Q.What measures has the government taken to solve the problem of finance and marketing in the small scale sector?

Finance and marketing are two of the biggest problems for small units, and the government has set up dedicated institutions and schemes to tackle both. …

The government has taken several measures to solve the finance and marketing problems of the small scale sector.

Measures to solve the finance problem:

1. SIDBI. The Small Industries Development Bank of India, an apex bank, provides direct and indirect financial assistance under various schemes to meet the credit needs of small business, and coordinates the work of other similar institutions.
2. NABARD. The National Bank for Agriculture and Rural Development supports small, cottage and village industries and rural artisans through credit (and non-credit) approaches.
3. NSIC performance-and-credit-rating scheme. Implemented through the NSIC, this scheme sensitises small industries to the need for credit rating and encourages a good financial track record, so they can secure better credit when they approach financial institutions.
4. Subsidised-loan and finance schemes. Schemes such as the IRDP and PMRY offer entrepreneurship through subsidised loans, and in backward areas a subsidy of 10-15 per cent is given for building capital assets, with loans at concessional rates.

Measures to solve the marketing problem:

1. NSIC Marketing Assistance Scheme. Through the NSIC, the Ministry of MSME provides marketing support to micro and small enterprises — enhancing their marketing capability and competitiveness, showcasing their competencies, forming consortia for joint marketing and giving them a platform to meet large institutional buyers. …