Essay on employent generation by enterprise in india
Answers
SMEs have been almost established in all major sectors in the Indian industry such as food processing, Agricultural inputs, Chemicals and pharmaceuticals, Textiles, plastic products and Computer software. SMEs are known for innovations as new product with good quality service as well it also provides employment opportunities. It is also known as backbone of the company. SMEs constitute above 80% of total number of industrial enterprise and from the backbone of development. Not only in India but across the world SMEs provides incredible contribution to the economy. SMEs have above more than 40% share in industries, producing more than 8000 value-added products which contribute nearly 35% direct export and up to 45% in the export. After agriculture SMEs is one of the biggest employment providing sector which provide employment nearly 28.28 million people. (Stuti Kacker, Ministry Small Scale industries)
Definition:
There is no universal definition of small and medium enterprises. Different countries use different definitions and use various criteria such as number of employees, capital assets, sales turnover and average income. In some countries there are certain objective standards and which classify the units as small, micro or medium enterprises depending on the number of employees as mentioned above. In some other countries annual turnover of the company determines the size of an enterprise.
Under the industries Development and Regulation Act (IDR) 1951, a small scale industry is classified on the basis of limit of historical value of investment in plant and machinery which is up to INR 10 million. However in some in some items the limit of investment has been INR 50 million.
The small and medium enterprises Fund, GOI (Government of India) approved the limit of investment in plant and machinery up to 10 million and for medium scale has been up to 100 million. Amongst the all developing countries, India has been the first to display special concern to SMEs and focus considering use of capital assets and labour supply in the country