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Industrialization is a key to economic development of a country. This is true for an underdeveloped economy like India where the industrialization produces path for captivating the excess workforce and also make sure accessibility of mass consumption of goods for vast population. The process of industrialization helps in utilization and transforming the raw material into useful products and also over all development of nation. Industrialization helps in bringing about qualitative changes agriculture, social, political and in other sectors also. Agriculture is more important than industry for the simple reason that industry depends on agriculture. Industry which is no doubt very important will not progress unless agriculture is sound, stable and progressive. Small scale Industries have been considered significant contributors in fulfilling various social – economic objectives such as promotion of exports promotes entrepreneurship and higher growth of employment. This sector is a key tower of an Indian economy. The UT of Jammu & Kashmir is an agrarian state unlike some other state in the country. There are no large scale industries in UT of Jammu and Kashmir. Many small and medium scale have come up basically in the conventionally sector along with some now areas like food processing, agro based units, metallic and no metallic units. However some factors are more encouraging for small scale industries like Handloom, Handicraft and wood industry etc. Apart due to congestion in employment opportunities, industrial sector has been announced as the main vehicle for speed up economic activity. Industry will not only play significant role in providing employment opportunity to a large number of educated youths, it will also eradicated the unemployment crises in the UT of Jammu and Kashmir through which the UT of Jammu and Kashmir is passing these days and also would contribute to raising per capita productivity. We are aware that UT of Jammu and Kashmir is a land locked and is handicapped due to location disadvantage. This results in increase in the cost of production as compare to other neighboring states. In order to balance this additional cost, the UT Govt and Govt of India has provided special package to the industrial sector so as to make it ambitious. Although the effect of these concessions cannot be supposed as direct addition in profit. However we are induced that small scale industry has a future. But while looking at the future of small scale industries in UT of Jammu and Kashmir certain thoughts will need to be kept in mind. The most essential thing is the diversity in small scale sector. We understand that there are some obstacles on our super highway to success like climatic conditions, poor infrastructure, political instability, shortage of raw material, lack of skilled labour, financial constraints etc are the main hindrances in accelerating the industrial sector. The main objective of this paper is to study the growth and challenges of small scale industries in the UT of Jammu and Kashmir.

In order to gain background knowledge of problem and to identify appropriate methodology, research design, methods of measuring concept and techniques of analysis. It is a vital component of research design. It helps in conceptualizing the problem, conducting the study and interpreting the findings. It seems logical to present a brief revive of the available literature relating directly or indirectly to the filed under study. Kumar and Kamal (2013) have reported that electronic commerce (Marketing) may help small scale industries to become bridge between small manufacturers with large number of buyers. They also recommended that small industries need to improve their distribution channels for maximum coverage of the buyers. Gupta (1990) have suggested that developments of hilly area of Jammu region of district Kathua, they outlined some constraints in the development of hilly areas were lack of infrastructure, mass illiteracy, limited business opportunities, existence of rainfed agriculture etc. the study revealed that a planned dispersal of local raw material based on the small and cottage industries and the support of agri-allied activities. Desai (1983) have concluded that swiftly industrialization in India depends on the growth of small scale industries. Most of the small scale industries have many constraints like shortage of raw material, poor infrastructure, inadequate capital and credit facilities, lack of market facilities, low level of technical knowledge improper distribution system of products. They are also fragile in marketing their products beyond their localities especially in international market. Sharma et al (2015) have suggested that small scale industries are the back bone of manufacturing sector and have been considered as engine in economic development of the country. Small scale industries captivating the excessive workforce and also make sure accessibility of mass consumption of goods for vast population. They feel there are some obstacles on our super highway to success like poor climatic conditions, poor infrastructure, political instability, shortage of raw material, lack of skilled labour, financial constraints etc are the main hindrances in accelerating the industrial sector. Mohandass (2014) in his study he concluded that small and medium scale enterprises will not only play significant role in providing employment opportunity to a large number of educated youths, it will also eradicated the unemployment crises for both self employment and job outside agriculture sector. Bhat and Malik (2014) have revealed that the industrial sector play an important role in providing employment and increases the capital of investors. They also emphasized that industrial sector is a major contributors to Gross National Products. Suggestion was provided that in their study that development of small and medium enterprise are necessary for the Indian economy in terms of output, employment generation foreign exchange earnings in national income. Mali (1998) in his study he observed that small, medium and micro enterprises have to face increasing competition in the present scenario of globalization. They have to improve themselves in term of marketing, technological development, production diversification. Moreover new small and medium enterprises have to move from higher growth areas to lower growth areas to form strategic alliance. Researcher did not found latest review or study from 2015 onward so the reviews till 2015 has been studied in this paper.

Research is well designed, well planned and systematic study of an identified problem. It involves collection of data and analysis it to discover of new facts. The study is largely based on the secondary data. The secondary data related to growth and challenges of small scale enterprise in the UT of Jammu and Kashmir. Moreover it has been collected from different published source of department like Ministry of micro, small, and medium enterprises and Directorate of economic planning and statistics, J&K. The other relevant material was collected from reports, Journal, libraries and websites has been consulted thoroughly for the present study.

Growth of Small Scale Industries

Industrial sector possess a relatively high marginal tendency to save and invest, contributes significantly to the achievement of a self sustaining economy with continued high level of investment and also increases the level of income and employment. Industrialization will play a significant role in providing employment to a large educated youth of Jammu and Kashmir .This sector has a tremendous potential to give solution to unemployment crises through which the UT of Jammu and Kashmir is passing  now a days  during these days, and would also contribute to raising per capita productivity .. The UT of Jammu and Kashmir is on the path of industrialization, large and small scale industries are not present in an acceptable statistics, due to political instability, poor infrastructure and climatic disadvantage. Only small scale entrepreneur are growing in the UT of Jammu and Kashmir, the availability of raw material, cultural and climatic condition is supporting those enterprises. Establishing of variety of Industries alone does not matter but most of their is survival and growth. To draw a total picture of industrial potential, it is obvious to have close view of resource endowments, infrastructural capital, economic policies, political leadership peace and stability. All these will help in growth and development of industrial sector in the UT of Jammu and Kashmir. For immediate growth of industrial sector in the UT of Jammu and Kashmir registration procedure was simplified. District Industries centers has been setup in each district of Jammu and Kashmir, to provide all services to the entrepreneur. The entrepreneurship Development Institute in the valley is boosting, helping and guiding educated youths and diverting their attention towards industrial sector. Growth and employment of Small Scale industries is shown below in a table 1.

Year	No. of Units	Progressive Changes	Growth Rate	Employment	Progressive Changes	Growth Rate
2010-11	53444	-	-	251551	-	-
2011-12	54714	1170	2.18	260393	8842	3.51
2012-13	55742	1028	1.87	267194	6801	2.61
2013-14	56660	918	1.64	274011	6817	2.55
2014-15	57788	1128	1.99	276680	2669	0.97
2015-16	58596	808	1.39	283105	6425	2.32
2016-17	59223	627	1.07	288524	5419	1.91
2017-18	59899	676	1.14	295348	6824	2.36
Table:1 -       Source:       Digest of Statistics 2017-18, Directorate of Industries and Commerce, Jammu/Kashmir

Table 2. Growth in Industrial Units & Employment in Jammu & Kashmir from year 2010-11 to 2017-18 

Table 2: Graphical presentation of Growth & Employment of Small Scale Industrial Units in J&K. Source: Digest of   Statistics 2017-18, Directorate of Industries and commerce Kashmir/Jammu

Challenges of Small Scale Industries         

Each and every sector of an economy has challenges in growth and development, same is the case with industrial sector. The UT of Jammu and Kashmir has made its place in industrial map, however there are certain constraints to take away the UT of Jammu and Kashmir from economic backwardness and achieve industrialization of the size and required magnitude for growth and development. Small scale industries are the back bone of Jammu and Kashmir. But this sector is facing different problems in day to day operations of production and marketing but due to poor infrastructure, limited resources and financial constraints are the paramount challenges of small enterprises. This sector has a tremendous potential of observing thousand of unemployed educated youths. Therefore time has come to take bold steps to improve the industrial sector, which calls for a pragmatic and long term result oriented policy imitative o the part of government. There is a great need to remove the bottlenecks that are coming in the way of sustained industrial development. The state is very rich in human resources as well natural resources. But due to some problems faced by the entrepreneurs these resources are not fully utilized. The various challenges faced by entrepreneurs while establishing a small scale enterprise that are:

1.     There should be a well developed infrastructure such roads, electricity, communication and others services as well.

2.     Lack of Knowledge for the establishment of business unit.

3.     There should be adequate stock of raw material.

4.     High cost of doing business in Jammu and Kashmir.

5.     Lack of social and family challenges.

6.     Lack of availability of trained and skilled labour

7.     Financial constraints.

8.     There should be reduction in trade restrictions and improvement in production pattern process.

9.      Disturbed environmental and political conditions.

10.   There should be proper marketing support for production of goods and services.

11.   There should be number of incentives for small scale industries as fiscal incentives, tax incentives etc.

12.   Low risk bearing capacity of new entrepreneurs.

Role of Small Scale industries

1.     Small Scale industries are the major source of employment for the people living in rural areas and therefore play a vital role in generating employment. So Small scale industries are also important for the social growth and development.

2.     Small scale industry account for almost 40% of the total gods and services in the country and hence is very contributor to the economy.

3.     Small sale industries help in promoting the Make in India initiative which helps in increasing demand for local products.

4.     It is estimated that small scale industries exported around 50% of all the material produced from such units.

5.     Small scale industries help the rural and less developed regions of the economy.

6.      Small scale industries improve the standard of living of people.

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