Chapter 02: SSI : Scope, reservation and advantages

Scope of SSI:
Indian economy is in growth mode and there is lot of scope for starting SSI. The following are some of the segments that have huge potential.
  • Manufacturing activities
  • Servicing/repairing services
  • Construction services
  • Retailing activities
  • Wholesale Business

In order to encourage Indian entrepreneurs taking up SSI initiatives the government has reserved the following sectors.

  • Food and Allied Industries
  • Clock and Watches
  • Metal cabinets
  • Textile products
  • Boats and Trucks body building

Role of SSI in Economic Development

The development of SSI creates jobs and hence increase in per-ca pita income. This in turn increases standards in living. In final form increases nation's GDP. Thus SSI play an important role in the nation's economic development

Advantages of SSI

  • Need small capital
  • Need simple machinery
  • Use under utilized resources and employ under employed population
  • SSI can cater to local requirements and can be based on locally available resources and labour
  • May be export oriented and earn foreign exchange

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