New Delhi: Recognising the contribution of small industries to India’s growth, the National Small Industry Day is observed in India on August 30 every year. The day is also an opportunity for the central and state governments to encourage and support small industries which offer employment to a large number of people.
History and Significance
It was in 2000 when the Ministry of Small-Scale Industries (MSSI) introduced a comprehensive policy package to empower small businesses. This package aimed to equip these enterprises with the necessary support for their growth. The success of this endeavour spurred the growth of small industries across India. A year after recognising the achievements, the Centre announced observing August 30 as National Small Industry Day. The day recognises the contribution of small industries to the country’s growth. It is also an opportunity for the central and state governments to encourage and support small industries.
Besides launching new small businesses on this day, the occasion is also marked with discussions on ways to improve the productivity of small businesses.
What Is Small Industry
Investment in Plant and Machinery or Equipment with not more than Rs 10 crore and annual turnover not more than Rs 50 crore. Small industries are usually associated with manufacturing or providing services on a small scale. These businesses employ local workers. These small industries are crucial in addressing the problems of unemployment and semi-employment.
National Small Industry Day Theme-2024
The theme for National Small Industry Day- 2024 is "Leveraging Power and Resilience of Micro-, Small and Medium-sized Enterprises (MSMEs) to Accelerate Sustainable Development and Eradicate Poverty in Times of Multiple Crises".
Creation of MSME
On May 9, 2007, the erstwhile Ministry of Small Scale Industries and the Ministry of Agro and Rural Industries were merged to form the Ministry of Micro, Small and Medium Enterprises (MSME). The Ministry designs policies, promotes and facilitates programmes, projects, schemes and monitors their implementation, with a view to assisting MSME and helping them to scale up.
The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to address different issues affecting MSME, inter alia, the coverage and investment ceiling of the sector.
The MSME consists of Small & Medium Enterprises (SME) Division, Agro & Rural Industry (ARI) Division, Administration & Financial Institutions (AFI) Division, Integrated Finance Wing (IFW) and Data Analytics and Technical Co-ordination (DATC) Wing, besides the Office of the Development Commissioner (DC, MSME) as an attached office and other subordinate organisations.
SME Division
The SME Division looks after overall administrative supervision of the National Small Industries Corporation (NSIC) Ltd., a central public sector enterprise and National Institute for Micro, Small & Medium Enterprises (NIMSME) an autonomous national level entrepreneurship development and training organisation. The Division is also responsible for implementation of the National SC/ST Hub Scheme, International Cooperation Scheme and Assistance to Training Institutions, among others.
Employment
Referring to the National Sample Survey (NSS) 73rd round conducted during the period 2015-16, the government has said that MSME sector created 11.10 crore jobs (360.41 lakh in Manufacturing, 0.07 lakh in Non-Captive Electricity Generation and Transmission, 387.18 lakh in Trade and 362.82 lakh in Other Services) in the rural and the urban areas across the country.
State-wise Distribution of estimated MSME
Uttar Pradesh had the largest number of estimated MSME with a share of 14.20% of MSME in the country. Top 10 states accounted for a share of 74.05% of the total estimated number of MSME in the country include Uttar Pradeesh, West Bengal, Tamil Nadu, Maharashtra, Karnataka, Bihar, Andhra Pradesh, Gujarat, Rajasthan, and Madhya Pradesh.
Development Of MSME Sector
The Centre has taken a number of steps for the development of the MSME sector including new criteria for classification of MSMEs with higher threshold, based on Investment and Turnover, to widen the ambit of the MSME sector, notified on June 26, 2020.
Some of the other initiatives include no global tenders for procurement up to Rs 200 crores, “Udyam Registration” for MSMEs, for Ease of Doing Business, launched on 01.07.2020, launch of Udyam Assist Platform on January 11, 2023 for bringing Informal Micro Enterprises in the formal ambit for availing benefits under priority sector among others.
