The Role of Five-Year Plans in the development of SSIs

Small Scale Industry (SSI) is considered more important by the Government of India and given priority sector, since it paves way for rapid industrialisation in the country. Small Scale industry (SSI) is a precondition for balanced growth of the economy of the country like India. Government of India promotes the development of Small Scale Industry by considering it as one of the indicators for the economic development of the country. SSI encourages production activities, generation of employment opportunities and increased export earnings as well. Government supports the Small Scale Industries through
various promotional schemes and financial aid through various private and commercial banks and financial institutions. Different types of committees were formed for the development of SSIs and considerable financial support is given in various five-year plans. Despite promotion and financial supports from the government many Small Scale Industries are facing the problem of finance and many banks experiencing increase in Non-Performing Assets (NPA). To overcome these issues several debt recovery mechanisms must be strengthened and financial support should be given to Small Scale Industries by following insistent assessment methods. This research article incorporates the general picture of five year plans from first five year plan to twelfth five year plan.