Project Report Help on Sickness in Indian Industry

INTRODUCTION

Small Scale Industries play a very significant role in any developing or underdeveloping country’s economic development. Such businesses promote independence and co-ordination. The Small-Scale Market, given its importance, is beset with the question of sickness. An industrial unit is considered sick if its financial position is unsatisfactory and in coming years, it gets worse. It incurs losses and its capital reserves may be stretched out in course of time.

Industrial sickness is one of the Indian economy’s complexest issues. The problem persists given the various measures taken by the Government. The increase was unabated, even in the years following the passage of the Sick Industrial Companies Act (SICA) and the formation of the Industrial and Financial Reconstruction Board (BIFR). The study shows that not only did sick units lose their net worth but they also lost money collected from sources other than ownership. The size of cumulative sick unit losses in India is about twice that of the sick units ‘ net worth. The study reveals the deterioration of industrial disease control policies in India and puts forward some suggestions for revamping the policy framework so as to effectively tackle the problem. Sickness and death, just like birth and development, is an inevitable part of commerce and industry. An industry that thrives today can face closure tomorrow while an industry that languishes today can turn the corner and grow fast tomorrow.

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A sick, manufacturing machine is like a home patient. A patient causes inconvenience to others besides suffering from ailment itself and often spells ruin to the family, particularly when the treatment is prolonged and costly. In addition to adversely affecting the interests of the people directly connected with it, a sick unit will also have serious repercussions for the economy as a whole.

Research problem:

Does small scale industries sickness has negative impact on economy and what are the measures to overcome this problem.

OBJECTIVE OF THE STUDY

Objectives are the ends which specifically state how to achieve the goal. Each study has to have a purpose for which all the effort was made. Any work can be performed without objective, so any result can be obtained. All of the research process is conducted on the basis of objective. Objectives are the principal feature of each study. The study’s goal gives direction to go through the research issue. It directs the investigator and keeps him on track.

I have two objectives regarding my research project. These are shown below:-

  1. Primary objective
  2. Secondary objective

  1. Primary objective:-

 

(i) To examine the various aspects of industrial sickness and to figure out the causes of the sick.

(ii) To evaluate the effect of remedial measures; adopted on industrial development by governments, financial institutions and entrepreneurs;

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  1. Secondary objective:-

(i) Studying the effect of industrial sickness, especially in the small sector, on industrial growth and also on society as a whole;

(ii) studying and analysing the problems faced by sick entrepreneurs on the causes of sickness, particularly the lack of bank credit, quality control, in-conductive industrial climate, etc.

Hypotheses of the study :

The following hypotheses are proposed to be empirically tested :

  • Industrial sickness has been caused by economic slowdown, price pressure and a changing business environment;
  • sick industrial units are suffering from tough competition from large industries as well as multinationals in terms of marketing and raw material procurement;
  • Sick industrial units face financial pressure for technical upgradation and utilisation of installed capacity;
  • sick units face challenges from financial delay and government sector financial support;
  • Sick units also face problems due to the loss of funding from government organisations for the purchase of goods and products, the expansion of technological and marketing support and financial support.

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