Journal of Xi'an University of Architecture & Technology Issn No : 1006-7930 Contemporary Scenario of Small Scale Industries in Tirunelveli District *Mr. S. Kumar., Ph.D Research Scholar, Department of Economics, Manonmaniam Sundaranar University, Tirunelveli -627012 Email.Id: [email protected] **Dr. S. Mookiah., Principal, Manonmaniam Sundaranar University Colleges, Nagampatti. Email.Id: [email protected] Abstract “Small Scale Industry” today constitutes a very important segment of the Indian Economy. It may sound small but actually it plays a crucial part in the overall growth of an economy. The development of this sector came about primarily by the vision of our late Prime Minister, Jawaharlal Nehru, who sought to develop core industry and to have a supporting sector in the form of small scale enterprises. This paper attempts to assess the development of Small Scale Industries in Tirunelveli district. In this paper researcher clarify the investment limit and schemes are available in small scale industries in Tirunelveli District. It conclude Tirunelveli district, industrial sector is backward. This district is fully depending upon the agriculture sector. Agriculture sector is depending upon the monsoon conditions but the monsoon condition is failing the growth of agriculture sector is very low. Hence the people depending upon the agriculture is creating unemployment and poverty situation. This people migrated from agriculture sector to industrial sector for employment opportunities and increasing the income level. Government should encourage the industrial sector for the betterment of the people. Keywords : Small Scale Industries, Problems, industrial sector and poverty. Volume XII, Issue II, 2020 Page No: 1155 Journal of Xi'an University of Architecture & Technology Issn No : 1006-7930 Introduction The role played by small scale industries in the economies of advanced industrialized countries like Japan, Germany, Great Britain and the United States of America is significant. Many nations, both developed and developing, see in the small industry sector as a useful vehicle for growth; in the former as complementary to large industries: and in the latter as generators of new employment opportunities. The development of a country depends mainly on the level of industrialization. Industrialization is a process, which accelerates economic growth and effects structural changes in the economy. Jawaharlal Nehru emphasized that real progress must ultimately depend on industrialization. For rapid industrialization, existence of both large scale and small-scale industries are necessary. Industrialization has a major role to play in the economic development of under developed countries. The gap in per capita income between the developed and underdeveloped countries is largely reflected in the disparity in the structure of their economies; the former have a large industrial economy, while in the latter production is confined predominantly to agriculture. Industrialization is the only effective answer to the problems of the underdeveloped countries. The process of industrialization is associated with the development of mechanical knowledge, the attitude and skills of the industrial workers, the experience of the industrial management and other attitudes of a modern society, which in turn, is beneficial to the growth of productivity in agriculture, trade, and distribution and other related Sectors of the economy. Due to these factors, any successful transfer of labour from agriculture to industry contributes to economic development. Industrialization is thus inseparable from substantial and sustained economic development. Statement of the Problem: The development of small scale industries is hampered by a diversity of problems. There are certain problems common to all types of cottage and small scale industrial units. In this context, the present chapter is devoted to a detailed study of the Volume XII, Issue II, 2020 Page No: 1156 Journal of Xi'an University of Architecture & Technology Issn No : 1006-7930 problems of the small scale industrial sector. It also helps to suggest remedial measures. The basic requirement for the industrial development of a region is the presence of entrepreneurship in that area. The non availability of adequate finance, paucity of raw materials, absence of technical and managerial guidance, and non availability of industrial accommodation and marketing facilities are the other major problems facing the small scale sector. The slow growth of industries in Tamil Nadu has been due to lack of entrepreneurship, which performs the function of initiating, establishing and organizing industries. The people of Tamil Nadu, in fact lack enterprising character as compared with people in other states. Under the circumstances, the state Government entered the economic field and established important industries in the public sector. Without private participation, it is very difficult for an under developed state to active industrialization. Therefore, the development of local private talent is highly essential. In this connection, it should be kept in view that entrepreneurship talent is not the monopoly of any particular race. Entrepreneurship can be developed by proper education, training, and provision of necessary cost and market data. It also requires complete reorientation of the curriculum so that young people are provided with opportunities to develop new skills and attitudes that would turn them into entrepreneurs. The provision of proper training facilities helps in the development of entrepreneurship. Proper training, persuasion, guidance and assistance can bring about radical change. The self employment schemes in the state can be made successful by the formulation of gainful schemes of industries mainly based on local factors, endowments and demand conditions. Objectives of the study: General objectives of the studies to Study present scenario of Small Scale Industries in Tirunelveli District. Volume XII, Issue II, 2020 Page No: 1157 Journal of Xi'an University of Architecture & Technology Issn No : 1006-7930 Review of Literature Ramavat (2013), pointed out in her studies that the marketing problems of SS units are discussed in the above paragraphs running a Small Scale Industries is a challenging task. The task is full of problems. Majority of these problems arise either because of additional mindsets or infrastructural lacunas. The major problem is socio- economic conditions and socio-psychological setups. Various problems faced by the unit owners of Small Scale industries have different weight age of different points of view. Efforts need be made to bring out amiable solutions. Satish (2014), in his study, “Problems and Prospects of Indian Small Scale Industries” find that, Small scale industries have been playing an important role in Indian economy in terms of employment generation and growth. In spite of having huge potentialities, the small scale industries in India could not progress satisfactorily as these industries are suffering from various weaknesses. If remedial measures are taken in proper time and spirit the small scale sector will be able to utilize huge development potential available in the country and the SSI sector will prove itself as one of the most dynamic and vibrant sector of the economy of the country. Mamta (2015), in his study “Globalization and Its Impact on the Performance of Small-Scale Industries in India”, find that, the study indicate that small manufacturers are affected in the globalization era and facing lot of problems to run their businesses. It has been observed that units from all surveyed industries irrespective of age and turnover believed that liberalization has resulted into more competition, increased quality consciousness, difficulty in marketing, dumping of cheaper goods by other countries, reduction in profit margin and high level of customer satisfaction. But units from food products and beverages and leather and leather products believed that new opportunities have come up after globalization. Units relating to higher turnover group also opined that liberalization have opened new opportunities for them. The main reasons of these problems are lack of infrastructural and operational facilities in comparison with large, medium and foreign companies. Small units are not using latest machinery to manufacturer quality product with latest design as per international standards. Volume XII, Issue II, 2020 Page No: 1158 Journal of Xi'an University of Architecture & Technology Issn No : 1006-7930 Investment limit in MSME Micro, Small and Medium Enterprise in accordance with the provision of Micro, Small and Medium Enterprises Development (MSMED) Act 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two classes. 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 ( Development and regulation Act 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprises are define in terms of investment in Plant and Machinery 2. Service Enterprises: The enterprises engaged in providing or rendering of services and are define in terms of investment in equipments. The limit for investment in plant and machinery / equipment for manufacturing and service enterprises as notified . vide S.O. 1642(E) dtd 29.09.2006 are as under :- Enterprises