identification of various types of products and services, manufactured and rended by SSI units?
Answers
Answer:
Explanation:
1. Introduction of SSI
Essentially the small scale industries are generally comprised of those industries which manufacture, produce and render services with the help of small machines and less manpower. These enterprises must fall under the guidelines, set by the Government of India.
The SSI’s are the lifeline of the economy, especially in developing countries like India. These industries are generally labour-intensive, and hence they play an important role in the creation of employment. SSI’s are a crucial sector of the economy both from a financial and social point of view, as they help with the per capita income and resource utilisation in the economy.
Examples and Ideas of Small Scale Industries
Bakeries
School stationeries
Water bottles
Leather belt
Small toys
Paper Bags
Photography
Beauty parlours
2. Characteristics of SSI
Ownership: SSI ’s generally are under single ownership. So it can either be a sole proprietorship or sometimes a partnership.
Management: Generally both the management and the control is with the owner/owners. Hence the owner is actively involved in the day-to-day activities of the business.
Labor Intensive: SSI’s dependence on technology is pretty limited. Hence they tend to use labour and manpower for their production activities.
Flexibility: SSI’s are more adaptable to their changing business environment. So in case of amendments or unexpected developments, they are flexible enough to adapt and carry on, unlike large industries.
Limited Reach: Small scale industries have a restricted zone of operations. Hence, they can meet their local and regional demand.
Resources utilisation: They use local and readily available resources which helps the economy fully utilise natural resources with minimum wastage.
3. Role in the Indian economy
Employment: SSI’s are a major source of employment for developing countries like India. Because of the limited technology and resource availability, they tend to use labour and manpower for their production activities.
Total Production: These enterprises account for almost 40% of the total production of goods and services in India. They are one of the main reasons for the growth and strengthening of the economy.
Make in India: SSI’s are the best examples for the Make in India initiative. They focus on the mission to manufacture in India and sell the products worldwide. This also helps create more demands from all over the world.
Export contribution: India’s export industry majorly relies on these small industries for their growth and development. Nearly half of the goods that are exported from India are manufactured or produced by these industries.
Public Welfare: These industries have an opportunity to earn wealth and create employment. SSI’s are also important for the social growth and development of our country.