Small Scale Industries.

Project Report-Small Scale Industries

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SMALL
SCALE
INDUSTRIES

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INTRODUCTION
India is predominantly an agricultural country. Apart from agriculture, small scale & large scale
industries have been also developed. Small scale industries are the backbone of our industrial
structure as they provide a variety of non-traditional, low technology products. They are also
engaged in the processing, preserving, manufacturing & servicing activities and play a vital role
in balanced and sustainable economic growth. Thus, a proper development of small scale
industries is essential for the healthy growth of economy.
Small scale industries (SSI) are those industries in which manufacturing, providing
services, productions are done on a small scale or micro scale. For example, these are the ideas of
Small scale industries: Napkins, tissues, chocolates, toothpick, water bottles, small toys, papers,
pens. Small scale industries play an important role in social and economic development of India.
These industries do a one-time investment in machinery, plants, and industries which could be on
an ownership basis, hire purchase or lease basis. But it does not exceed Rs. 1 Crore.
Essentially small scale industries comprise of small enterprises who manufacture goods or
services with the help of relatively smaller machines and a few workers and employees. Basically,
the enterprise must fall under the guidelines set by the Government of India. At the time being such
limits are as follows,
 For Manufacturing Units for Goods: Investment in plant and machinery must be between 25
lakhs and five crores.
 For Service Providers: Investment in machinery must be between 10 lakhs and two crores.
In developing countries like India, these small scale industries are the lifeline of the economy.
These are generally labour-intensive industries, so they create much employment. They also help
with per capita income and resource utilization in the economy. They are a very important sector of
the economy from a financial and social point of view.
The primary object of developing small scale industries in rural areas is to generate better
employment opportunities, raise income levels & standards of living of people. Small scale
industries are essential for providing subsidiary or alternate occupations and utilization of
local labour & raw materials. They facilitate an effective mobilization of resources of capital
and skill and also stimulate the growth of industrial entrepreneurship. Thus, the development

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of small scale industries is an integral part of the overall economic, social and industrial
development of a country.

CLASSIFICATION OF INDUSTRIES
The earlier concept of Industries has been changed to Enterprises. Enterprises have
been classified broadly into two Categories as under:
1. Manufacturing Enterprises:
The enterprises engaged in the manufacture or production of goods pertaining to
any industry specified in the first schedule to the industries or employing plant and
machinery in the process of value addition to the final product having a distinct
name or character or use are referred to as “Manufacturing Industries”. The
Manufacturing Enterprise are defined in terms of investment in Plant & Machinery
and are further classified into three categories such as:
a) Micro Enterprises- An Enterprise where Investment on plant and machinery is
upto Rs.25 Lakh is referred to a “Micro Enterprises”.
b) Small Enterprises- They are those enterprises where the investment on Plant
and Machinery is above Rs.25 Lakh and is upto Rs.5 Crore is referred to as “Small
Enterprises”.
c) Medium Enterprises- The enterprises where the investment on Plant and
Machinery is above Rs.5Crore and is upto Rs.10 Crore is referred to as “Medium
Enterprises”.

2. Service Enterprises:
The enterprises engaged in providing or rendering of services and are defined in
terms of investment in equipment are referred to as “Service Enterprises”. They
have been defined in terms of their Investment in Equipment and are further
classified into Three categories as under:
a) Micro Enterprises: An Enterprise where the Investment in Equipment is upto
Rs.10Lakh is referred to as ‘Micro Enterprise’.
b) Small Enterprises: An Enterprise where the investment in Equipments is above
rs.10Lakh and upto Rs.2Crore is referred to as ‘Small Enterprises’.
c) Medium Enterprises: An Enterprise where the investment in Equipment is
above Rs.2Crore and upto Rs.5Crore is referred to as ‘Medium Enterprises’.

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OBJECTIVES OF SMALL SCALE INDUSTRIES

The objectives of small scale industries are:
1. To create more employment opportunities with less investment.
2. To remove economic backwardness of rural and less developed regions of the
economy.
3. To reduce regional imbalances.
4. To mobilize and ensure optimum utilization of unexploited resources of the country.
5. To improve standard of living of people.
6. To ensure equitable distribution of income and wealth.
7. To solve unemployment problem.
8. To attain self-reliance.
9. To adopt latest technology aimed at producing better quality products at lower costs.
10. To help earn vital Foreign Exchange for the country through Exports of Goods and
Services of Small Enterprises.
EXAMPLES OF SMALL SCALE UNITS
There are about twenty-one major industry groups in the small scale sector. These are
listed below :
1. Food Products
2. Chemical & Chemical Products
3. Basic Metal Industries
4. Metal Products
5. Electrical Machinery & Parts
6. Rubber & Plastic Products
7. Machinery & Parts Except Electrical goods

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8. Hosiery & Garments - Wood Products
9. Non-metallic Mineral Products
10. Paper Products & Printing
11. Transport Equipments & Parts
12. Leather & Leather Products
13. Miscellaneous Manufacturing Industries
14. Other Services & Products
15. Beverages, Tobacco & Tobacco Products
16. Repair Services

17. Cotton Textiles
18. Wool, Silk, Synthetic Fiber Textiles
19. Jute, Hemp and Mesta Textiles
20. Other Services
A survey of indices of industrial production (IIP) maintained for these major
industry groups reveals what the sunrise industries are and on what segments the sun
has set. SSI units produce an amazing variety and type of products. Over 7500 products
are known to be manufactured in this sector. Even in a particular product, there would
exist a wide range of qualities or specifications catering to different market segments,
particularly in consumer/household products.
CHARACTERISTICS OF SMALL SCALE INDUSTRIES
Following are the characteristics of small-scale industries:
1. Labour intensive:
Small-scale industries are fairly labour-intensive. They provide an economic solution
by creating employment opportunities in urban and rural areas at a relatively low cost
of capital investment.

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2. Flexibility:
Small-scale industries are flexible in their operation. They adopt quickly to various
factors that play a large part in daily management. Their flexibility makes them best
suited to constantly changing environment.
3. One-man show:
A small-scale unit is generally a one-man show. It is mostly set up by individuals.
Even some small units are run by partnership firm or company, the activities are
mainly carried out by one of the partners or directors. Therefore,’ they provide an
outlet for expression of the entrepreneurial spirit. As they are their own boss, the
decision making process is fast and at times more innovative.
4. Use of indigenous raw materials:
Small-scale industries use indigenous raw materials and promote intermediate and
capital goods. They contribute to faster balanced economic growth in a transitional
economy through decentralization and dispersal of industries in the local areas.
5. Localized operation:
Small-scale industries generally restrict their operation to local areas in order to meet
the local and regional demands of the people. They cannot enlarge their business
activities due to limited resources.

6. Lesser gestation period:
Gestation period is the period after which the return or investment starts. It is the time
period between setting the units and commencement ol production. Small-scale
industries usually have a lesser gestation period than large industries. This helps the

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entrepreneur to earn after a short period of time. Capital will not be blocked for a
longer period.
7. Educational level:
The educational level of the employees of small industries is normally low or
moderate. Hardly there is any need of specialized knowledge and skill to operate and
manage the SSI.
8. Profit motive:
The owners of small industries are too much profit conscious. They always try to keep
high margins in their pricing. This is one of the reason for which the unit may lead to
closure.
ROLE AND IMPORTANCE OF SMALL SCALE INDUS TRY IN INDIA
In a developing country like India, the role and importance of small-scale industries
is very significant towards poverty eradication, employment generation, rural
development and creating regional balance in promotion and growth of various
development activities. Small Scale Industries (SSIs) occupy an important place in the
country’s economy. About 60 to 70 percent of the total innovations in India comes
from the SSIs.
It is estimated that this sector has been contributing about 40% of the gross value of
output produced in the manufacturing sector and the generation of employment by the
small-scale sector is more than five times to that of the large-scale sector. This clearly
shows the importance of small-scale industries in the economic development of the
country. The small-scale industry have been playing an important role in the growth
process of Indian economy since independence in spite of stiff competition from the
large sector and not very encouraging support from the government.

The following are some of the important role played by small- scale industries in India.

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1. Employment Potential:
Small-scale industries are labour intensive. A given amount of capital invested in
small-scale industrial undertakings is likely to provide more employment. at least
in the short run, then the same amount of capital invested in large-scale
undertakings. The Encouragement of small-scale industries would serve to
counteract the seasonal unemployment in agriculture and Thus to utilize labour
which might otherwise go to waste. These industries offer limitless opportunities
for self-employment. It is these self-employed persons who are the backbone of
the nation.Every effort must be made to strengthen the position of these proud
and self-reliant persons in the country’s economy.
2. Less Capital Requirement:
Small-scale industries are the capital-light example they need a relatively smaller
amount of capital than that required by large-scale industries. Thus, one of the
great advantages of small-scale industries is that they make possible economies
in the use of capital.As capital is very scarce in under-developed countries. It May
be used to Greater advantage in the early stages of development if it is used to
expand transport and other public utilities, irrigation, and other agricultural
requirements and those forms of large-scale industry where the advantages
outstandingly great.

3. Latent Resources:
Small-scale industries will fall into being capital that would not otherwise have
come into existence.The spreading of small-scale industries over the countryside
would encourage the habits of thrift and investment in rural areas.Moreover, the
enterprising small manufacturer has to scrape together capital where the can
find it. He often manages to get it from relatives and friends.This capital probably
would never have come into existence is productive capital had it not been for
the small Enterprises
4. Skill Light:
Another attraction of small-scale industries lies in their being skill light a large
scale industry calls for a great deal of Management and supervisory skill foremen,

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engineers, Accountants, and so on. Like capital, these skills are also in very short
supply in our country, and it is important to economies as much as possible in
their use.Small-scale industries provide a way of doing this and at the same time
provides industrial experience and serves as a training ground for a large
number of small-scale industries managers, at least some of whom develop the
capacity for managing large-scale undertakings.

5. Use of Local Resources:

Small-scale industries are importing light like they used a relatively low
proportion of imported equipment and materials as compared with the total
amount of capital used in them. Large-scale industries, on the other hand, require
huge imports in the form of equipment and materials, upsetting the country’s
Balance of payments thereby. A low import intensity in the capital structure of
the small-scale industries reduces the need for foreign capital or foreign
exchange earnings. Thus, obviates Balance of payments difficulties later and
currently retains within the country large part of whatever induced effects may
materialize.

6. Quick Production:
Small-scale industries are the “quick investment type” like, those in which the
time required between the investment of capital and the start of the flow of
goods produced is relatively short.In a developing economy with strong
inflationary pressure and need for a rapid rise in the living standards, the
importance of such quick investment type Industries can hardly be
exaggerated.The anti-inflationary requirements and the requirements of
development are often in conflict but a compromise can be found in the small-
scale industries which have a high fruition coefficient and also a short fruition
lag.
7. Decentralization

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The development of small-scale industries will being about
the decentralization of industries and will thus, promote the object of Balanced
regional development. A major drawback in the industrial structure of our
country is that the regional distribution of industries is exceedingly uneven. On
the other hand, there is a misappropriate net growth of large-scale industries in a
few areas.


8. Equitable Distribution

Small-scale industries and cottage industries have the additional advantage that
small-scale industries they secure a more even distribution of income and
wealth.The development of large-scale industries tends to concentrate large
income and wealth in a few hands, which is undesirable from the social point of
view, in that they involve exploitation of Man by man.They also create vested
interested which put obstacles in the way of the economy marching towards its
goal of socialistic pattern of society.
9. Mobility of Labour:
By carrying the job to the worker, small-scale industries can overcome the
difficulties of terrestrial immobility. Moreover, unlike large Industries small-scale
industries do not create problems of slum housing, health, and sanitation, etc.
and the attendant disease, misery, and squalor.
10. Support of Large-Scale Industries:
Another highly useful role of small-scale industries in developed and
underdeveloped countries is the great support that the development of large-
scale industries can obtain from small-scale industries.
This is possible in the following ways:

(1). Small-scale industries may manufacturer small parts like cycle parts, which
may letter be assembled by the large Industries.

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(2). The large-scale industry may produce semi-finished goods which may lead to
being made into several types of finished goods in small-scale industries setups,
such as agricultural implements and cutlery from iron and steel, household
utensils from sheet metals.
11. Reduction of Dependence on Agriculture:
The growth of Cottage and small-scale industries will divert surplus labour from
our overburdened agriculture and thus bring about a more desirable
occupational distribution.

12. Relieving Congestion in Urban Areas:
By providing remunerative employment in the rural areas, these Industries will
relieve congestion in overcrowded urban centers.
13. Sustaining Green Revolution:
Small-scale industries can help sustain the green revolution in the countryside
mainly through the development of agro-based industries and services, such as
the production of farm implements and equipment for food processing
industries and Agricultural Machinery repair and service workshops. Besides,
the expansion of rural income as a result of the green revolution is expected to
boost the consumer demand for sophisticated items such as radios, TV sets,
transistors, cycles, sewing machines and cosmetics, which the small-scale
industries can conveniently meet.
14. Foreign Exchange Earning:
From the point of Balance of payments, small-scale industries are justified on two
Grounds. One, they do not require much foreign exchange resources for their
establishment and to that extent place almost no extra burden on the balance of
payment, position.Two, small-scale industries can contribute to the foreign

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exchange Kitty of the country by adding to exports.These industries are
exporting traditional as well as non-traditional items.
15. Production of Consumer Goods:
Small-scale industries, predominantly producers of consumer goods, have a key
place in the process of development. The industrialization of the country, with
emphasis on heavy industries, requires large capital investment, living little for
large and consumer goods industries. In the process of industrialization, when
the income increases the demand for consumer goods also increases. If the
supply of consumer goods does not exist as it leads to price rise, which will thus
not only lower the standard of living of the poor workers but will also jeopardize
the very process of growth.

16. Political and Social Advantages:
Small-scale industries can help in awakening the powerful dormant forces among
masses for use in constructive activities. The freedom of work, self-reliance, self-
confidence, enthusiasm to achieve, and all such traits of a healthy Nation can be
built around the material activities performed in these industries.
17. Preservation of Inherited Skill:
Small-scale industries were helpful in the preservation of the inherited skill of
our artisans which would otherwise languish and disappear.A great many people
in villages and small towns will be saved from the mechanical, monotonous and
robot-like life associated with big industrial cities.These non-economic factors
cannot be concretized into cold statistics. In fact, these are the essence of life.
DEVELOPMENT OF SMALL SCALE INDUSTRIES IN INDIA
Making the best use of the natural resources by employing high order of skilled and
artistic talents through traditional handicrafts, India has occupied a 4 permanent place
of pride in the world. Before Industrial Revolution, the advent of modern large scale
mechanized industry, imposition of restrictions on Indian trade by the British rulers
and deteriorating socio-economic conditions led to the decline of small scale industry.
But with the provision of permanent place in the nation's policy of economic

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development after the attainment of Independence, it has stayed a grand recovery and
is now well entrenched on the path of progress towards great expansion. A brief
review of progress of small sector before and after Independence is presented below:
Pre – Independence
Cottage and small scale industries had flourished in India in early times. They were the
principal sources of income and employment, and their products were noted for their
excellence and artistic skill. At a time when the West Europe, the birth place of modern
industrial system, was inhabited by uncivilised tribes, India was known for the wealth
of her rules and for the high artistic skill of her craftsmen. Prof. Weber wrote the skill
of the Indians in the production of delicate woven fabrics, in the mixing of colours, the
working of metals and precious stones, the preparation of essences and in all manners
of technical arts has, from very early times, enjoyed a world-wide celebrity. Ages ago,
Muslims of Dacca were famous, throughout the civilised world, for textile fabrics of
inimitable fineness, tapestry glittering with gold gems, rich embroideries and brocades,
carpets wonderful for the most brilliant hue, furniture most elaborately carved, swords
of forms and excellent temper are among the objects that prove the perfection of art in
India. These observations signify the glory and prominence of the products of cottage
and small scale industries.
The decay of these industries has been accelerated after the advent of the British
though the seed was sown during the Mughal period itself. The important factors
which worked towards this situation are presented below.
a. With the disappearance of the native courts during Mughal period, the cottage and
small industries lost their patronage.
b. The influx of many foreign influences resulted in the decline in the demand for
home-made goods.
c. The competition from machine-made goods of the British industries resulted in the
fall in the demand for the Indian goods.
d. Due to the discouraging policy of the East India Company, the Indian artisans were
forced to work in the work-shops of companies for their livelihood as they could not
find adequate demand for.their home- made goods.

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e. Failure of the artisans to adjust to the changing condition resulted in the high cost of
production of their products and therefore, they were not in a position to compete with
the machine-made goods of the British industries.
In spite of these discouraging factors, some of the cottage and small industries have
shown remarkable progress and have survived the British rule. 6 Because, Indian
agriculturists needed some supplementary occupation to utilise their idle time and to
augment their low earnings. The cottage and small industries provided supplementary
occupation for the idle agriculturists during the off-season. Therefore, a large number
of repair services of different types that have followed in the wake of large scale
industries are indeed carried on in small establishments in the vicinity of larger
industries. Further, the Indian artisan is by nature home-living and conservative. This
nature of the workers viz., illiteracy and poverty, lack of alternative means of
employment, the socio-religious and religion factors, etc., have forced them to stick to
their age-old ancestral profession.
Post-Independence Scenario
The Government of India which realised the socio-economic significance and the role of small scale
industries has initiated several positive measures for their development. "The Industrial Policy
pronouncements, the progressive allocations made in the Five-Year Plans, the establishment of different
promoting and supporting organisations and the nationalisation of commercial banks reflect the spirit and
effort of the government towards the creation of conducive environment and climate for the working and
growth of small scale industries". In fact, the performance and progress achieved by the small scale sector
are the result of various measures initiated by the government for then growth and efficient working.
INDUSTRIAL POLICY AN D SMALL SCALE INDUST RIES
The small industries have a specific role to play and it was underlined by the Industrial Policy, 1948
which stated that cottage and small scale industries are particularly suited for better utilisation of local
resources and for the achievement of local self sufficiency in respect of certain types of essential goods. The
government announced its second Industrial Policy in 1956 replacing the first Industrial Policy Resolution
of 1948. The New Industrial Policy Statement of 1956 made it very clear that small scale industries provide
immediate large scale employment, offer a method of ensuring a more equitable distribution of national
income and facilitate an effective mobilisation of resources of capital and skill which might otherwise
remain unutilized.
When the Congress Party re-captured the power at the centre in 1980, it announced a New Industrial
Policy in July 1980 and the government felt that the industrialization is the indicator of economic progress.
The New Industrial Policy Statement, 1991 which was announced in July 1991 observed that the small scale
industrial sector has emerged as a dynamic and vibrant sector of the economy during the eighties. At the end

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of the Seventh Plan period, it accounted for nearly 35 per cent of the gross value of output in the
manufacturing sector and over 40 per cent "of the total exports from the country. It also provided
employment opportunities to around 12 million people. The main features of this New Policy of 1991 are
summarised below.
Government of India has announced the increase in the investment limits in plant and machinery for
small scale, ancillary and export - oriented units to Rs. 60 lakh, Rs. 75 lakh and Rs. 75 lakh respectively.
Now, investment ceiling on plant and machinery is increased to Rs. 100 lakh.
SMALL SCALE INDUSTRI ES AND THE FIVE-YEAR PLANS
 To protect the small scale sector, the First Five - Year Plan (1951-56) recommended
common production programme. This was to ensure that while both large and small
units make their contributions to the total requirement of the community, the small
units would fulfil the targets set for them.
 The Second Five-Year Plan (1956-61) gave prominence to heavy and basic
industries. However, it did not neglect the small industries or producers. In fact, the
basic philosophy of the Plan was not only to encourage small industries but also to
establish an economic order with the small producers at the centre.
 The Third Five-Year Plan (1961-66) aimed at greater diversification of the
production in the small sector and a closer integration between the large and small
sectors in specified items. Another scheme of the Plan was to reserve certain items
exclusively for production in the small sector.
 The Fourth Five-Year Plan (1969-74) accepted the Policy of Decentralised Growth
of Industries. In July 1969, fourteen major commercial banks in the country were
nationalised and this has helped to accelerate the flow of funds from the Banks to the
small sector.
 The Fifth Five-Year Plan (1974-79) opened a new chapter by laying emphasis on the
removal of poverty by provision of many self-employment schemes through cottage
and small scale industries which received their due share in the Plan allocation.
 During the Sixth-Five Year Plan (1980-85), the programmes for the village and small
industries sector were designed to sub-serve many objectives such as Improvement in
the levels of production capacity particularly of the artisans through measures like
upgradation of skills and technologies and producer oriented marketing, etc.,

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 During the Seventh Five-Year Plan (1985-90) period, added emphasis was given to
industrial development strategy based on adequate infrastructure development
incorporating the growth centre concept and nucleus plant approach together with
appropriate ancillarization. This approach aimed at dispersing industries away from
urban concentration resulting in job opportunities in the rural areas nearer home.

 During the Eight Five-Year Plan (1990-95), a sum of Rs. 2,752.7 crore was allocated
for the development of village and small industries. However, the actual expenditure
was of the order of Rs. 7,094 crore.

 Ninth Five-Year Plan (1997-2002) noted that the small sector is presently producing
about 8,000 items, out of which 821 (after the recent de - reservation of 15 items) are
reserved exclusively for production by the small sector. However, out of the reserved
items, it has been observed that as many as 200 are either not produced at all in the
small sector or their production is insignificant.
In the light of the above, summary of plan outlay for the small scale industrial sector
during the last nine plans is presented below.

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From the above, it is obvious that the amount earmarked for the SSIs registered a
continuous increase during the fifty years. Though the rate of increase varied from
one plan to another, the increase was substantial.

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PERFORMANCE OF SMALL SCALE
INDUSTRIES - A BRIEF REVIEW

Small scale industries (SSIs) are viewed increasingly as an important vehicle for
meeting both the growth and equity objectives of developing economies. The last two
decades have witnessed the steady re-emergence of SSIs in both industrialised and
industrialising countries reducing, to some extent, the importance of economies of
scale in mass production. Though correlation between the size of the enterprise and
the stage of industrialisation is not universal, the growth and expansion of SSIs will
have a positive impact on the rate of industrialisation in developing countries.
The employment in SSI sector which is next only to agriculture has also shown an
upward trend growing at 4.16 per cent. This moderate growth rate is mainly on
account of technology advancement and consequent reduction in labour input (leading
to improved labour productivity) in modern segment of SSIs which account for about
83 per cent of the total production and little over 40 per cent of the employment in SSI
sector. The share of traditional sector in total employment has been quite high at

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60percent and among different sub sectors of traditional sector, handloom continues
to be a major provider of employment.
PROBLEMS OF SMALL SCALE INDUSTRIES
The governments - both central and state have taken a number of steps to provide a
number of services to the SSIs. They are providing both the direct services (such as,
advisory services, industrial research services, development financial services,
marketing aids and provision of basic utilities and service), and indirect services (like,
streamlining the bureaucratic system, lessening the red tapism, etc.,) with a view to
promote the growth of SSIs. In spite of all these promotional measures, many a
number of production, marketing and financial problems still continue to haunt the
small scale industries.
While some of the problems are, more or less, common to a wide range of SSIs, others
have particular - relevance to a group of SSIs and to the units established and
functioning in rural and backward area. In this background, a few problems faced by
the SSIs are identified below (without analysis as the same is made in chapter - III).
Problems of SSIs :

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Due to the above problems, in addition to a large number of problems, the SSIs
have not been able to realize their full potential and therefore, not contributing their
best for the overall development of the economy. Hence, the Government of India has
taken certain steps to ensure the desired growth in the SSIs .

MEASURE INITIATED BY THE GOVERNMENT OF IN DIA
Having declared its faith in the efficiency of small industries as a vehicle for rapid
progress, the Government of India (Gol) introduced a number of programmes for
developing them.
The following are the some of the specific measures initiated by the government
to overcome the problems of small scale industries and to help them to achieve the
improved overall performance.

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ESTABLISHMENT OF DIF FERENT ALL INDIA BOA RDS
With a view to assist the SSIs in the country, the Government of India has
established a number of boards at the national level. They are presented below:
Small Scale Industries Board (SSIB)
Under the aegis of this Board, four regional Small Industries Service Institutes
(SISIs) - one each at Kolkatta, Mumbai, Chennai and Faridabad have been set up to
provide technical services, and to advise and assist the SSIs in marketing and
promotional aspects.
Directorate of Cottage and Small Scale Industries
The role played by the State Directorates of Industries is of great importance.
The successful implementation of the programmes or the small scale industries
depends, to a considerable extent, on the initiative, leadership and resourcefulness of
the Directorates of Industries.
All India Handloom Board
This Board was set up in 1952 for dealing with the problems pertaining to the
development of handloom units. It renders assistance in organising cooperatives in
handloom textile industry, establishing sales emporia and in providing grants and
loans.
The Central Silk Board
The Central Silk Board was set up in 1949 as a statutory body and it was reconstituted
in 1952. The Board is entrusted with the responsibility of developing sericulture and
the silk industry, and to act as a co-ordinating agency for the industry as a whole.
Further, it provides technical and financial assistance to the states.
All India Handicrafts Board
This Board helps research in new designs and patterns, and in improving processes.
Handicrafts Board is running 19 pilot centers out of which four are for training, three
for training-cum-production, three for research and experimentation, five for revival of
traditional crafts, and the remaining four are for experimental production.

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The Khadi and Village Industries Board
It was started in 1953 to prepare and organise programmes for the development of
khadi and village industries. The commission is encouraging the use of power for
purposes like pulp making for manufacture of paper, crushing of non-edible oilseeds,
gur and khandasari, and the manufacture of sugar from palm. The commission
undertakes research activities in its institute at Wardha to improve processes and
develop new machineries.