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Marketing
is much more than mere selling. The essence of marketing
is to identify needs and offer products or services
to meet those needs. Though Small enterprises lack
the advertising support or distribution reach
of a large corporation, they complete well in
limited or local markets or when they cater
to a low volume specialised or varying demand
which no large player can efficiently meet . Increasingly,
now, the small units and services build the
around their competitive advantage ie., products which
are labour intensive, items which cater to niche markets,
low volume high margin products, sub assembly tasks,
out source services and ancillary components
. After sales service for imported products, AMCs
on electronic equipment, reverse engineering (to the
extent that it is WTO compatible) are the other areas
being encouraged.
With
the boom in the servces sector ,small business have
emerged in avast array of fields from security to
packing, and product design to accounting.
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The
SSI Sector accounts for nearly 40% of the gross
value of output in the manufacturing sector
and about 50% of the total exports from the
country. Direct exports from the SSI Sector
accounts for 35% of the total exports.
An
idea about the contribution of small scale sector
in country's total exports (in Rs
Crores) can be had from the
table given below:
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Year
|
Total
Exports
|
Share
of SSI Exports
|
%
share
|
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1990-91
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32,553,34
|
9664.15
|
29.7
|
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1991-92
|
44,041.81
|
13883.40
|
31.5
|
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1992-93
|
53,350.54
|
17784.82
|
33.3
|
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1993-94
|
69,546.97
|
25307.09
|
36.4
|
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1994-95
|
82,674.11
|
29068.15
|
35.1
|
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1995-96
|
106,464.86
|
36470.22
|
34.2
|
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1996-97
|
117,524.98
|
39248.54
|
33.4
|
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1997-98
|
126,286.00
|
44442.18
|
35.2
|
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1998-99
|
141,604.00
|
48979.00
|
34.6
|
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1999-2000
|
159,561.00
|
54200.00
|
33.9
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Export
Promotion from Small Scale Sector has received
a number of incentives.
These
include :
1.
Free import of capital goods/raw material
and other essential inputs, and in certain cases
duty free or with concessional rate of Custom
Duty, so as to ensure higher production for
exports.
2.
With a view to make Indian products competitive
in the world markets, a large number of incentives
were provided to the exporters from time to
time. Such incentives include refund of duties
paid on the raw material used in export production
by a system of Duty-Draw-Back, Pre and Post
shipment Credit to the exporters at concessional
rate of interest, etc.
1.
Recognition of Export Houses/ Trading
Houses, etc.
With a view to recognise established exporters
so that they may build marketing infrastructure
and expertise required for export production,
merchant as well as manufacturer exporters,
EOU etc. are recognised as Export House, Trading
Houses, Star Trading Houses and Super Star Trading
Houses on the basis of certain criteria as laid
down in the Export-Import Policy 1997-2002.
The eligibility criteria for such recognition
is based either on the basis of FOB or Net Foreign
Exchange value of exports of goods and services
made directly by the exporters during the preceding
three licensing years or the preceding licensing
year. In an attempt to encourage exports from
the small scale sector, the exports made by
small scale sector manufacturer-exporters are
given triple weightage for the purpose of recognition
as EH/TH/STH/SSTH. Accordingly, in terms of
provisions contained at para 12.7(a) of the
Exim Policy 1997-2002 (amended upto 31/3/99),
triple weightage on FOB or net foreign exchange
on the export o f products manufactured and
exported by units in the small scale industry
(SSI)/ Tiny sector/ Cottage sector and double
weightage on FOB or net foreign exchange to
merchant exporter exporting products reserved
for SSI units and manufactured by units in the
SSI/Tiny Sector is give. These Export Houses,
Trading Houses, etc. are entitled to certain
benefits under the current Export-Import Policy.
2.
Special
Import Licence (SIL)
Exporters recognised as Export Houses, Star
Trading House, Trading Houses, etc. Are eligible
for grant of special Import Licence (SIL) @
certain percentage of their FOB value of exports/NFE.
However, 2 percent additional SIL is granted
for exports of Products manufactured by units
registered as SSI, provided the exports of these
products is more than 50% of the exports during
the period (provisions contained in para 12.7(b)
of Hand Book of Procedure 1997-2000 refers).
3.
Eligibility
condition for Small Scale Exporters for SIL
In case of small scale exporters holding ISO
9000 (Series) or IS/ISO 9000 Series of quality
certification, the FOB value (excluding deemed
exports) of exports for becoming eligible for
Special Import Licence (SIL) @4% of the FOB
value of exports is Rs. 30 million and above
in the preceding licensing year or on an average
FOB value of Rs. 10 million or above during
the preceding three licensing years instead
of the limit of Rs. 50 million and Rs. 20 million
respectively prescribed for others (Para 11.11
(a) & (b) of Hand Book of Procedures 1997-2002
refers in this context).
Salient
Features of the Exim Policy - 1997-2002 can
be viewed in following site
www.nic.in/eximpol.htm
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