Monday, 14 March 2022

Government assistance to small scale industries in India

 There is a huge contribution of small-scale businesses in the development of a nation like employment generation, regional development, manufacturing, maintaining the supply chain, and many more. The small scale business is very important that is the reason, we have a special ministry for the development of micro, small and medium start-ups. The government makes several policies to strengthen small-scale businesses including establishing, promoting, and developing small-scale businesses. The central and state government take actively part in promoting self-employment opportunities in rural and urban areas by assisting in manufacturing, infrastructure, advanced technology, giving training, marketing, raw material, and many more. All these mentioned services transformed in several government policies. All the policies have one goal to assist small-scale businesses and rural industries as well. Here we will discuss many policies and institutional support to small-scale businesses. 

National bank for agriculture and rural development (NABARD)

NABARD was set up in 1982 by the government of India to provide assistance and strengthen rural industries. It has adopted a multi prolonged, multipurpose strategy to promote the rural small-scale business of the nation. It provides support to small-scale industries, cottage and villages industries along with agriculture, and support artisans as well. Apart from these services it runs several training and consultancy services and development programs as well for rural areas

The rural small business development center (RSBCDC)

This is the first medium set up by the world association for supporting small-scale enterprises. It is sponsored by the NABARD. The most important reason for setting up RSBCDE is working for socially and disadvantaged individuals and groups. The primary object of RSBCDE provides technical support to current and prospective micro and small start-ups. RSBCDE has been organizing several programs for rural entrepreneurship, skill development workshops, awareness program, training program, consulting programs, and many more. These programs give motivation to unemployed youth to learn about several businesses and other benefits as well.

National small industries corporation (NSIC)

This institution was set up in 1995, the motive of NSIC promote and support the growth of small entrepreneurship and focus on commercial aspects as well. Some of the commercial aspects are highlighted.

  • NSIC is strengthening indigenous supply and purchasing machinery at an affordable price. 
  • It gives support for the development of export of small-scale businesses. 
  • NSIC guide for setting up a better supply chain and mentorship as well for the growth of the business. 
  • It serves as a technology business incubator for the growth of the business. 
  • Creating awareness on the technological upgrade in youth and many entrepreneurs.

Other than mentioned program, recently NSIC has implemented a new scheme performance and credit rating with two objectives: 1) providing credit rating to small businesses 2) encouraging for maintaining good financial track records.

Small industries development banks of India (SIDBI)

It is the topmost government bank of India to provide direct and indirect financial assistance under numerous policies, to meet the credit requirement of small-scale businesses. It is coordinating the functions of several other insinuations in similar activities.

The national commission for enterprises in the unorganized sector (NCEUS)

NCEUS was set up in September 2004, with the following features. 

  • The NCESUS takes important measures to improve the productivity of small businesses in the informal sector.
  • One of the motives of NCEUS is generating more employment opportunities in rural areas.
  • To create links of the sectors with other institutions for several facilities to provide raw material, upgrade technology, finance, marketing, and many more. 
  • To enhance the competitiveness of small-scale businesses all over the world. 

Rural and women entrepreneurship development (RWD)

The rural and women entrepreneurship development focuses to enhance the business environment for women and supporting the entrepreneurial initiatives of rural people and women. It provides several services including training manuals for women; strengthening on human capital for enhancing productivity, and extra. 

World association for small and medium enterprises (WASME)

It is the only international non-governmental organization of micro, small and medium businesses based in India for supporting small businesses in the global market. WASMS was introduced by the international committee for rural industrialization.

It aims to develop an action plan model for sustaining the growth of the rural business. There are several schemes introduced under this organization like training of rural youth for self-employment program, integrated rural development program, and many more. 

Scheme of fund for re-generation of traditional industries 

The government started it with 100 crores in 2005, its aim to create sustained employment opportunities in traditional industries. This organization focuses to build innovation and traditional skills and make them profitable, sustainable, and many more.


The government of India has a special focus emphasis on the industrial development of backward, tribal, and hilly areas of India. There are several committees set up to attest and support the growth of the small-scale business. Numerous programs and schemes run by the government, these incentives will attract the rural backward business. Some of the common incentives offered such land, power, water, sales tax, raw material, financial support, industrial estates, and many more. All these incentives motivate people for self-employment and contribution to growth in economic activities.   


All the mentioned information gives guidance about the several programs set up for the growth of small-scale business in India. I hope this article will help everyone how they can use all incentives and institutional support for their small business.          








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