Small Scale Industries

When the title of the article gives stress on the support of the Indian Government in Small Scale Industries and Business Units, the importance of the support system comes in role. Knowing why small-scale industries need the support of the Indian government becomes very important to understand the role of the Indian Government in Small Scale Industries (SSI). 

Why SSIs need government support?

Small Scale Industries include all those undertakings having a fixed investment in plant and machinery ownership which is in few hands with tiny investment strategies.

It is a fact that SSIs contribute a lot to the Indian economy. They provide a huge part of the workforce in India. So, it becomes a responsibility for the Indian Government to provide a strong support system to these kinds of industries and business units. Our Indian Government provides six types of help that are extended by different support agencies of the government.

What is the present scenario of SSI?

Small Scale Industries have recently shown huge growth in their number, profit, production, sales and employment status. The total number of SSI has increased from 105.22 lakhs to 115.21 lakhs in a span of three years. 

The sales at current prices have increased from 71.245 crores to 86.012 crores in almost two years and the number of employees has increased from 249.09 lakhs to 273.98 lakhs in a span of three years.

Why Indian Government schemes target MSMEs?

Indian Government recently took a breakthrough to extend the MSME sector’s share within the value of the GDP to forty per cent. Now the question is why will the government target the MSMEs? One in the various many reasons for this question is the profit that the government receives. Currently, around 6.5 crore MSMEs contribute thirty per cent to the value of GDP. So, the government insisted that a policy has to be made to empower the poor.

Other than the MSME Board, the MSME Development Organization is additionally as necessary as MSME because the role of the development organization is to assist the government in formulation of policies and project schemes for the promotion and development of MSME within the country.


Q1. What is the role of SSIs in Economy development?

Ans- SSIs generate vast employment opportunities quickly with relatively low investment. It leads to overall economic development of the country. It also gives opportunity to women who want to start their career.

SSI also helps in mobilization of local resources. It helps to utilize local resources like small savings. For example, there is a great demand for handicraft goods in foreign countries.

Q2. What are the schemes of Indian Government to support SSIs?

Ans- Some of the many schemes of the government to support the SSIs are:

  1. SIDO: SIDO stands for Small Industries Development Organization. It was developed in 1954 for providing planning and financial support to the small-scale industries.
  2. DIC: DIC stands for District Industries Center. This organization was developed in 1977 which issues permanent registration certificates to SSIs. It also provides marketing support to SSIs.