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.

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.