Question : GROWTH OF SSIS

(a) the growth rate registered during the first three quarters of the current financial year i.e. 2003-2004 in the small scale industries;

(b) the extent to which this growth rate compares to the last year;

(c) whether the small scale sector has registered any decline during this period;

(d) if so, the reasons therefor;

(e) the number of items included in the small scale sector and number of items proposed to be included; and

(f) the steps taken/being taken by the Government to strengthen small scale sector?

MINISTER OF SMALL SCALE INDUSTRIES AND MINISTER OF DEVELOPMENT OF NORTH EASTERN REGION ( DR. C. P. THAKUR )

(a) to (f): A Statement is laid on the Table of the House.

STATEMENT REFERRED TO IN THE REPLY TO PARTS (a) TO (f) IN RESPECT OF THE LOK SABHA STARRED QUESTION NO. 13 FOR REPLY ON 2nd DECEMBER, 2003.

(a) to (d): As there is time lag of six to nine months in the availability of data on Small Scale Industries, the estimated rate of growth registered during first three quarters of the current financial year is not available. However, there has been increase in the growth rate in 2002-03 as compared to the previous year i.e., 2001-02. The estimated rate of growth for 2002-03 is 7.68 percent as against 6.08 percent in 2001-02.

(e): Perhaps the reference is to reserved items in the SSI Sector. Out of over 7500 items produced in the SSI Sector, 675 items are currently reserved for exclusive manufacture in small scale sector. Any addition or deletion in the list is made only on the recommendations of the Advisory Committee constituted under IDR Act, 1951 and after consultation with the stakeholders. There is no proposal at present to make any addition in the list.

(f): While development of SSIs is primarily the responsibility of the State/UT Governments, the Central Government has taken several steps for promoting and strengthening of SSI Sector by implementing various schemes such as Integrated Infrastructure Development, technology upgradation, marketing and entrepreneurial development etc. In addition, on 30th August 2000, the Prime Minister announced a Comprehensive Policy Package for the promotion and development of Small Scale Sector to enhance its competitiveness, both domestically and globally. The policy package consists of enhanced fiscal and credit supports, better infrastructure and marketing facilities and incentives for technology upgradation. Because of these efforts, the SSI Sector has demonstrated the resilience to withstand the competition as it has recorded a rate of growth, which is higher than the overall industrial growth.