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Business Studies · Ch 8 — Small Business

Administrative Setup for the Small Scale, Agro and Rural Industries

8.3

Administrative Setup for the Small Scale, Agro and Rural Industries

To promote and develop small scale industries, the Government of India has built up an administrative structure at the central, state and district levels.

At the central level

The Ministry of Micro, Small and Medium Enterprises is the nodal ministry for formulating policy and coordinating central assistance for the promotion and development of small scale industries in India. It designs the policies, programmes and schemes meant for the growth of SSIs. Two important bodies work under or with it:

  • the Small Industries Development Organisation (SIDO) — also known as the Office of the Development Commissioner (SSI) — which is attached to the ministry and is responsible for implementing and monitoring the various policies and programmes formulated; and
  • the National Small Industries Corporation (NSIC), a public sector enterprise of the ministry, which provides marketing support to medium and small enterprises under the Marketing Assistance Scheme.

The Ministry of Agro and Rural Industries is the nodal agency for the coordination and development of village and khadi industries, and tiny and micro enterprises in both urban and rural areas. It also implements the Prime Minister's Rojgar Yojana. Its policies, programmes and schemes for agro and rural industries are carried out through bodies such as the Khadi and Village Industries Commission (KVIC), the Handicrafts Board, the Coir Board and the Silk Board. Depending on the criteria of employment or turnover, the KVIC may treat micro, tiny or village enterprises as part of the small enterprises.

At the state and district levels …