Discuss ways to overcome the constraints faced by Small Scale Industry (SSI) in the 1990s.

The first and foremost problem is on the technology front faced by Small Scale Industry (SSI). Goods produced by Small Scale Industry (SSI) are of poor quality and design. NACR and FNS has revealed that SSI used outmoded technology and its products are lack of quality, Due to the consistent high growth, requirements of Small Scale Industry (SSI) have been growing remarkably.

Non-availability of finance at right time and quantity has remained a bottleneck for SSI growth. Small Scale entrepreneurs in the visit of different kind of officials are said to be subject to harassment and disruption of work. Shortage of power, inadequate raw materials, marketing constraints etc., are some of the major problems faced by the small industry sector. All these have resulted in sickness in Small Scale Industry (SSI).

To tackle sickness in Small Scale Industry (SSI), the basic casual factors like technological obsolescence, lack of finance, material constraints, marketing problems, etc., have to be solved. RBI had set-up a committee and issued guidelines to banks for early detection of sickness and prompt remedial action.

Some other measures to overcome the constraints faced by Small Scale Industry (SSIs) are:

  • Linkages between Council of Scientific and Industrial Research (CSIR) and small industries need to be developed.
  • To promote credit flow to SSI, SIDBI can set-up district-wise branches.
  • Exclusive investment banks for SSI must be permitted to come up.
  • The role of vast network of technical institutions need to be reoriented and assessed for SSI technology, development.
  • SIDO and NSIC may study the means to promote international sub-contracting for SSI benefit.
  • Visit of inspectors should be monitored and curtailed to the minimum.
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