Question:
What are the incentives provided by the government for industries in backward and hilly areas?
Answer:
It is quite lucrative and feasible for entrepreneurs to establish industries in metropolitan and other developed cities. However, because of numerous factors such as irregular power supply, poor transport and absence of banking facilities, it is extremely difficult for them to set up industries in backward, hilly and tribal areas. As a result, there exists acute regional disparities in development between these areas and the big cities in the country. The Government of India has been making efforts to remove the regional imbalances in development by providing incentives for setting up industries in rural areas. The following are among the incentives offered.
- Land: It is a basic requirement for setting up a business unit. In order to encourage the establishment of industries in backward areas, the government provides land plots at concessional rates, especially to industrialists in backward regions. This makes setting-up industries cheaper.
- Power: Power is an essential requirement for the functioning of business enterprises. However, its supply is highly irregular in some parts of India. Therefore, in order to facilitate the setting up of industries in these areas, electricity is supplied at a discounted rate of 50 per cent. In addition, some states exempt such units from any payment during the initial years of operation.
- Banking and finance: Due to the poor banking facilities, industries set up in the backward areas face the problem of inadequate credit and finance. As a solution, the government provides loans at a concessional rate and offers subsidies of 10 to 15 per cent for the accumulation of capital assets.
- Raw Materials: Resources such as cement, iron and steel are of prime importance for industries. Since these resources are scarce, the government provides them on priority basis to industries located in backward areas.
- Tax Exemption: In order to attract entrepreneurs to set up industries in the backward areas, different state governments grant tax exemption to the industries. Thus, the industries are exempted from paying taxes for 5 to 10 years.
Small Business
Q 1.
Give full from of SIDBI .
Q 2.
What is the investment limit for SSI?
Q 3.
Name the apex bank set up to provide direct and indirect financial assistance to small scale sector.
Q 4.
What is the difference between small scale enterprise and cottage industry?
Q 5.
What are the measures taken by the Government to solve the problem of finance in the small scale sector?
Q 6.
What is the parameter used by the government to identify service enterprise?
Q 7.
State the features of cottage industries.
Q 8.
What forms of support is offered to small industries by the government?
Q 9.
Explain the role of SIDBI in promoting small scale enterprises.
Q 10.
What are the different parameters used to measure the size of business?
Q 11.
What do you mean by small business? Describe the feature of small scale enterprise.
Q 12.
Explain the areas where small businesses feel threatened from global competition.
Q 13.
What is the role of District Industries Centre for the growth of small business in India?
Q 14.
Explain the meaning of small scale industry with its different categories.
Q 15.
Give one feature of Cottage Industries.
Q 16.
Write a short note on WASME.
Q 17.
Discuss the problems faced by small scale industries.
Q 18.
What is the purpose of NABARD?
Q 19.
Name the institution which was set up in 1982 to promote integrated rural development.
Q 20.
What is the role of National Small Industries Corporation for the growth of small business units in India?
Q 21.
How much do small industries in India account for the total industrial units?
Q 22.
How do small scale industries contribute to the socio-economic development of India?
Q 23.
Discuss any two characteristics of SSI.
Q 24.
Write a short note on village and small industries sector.
Q 25.
Name any two units included in SSI category.
Q 26.
Give full from of NABARD.
Q 27.
Name any two institutions specially set up to promote small scale enterprises.
Q 28.
Highlight the role of the small business in promoting economic growth and solving other socio-economic problems.
Q 29.
What incentives have been taken by government to promote small scale industries?
Q 30.
Give any two problems faced by SSI.
Q 31.
Write a short note on SIDO.
Q 32.
What are the incentives provided by the government for industries in backward and hilly areas?
Q 33.
Describe the scope of small business in India.
Q 34.
Give any two incentives offered by the Government to small scale industries.
Q 35.
Describe briefly the problems of small scale enterprises.
Q 36.
What are the causes of sickness in small industries?
Q 37.
State the objectives of small business in rural India.
Q 38.
What measures have the Government taken to solve the problem of finance and marketing in the small scale sector?
Q 39.
Describe the role of small business in rural India?
Q 40.
List out major industry groups in the small sector in India.
Q 41.
Small business is business at small scale. Do you agree? Explain.
Q 42.
How would you differentiate between an ancillary unit and a tiny unit?
Q 43.
What is the definition used by government of India for Small Scale Industries?
