Measures to Promote Small Scale Industries in India

Measures to Promote Small Scale Industries in India

Small Scale Industries have contributed a lot for the development of the economy of India. Still SSI face problems due to the nature and size of their business. Some of the measures that can be taken by government and NGOs to boost the performance are as follows:

Measures to Promote Small Scale Industries in India

Measures to Promote Small Scale Industries in India

1. Government should ensure that adequate financial assistance is provided to SSls through banks and financial institutions. The rate of interest on loans should be low. Financial assistance must be provided to SSI through unsecured loans or after obtaining minimum security.

2. Insurance coverage must be extended to new and existing small scale industries.

3. The gap that exists between consumers and small business must be bridged through effective marketing. Lot of industrial fairs, exhibitions must be organized by the government to encourage the sale of SSI products.

4. The infrastructural facilities must be improved and measures must be taken to enhance the supply of water, electricity to backward and rural areas.

5. Technological support must be provided to SSI to import machinery at lower cost.

6. Many industrial estates must be established by the government.

7. The informal money market should be regulated to avoid exploitation by money lenders on small scale industrialists.

8. Training must be provided to entrepreneurs in technological, managerial, financial and marketing areas.

9. Awareness campaigns must be carried out in full swing to encourage youngsters to become first generation entrepreneurs.

10. The sick industries must be rejuvenated instead of liquidation.

11. The licensing procedure must be simple and at ease.

12. Fair Incentives and subsides must be given to SSI units and an awareness must be made about the incentives available to new entrepreneurs

13. Export promotion schemes must be devised in such a way that encourages SSI to export their goods.