Rural development

Developing India
The economic gap between the urban and the rural sector is increasing exponentially .Success stories of fresh economic trends such as micro financing and increase in number of tiny industries in the rural sectors suggest that there is a huge untouched market at the foundation of the economic pyramid .
The rural and cottage industries which constitute the indigenous sector of our industries are spread through out the length and breadth of our country. Various designs to sustain, modernize and further develop these industries are being taken today .Small scale industry is playing a pivotal role for in balancing the regional economic development. It contributes almost 40% of the gross industrial value added in the Indian economy.
It has been projected 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 most important advantage of tiny industries is that it generates employment in the rural sector which reduces the migration of youth to urban area in hunt for bread and butter. Non-metallic products contributed 22.7% to employment generated in rural areas. Food Products account for 21.1%, Wood Products and Chemicals and chemical products share between them 17.5%.
Prospect in tiny industries
Government of India is trying to all possible methods to create favorable environment for tiny industries. Below are listed few of the initiatives
• Less Capital demanding
• Widespread Promotion & Support by Government
• Reservation for restricted Manufacture by small scale sector
• Plan 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 subsidiary 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.
Thus we see that this is the right time to tap the opportunities in the tiny industry sector. In fact Karnataka boasts of a number of motivational success stories of rural entrepreneurship
Small Industries Service Institute, Bangalore with its Branch Office at Mangalore, looks after the needs of existing/prospective entrepreneurs in the small scale sector in 13 districts out of 20 districts of the State of Karnataka.
Workshops and laboratories attached to SISI, and Branch Institute provide common facility services to small scale units in different trades viz. general engineering works, chemical, leather, electrical and electronics.
Seminars and workshops are organized in regular intervals in order to educate the entrepreneurs about existing demand of products and changing trends of economy. The rural sector has to be made aware of the policies framed for their benefits.
Even technical training required for skill development courses are conducted in the fields like synthetic detergents, screen printing, incense stick making, soldering techniques and blue print reading, machinist, Chemical laboratory rendered product development services to 39 entrepreneurs and many of them have started their units. Product development on office paste, floor cleaner, synthetic camphor, kumkum powder, red oxide, metal paste, primer rubber milk adhesive, toilet cleaner was done on specific request of entrepreneurs in the chemical laboratory. Manufacture of small transformers, plastic toys, hosiery knitting, etc is provided by skilled technicians.
Silk rearing in Sidlaghatta. (Karnataka)


Home based agarbatti making industries in ULLAL. (Karnataka)

Proper guidance through consultancies and experts has helped these industries to formulate a concrete growth plan. Consultancy services rendered

The Institute provided consultancy services in different fields at different levels to existing and prospective entrepreneurs during the year 1998-99 as under:
S. No. Type of assistance At unit premises At SISI
Br. SISI Through correspondence Total
1. Technical 313 5020 728 7061
2. Managerial 15 1055 70 1140
3. Economic & Statistical 80 1600 60 1740
4. Assistance to start new industries 30 4294 142 4466
Total 438 11969 900 14407

Problems encountered by tiny industries.
Though the government is doing a lot to promote these industries a mammoth work has still to be done for modernization and up gradation of this sector.
Marketing of the products manufactured is most important. Proper showcase of the goods fetches good price .The government should organize special trade fairs where this sector can exhibit there merchandise and get further business.
Export of the products will help to bring giant buyers to the local market. The small businessmen should be made aware of the export policies and government should train these people to make there goods of international standards’ very good example of this is the manufacturing hub of China which changed the face of China’s economy for ever.
Infrastructure of the rural areas must be improved .Geographical barriers should be overcome so that the buyer can reach the rustic countryside. The tiny industries product sales should not be restricted to the local market .proper roads, transportation services, power supply etc must be provided so that this industry can grow.
Procurement of raw material must be made simpler .the government should strive to provide this sector the raw materials in subsidized rates. It can be done through cooperative societies or the village panchayats.Good quality raw material should be provided so that the quality of the product is not compromised with.
Financial assistance is the founding stone for rural sector .the concept of micro financing has benefited the tiny industries. Banks should give loans directly to the entrepreneurs so that they do have to borrow money from the greedy loan sharks who give money on high interest rates.
Market survey, quality improvement and strategy development is very essential for the survival of this unorganized sector. The government should from time to time educate the people about the evolution of the demands of the markets so that this sector should not suffer due to lack of knowledge.
Thus we see that while many rural areas continue to experience depopulation and economic decline, others are facing rapid in-migration, as well as employment and income growth. Much of this growth is due to the presence and use of amenity resources, broadly defined as qualities of a region that make it an attractive place to live and work. The government should try its best to support this so that India can spearhead its growth to become a developed nation from a developing one.