Production

The small-scale industries sector plays a vital role in the growth of the country. It contributes
almost 40% of the gross industrial value added in the Indian economy.
It has been estimated that a million Rs. of investment in fixed assets in the small scale sector
produces 4.62 million worth of goods or services with an approximate value addition of ten
percentage points.
The small-scale sector has grown rapidly over the years. The growth rates during the various plan
periods have been very impressive. The number of small-scale units has increased from an
estimated 0.87 million units in the year 1980-81 to over 3 million in the year 2000.
When the performance of this sector is viewed against the growth in the manufacturing and the
industry sector as a whole, it instills confidence in the resilience of the small-scale sector.

Year

Target Achievement

1991-92

3.0

3.1

1992-93

5.0

5.6

1993-94

7.0

7.1

1994-95

9.1

10.1

1995-96

9.1

11.4

1996-97

9.1

11.3

1997-98

8.43

1998-99

7.7

1999-00

8.16

2000-01 (P)

8.90

P-Projected (April-December)
* Target not fixed at constant prices

Employment
SSI Sector in India creates largest employment opportunities for the Indian populace, next only to
Agriculture. It has been estimated that 100,000 rupees of investment in fixed assets in the smallscale sector generates employment for four persons.
Generation of Employment - Industry Group-wise
Food products industry has ranked first in generating employment, providing employment to 0.48
million persons (13.1%). The next two industry groups were Non-metallic mineral products with
employment of 0.45 million persons (12.2%) and Metal products with 0.37 million persons
(10.2%).
In Chemicals & chemical products, Machinery parts except Electrical parts, Wood products, Basic
Metal Industries, Paper products & printing, Hosiery & garments, Repair services and Rubber &
plastic products, the contribution ranged from 9% to 5%, the total contribution by these eight
industry groups being 49%.
In all other industries the contribution was less than 5%.
Per unit employment
Per unit employment was the highest (20) in units engaged in beverages, tobacco & tobacco
products mainly due to the high employment potential of this industry particularly in Maharashtra,
Andhra Pradesh, Rajasthan, Assam and Tamil Nadu.
Next came Cotton textile products (17), Non-metallic mineral products (14.1), Basic metal
industries (13.6) and Electrical machinery and parts (11.2.) The lowest figure of 2.4 was in Repair
services line.
Per unit employment was the highest (10) in metropolitan areas and lowest (5) in rural areas.
However, in Chemicals & chemical products, Non-metallic mineral products and Basic metal
industries per unit employment was higher in rural areas as compared to metropolitan
areas/urban areas.
In urban areas highest employment per unit was in Beverages, tobacco products (31 persons)
followed by Cotton textile products (18), Basic metal industries (13) and Non-metallic mineral
products (12).
Location-wise Employment Distribution - Rural
Non-metallic products contributed 22.7% to employment generated in rural areas. Food Products
accounted for 21.1%, Wood Products and Chemicals and chemical products shared between
them 17.5%.
Urban
As for urban areas, Food Products and Metal Products almost equally shared 22.8% of
employment. Machinery parts except electrical, Non-metallic mineral products, and Chemicals &
chemical products between them accounted for 26.2% of employment.

In metropolitan areas the leading industries were Metal products, Machinery and parts except
electrical and Paper products & printing (total share being 33.6%).
State-wise Employment Distribution
Tamil Nadu (14.5%) made the maximum contribution to employment.
This was followed by Maharashtra (9.7%), Uttar Pradesh (9.5%) and West Bengal (8.5%) the
total share being 27.7%.
Gujarat (7.6%), Andhra Pradesh (7.5%), Karnataka (6.7%) and Punjab (5.6%) together accounted
for another 27.4%.
Per unit employment was high - 17, 16 and 14 respectively - in Nagaland, Sikkim and Dadra &
Nagar Haveli.
It was 12 in Maharashtra, Tripura and Delhi.
Madhya Pradesh had the lowest figure of 2. In all other cases it was around the average of 6.

Year

Target
Achievement Growth rate
(lakh nos.) (lakh nos.)

1992-93

128.0

134.06

3.28

1993-94

133.0

139.38

3.28

1994-95

138.6

146.56

5.15

1995-96

144.4

152.61

4.13

1996-97

150.5

160.00

4.88

1997-98

165

167.20

4.50

1998-99

170.1

171.58

2.61

1999-00

175.4

177.3

3.33

P-Provisional

Export

SSI Sector plays a major role in India's present export performance. 45%-50% of the Indian
Exports is contributed by SSI Sector. Direct exports from the SSI Sector account for nearly 35%
of total exports. Besides direct exports, it is estimated that small-scale industrial units contribute
around 15% to exports indirectly. This takes place through merchant exporters, trading houses
and export houses. They may also be in the form of export orders from large units or the
production of parts and components for use for finished exportable goods.
It would surprise many to know that non-traditional products account for more than 95% of the
SSI exports.
The exports from SSI sector have been clocking excellent growth rates in this decade. It has
been mostly fuelled by the performance of garments, leather and gems and jewellery units from
this sector.
The product groups where the SSI sector dominates in exports, are sports goods, readymade
garments, woollen garments and knitwear, plastic products, processed food and leather
products.
The SSI sector is reorienting its export strategy towards the new trade regime being ushered in
by the WTO.

Year

Exports
(Rs. Crores)
(at current
prices)

1994-95

29,068
(14.86)

1995-96

36,470
(25.50)

1996-97

39,249
(7.61)

1997-98

43946
(11.97)

1998-99

48979
(10.2)

1999-00
(P)

53975
(10.2)

P-Provisional

Major Export Markets

An evaluation study has been done by M/s A.C. Nielsen on behalf of Ministry of SSI. As per the
findings and recommendations of the said study the major export markets identified having
potential to enhance SSIs exports are US, EU and Japan. The potential items of SSIs have been
categorised into three broad categories. More..
Export Destinations
The Export Destinations of SSI products have been identified for 16 product groups. More..

Opportunity
The opportunities in the small-scale sector are enormous due to the following factors:

Less Capital Intensive

Extensive Promotion & Support by Government

Reservation for Exclusive Manufacture by small scale sector

Project Profiles

Funding - Finance & Subsidies

Machinery Procurement

Raw Material Procurement

Manpower Training

Technical & Managerial skills

Tooling & Testing support

Reservation for Exclusive Purchase by Government

Export Promotion

Growth in demand in the domestic market size due to overall economic growth

Increasing Export Potential for Indian products

Growth in Requirements for ancillary units due to the increase in number of

greenfield units coming up in the large scale sector. Small industry sector has performed
exceedingly well and enabled our country to achieve a wide measure of industrial growth
and diversification.
By its less capital intensive and high labour absorption nature, SSI sector has made significant
contributions to employment generation and also to rural industrialisation. This sector is ideally
suited to build on the strengths of our traditional skills and knowledge, by infusion of technologies,
capital and innovative marketing practices. This is the opportune time to set up projects in the
small-scale sector. It may be said that the outlook is positive, indeed promising, given some
safeguards. This expectation is based on an essential feature of the Indian industry and the
demand structures. The diversity in production systems and demand structures will ensure long
term co-existence of many layers of demand for consumer products / technologies / processes.
There will be flourishing and well grounded markets for the same product/process, differentiated
by quality, value added and sophistication. This characteristic of the Indian economy will allow
complementary existence for various diverse types of units. The promotional and protective
policies of the Govt. have ensured the presence of this sector in an astonishing range of
products, particularly in consumer goods. However, the bugbear of the sector has been the
inadequacies in capital, technology and marketing. The process of liberalisation coupled with
Government support will therefore, attract the infusion of just these things in the sector.
Small industry sector has performed exceedingly well and enabled our country to achieve a wide
measure of industrial growth and diversification.

By its less capital intensive and high labour absorbtion nature, SSI sector has made significant
contributions to employment generation and also to rural industrialisation. This sector is ideally
suited to build on the strengths of our traditional skills and knowledge, by infusion of technologies,
capital and innovative marketing practices. So this is the opportune time to set up projects in the
small scale sector. It may be said that the outlook is positive, indeed promising, given some
safeguards. This expectation is based on an essential feature of the Indian industry and the
demand structures. The diversity in production systems and demand structures will ensure long
term co-existence of many layers of demand for consumer products / technologies / processes.
There will be flourishing and well grounded markets for the same product/process, differentiated
by quality, value added and sophistication. This characteristic of the Indian economy will allow
complementary existence for various diverse types of units. The promotional and protective
policies of the Govt. have ensured the presence of this sector in an astonishing range of
products, particularly in consumer goods. However, the bug bear of the sector has been the
inadequacies in capital, technology and marketing. The process of liberalisation will therefore,
attract the infusion of just these things in the sector.

Registration of Small Scale Industrial Units

The Scheme of voluntary registration of Small Scale, Village and Cottage Industries
with the State Directorate of Industries was introduced in 1960 and such registered
industrial units were made eligible for different types of assistances by the
Governmental Agencies. Initially a uniform norm for registration were not laid down
with the result that some of the States had granted different registration numbers to
different lines of manufacturing processes to the same unit thereby resulting in
multiple registration.
Therefore to avoid such anomalies a uniform set of Application Forms for both
Provisional as well as Permanent Registration were evolved out at the time of
introduction of the revised procedure of registration of these sectors of industrial
undertakings in 1975. With the passage of time, the Government of India, Ministry of
Commerce and Industries further simplified the procedures by simplification of the
forms for registration and also introduced the coded system to indicate the State,
Districts and the unit's serial number so as to facilitate computerisation of the whole
system of SSI registration, in 1989.
Registration of Small Scale, Village and Cottage industries are done under two
stages, vizi.
ii.

Provisional and
Permanent Registration

Provisional Registration : Provisional registration is granted to a unit at its preinvestment period to enable it to take necessary steps to apply for financial credit,
land or an industrial set, water, power or telephone connections, etc.
Permanent / Final Registration : A provisionally registered industrial unit when it
is about to go into production is to apply for grant of Permanent / Final Registration.

An existing and functioning industrial unit is eligible to apply for Permanent / Final
Registration without going into provisional registration processes.
The District wise SSI Registration of the State is given in Table below:Districts Wise Yearly Registration of SSI Units.
East
Khasi
Hills

West
Khasi
Hills

Ri
Bhoi

West
Garo
Hills

Jaintia
Hills

East
Garo
Hills

South
Garo
Hills

Sl. No.

Year

1.

1975 76

2.

1976 77

13

18

3.

1977 78

14

14

4.

1978 79

11

11

5.

1979 80

6.

1980 81

72

28

112

7.

1981 82

45

13

18

76

8.

1982 83

64

10

11

97

9.

1983 84

12

25

10

99

10.

1984 85

33

19

18

78

11.

1985 86

72

17

13

21

130

12.

1986 87

54

17

24

24

12

131

13.

1987 88

95

27

22

15

260

14.

1988 89

137

62

29

20

12

260

15.

1989 90

62

34

22

14

134

16.

1990 91

61

72

22

16

22

193

17.

1991 92

74

40

15

21

25

175

18.

1992 93

112

41

19

17

19

208

19.

1993 94

67

39

23

11

13

- 153

20.

1994 95

63

40

10

35

17

19

16

200

21.

1995 96

75

76

12

31

29

239

22.

1996 97

80

41

19

33

18

25

16

232

23.

1997 98

72

49

23

39

29

22

243

24.

1998 99

69

49

27

37

32

32

19

265

25.

1999 00

76

58

24

41

26

24

258

26.

2000 01

43

160

18

38

273

27.

2001 02

88

50

26

33

25

44

266

28.

2002 03

81

49

23

37

23

35

20

268

29.

2003 04

115

21

27

35

14

32

323

1809

953

209

621

428

437

Total

50

Year Wise SSI Registration With Employment Details.

Total

107 4564

Sl. No.

Year

Nos. of
Investment in plant / Machinery Employment
UnitsRegistered
(Rs. in lakhs)
Generation

1.

1975 76

0.77

21

2.

1976 77

18

8.27

141

3.

1977 78

14

6.69

204

4.

1978 79

11

11.08

100

5.

1979 80

5.11

91

6.

1980 81

112

74.43

878

7.

1981 82

76

23.63

554

8.

1982 83

97

51.36

656

9.

1983 84

99

25.42

573

10.

1984 85

78

22.11

376

11.

1985 86

130

48.11

679

12.

1986 87

131

71.11

709

13.

1987 88

260

126.70

1048

14.

1988 89

260

133.85

1428

15.

1989 90

134

91.75

723

16.

1990 91

193

149.88

1067

17.

1991 92

175

82.28

921

18.

1992 93

208

205.79

1043

19.

1993 94

153

146.40

830

20.

1994 95

200

229.04

1441

21.

1995 96

239

217.00

1308

22.

1996 97

232

260.65

1313

23.

1997 98

243

258.05

1155

24.

1998 99

265

218.39

1334

25.

1999 00

258

484.60

1499

26.

2000 01

273

297.00

1330

27.

2001 02

266

667.18

1638

28.

2002 03

268

668.00

1416

29.

2003 04

323

702.00

1805

4564

5286.65

26281

Total

The Modus operandi for processing of application of 'Consent to Establish' &

'Consent to Operate' for Micro & Small Scale Enterprises by District
Industries Centre.
The enterprises in Micro & Small Scale having activities of Green & Orange
Category of Pollution will submit Consent application forms to D.I.Cs at the
time getting acknowledgement of E.M.-I.
Regarding pollution clearance General Manager, District Industries Centre,
will issue certificate for "Consent to Establish" (NOC) and "Consent to
Operate" in respect of "Green" category of enterprises at the issuance of

acknowledgement of EM-I & EM-II respectively. Pollution clearance towards

"Consent to Establish" for "Orange" Category will be issued by GM, DIC. But
for 'Red' Category of pollution the clearance certificates for 'Consent to
Establish' and 'Consent to Operate' will be issued by WBPCB. The 'Consent
to Operate' for 'Orange' will be issued by WBPCB. The list of 'Green',
'Orange' & 'Red' and 'Spl. Red ' is released by WBPCB from time to time
depending on extent of pollution in the specific areas of importance (other
than industrial zone) so as to promote enterprise difficulty areas,
Pollution Clearance Certificate for setting up SSI unit. As a policy measure
(vide order no 1358(2)29/WPB-4/91 dt. 08.12.99) General manager of DICs
and Officer-in-Charge of sub-DIC, Siliguri, Deputy Director of Industries
(Ancl), Durgapur of this Dte. are declared as Ex-Officio environment Officer
of

WBPCB

for

processing

of

application

for "Consent

to

Establish" and "Consent to Operate".

The Consent to Establish" (COE) certificate is needed at the time of issuance
of E.M Part I and "Consent to Operate" (COO) is at the time of issuance of
E.M Part II. As per WBPCB guidelines industrial units are classified under 5
categories viz. special red, red, orange, green and exempted category.
For Exempted Category - no pollution clearance certificate is needed.
For other categories - details are given below -

CATEGORY

CERTIFICATE

ISSUING AUTHORITY

Special Red

CEO & COO

WBPCB

Red

CEO

WBPCB

Red

COO

WBPCB

Orange

CEO

DICs/Sub DICs

Orange

COO

DICs/Sub
DICs/WBPCB

Green

COE & COO

DICs/Sub DICs

As regards pollution control the Directorate has been regularly monitoring

collection, compilation, tabulation of data, as well as dissemination of
reports to the authorities concerned as and when required and maintaining
of liaison with W.B.P.C.B. and D.I.Cs.

Green

category

of

polluting

industries.

The industries can be permitted in any area with adequate pollution control
measures subject to site clearance by local body authority.
Orange

category

of

polluting

industries

The industries can be permitted in all municipal areas other than CMC or
HMC but within Industrial Estates in CMC or HMC area with adequate
pollution control measures subject to condition that the site clearance
should be obtained from Municipal authorities for setting up of new units.
Ordinary

Red

category of polluting

industries.

The industries can be permitted in Municipal areas falling under Calcutta

Metropolitan area(CMA) These can however be set up beyond CM A with
adequate pollution abatement system subject to site clearance by local
bodies.
Special

Red

category

of

polluting

industries

The industries can be permitted in Municipal areas falling under Calcutta

Metropolitan area (CMA). These are however be set up beyond CMA with
adequate pollution abatement system subject to site clearance by local
bodies.
The application forms of 'Consent to Establish' and 'Consent to Operate' for
Micro & Small Scale Green Category industries will be available from
District Industries Centres. The Micro & Small Scale Green Category
industries will submit consent application forms for 'Consent to Establish'
and 'Consent to Operate' to the DIC alongwith the specific payment challan
or counter foil of Consent fees (payment to be made to Nationalized Bank
Branches). For 'Red' and 'Orange' Categories the consent application forms
will be available from the specified Bank Branches and to be submitted to
WBPCB

offices

either

at

Hd.

Office/Branches

at

Bhawani

Bhavan,

Barackpore, Durgapore and Salt Lake, alongwith the payment challan to

made at the Bank Branches.