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 through priority-sector lending, SIDBI and credit-guarantee schemes.
2. Assured raw materials of good quality at fair prices.
3. Marketing support through reservation of items, government procurement, exhibitions and marketing boards.
4. Modern technology and training via technology-upgradation schemes and common facility centres.
5. Industrial estates and infrastructure with power, water and roads at concessional rates.
6. Tax concessions and subsidies, especially in backward areas.
7. Simplified procedures through single-window clearance. …