Page 218 - DMGT106_MANAGING_HUMAN_ELEMENTS_AT_WORK

Managing Human Element at Work

Notes small-scale sector has grown rapidly over the years. The growth rates during the various
plan periods have been very impressive. When the performance of this sector is viewed
against the growth in the manufacturing and the industry sector as a whole, it instills
confidence in the resilience of the small-scale sector.
9.3.2 Employment

The SSI Sector in India creates largest employment opportunities for the Indian population,
next only to Agriculture. It has been estimated that 100,000 rupees of investment in fixed
assets in the small-scale sector generates employment for four persons.
9.3.3 Export
The SSI Sector plays a major role in India’s present export performance. The SSI Sector
contributes 45-50% of the Indian Exports. Direct exports from the SSI Sector account for
nearly 35% of total exports. Besides direct exports, it is estimated that small-scale industrial
units contribute around 15% to exports indirectly. This takes place through merchant exporters,
trading houses and export houses. They may also be in the form of export orders from large
units or the production of parts and components for use for finished exportable goods. It
would surprise many to know that non-traditional products account for more than 95% of
the SSI exports.
9.3.4 Opportunity

The opportunities in the small-scale sector are enormous due to the following factors:
• Less Capital Intensive
• Extensive Promotion and Support by Government
• Reservation for Exclusive Manufacture by Small Scale Sector

• Project Profiles
• Funding – Finance and Subsidies
• Machinery Procurement

• Raw Material Procurement
• Manpower Training
• Technical and Managerial skills
• Tooling and Testing support
• Reservation for Exclusive Purchase by Government

• Export Promotion

The number of small-scale units has increased from an estimated 0.87
million units in the year 1980-81 to over 3 million in the year 2000.

Self Assessment

Multiple choice questions:
1. ..................... are so small that each of the members has face-to-face relationships with
the others.
(a) Small group (b) Primary groups

(c) Primitive group (d) None of these.

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