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SMALL SCALE ENTERPRISES

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CHAPTER-3

 

MICRO & SMALL SCALE ENTERPRISES

3.1   GROWTH OF MICRO & SMALL SCALE ENTERPRISES

At the time of independence, Himachal Pradesh was predominantly an agrarian economy. Almost all other items of common use were imported. During the nineties, the growth rate remained more or less stable. The decade showed an average annual growth rate of 5.7 percent, which is at par with the national level. The pace of industrial development has picked up after the Grant of special package of incentive by Central govt. for setting up of Industries in the State which was notified on 07.01.2003 together with the package of incentives provided by the State Govt. in the industrial policy & incentive. This has resulted in high investment in both MSEs and Medium & Large Scale sector in the State.  The table 3.01 shows year-wise growth of micro & small-scale enterprises in Himachal Pradesh.

Table 3.01 Year-wise Growth of Micro & Small Scale Enterprises in Himachal Pradesh

Year

Units (Nos.)

Investment ( in Lakh)

Employment (Nos.)

Up to 31.02.1991

20545

15054.00

86227

1991-92

973

7184.00

3770

1992-93

922

6690.00

3580

1993-94

825

6092.00

3202

1994-95

856

6220.00

3340

1995-96

724

5270.00

3150

1996-97

772

2024.71

3396

1997-98

761

3343.82

3447

1998-99

875

4564.51

4379

1999-00

792

4913.37

5127

2000-01

686

2994.3

3127

2001-02

748

4197.29

3849

2002-03

697

2429.48

3277

2003-04

663

3708.48

3769

2004-05

913

8891.44

6412

2005-06

914

12217.3

6611

2006-07

952

45272.78

10665

2007-08

842

70637.33

11302

2008-09

909

73795.48

10939

2009-10

1032

75320.01

10011

2010-11

963

96539.36

10002

2011-12

856

61909.00

7732

2012-13

798

96332.00

9298

2013-14

630

37419.00

5230

2014-15

(up to 31/12/14)

279

47713.00

1963

Total

39927

700733.00

223805

Source: Directorate of Industries, Himachal Pradesh

From the table given above, it may be observed that there were only 20,545 micro & small units registered in the state up to 1991 having investment of  15054 Lacs providing employment to 86,227 persons.  Since then registration of units have  witnessed declining trend more or less till 2003-04, the year when a special package of incentives was given to the State of Himachal Pradesh by Central Govt.  and after the implementation of package, improvement in registration of small scale units started as number of leading entrepreneurs started investment in the state as is evident from the investment figures which was  3708 lacs in the year 2003-04 suddenly jumped to the level of  37419 lacs,  kept on increasing till 2014-15. 

          Hence it may be concluded that the pace of industrialization has improved substantially due to the special package of incentives provided to the state in the year 2003.

Table: 3.02 District Wise Status of Micro & Small Scale Enterprises (As on 31.12.2014)

District

No. of Units

% to Total

Investment

(in Lakh)

% to Total

Employment

% to Total

Bilaspur

2402

6.02

8294

1.18

8643

3.86

Chamba

1809

4.53

4095

0.58

6316

2.82

Hamirpur

2929

7.34

7810

1.11

10508

4.70

Kangra

9210

23.07

37821

5.40

40927

18.28

Kullu

2621

6.56

8652

1.23

14497

6.49

Kinnaur

597

1.50

737

0.11

1886

0.84

Lahaul & Spiti

590

1.48

374

0.05

1637

0.73

Mandi

4050

10.14

12593

1.80

16752

7.48

Shimla

3562

8.92

9092

1.30

12597

5.63

Solan

5331

13.35

434690

62.03

69492

31.05

Sirmour

3304

8.27

125378

17.90

22531

10.07

Una

3522

8.82

51197

7.31

18019

8.05

TOTAL

39927

100%

700733

100%

223805

100%

 Source: Director of Industries, Himachal Pradesh

          As may be seen from the  table No. 3.02, out of the total 39927 registered MSEs as on 31.12.2014, maximum number of units have been registered in district Kangra which accounted for 23.07% of the total units followed by district Solan and Mandi which accounted for 13.35% and 10.14%  respectively of the total registered units. But the growths of registered industries in the state during the last three years have been recorded more in district Solan followed by district Sirmour and Una respectively.  In the State least numbers of units have been registered in district Kinnaur and Lahaul & Spiti. In terms of investment, maximum amount of investment have been made in district Solan with 62.03% of the total investment followed by district Sirmour and Una with 17.90% and 7.31% of the total investment while in terms of employment also district Solan has became the largest employment provider district of the state with 31.05% of the total employment followed by district Kangra and Sirmour.

Table: 3.03 Industries wise MSEs after the Special package of incentives:

up to 31.12.2014

S. No.

Industry Group

No. of Units

% of  Total

I.

Group-A (Non Thrust Sector)

1.

Chemicals

554

3.28

2.

Textiles

674

3.99

3.

Electricals

1053

6.23

4.

Electronics

859

5.08

5.

Automobiles

369

2.18

6.

Misc. Engg.

1485

8.78

7.

Packaging

1046

6.19

8.

Steel

882

5.22

9.

Foot wears

189

1.12

10.

Plastics

971

5.74

11.

Others

5515

32.61

 

Total

13597

80.41

II.

Group-B (Thrust Sector)

1.

Food processing Industries

1926

11.39

2.

Horticulture and Agro

11

0.07

3.

Aromatic/Medicinal herbs based soap

318

1.88

4.

Wool & Wool Products

7

0.04

5.

Pharma Prducts

1014

6.00

6.

IT Based Industries

2

0.01

7.

Mineral Water Bottling

3

0.02

8.

Handicrafts

0

0.0

9.

Others (Honey, horticulture, Sports goods, Eco-Tourism)

32

0.19

 

Total

3313

19.59

 

Grand Total (I&II)

16910

100.00

Source: Director of Industries, Himachal Pradesh

Maximum No of units registered with the state industries department after the special package of incentives were in the unclassified product group (others) followed by food processing industries and then mechanical engg., electrical, packaging, electronics, pharmaceuticals,  plastic & chemicals, footwear & automobiles etc., while this trend have been changed after the change in the definition of industries under the MSMED Act. In terms of investment (as on 1.10.2006) maximum amount of investment was made in the product group of Chemical & Allied Products followed by mechanical and electrical & electronic products while this trend has also been changed after the enhancement of investment limit for micro, small & medium enterprises under the MSMED Act, as a result of which chemical and mechanical products which were earlier in the category of medium enterprises due to the large investment involved have came under the preview of small scale sector by occupying the first, second and third position. Further considerable numbers of chemical, mechanical and electrical & electronics industries have come up in the State after the implementation of industrial package given by the Central Government to the State. 

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Source: Official Website of MSME, Last Updated on 20 - 09 - 2017

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