Role of small scale industries in economic development

Abstract

For any economy there are three sectors plays an important role.. After the independence agriculture sector, industrial sector and service sectors increased their performance and their contribution to the economy. After the independence government of India has taken the initiative of mixed economy. After the 1991 reforms made Indian manufacturing sector to take a major role in development. The globalisation and liberalisation which removed the import restrictions, brought in foreign competition led to privatisation of certain government owned public sector industries and liberalised foreign direct investment. The industrial sector is the one which is playing has taken a steady growth after the 1991 reforms, as Indian is a populated country more number of products and services are required. Industrial sector can provide products but somehow difficult to reach all the rural people due to lack of awareness, cost and distance from the towns. The growth of population has pressured the small sector to increase more and more contribution to economy. As they mainly depends on the products available in local market prepared by the small tiny farmers. These small scale industrial farmers can produce a large number of products to meets the needs of the both the customers as well as the companies. Companies also depends on the small scale industries for MRO (Maintenance, Repair and operating)goods, small products used in produce a big products. These small sectors also a plays an important role in employment generation and economic development. Therefore it became necessary to address the importance of the small scale industries. Present study will focuses the impact of small scale industries in economic development. It also studies the role of small scale industries in providing employment generation in Telangana. Data for this study would like to collect from the secondary data sources.