International Small Industries Day 2023 Definition, Objectives, and how many small industries in India ?
When is the International Small Industries Day Celebrated?
International Day of Small Scale Industries is celebrated on 30 August every year. This day is celebrated with the aim of promoting small scale industries and providing employment opportunities to the unemployed. Small scale industries have an important role for economic development in a developing country like India. Keeping in view the strategic importance in the overall economic development of India, special emphasis has been laid on the need for the development of the small scale sector. Accordingly, the trend of policy support from the government for small scale industries has been helpful and conducive for the development of small enterprises.
Definition of small scale industry
Small scale industries are those industries, which are done on a small scale and are usually run as the main occupation with the help of laborers and laborers. Those industries in which 10 to 50 people work in return for wages, come under small scale industries. Small scale industry is an industrial undertaking in which investment is fixed assets in plant and machinery.
This investment limit varies from time to time by the government. In small scale industries, goods are imported from outside and technical skill can also be obtained from outside.
International Small Industries Day: Objectives of Small Scale Industries:
- The main objective of small scale industries is to solve the problem of unemployment and underemployment by increasing employment opportunities because the units of capital employed in small enterprises are relatively more employment.
- The second main objective is equitable distribution of economic power. Cottage and small scale industries lead to decentralization of economic power.
- Industrial decentralization is possible through small scale industries. Due to this the economic development of the country is possible by reducing the technological balance and regional technological disparity.
- Due to labor intensive technology there is abundance of workers. Therefore it is necessary that they establish industrial peace.
- The civilization and culture of the country is protected through small scale industries. Most of the artisanal and traditional items are manufactured by small scale industries and most of these industries are based on labor intensive technology, which strengthens the spirit of mutual goodwill, cooperation, equality and fraternity in the industries.
- The main objective of small scale industries is to make optimum use of natural resources.
- Cultivate the spirit of ‘simple living high thinking’ from the point of view of human values.
- To optimize the balance of trade and balance of payments, it is necessary that they earn a lot of foreign exchange.
- Its main objective is to provide the best goods to the general public.
- Playing an important role in the Indian economy, their aim is to produce maximum and best.
International Small Industries Day: Contribution of Small Scale Industry to Indian Economy:
Small scale industries and cottage industries have played an important role in the Indian economy. Since ancient times, small and cottage industries of India have been producing quality goods. Although, like other Indian industries under British rule, this sector also suffered a great decline, but after independence it has developed at a very rapid pace.
National Loan Schemes launched by Narendra Modi for small scale industries in 2023
The Prime Minister of India, Narendra Modi has implemented six loan schemes for the small scale industry sector. They also help in per capita income and resource utilization in the nation. The six loan schemes offered are given below:-
- MSME Business Loan in 59 Minutes
- Mudra loan
- Credit Guarantee Fund Scheme for Micro and Small Enterprises
- National Small Industries Corporation Subsidy
- Credit Link Capital Subsidy Strategy for Technology Upgradation
- An Alternative – Quick Business Loan From Borrower
Credit: Moneyland YT
Number of small scale industries in India:
Among small scale industries, manufacturing industries have developed rapidly due to the natural supply of raw materials and increasing public demand, there are 21 major small scale industries in India and more than 7500 products are manufactured. Some of them are listed below:
- cotton clothes
- Electrical and Machinery Parts
- Food Products
- Chemical Products
- Rubber and Plastic Products
- metal products
- wood products
- Paper Products and Printing
- Leather and Leather Products
- Beverages and Tobacco
Ministry of Small Industries:
The ‘Ministry of Small Scale Industries’ acts as the nodal agency for the growth and development of small scale industries in India. In order to promote small scale industries, the Ministry formulates and implements policies and enhances their competitiveness. It is assisted by various public sector enterprises, such as:-
- ‘Small Industries Development Organization’ (SIDO) is the apex body to assist the government in formulating its policy and overseeing the implementation, programmes, projects, plans.
- The ‘National Small Industries Corporation Limited’ (NSIC) was set up by the ‘Government of India’ with a view to promote, support and nurture small scale industries in the country, with a focus on the commercial aspects of their operations.
- The Ministry has set up three National Enterprise Development Institutes, which are engaged in training and consultancy services for training centres, undertaking research and enterprise development in the field of small scale industries. These are as follows:-
- National Small Industries Extension Training Institute (NISIET) at Hyderabad
- National Institute of Enterprise and Small Business Development (NIESBUD) at Noida
- Indian Institute of Enterprises (IIE) in Guwahati