Chapter-1 Introduction
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- Table 6.4: Unequal Distribution of population in rural India
- Source
- Table 6.5: Potentials of Various RNFS activities in Uttarakhand
- Warehouses Rural Artisans Miscell-aneous
- Table 6.6: Major reasons reported by sick/ incipient sick units
- (Table: 6.7)
- 100.00 Total
- (Fourth Census)
Other problems-The rural population in India is highly scattered and unorganized. There are about 641000 inhabited villages in India having different size of population out of which only 3961 villages having more than 10000 persons. Because of the scattered rural population over a large area and in remote and isolated parts, rural areas tend to be the last to be provided with essential basic infrastructure and services which affects the rural industries in those areas. Besides this organizing and institutionalizing the activities of scattered rural population and providing them work on a regular basis is really challenging task for the Government. Either work is to be provided by the MSMEs to them to be done at their residence or industries are to be started in those rural areas in order to bring them into an organized entity. Some of the efforts undertaken by the Government in this regard have not made any perceivable impact on the employment generation in rural India. Employment is still casual and scattered. Table 6.4: Unequal Distribution of population in rural India
Source: Census of India 2001 This condition is more severe in Uttarakhand where 84% of the total villages are having population less than 500 as compared to only 0.52% of the villages with population more than 2000. Apart from this very few entrepreneurs located at scattered places, the rural non-farm units are virtually absent in all the districts. Moreover the potentials of every district in the state vary due to which a uniform policy cannot work out in the whole state. Even though the policy initiative of the State Government has been quite encouraging, but the lack of general utility services has been cited as the main stumbling blocks on the path of progress of these units. Table 6.5: Potentials of Various RNFS activities in Uttarakhand
Source: SFP NABARD 2012-13 Moreover political unrests (leading to frequent hartals, strikes, blockage etc.) are also creating obstacles for SMEs. The inefficiency and corruption of government officials, lack of responsible behavior of the opposition often lead to political unrest and thus creates huge problem for the manufacturing sector. Due to all the mentioned problems MSMEs are becoming more vulnerable to changes in adverse market conditions as they do not have deep pockets to sustain their operations for long eventually resulting as sick units. MSMEs are worst hit by economic slowdown and sluggish demand and falling sick due to one problem or the other. According to Fourth Census there were 58411 sick; 60556 incipient; and 101536 sick/ incipient units in India out of which 93%, 95%, and 94% were micro units respectively.
Source: Fourth Census Besides this Indian SMEs fails to utilize the total installed capacity within their organization. It is expected that the duration of operation is 12 months×26 days. But unfortunately, only 83% of the units in the total SMEs operated for 9 months or more but remaining units can't work long duration in the year (Table: 6.7). Table 6.7: Operational Duration of Indian SMEs in months
Source: Industrial Depression and Problems of SMEs in India (http://www.saching.com) In India many SMEs are closed due to the low utilization of installed capacity. About 30% MSMEs were non-working in India (22% closed; 8% non-working /non-traceable) whereas in Uttarakhand, about 30.92% MSMEs were non-working (23.89% closed; 7.03% non working/non-traceable). (Fourth Census) To conclude, major constraints faced by SMEs in India is "Power" - Man Power, Electric Power, Money Power, Purchasing Power and Political Power. All these above mentioned problems continue to exist for generations together. Until a solution is sort out, MSMEs could not generate the expected results and contribute significantly to our economy. Therefore it needs to be emphasized that with increasing competition, MSMEs will have to continuously incorporate the latest technology into their production processes and upgrade their knowledge about global product and quality standards, technical standards, WTO, IPR, marketing support and strategies, sources of finance, entrepreneurial and managerial competence etc. The Government, Industry Associations, Chambers of Commerce, Development Agencies especially NABARD need to work in a concerted manner towards capacity building of Indian MSMEs in all these areas. -------:0:------- Directory: bitstream -> 10603 10603 -> A mathematical theory of communication bitstream -> Methodism and Culture bitstream -> Review of coastal ecosystem management to improve the health and resilience of the Great Barrier Reef World Heritage Area 10603 -> Present state of the area 10603 -> Marine Pollution And Its Effects on Global Environment 10603 -> Introduction chapter I introduction 10603 -> References 10603 -> Bibliography Abd El Halim 10603 -> A thesis submitted to sambalpur university for award of Download 1.67 Mb. Share with your friends:
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