Questionnaire on the role of smale scale business in reducing unemployment

In the Indian economy, artisanal and small-scale industries occupy an important place because of their employment potential and their contribution to total industrial production and exports. Government of India has taken a number of measures to promote them. However, with recent measures, artisanal and small-scale industries face both domestic competition and external competition. There is no clear distinction between artisanal and small-scale industries. However, it is generally believed that the craft industry is one that is carried out wholly or mainly with the help of family members. Against this, the small industry employs hired labor. In addition, industries are generally associated with agriculture and provide subsidiary employment in rural areas. In contrast, small-scale units are mainly located in urban areas as separate establishments.

Definition:

The official definitions of a small-scale unit are as follows:

I) Small-scale industries:
These are industrial companies that have a fixed investment in facilities and machinery, either in ownership or lease or rental-sale basis not exceeding Rs. 1 crore

Ii) Auxiliary Industries:

These are industrial companies that have a fixed investment in facilities and machinery that does not exceed Rs. 1 crore involved or proposed to participate in,

A) The manufacture of parts, components, sub-assemblies, tools or intermediaries, or

(B) The provision of services that supply 30 percent of their production or services, as the case may be, to other units for the production of other articles.

(Iii) Small units:

It refers to companies that have a fixed investment in facilities and machinery that does not exceed Rs. 23 lakhs. Also included are companies that provide services such as laundry, Xeroxing, repairs and maintenance of customer equipment and machinery, hatchery and poultry, etc. Located in cities with a population of less than 50,000 inhabitants.

Iv) Small-scale service establishments:


It is understood by companies that perform personal or domestic services in rural areas and in populations with a population of no more than 50000 and that have a fixed investment in facilities and machinery that does not exceed Rs. 25 lakhs.

(V) Domestic Industries:

These cover artisan craftsmen and technicians who can work in their own homes if their work requires less than 300 square feet of space, less than 1 Kw of power, less than 5 workers and no pollution is caused. Handicrafts, toys, dolls, small plastic and paper products and electronic devices are some examples of these industries.