Q.Indicate the measures to solve the problems of small scale industries.

Small-scale industries suffer from shortage of finance, raw materials, modern technology and markets, plus competition from big firms. The remedies are cheap credit, assured raw materials, marketing and procurement support, technical training, industrial estates, tax concessions and simplified procedures.

Importance

Small-scale and micro industries (MSMEs) need little capital, use local resources, create large employment and spread industry to rural and backward areas — so solving their problems is vital for inclusive growth.

Measures to solve their problems

1. Adequate and cheap credit: Priority-sector lending by banks, SIDBI, and credit-guarantee schemes to overcome the finance shortage.
2. Assured raw materials: Supply of scarce and quality raw materials at fair prices through supplier agencies.
3. Marketing support: Reservation of items, government procurement, exhibitions and marketing boards to ensure demand.
4. Modern technology and training: Technology upgradation schemes, training institutes and common facility centres.
5. Industrial estates and infrastructure: Developed plots with power, water and roads at concessional rates.
6. Tax concessions and subsidies: Excise/GST relief, capital subsidies and incentives, especially in backward areas. …