructure and setting up badly required new facilities.
The government’s role should be restricted to that of an effective facilitator and co-ordinator of
the process of growth, offering transparent, conducive policy framework and effective delivery
mechanism via good governance.
It is important to note that up gradation of existing research and development centres in the
state has been recommended so as to offer the latest design and testing techniques to the industry.
Keeping in view the developing requirements of industry and lack of monetary support from
central and state governments, the management of these may be delegated to the applicable
associations of industry, on the basis of binding partnership protocols evolved through a
consultative process. This approach will ensure operative functioning of R&D centres to fulfil
their objectives.
Industrial clusters and parks should be established sector/product-wise, with an emphasis on
agro-food processing, automobile and automobile parts, bicycle and bicycle parts, machines
and machine tools, sports goods, leather and leather goods, hosiery and textile industries. This
will facilitate building a centralised and modern infrastructure. The private sector and financial
institutions should be encouraged to take part in these activities. Additionally, infrastructure in
all existing industrial areas and focal points should be upgraded.

Did u know? Punjab has been declared as one of the best states in India in terms of rail,
road and transport network as per National Council of Applied Economic Research
(NCAER), 2007.

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