The latest 62nd round of study for the year 2005-06 by the National Sample Survey Organisation has found that the gross value added by such units increased by 55 per cent since the 56th round of survey conducted in 2000-01.
"This is because bank credit available to the small-scale industries (SSIs) has been declining since 1995-96. Commercial banks have started shifting allocation of credit from SSIs to housing, which they find more attractive," said Anil Bhardwaj, secretary general, Federation of Indian Micro, Small and Medium Enterprises.
Both the SSI and housing sectors form part of the priority sector lending, including loans to agriculture and education. Commercial banks are mandated to provide 40 per cent of their credit to the priority sector.
Credit flow to the SSI sector, of which unorganised manufacturing comprises the majority part, has declined from 13.8 per cent in 1994-95 to 10.8 per cent in 2000-01 and further down to 7 per cent in 2005-06, according to the Reserve Bank of India data. "This has caused a slowdown in growth of this sector," Bhardwaj added.
According to the NSSO study, though the share of family-owned units remained same during the 51st and 56th round of surveys, it declined sharply in the 62nd round.
Contribution of units with less than six workers remained around the same level during the three surveys since 1994. However, share of units with more than six workers increased significantly during the 56th and 62 round.
During the 62nd round, the average annual GVA per worker was Rs 1,24,034 considering all enterprises taken together. Average annual GVA per worker was a minimum of Rs 6,818 for manufacture of tobacco products, whereas maximum was Rs 1,03,511 for manufacture of basic metals. State-wise data shows GVA was lowest in Orissa at Rs 9,638 and maximum in Arunachal Pradesh at Rs 1,21,799.
