Status, Significances, and Problems of Small-Scale Industry (With Special Reference to the State of Uttar Pradesh)

Abstract

Small Scale Industries (SSI) are fundamental for converting the raw inputs into the finished output. They are the epicenter of the growth and prosperity of the country. It provides the base for the nation's development and also helps reduce unemployment and regional imbalances. SSI significantly contributes to about 40 percent of total Gross Industrial Value (GIV). According to the annual report (2020-21) published by the Ministry of Micro Small Medium Enterprises (MSME) - Uttar Pradesh has topped the list with the estimated MSME accounting for 14.20 percent of the total MSMEs in the country. A positive trend has been witnessed in the number of SSI due to the various supportive policies of the government. SSI acts as a medium through which welfare can be ensured in the economy because it provides astounding support to the marginalized section of society. However, despite all this, SSIs are still facing numerous challenges that affect their functioning and their existence in the long run. The paper shed the light on the status, significance, and challenges of SSIs. It also highlights some of the major schemes of the UP-state government and also suggests some measures for promoting the sustainability of such industries in the long - run.