WIPO and its role

WIPO and its role

What is WIPO?

The World Intellectual Property Organization (WIPO) is a specialized agency of the United Nations. It is dedicated to developing a balanced and accessible international intellectual property (IP) system, which rewards creativity, stimulates innovation and contributes to economic development while safeguarding the public interest.

WIPO was established by the WIPO Convention in 1967 with a mandate from its Member States to promote the protection of IP throughout the world through cooperation among states and in collaboration with other international organizations. Its headquarters are in Geneva, Switzerland. The Director General is Francis Gurry.

Strategic Goals

WIPO's revised and expanded strategic goals are part of a comprehensive process of strategic realignment taking place within the Organization. These new goals will enable WIPO to fulfill its mandate more effectively in response to a rapidly evolving external environment, and to the urgent challenges for intellectual property in the 21st Century.The nine strategic goals were adopted by Member States in the Revised Program and Budget for the 2008/09 Biennium.  They are:

• Balanced Evolution of the International Normative Framework for IP
• Provision of Premier Global IP Services
• Facilitating the Use of IP for Development
• Coordination and Development of Global IP Infrastructure
• World Reference Source for IP Information and Analysis
• International Cooperation on Building Respect for IP
• Addressing IP in Relation to Global Policy Issues
• A Responsive Communications Interface between WIPO, its Member States and All Stakeholders
• An Efficient Administrative and Financial Support Structure to Enable WIPO to Deliver its Programs

Sampoorna Gramin Rozgar Yojna (SGRY)

Download PDF 
Sampoorna Gramin Rozgar Yojna (SGRY)
(A very nice chapter on SGRY - A must read )


The SGRY was launched in September 2001, by merging the ongoing Schemes of Jawahar Gram Samridhi Yojana (JGSY) and Employment Assurance Scheme (EAS).

The objective of the programme is to provide additional wage employment in the rural areas as also food security, along with the creation of durable community, social and economic infrastructure in rural areas.

The SGRY is open to all rural poor who are in need of wage employment and desire to do manual and unskilled work in and around the village/habitat. The Scheme is implemented through Panchyati Raj Institutions.
The scheme envisages generation of 100 crore man-days of employment in a year. The cost of each component of the programme is shared by the Centre and States in the ratio of 75:25. During the year 2003-04 an amount of Rs. 4,121 crore as cash component and 49.97 lakh tones of food grain were released to the States/UTs and 76.45 crore man-days (Provisional) have been generated as reported by the States/UTs. Under the Special Component of the SGRY, 65.84 lakh tonnes of foodgrain have been released to 12 calamity affected States during 2003-04.

Human Development Index (HDI)

    The Human Development Index (HDI) is an index used to rank the countries on the basis of developed, developing, or underdeveloped country based upon human development in that country.
It is being used since 1990. The index was developed in 1990 by Pakistani economist Mahbub ul Haq and India’s Nobel prize Winner Economist Amartya Sen.
It is prepared by UNDP (United Nations Development Programme)


It is a composite of 3 factors:


1. Life Expectancy at birth or life expectancy at birth also called LEI (Life Expectancy Index)

2. Standard of Knowledge & Education : Adult Literacy Rate also called EAI (Education Attainment Index) given 2/3 priority and Gross Enrollment Ratio (GER) given 1/3 priority (weightage)

3. Standard of living measured by natural logarithm of gross domestic product per capita also called SLI (Standard of Living Index)


The latest report is of year 2008. It was a new index was released on December 18, 2008. It was called “statistical update” and it covers the period up to 2006 and was originally published without an accompanying report on human development. The update is relevant due to newly released estimates of purchasing power parities (PPP), implying substantial adjustments for many countries, resulting in changes in HDI values and, in many cases, HDI ranks.


Here are salient features of this report (memorable points):
1. It was launched in December 2008
2. It includes 177 UN members plus Hongkong plus Palestinian territories.
3. Countries fall into three broad categories based on their HDI: high, medium and low human development.
4. Iceland is the top of this list with HDI of 0.968.
5. India’s Rank is 132 with HDI of 0.609
6. Top 5 countries are Iceland, Norway, Canada, Australia, Ireland
7. Japan Tops the list in Asia (0.956)
8. Libya Tops the list in Africa (0.840)
9. Canada has an Higher HDI (0.967) than USA (0.950)


 Since 1990, Japan, Norway, Iceland & Canada only have been able to get a top slot in this index


Human Development Index 2009:


Despite emerging as an economic superpower, India remains 134 among 182 countries in human development index (HDI) of the United Nations Development Programme (UNDP), thereby making no difference in the quality of life enjoyed by the country’s 1.1 billion people.
Neighbouring countries China (92), Sri Lanka (102) and Bhutan (132) ranked higher than India, while Pakistan (141), Nepal (144) and Bangladesh (146) were ranked lower.
The score is based on the new income index developed by the World Bank.
India’s score has been pulled down by its slower progress in education and health reforms compared with most nations.
The HDI report 2009, released in New Delhi on Monday, pertains to the year 2007.
Norway has retained its status as the world’s most desirable country to live in and Africa’s Niger as the worst. The top 10 countries in the HDI 2007 include Norway, Australia, Iceland, Canada, Ireland, Netherlands, Sweden, France, Switzerland and Japan.
The US was on 10th slot, down a point from 2006, while at the bottom of the index were Sierra Leone (180), Afghanistan (181) and Niger (182).
India ranked 134 among 182 countries in 2007, the same as the ranking for 2006, which was released last year.
Pakistan moved up one rank to 141, China moved up seven ranks to 92 and Bangladesh moved up two ranks to 146, compared to the year 2006 rankings.
Though India continues to rank 134, there is some hope. Between 1980 and 2007, there has been a rise in life expectancy at birth by approximately 8 years, in adult literacy by 25 percentage points and an increase in combined gross school enrolment by 20 percentage points. GDP per capita also increased by 199per cent. This marks a slow annual human development growth rate of 1.33%.
The report also measures India on the Human Poverty Index (HPI) and finds it ranks 88th among 135 countries. On adult literacy, India scores 34%, while in the number of people having no access to an improved water source it scores a respectable 11%. In the matter of underweight children (under 5 years), India scores 46%, along with Bangladesh (48), East Timor (46) and Yemen (46).
“Overall, India has made steady progress on the Human Development Index. Its value has gone up from 0.556 in 2000 to 0.612 in 2007,” said Patrice Coeur Bizot, resident representative of UNDP in India.

Rolling Plan (1978-1980)

MEANING OF ROLLING PLAN

When a plan is accompanied by recurring changes, it will create uncertainty on the part of both the private as well as public sector. Both the sectors will remain unsure of each other's responses. How the private sector will behave when the projections and targets of the plan vary every year? Moreover, how the government. sector will respond as a result of behavior of private sector in the changed situation? Thus the uncertainty attached with the plan will serve as an anti-thesis of planning. The uncertainty will evaporate the long term investment decision of the firm making the plan a no plan.


The rolling plans are objected on the round that they make the planners timid and coward. As rolling plans are adhered to revisions and modifications, hence the planners are always reluctant in taking difficult decisions or taking courageous decisions. Whenever the difficult situations rise, the easier course will be to revise the targets of the plan. If the plan is to be revised each year, then what is the need of planning?


The rolling plans are devoid of commitment to the plans or planning. The changing character of a plan is equivalent to mechanical projection exercises. As there is no fixity attached with the plans, the enthusiasm on the part of planning and administrative machinery will hardly be found. The will to perform plan tasks will be pre-empted right from the inception of the plan. The planning authority under such scheme of affairs will be reduced to a mere office of information collection and its dissemination.

Rolling Plan (1978-1980)


In the rolling plans there are three kind of plans. Number one is the plan for the current year which comprises the annual budget. Number two is a plan for a fixed number of years, which may be 3, 4 or 5 years. This number two plan is kept changing as per the requirements of the economy. Number three is a perspective plan which is for 10, 15 or 20 years. Thus there is no fixation of dates in respect of commencement and end of the plan in the rolling plans.
So the main advantage of the rolling plans is that they are flexible. They are able to overcome the rigidity of fixed five year plans by revising targets, projections and allocations as per the changing conditions in the country’s economy.
However if targets are revised each year, it becomes very difficult to achieve the targets which are laid down in the five year period. Frequent revisions make them, difficult to maintain right balances in the economy which are essential for its balanced development.
The rolling plans allow for revisions and adjustments. In rolling plans the review of a plan becomes a continuous exercise. The effect of changed circumstances and the changed demand and supply conditions can be incorporated in the plan.
No doubt in fixed plans, the annual reviews are made, but they are getting information regarding the progress of the economy. While in case of rolling plans, the yearly reviews are such a nature that they serve the basis for the revised new five year plan every year. Such yearly review is the essence of rolling plans.


In India the 6th five year plan (1978-83) by the Janta Government was called Rolling Plan which was discarded by the next Congress Government in 1980.


So far rolling plans have been unsuccessful in underdeveloped economies like Mexico and Myanmar and were later discarded, however in developed nations like Japan & Poland they have been successfully used.

Mahanalobis - Feldman Model

G.A. Feldman was a Russian economist who wrote an article on the theory of NI growth which was published in the planned economy the journal of the Soviet state planning commission in 1928. His model of long run planning was translated by Domar in 1957.
In October 1952, Mahalanobis developed a single sector model based on the variables of NI and I. it was further developed in two sector models in 1953 where the entire net output of the economy was supposed to be produced in only two sectors, the investment goods sector and consumer goods sector.

Next he developed the famous 4 sector model in 1955. Both Feldman and Mahalanobis models are identical. Their combined model is a contrast to HD model. The main difference between two types of model lies in the fact that whereas a Keynesian flow analysis is accepted in HD model which emphasized that important bottlenecks can appear in the process of this type of transformation of savings into investment and as such the only way in which the such constraints can be released is to alter the structure of the economy in such a way as to allow the economic system to produce more capital goods to maintain a higher rate of investment. In the FM model it is assumed that there are real bottlenecks in the channeling of savings into investment which are ignored in HD, since the structural rigidities and the inter-temporal choice between present and future consumption benefits are ignored in HD model


The essence of Mahalanobis model lies in the fact that it demonstrates that though the rate of growth of the economy would get pulled down in the short run due to increase in the share of investment in the capital goods sector, in the long run the rate of growth of economy would increase with this larger share of investment in the capital goods sector. The model gave focus to the theme "machines to produce machines to produce machines", giving due direction to the utilisation of  scarce foreign exchange reserves for the upscaling of capacity in the economy.


The model was created as an analytical framework for India’s Second Five Year Plan in 1955 by appointment of Prime Minister Jawaharlal Nehru, as India felt there was a need to introduce a formal plan model after the First Five Year Plan (1951-1956). The First Five Year Plan stressed investment for capital accumulation in the spirit of the one-sector Harrod–Domar model. It argued that production required capital and that capital can be accumulated through investment; the faster one accumulates, the higher the growth rate will be. The most fundamental criticisms came from Mahalanobis, who himself was working with a variant of it in 1951 and 1952. The criticisms were mostly around the model’s inability to cope with the real constraints of the economy; it’s ignoring of the fundamental choice problems of planning over time; and the lack of connection between the model and the actual selection of projects for governmental expenditure. Subsequently Mahalanobis introduced his celebrated two-sector model, which he later expanded into a four-sector version.

Five year Plans from 1951-2000 : In brief

5 Year Plan in India (1951 - 56)

• It was based on Harrod - Domar Model.
• Community Development Program was launched in 1952.
• Two - fold objectives were there :
  
  
  • To correct the disequilibrium in the economy caused by 3 main problems - influx of refugees, severe food shortage and mounting inflation.
  • To initiate a process of all - round balanced development to ensure a rising national income and a steady improvement in living standards.
     
    • Emphasized on Agriculture, Price Stability, Power and Transport.
    • It was more than a success, because of good harvests in the last two Years.
      
      
      Second Five Year Plan of India (1956 - 61)

    • Also called 'Mahalanobis Plan' after its chief architect PC Mahalanobis. It was based on 1928 Soviet Model of Feldman.
    • Its emphasis was on economic stability. Agriculture target fixed in the first plan was almost achieved. Consequently, the agriculture sector got low priority in the second five Year plan.
    • Its objective was Rapid Industrialization, particularly basic and heavy industries such as iron and steel, heavy chemicals like nitrogenous fertilizers, heavy engineering and machine building industry.
    • Besides, the Industrial Policy of 1956 emphasized the role of Public Sector and accepted the establishment of a socialistic pattern of the society as the goal of economic policy.
    • Advocated huge imports which led to emptying of funds leading to foreign loans. It shifted basic emphasis from agriculture to industry far too soon. During this plan, price level increased by 30%, against a decline of 13% during the First Plan.
      
      

    Third Five Year Plan in India (1961 - 66)

    • At its conception time, it was felt that Indian economy has entered a take - off stage. Therefore, its aim was to make India a 'Self - Reliant' and 'Self - Generating' Economy.
    • Also, it was realized from the experience of first two plans that agriculture should be given the top priority to suffice the requirements of export and industry.
    • The other objectives of the plan included the expansion of basic industries, optimum utilization of country's labor power and reducing the inequalities of income and wealth.
    • Relied heavily on foreign aid (IMF).
    • Complete failure due to unforeseen misfortunes, vizard Chinese aggression (1962), Indo - Pak war (1965), severest drought in 100 Years (1965 - 66).
    • Prices increased by 36% in 5 - Years.
    • Hence, third plan failed in every respect.
      
      

    Three Annual Plans (1966 - 69)

    • Plan holiday for 3 Years.
    • The prevailing crisis in agriculture and serious food shortage necessitated the emphasis on agriculture during the Annual Plans.
    • During these plans a whole new agricultural strategy involving wide - spread distribution of High - Yielding Varieties (HYVs) of seeds, the extensive use of fertilizers, exploitation of irrigation potential and soil conservation was put into action to tide - over the crisis in agricultural production.
    • During the Annual Plans, the economy basically absorbed the shocks given during the Third Plan, making way for a planned growth.
      
      

    Fourth Five Year Plan India (1969 - 74)

    • The Fourth Plan set before itself the two principal objectives - growth with stability and progress towards self - reliance.
    • Main emphasis on agriculture's growth rate so that a chain reaction can start.
    • Fared well in the first 2 Years with record production, last 3 Years failure because of poor monsoon.
    • Had to tackle the influx of Bangladeshi refugees before and after 1971 Indo - Pak war.
    • During the planning period, prices increased by about 61%.
      
      

    Fifth Five Year Plan of India (1974 - 79)

    • The Fifth Plan prepared and launched by DD Dhar proposed to achieve two main objectives vizard, 'Removal of Poverty' (Garibi Hatao) and 'Attainment of Self Reliance', through promotion of high rate of growth, better distribution of income and a very significant growth in the domestic rate of savings.
    • National Program of Minimum needs was initiated in which Primary Education, Drinking Water; Medical facilities in rural areas, Nourishing Food, Land for the Houses of Landless Laborers, Rural Roads, Electrification of the Villages and Cleanliness of the dirty suburbs were included.
    • The plan was terminated in 1978 (instead of 1979) when Janta Government, came to power.
      
      

    Rolling Plan in India (1978 - 80)

    • There were 2 Sixth Plans - One by Janta Government (for 78 - 83) which was in operation for 2 Years only and the other by the Congress Government when it returned to power in 1980. The Janta Government Plan is also called 'Rolling Plan'.
    • The focus of the plan was enlargement of the employment potential in agriculture and allied activities, encouragement to household and small industries producing consumer goods for consumption and to raise the incomes of the lowest income classes through minimum needs program.
      
      

    Indian Sixth Five Year Plan (1980 - 85)

    Objectives :

    Increase in National Income, Modernization of Technology, Ensuring continuous decrease in Poverty and Unemployment, Population Control through Family Planning, etc.

    
    

    Seventh Five Year Plan (1985 - 90)

    • The Seventh Plan emphasized policies and programs which aimed at rapid growth in food - grains production, increased employment opportunities and productivity within the framework of basic tenants of planning.
    • It was a great success, the economy recorded 6% growth rate against the targeted 5%.
      
      

    Eighth Five Year Plan of India (1992 - 97)

    • The Eighth Plan was postponed by 2 Years because of political upheavals at the Centre and it was launched after a worsening Balance of Payment (BoP) position inflation during 1990 - 91.
    • The plan undertook various drastic policy measures to combat the bad economic situation and to undertake an annual average growth of 5.6%.
    • Some of the main economic performances during Eighth Plan period were rapid economic growth, high growth of agriculture and allied sector, and manufacturing sector, growth in exports and imports, improvement in trade and current account deficit.
    • The most notable feature of the Eighth Plan period was that the GDP grew at an average rate of 6.8% exceeding the target growth rate of 5.6%.

Harrod-Domar Model

HARROD-DOMAR MODEL


The Harrod-Domar model developed in the 1930s suggests savings provide the funds which are borrowed for investment purposes.


 In the 1940's Roy Harrod (1948) and Evsey Domar (1946) separately developed a macro-dynamic model through an extension of Keyns's theory. The model's original intent was to identify the source of instability in the growth of developed economies where effective denand is normally exceeded by supply capacity. In the 1950's and 1960's this model was applied to economic planning in developed economies.



The basic equation in the Harrod-Domar model is very simple, :
g=s/c (1)


where 
- g is the growth rate of national income 
- s=S/Y is the ratio of saving S to income,Y, 
- c is marginal capital-output ratio



Under the assumption of constant c, g increases proportionally with s. Because s is considered to increase proportionally with income per capita, s is bound to be low and, hence, g will be low in low-income economies if savings and investment are left to private decision in the free market. The model implies, therefore, that the promotion of investment by government planning and command is needed to accelerateeconomic growth in low-income economies. Infact, the Harrod-Domar model provided a framework for economic planning in developing economies, such as India's Five Year Plan.

The Economy's rate of Growth depends on:

- the level of saving and the savings ratio
- the productivity of investment i.e. economy's capital-output ratio


Further Analysis of the Model
The Harrod-Domar model developed in the 1930’s to analyse business cycles. it was later adapted to ‘explain’ economic growth.


- Economic growth depends on the amount of labour and capital i.e. NY = f(K,L)


- Developing countries have an abundant supply of labour. So it is a lack of physical capital that holds back economic growth hence economic development.


- More physical capital generates economic growth. (use Production Possibility Boundaries to illustrate)


- Net investment (i.e. investment over and above that needed to replace worn out capital (deprecation) leads to more producer goods (capital appreciation) which generates higher output and income. Higher income allows higher levels of saving.

Implications of Harrod-Domar Model

Economic growth requires policies that encourage saving and/or generate technological advances, which lower capital-output ratio.

Criticisms of the Model

According to Domer, Domar's purpose was to comment on business cycles, not to derive "an empirically meaningful rate of growth."


- It is difficult to stimulate the desired level of domestic savings


- Meeting a savings gap by borrowing form overseas causes debt repayment problems later.


- Diminishing marginal returns to capital equipment exist so each successive unit of investment is less productive and the capital to output ratio rises.


- The amount of investment is just one factor affecting development eg supply side approach (free up markets); human resource development (education and training)


- Economic growth is a necessary but not sufficient condition for development


- Sector structure of the economy important (i.e. agriculture vs. industry vs. services)

Small Scale Industries : Role in Economy

Small Scale Industries

Small Scale Industries may sound small but actually plays a very important part in the overall growth of an economy. Small Scale Industries can be characterized by the unique feature of labor intensiveness. The total number of people employed in this industry has been calculated to be near about one crore and ninety lakhs in India, the main proponents of Small scale industries.

The importance of this industry increases manifold due to the immense employment generating potential. The countries which are characterized by acute unemployment problem especially put emphasis on the model of Small Scale Industries. It has been observed that India along with the countries in the Indian continent have gone long strides in this field.
 

Advantages associated with Small Scale Industries

• This industry is especially specialized in the production of consumer commodities.
• Small scale industries can be characterized with the special feature of adopting the labor intensive approach for commodity production. As these industries lack capital, so they utilize the labor power for the production of goods. The main advantage of such a process lies in the absorption of the surplus amount of labor in the economy who were not being absorbed by the large and capital intensive industries. This, in turn, helps the system in scaling down the extent of unemployment as well as poverty.
  
  
  
  
• It has been empirically proved all over the world thatSmall Scale Industries are adept in distributing national income in more efficient and equitable manner among the various participants in the process of good production than their medium or larger counterparts.
• Small Scale Industries help the economy in promoting balanced development of industries across all the regions of the economy.
• This industry helps the various sections of the society to hone their skills required for entrepreneurship.
• Small Scale Industries act as an essential medium for the efficient utilization of the skills as well as resources available locally.

Small Scale Industries enjoy a lot of help and encouragement from the government through protecting these industries from the direct competition of the large scale ones, provision of subsidies in the form of capital, lenient tax structure for this industry and many more

Production

The small-scale industries sector plays a vital role in the growth of the country. It contributes almost 40% of the gross industrial value added in the Indian economy.

It has been estimated that a million Rs. of investment in fixed assets in the small scale sector produces 4.62 million worth of goods or services with an approximate value addition of ten percentage points.

The small-scale sector has grown rapidly over the years. The growth rates during the various plan periods have been very impressive. The number of small-scale units has increased from an estimated 0.87 million units in the year 1980-81 to over 3 million in the year 2000.

When the performance of this sector is viewed against the growth in the manufacturing and the industry sector as a whole, it instills confidence in the resilience of the small-scale sector.

Year Target Achievement 1991-92 3.0 3.1 1992-93 5.0 5.6 1993-94 7.0 7.1 1994-95 9.1 10.1 1995-96 9.1 11.4 1996-97 9.1 11.3 1997-98 * 8.43 1998-99 * 7.7 1999-00 * 8.16 2000-01 (P) * 8.90
P-Projected (April-December) * Target not fixed at constant prices

Employment

SSI Sector in India creates largest employment opportunities for the Indian populace, next only to Agriculture. It has been estimated that 100,000 rupees of investment in fixed assets in the small-scale sector generates employment for four persons.

Generation of Employment - Industry Group-wise

Food products industry has ranked first in generating employment, providing employment to 0.48 million persons (13.1%). The next two industry groups were Non-metallic mineral products with employment of 0.45 million persons (12.2%) and Metal products with 0.37 million persons (10.2%).

In Chemicals & chemical products, Machinery parts except Electrical parts, Wood products, Basic Metal Industries, Paper products & printing, Hosiery & garments, Repair services and Rubber & plastic products, the contribution ranged from 9% to 5%, the total contribution by these eight industry groups being 49%.

In all other industries the contribution was less than 5%.

Per unit employment

Per unit employment was the highest (20) in units engaged in beverages, tobacco & tobacco products mainly due to the high employment potential of this industry particularly in Maharashtra, Andhra Pradesh, Rajasthan, Assam and Tamil Nadu.

Next came Cotton textile products (17), Non-metallic mineral products (14.1), Basic metal industries (13.6) and Electrical machinery and parts (11.2.) The lowest figure of 2.4 was in Repair services line.

Per unit employment was the highest (10) in metropolitan areas and lowest (5) in rural areas.

However, in Chemicals & chemical products, Non-metallic mineral products and Basic metal industries per unit employment was higher in rural areas as compared to metropolitan areas/urban areas.

In urban areas highest employment per unit was in Beverages, tobacco products (31 persons) followed by Cotton textile products (18), Basic metal industries (13) and Non-metallic mineral products (12).

Location-wise Employment Distribution - Rural 

Non-metallic products contributed 22.7% to employment generated in rural areas. Food Products accounted for 21.1%, Wood Products and Chemicals and chemical products shared between them 17.5%.

Urban

As for urban areas, Food Products and Metal Products almost equally shared 22.8% of employment. Machinery parts except electrical, Non-metallic mineral products, and Chemicals & chemical products between them accounted for 26.2% of employment.

In metropolitan areas the leading industries were Metal products, Machinery and parts except electrical and Paper products & printing (total share being 33.6%).

State-wise Employment Distribution

Tamil Nadu (14.5%) made the maximum contribution to employment.

This was followed by Maharashtra (9.7%), Uttar Pradesh (9.5%) and West Bengal (8.5%) the total share being 27.7%.

Gujarat (7.6%), Andhra Pradesh (7.5%), Karnataka (6.7%) and Punjab (5.6%) together accounted for another 27.4%.

Per unit employment was high - 17, 16 and 14 respectively - in Nagaland, Sikkim and Dadra & Nagar Haveli.

It was 12 in Maharashtra, Tripura and Delhi.

Madhya Pradesh had the lowest figure of 2. In all other cases it was around the average of 6.

Year Target (lakh nos.) Achievement (lakh nos.) Growth rate 1992-93 128.0 134.06 3.28 1993-94 133.0 139.38 3.28 1994-95 138.6 146.56 5.15 1995-96 144.4 152.61 4.13 1996-97 150.5 160.00 4.88 1997-98 165 167.20 4.50 1998-99 170.1 171.58 2.61 1999-00 175.4 177.3 3.33
P-Provisional

Export

SSI Sector plays a major role in India's present export performance. 45%-50% of the Indian Exports is contributed by SSI Sector. Direct exports from the SSI Sector account for nearly 35% of total exports. Besides direct exports, it is estimated that small-scale industrial units contribute around 15% to exports indirectly. This takes place through merchant exporters, trading houses and export houses. They may also be in the form of export orders from large units or the production of parts and components for use for finished exportable goods.

It would surprise many to know that non-traditional products account for more than 95% of the SSI exports.

The exports from SSI sector have been clocking excellent growth rates in this decade. It has been mostly fuelled by the performance of garments, leather and gems and jewellery units from this sector.

The product groups where the SSI sector dominates in exports, are sports goods, readymade garments, woollen garments and knitwear, plastic products, processed food and leather products.

The SSI sector is reorienting its export strategy towards the new trade regime being ushered in by the WTO.

Year Exports (Rs. Crores) (at current prices) 1994-95 29,068 (14.86) 1995-96 36,470 (25.50) 1996-97 39,249 (7.61) 1997-98 43946 (11.97) 1998-99 48979 (10.2) 1999-00 (P) 53975 (10.2)
P-Provisional

Major Export Markets
An evaluation study has been done by M/s A.C. Nielsen on behalf of Ministry of SSI. As per the findings and recommendations of the said study the major export markets identified having potential to enhance SSIs exports are US, EU and Japan. The potential items of SSIs have been categorised into three broad categories. 

Export Destinations
The Export Destinations of SSI products have been identified for 16 product groups.

Opportunity

The opportunities in the small-scale sector are enormous due to the following factors:

• Less Capital Intensive
• Extensive Promotion & Support by Government
• Reservation for Exclusive Manufacture by small scale sector
• Project Profiles
• Funding - Finance & Subsidies
• Machinery Procurement
• Raw Material Procurement
• Manpower Training
• Technical & Managerial skills
• Tooling & Testing support
• Reservation for Exclusive Purchase by Government
• Export Promotion
• Growth in demand in the domestic market size due to overall economic growth
• Increasing Export Potential for Indian products
• Growth in Requirements for ancillary units due to the increase in number of greenfield units coming up in the large scale sector. Small industry sector has performed exceedingly well and enabled our country to achieve a wide measure of industrial growth and diversification.

By its less capital intensive and high labour absorption nature, SSI sector has made significant contributions to employment generation and also to rural industrialisation. This sector is ideally suited to build on the strengths of our traditional skills and knowledge, by infusion of technologies, capital and innovative marketing practices. This is the opportune time to set up projects in the small-scale sector. It may be said that the outlook is positive, indeed promising, given some safeguards. This expectation is based on an essential feature of the Indian industry and the demand structures. The diversity in production systems and demand structures will ensure long term co-existence of many layers of demand for consumer products / technologies / processes. There will be flourishing and well grounded markets for the same product/process, differentiated by quality, value added and sophistication. This characteristic of the Indian economy will allow complementary existence for various diverse types of units. The promotional and protective policies of the Govt. have ensured the presence of this sector in an astonishing range of products, particularly in consumer goods. However, the bugbear of the sector has been the inadequacies in capital, technology and marketing. The process of liberalisation coupled with Government support will therefore, attract the infusion of just these things in the sector.

Small industry sector has performed exceedingly well and enabled our country to achieve a wide measure of industrial growth and diversification.

By its less capital intensive and high labour absorbtion nature, SSI sector has made significant contributions to employment generation and also to rural industrialisation. This sector is ideally suited to build on the strengths of our traditional skills and knowledge, by infusion of technologies, capital and innovative marketing practices. So this is the opportune time to set up projects in the small scale sector. It may be said that the outlook is positive, indeed promising, given some safeguards. This expectation is based on an essential feature of the Indian industry and the demand structures. The diversity in production systems and demand structures will ensure long term co-existence of many layers of demand for consumer products / technologies / processes. There will be flourishing and well grounded markets for the same product/process, differentiated by quality, value added and sophistication. This characteristic of the Indian economy will allow complementary existence for various diverse types of units. The promotional and protective policies of the Govt. have ensured the presence of this sector in an astonishing range of products, particularly in consumer goods. However, the bug bear of the sector has been the inadequacies in capital, technology and marketing. The process of liberalisation will therefore, attract the infusion of just these things in the sector.