A Study on High Potential Export Items of Small Scale Industries

The small scale industry today constitutes a very important segment of Indian economy. The development of this sector came about primarily due to the vision of late prime minister Jawaharlal Nehru who sought to develop core industry and have a supporting sector in the form of small scale enterprises. Small scale industry has emerged as a dynamic and vibrant sector of the economy. Today, it accounts for nearly 35% of the gross value of output in the manufacturing sector and 45% of the total exports from the country. In term, of value added in the manufacturing sector, the sector's contribution to employment is next only to agriculture in India. Industrialization is the only answer to this present state of disrupted economy. The problem is of the approach which should be direct, utilitarian and pragmatic. Such industries do not require huge capital and hence suitable for a country like India. The small scale industries have a talent of „dispersal." They can be accessible to the remote rural areas of the country and do not lead to regional imbalances and concentration of industries at one place, which is responsible for many economic resources such as entrepreneurship and capital. The planners and the economists in India took recourse to small scale industry because most of these industries existed in the traditional form, which symbolize our heritage and past glory. These still serve as the back bone of our economy, which is mostly rural. It is with this view that an assessment of growth, development and working of small scale industries in the specific region is attempted in this research study. However, before entering into an analytical study of this project, it is necessary to examine the concept of Small scale industry as it has come to be, today, in India.