Comprehensive policy package for Small Scale Industries and Tiny Sector

(Announced on 30th and 31st August, 2000)

1.0 Introduction

1.1 The Small Scale Industry Sector has emerged as India's engine of growth in the New Millennium. By the end of March 2000, the SSI sector accounted for nearly 40 per cent of gross value of output in the manufacturing sector and 35 per cent of total exports from the country. Through over 32 lakh units, the sector provided employment to about 18 million people.

1.2 The on going programme of Economic Reforms based upon the principle of liberalisation, globalisation and privatisation and the changes at the international economic scene including the emergence of World Trade Organisation (WTO), have brought certain schallenges and several new opportunities before the SSI Sector. The most important challenge faced by the sector is that of growing competition both globally and domestically. At the sametime sector has also been facing some problems which relate to credit, infrastructure, technology, marketing, delayed payment hassels on account of so many rules and regulations etc. In order to enable this sector to avail the opportunities and play its role as an engine of growth, it is essential to address to these problems effectively and urgently.  

  1.3 With a view to provide more focused attention on the development of SSI, the Government of India created a new Ministry of Small Scale Industries & Agro and Rural Industries in October 1999. Immediately after the formation of the Ministry, a Mission for the Millennium giving a blue print for small scale and village industries was announced. To carve out a road map for this sector in the New Millennium, the Hon'ble Prime Minister constituted a Group of Ministers under the Chairmanship of Shri L.K. Advani the Home Minister of India in June 2000. The background material for the consideration of the Group of Ministers was provided by the Interim Report of the S.P. Gupta Study Team constituted by the Planning Commission.

1.4 The Group of Ministers considered the recommendations and came out with a Comprehensive Policy Package for the Small Scale and Tiny Sector which was announced by the Hon'ble Prime Minister Shri Atal Bihari Vajpayee at first ever National Conference on the Small Scale Industries organised by the Ministry of SSI & ARI at Vigyan Bhavan, New Delhi on 30th August 2000. (Copy of Speech at Annexure-I). A copy of Speech of the Hon'ble Minister of State (Independent Charge) SSI & ARI, Smt. Vasundhara Raje on the occasion of National Conference on Small Scale Industries is placed at Annexure-II. While some components of the policy package were announced by the Hon'ble Prime Minister on 30th August 2000, some others including the Tiny Sector Policy Package were announced by the Ministry of SSI& ARI on 31st August 2000 in the meeting of the SSI Board