PROSPECTS OF SMALL SCALE INDUSTRY IN PUNJAB

The economic development of a nation or a region is generally determined by the level of its industrial growth. Punjab which has been doing remarkably well in the field of agriculture also shifted its way towards industrialization through coordinated development of Small, Medium and Large scale industries. Punjab has a predominance of small-scale industry, thanks to the indomitable spirit and entrepreneurial skills of Punjab which is.0.2 million small scale industries and 600 large and medium scale industries functioning in the state involving fixed capital investment of Rs 54000 Million and Rs 20400 Million respectively. In Punjab, small-scale industries was occupying important place, because of their employment potential and contribution to total industrial output. They also helped in the resource utilization and further help to promote changes in a gradual and phased manner. The progressive trend in the industry was badly affected after the state suffered law & order problem due to Militancy / Terrorism in post 90-80 period. Due to the disturbances the industry suffered a setback and most of the industrial units either shifted their activity to other states or close down their units. The revival of the industry was not possible till the law & order improved in the state. Thereafter Government has taken a few steps to promote Small scale industrial production in Punjab by encouraging new units. However, the response to the industrial development was not encouraging since the state was unable to clear the backlog of incentives due to the industrial unit. As per 92 policy The Punjab Government introduced a new policy to promote small scale entrepreneurship, Punjab government's policy for settlement of dues to help SMEs to recover from high cost debt. Punjab is now improving the Infrastructure for small scale industries by providing them the regular electricity power supply at reasonable rates.