EXPORT PROSPECTS FOR SMALL SCALE INDUSTRIES: INDIAN PERSPECTIVE EXPORT PROSPECTS FOR SMALL SCALE INDUSTRIES PRESENTED TO: MS. ADITI PRESENTED BY: SWATI MBA II YEAR EXPORT CONTRIBUITION : EXPORT CONTRIBUITION SSI Sector plays a major role in India's present export performance. 60%-65% of the Indian Exports is being contributed by SSI Sector. Direct exports from the SSI Sector account for nearly 45% of total exports. The number of small scale units that undertake direct exports would be more than 9000. PowerPoint Presentation: It is estimated that small scale industrial units contribute around 20% to exports indirectly. This takes place through merchant exporters, trading houses and export houses. PowerPoint Presentation: Table: I Growth pattern in the number of establishments of SSIs (in lakhs) Year No. of SSIs Growth rate 1990-91 19.48 6.86 1991-92 20.82 6.88 1992-93 22.46 7.88 1993-94 23.88 6.32 1994-95 25.71 7.66 1995-96 26.58 3.38 1996-97 28.03 5.46 1997-98 29.44 5.03 1998-99 30.8 4.62 1999-00 32.12 4.29 2000-01 33.7 4.92 2001-02 34.6 2.67 2002-03 35.1 1.45 2003-04 38.6 9.97 Source: Ministry of SSIs Annual Reports of SIDO*,Govt. of India New Delhi *(Small Industries Development Organization) NATURE OF SBU( SMALL BUSINESS UNITS) IN INDIA: NATURE OF SBU( SMALL BUSINESS UNITS) IN INDIA In India ,village & small industries sector consists of both the traditional & modern small industries . This sector has 8 sub group which are Handlooms Handicraft Coir Sericulture Khadi Small scale industries Village Industries Power looms The Details of the items reserved for SSIs are given below:: The Details of the items reserved for SSIs are given below : Food and allied industries Wood and wood products Paper products Plastic products Chemicals and chemical products Natural essential oils Organic chemicals, drugs and drug intermediates Other chemicals and chemical products Glass and ceramics Mechanical engineering excluding transport equipment Electrical machines, appliances & apparatus Electronic equipments and components Transport equipment boats and truck body building Auto parts components and ancillaries and garage equipments Bicycle parts, tricycles and perambulators Miscellaneous transport equipment Sports goods Stationery items Others Indian Textile industry - important from perspective of overall economy: Indian Textile industry - important from perspective of overall economy Total market size (2004-05): USD 38 bn Domestic market ~ USD 25 bn Exports ~ USD 13 bn Strong contribution to Indian Economy 14% contribution to industrial production 4% contribution to GDP 16% contribution to export earnings Direct employment to more than 35 million people Industry functions in the form of clusters (roughly 70 in number) across India, producing 80% of the country’s total textile Sector is diverse, with the hand-spun and hand woven sector at one end of the spectrum, and the capital intensive, sophisticated mill sector at the other India has a strong base in raw materials: India has a strong base in raw materials Cotton dominates the industry Nearly 56% of yarn produced is made of cotton Country produces nearly 23 varieties of cotton India is the second largest player in the world cotton trade India’s position is strong vis-à-vis other countries in most raw materials Largest producer of jute Second largest producer of silk Third largest producer of cotton, accounting for nearly 16% of global production. Third largest producer of cellulosic fibre /yarn Fifth largest producer of synthetic fibres /yarn Eleventh largest producer of wool Abundant availability of raw material is one of the key advantages of the Indian textile industry EXPORTOF FLORICULTURE IN INDIA: EXPORTOF FLORICULTURE IN INDIA Major flowers : Roses jasmine Tuberose Carnation Gerbera Crossandra Anthurium Marigold Chrysanthemum Gladiolus Orchids Lilly PowerPoint Presentation: cut flowers - fresh and dried dominate floriculture export trade of India. The cut flowers are exported in two forms: Fresh form for bouquets and ornamental purposes. Dried, dyed, bleached etc. for other purposes The information of export of fresh cut flowers in respect of quantities values and the countries to which exported is given in Total quantity exported was valued at Rs.25.12 crores . The biggest export market was Japan importing 19.65% cut flower followed by USA 10.44%, Germany (7.96%), UK (7.40%), Australia (5.43%) and Netherlands (4.67%). PowerPoint Presentation: The fresh cut flowers are exported to 54 countries, but nearly 68% are exported to 10 countries . Unit value revealed that the highest price was paid by Netherlands (Rs.376.62/kg), Japan (Rs.155.92/kg) Singapore (Rs.141.49/kg). The overall average price received was Rs.92.26/kg. The price offered by USA was quite low (Rs. 51.33/kg India is the largest supplier of roses to Japan and Australia The export of roses for the coming Valentine's Day (February 14) is expected to be about Rs. 35 corer, estimated to be a 30% rise over last year.