Challenges and Opportunities: Globalization’s Impact on Small-Scale Industries in India

Abstract

After independence, Prime Minister Pandit Jawaharlal Nehru has adopted mixed economy, and planned economic development, considering the prevailing economic situation of the nation. It was only the economy policy which he thought would be useful and essential for the development of the nation. The country was fully exploited by the British empire. It was the timely need that the Government should take interest in economic activity and start those industries which are responsible for creating infrastructure facilities. It was the basic need for the development of the nation. Indian problems like poverty, unemployment, industrial development, electricity, clean drinking water, construction of roads and establishment of efficient transportation facilities, establishment of hospitals, education problems, etc., were remain unsolved upto 1990. Government was striving to develop Public Sector Undertakings working for the creation of infrastructure by' providing huge amount of the budget even though the performance of these units was not satisfactory. Major Public Sector Undertakings are working under performance and running in losses and unable to achieve the expectations. Hence, the Government is facing financial crisis for solving basic needs. The products produced by any company using advanced technology are produced at low cost and may capture wide market by its low price. Hence, if such product enters into wide spread market it will definitely challenge existence of SSI-Units. The foreign industries have achieved their maximum efficiency and succeeded in cost reduction. They have the problem of market. Due to globalization the product produced by the foreign companies may be launched in Indian market. Hence, it is to observe that how far such products would be able to enter the Indian rural market.