Celebrating National Small Industry Day 2024: Empowering India's MSMEs
28 August, 2024
Synopsis
Small-scale industries (SSI) contribute significantly to the nation’s economy.
National Small Industry Day is celebrated on 30th August to honour the contributions of small-scale industries to India's economy.
The National Small Industries Corporation (NSIC) Ltd is a designated government organisation that launches initiatives for SSI.
The Micro, Small and Medium Enterprises (MSME) sector contributes significantly not only to the nation’s economy but also its social development. The small sector industries, which is one of the parts of MSME, comprises various manufacturing and services industries that strengthen MSME. To recognise the value that these small-scale industries bring to the country, 30th August is celebrated as National Small Industry Day in India. In this article, you can get information on National Small Industry Day, its history and significance.
History of National Small Industry Day
In the Union Budget 2000-2001, the then Prime Minister announced a comprehensive policy package for small-scale industries (SSI) and tiny sectors on 30th August 2000. The package included raising the exemption for excise duty to ₹1 crore, providing credit-linked capital subsidy, raising the limit of investment, raising the limit of composite loans to ₹25 lakh, raising the family income eligibility, etc. After the launch of the policy, 30th August 2000 was named the National Small Industry Day.
Significance of the National Small-Scale Industry Day in India
As a developing nation, the small-scale industry is the backbone of the nation’s economy. Therefore, it is crucial that this sector be strengthened through government policies. These industries boost economic growth as they create jobs, drive innovation and promote local development.
By providing employment opportunities, they can potentially help to reduce poverty and boost income levels, stimulating consumer spending and demand. These industries also enhance the resilience of the economy by diversifying its base and fostering entrepreneurship, which can lead to sustainable growth and economic stability. Additionally, they can also help bridge gaps between urban and rural areas by fostering inclusive development.
Also Read: Guide on Business Loans for Msmes and Start-Ups
About Small-Scale Industries
Small-scale industries can be defined as units that have an investment in plant and machinery or equipment of ₹1 crore. SSIs manufacture or provide services on a smaller scale. Industries typically include handicrafts, handlooms, khadi, coir, sericulture, power looms, etc. SSIs also include ancillary industries engaged in the manufacturing or production of parts, components, sub-assemblies, etc.
Small-scale industries can help strengthen the local economy through entrepreneurship and job opportunities, which, in turn, can strengthen the nation’s economy. SSIs are a part of the Ministry of Micro, Small and Medium Enterprises (MSME).
About National Small Industries Corporation (NSIC) Ltd.
The NSIC is a Government of India enterprise under the Ministry of MSME. The NSIC promotes and supports the MSME sector by providing integrated support services to small-scale industries.
Small-Scale Industries: Key Reforms & Achievements
The Ministry of MSME has introduced various reforms to boost the small industries:
The NSIC provided entrepreneurship and skill development training to 7,068 individuals and provided Common Facility Services to 3,970 micro and small enterprises.
289 Khadi institutions received ₹2,147.39 lakh under the Modified Market Development Assistance (MMDA) scheme.
The Central Coir Research Institute (CCRI) organised a technology upgradation study visit for 30 entrepreneurs from the Sindhudurg Coir and Allied Products Manufacturers' Association in Maharashtra, as part of the Maharashtra State Industrial Cluster Development Program (MSICDP).
Small-scale units can register for SPRS and can be eligible to get the benefits under Public Procurement Policy for MSEs.
CHAMPIONS is an online platform that supports MSMEs by resolving grievances and providing assistance throughout their business lifecycle.
The National SC-ST Hub (NSSH) promotes entrepreneurship among SC-ST communities, targeting a 4% procurement goal and supporting market linkages, financing and capacity building.
On September 17, 2023, the Hon’ble Prime Minister launched the PM Vishwakarma scheme, which provides recognition through a certificate and ID card, skill upgradation, toolkit incentives and access to collateral-free credit. The scheme also offers incentives for digital transactions and marketing support to beneficiaries.
A Scheme for Promotion of Innovation, Rural Industries & Entrepreneurship (ASPIRE) aims to create jobs in the agro-rural sector by setting up Livelihood Business Incubators (LBIs) and providing skill development and incubation programs for rural youth, women and the unemployed.
Also Read: Know How to Grow Your Business in 8 Simple Steps
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FAQs
When is National Small Industry Day celebrated?
National Small Industry Day is celebrated annually on 30th August.
What types of businesses are considered small industries?
Small industries are businesses where the investment in plant and machinery or equipment does not exceed ₹1 crore.
Why is National Small Industry Day celebrated?
National Small Industry Day celebrates the achievements of small businesses and reaffirms the government's strong commitment to their growth and support.
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