Interaction of the Secretary, SSI & ARI and the
Development Commissioner (SSI)
with the Editors of Prominent Newspapers
on Social Sector Issues

A lively interaction and the presentations made by the Ministry of Small Scale Industries and the Agro Rural Industries on the strength and challenges facing the two sectors. The following is the text of the opening remarks made by the Secretary (SSI & ARI).

    I am very happy for this opportunity of meeting the Editors, Bureau Chiefs and the Senior Correspondents of prominent newspapers from all over India.

  1. The organisation of an interaction with the Ministries of Small Scale Industries and Agro Rural Industries in a separate session of this Editors' Conference on social sector issues clearly indicates the emphasis laid by you on the efforts to generate employment in the nation.



  2. If I take the small scale industrial sector first, it would be necessary to state the fact that about 11.4 million units in this sector provide employment to over 27.1 million people. The small scale sector contributes 40% of the country's industrial production and 34 % of the exports from the country. You would be glad to know that the annual growth rate of the small scale sector has mostly been higher than other sectors.



  3. In addition to laying down policies for the promotion of small scale industries , the Ministry of Small Scale Industries is engaged in developing and assisting the sector, through the network of its institutions. These include 30 Small Industries Service Institutes and their 28 branches, 4 Regional Testing Centres, 21 autonomous institutions, etc. Under the auspices of the Ministry of Small Scale Industries, these institutions are engaged in addressing the principal challenges faced by them, which include credit availability, technological upgradation, marketing , infrastructural development, etc.



  4. In the age of globalisation and the World Trade Organisation related agreements, the small scale sector is facing several challenges. In this context, the Ministry is taking several steps like technological upgradation and improvement in productivity, marketing development, enhancement of infrastructure,improving administrative processes,etc.



  5. For resolving the problems of "Inspector Raj" and removing the impediments like the requirement of maintenance of a plethora of Registers and statutory forms, observing a multitude of labour related legislations, etc., the Ministry of Small Scale Industries has drafted a comprehensive Bill for the development of Small Enterprises which will be submitted soon for necessary approvals.



  6. Likewise , during 2003-04, the disbursement of credit by the banks to the small scale industries increased over the corresponding figure in 2002-03 by Rs 5289 crore to reach the sum of Rs 58,277 crore. However, it is a matter of concern that the share of the credit to the small scale sector as a percentage of the gross industrial lending by the banks has come down from 17.5% in 1997-98 to 10.1% only in 2003-04.



  7. In future, the development of industrial clusters will be of paramount importance for the effective development of small scale and rural industries. The recently conceptualized Cluster Development Programme ( CDP ) not only identifies the industrial clusters but also comprehensively assists them in their production chain and further development. The development of 59 such clusters has already commenced in consultation with the State Governments, Industrial Associations, Financial Institutions and other organizations involved in industrial development.



  8. Some of the biggest challenges faced by us relate to the provision of sufficient employment opportunities to the unemployed in the rural areas and to prevent the migration of unemployed youth to the urban areas. I will like to mention two Programmes specially implemented by my Ministry in this regard. One of these Programmes being implemented by the Ministry of Agro & Rural Industries is the Prime Minister's Rozgar Yojana. The aim of this Yojana is to provide self employment opportunities to the educated unemployed youth. Between 1993-94 and 2003-04, employment opportunities have been created for 3 million unemployed youth under this Programme. This Programme has the potential to further generate employment on a very large scale.



  9. Similarly, we are committed to the generation of employment opportunities in the rural areas through the Rural Employment Generation Programme ( REGP ) as well. In this Programme too, employment was provided to 2.274 million unemployed youth up to the last financial year. We are enhancing the scope of this Programme and involving the State Khadi and Village Industries Boards and the State Governments concerned as well.



  10. Now my colleagues will make two short presentations on the Small Scale Industries and Agro & Rural Industries sectors. We can discuss these and other issues in detail thereafter.

Thank you


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