Small Scale Industry In India

881 Words4 Pages
PROBLEM OF LABOUR TURNOVER IN SMALL SCALE INDUSTERY- A STUDY

Simran Kaur
Research Scholar, Singhania Univeristy Rajasthan

Abstract
Small scale industries play a very vital role in the development of economy. They are a vital segment of Indian economy in terms of their contribution towards country 's industrial production, exports, employment and creation of an entrepreneurial base. These industries by and large represent a stage in economic transition from traditional to modern technology. But now this sector is facing labour turnover problem. The retention is very difficult without job satisfaction and motivation. The present study is an attempt to highlight the problem of retention of employees and to make suggestions to overcome this
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A small scale industry (SSI) is an industrial undertaking in which the investment in fixed assets in plant & machinery, whether held on ownership term or on lease or hire purchase, does not exceed Rs. 1Crore. However, this investment limit is varied by the Government from time to time. In a developing country like India, Small Scale Industries play a significant role in economic development of the country. They are a vital segment of Indian economy in terms of their contribution towards country 's industrial production, exports, employment and creation of an entrepreneurial base. According to report, they contribute to the tune of 45 per cent to the total industrial output and 40 per cent to the total exports of industrial products to various countries of the world. In India also SSI employed 42 million people and creates a million of jobs every year. These industries by and large represent a stage in economic transition from traditional to modern technology. Small industry plays a very important role in widening the base of entrepreneurship. The development of small industries offers an easy and effective means of achieving broad based ownership of industry, the diffusion of enterprise and initiative in the industrial…show more content…
The economic development achieved by many developed countries can be linked directly to the growth of this sector. In India, the small-scale industrial sector has registered rapid growth. In view of the importance of small-scale industrial sector, the growth and development has attracted a good deal of academic attention.
Jamuar (1992) in his study discusses the development of small-scale and cottage Industry in India and the role of small-scale Industry in India, the present position and problems of small-scale Industry with special references to Industrial sickness, government policy and measures to develop small-scale and cottage Industry and new Industrial policy on small-scale and cottage Industry. Venugopal (1993) observed that Governmental agencies set up for promoting village and cottage Industries are inactive and their performance is below the level of expectations. He argues that the survival of village and cottage industries depends on their ability to become competitive. Their efforts should be to reduce cost and improve quality through technological up
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