HPAS/Allied Mains 2022 Answer Writing Challenge Day 248: Model Answer

Question: Discuss the status of Cottage and Small-scale Industries in Himachal Pradesh. (8 marks/ 120 words)

Answer:

Cottage industries or cottage manufacturing are also called household industries or rural industries or traditional industries. The artisans use local raw materials and simple tools to produce everyday goods in their homes with the help of their family members or part-time labour. For example, Pots making, bamboo basket weaving, fabric, mats, Curtain making, furniture making, Jewellery making of gold or silver. For example, GI tag has been given to Chamba chappal .

Cottage Industries are usually very small and are established in cottages or dwelling places. Khadi and Village Industries Commission (KVIC) is a statutory organization that promotes village industries that also helps cottage industries.

Small Scale Industries are industries in which manufacturing, production, and rendering of services are done on small scale. Recently definition of MSME has been modified.

The modified definition of MSMEs will facilitate expansion and growth of these enterprises. The resulting economies of scale can enhance productivity without the MSMEs losing out on several government incentives including market support, export promotion, preferential procurement in the public sector and incentives through the Micro Small Enterprises- Cluster Development Programme (MSE-CDP), Prime Minister Employment Generation Programme (PMEGP) and Scheme of Fund for Regeneration of Traditional Industries (SFURTI) and enabling of information technology ecosystems.

The revision in the definition of MSMEs brought in w .e. f. 1st July, 2020 as part of the Atma Nirbhar Bharat package introduced a composite-criteria of investment and annual turnover-and identical limits for manufacturing and services sector.

Revised definition of MSMEs Composite criteria:

Investment in Plant and Machinery or Equipment and Annual Turnover

As on 31.01.2022, 33,094 enterprises have registered on the Udyam portal in the state, out of which 31,217 are Micro, 1,637 are Small and 240 are medium enterprises. In addition to these 48 large industrial units are also working in the state. Solan district has maximum number (7769) of MSME’s while lahaul spiti has least number (149) of MSME’s. The Food sector has its dominance in MSME.

During 2021-22, under “Himachal State Food Mission” 14 Projects were sanctioned involving Grant-in-Aid of ` 2.27 crore.