Suggestions to Improve SSIs to Meet Global Pressures

Abstract

The world is changing into a global village. The change is visible in multiple forms and from multiple directions. Starting from reforms with emphasis on liberalization, privatization and globalization, the world has witnessed emergence of World Trade Organization (WTO) which has altered the basic principles of trade, regional groupings, barrier free movements, mergers and acquisitions, foreign direct investments, bilateral and multilateral agreements etc1. Amid so many changes around us, the Indian Small Scale Industries have been playing very important role in terms of providing large scale employment opportunities at lower capital cost than large scale industries, and help in industrialization of rural and backward areas, thereby reducing regional imbalance and assuring more equitable distribution of national income and wealth. In 2005, the Small Scale Industry (SSI) sector accounted for over 90% of industrial units in the country, 8 percent in the GDP and approximately 40 percent of India's exports.