Analysis of Remedies for Revival of Sick Small Units in Indian Economy

The role of small-scale industries in the economic development of India in recent years is critically analysed in this paper. Various factors affecting the growth and development of small-scale industries and the problem faced by this vital sector of Indian economy is examined. The contribution of small-scale industries in employment growth, production, export promotion and other economic indicators are discussed. Corporate failure is one of the major socio-economic problems of developing as well as developed nations. To combat this failure, it is necessary for organizations to identify revival strategies. The research paper suggests prioritization of the factors that influence the revival sick small units in India. This would help the Organisations and other players to take steps to enhance the measures of the factors, enabling these organizations to thrive. In order to combat the problem of industrial sickness, a comprehensive assessment of the magnitude of industrial sickness and an analysis of the main factors which bring about sickness are necessary. Both prevention and cure of industrial sickness would depend on our ability to identify sickness as early as possible and analyse its causes. Faulty or delayed identification would reduce the effectiveness of the remedial action such as restoring the financial viability of sick units and protecting units which would become sick. This paper examines the criteria used by official agencies in India to identify industrial sickness and points out the limitations of these criteria.