Main Article Content
Small-scale industries occupy a place of strategic importance in Indian economy in view of its considerable contribution to employment, production and exports. However, since 1991 small-scale industries in India find themselves in an intensely competitive environment due to globalisation, domestic economic liberalisation and dilution of sector specific protective measures. To compete in this competitive era, accessibility to capital in the form of working and fixed capital is utmost requirement. Despite the recognition of important role played by small scale industries in economy, lack of support of financial structures inhibit them from establishing and surviving in the competitive world. A widespread concern is that the banking system is not providing enough support to new economic initiatives and in particular to the expansion of small scale enterprises. Access to adequate and timely credit at a reasonable cost is the most critical problem faced by this sector.