Role and Importance: Expansion and development of small-scale industries can go a long way in securing wider distribution of economic activities in the country.
Small-scale industries can provide employment opportunities to a large section of people who have no dependable source of income.
The problem of unemployment is very acute in the country now a-days, especially among educated youths, and it is seriously engaging the attention of the governments both at the Centre and in the States. Development of small-scale industries can provide a way out of the present distressing situation created by widespread unemployment. Production of small articles of everyday use with the help of small machines will offer employment opportunities to many people with limited capital resources.
These industries have vast and unlimited scope in India. The small industries play a vital part in our economic life and are destined to take a larger share in our national economy in the years to come.
Various Types of small-scale industries: There are many kinds of small-scale industries in India. The manufacture of footwear, glassware, cutlery, match, pottery, metal industry, etc. is some of the typical small-scale industries. There is demand for such goods both in the urban and rural areas.
Problems and difficulties: They small-scale industries is facing several problems. They must be solved if we want them to prosper and make their due contribution to the economic progress of the country.
It has to be recognized that they lack many things, which make for efficiency in production. They are poorly equipped, they lack sufficient funds, raw materials, and marketing facilities needed for expansion and development of this type of industry.
Non-availability of electric supply outside the urban area is also effectively retarding the growth and progress of our small industries.
Another difficulty is in regard to marketing facilities.
Solution: It is essential that outmoded methods of production and equipments should be replaced as early as possible by modern techniques and machinery.
They should get loan on very liberal terms. The granting of loans is not enough though that is important.
The small-scale producers should get a cheap supply of power.
It is desired that the Government must organize marketing facilities for the products of small-scale industries.
There is no reason to believe that the small-scale industries cannot survive in the face of keen competition with big industries.
In many cases, large-scale industries and small scale industries are of a complementary character. Some small industries produce semi-finished goods, which are finished by big industries. They also produce machinery parts and thus supply some of the indispensable needs of big industries.