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Discuss the need for institutional support to small-scale industries.
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Solution:

Small Scale Industries Board (SSIB):

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  • The Government of India constituted a Board, namely, Small Scale Industries Board (SAAB) in 1954 to advise on the development of small-scale industries in the country. The SSIB is also known as Central Small Industries Board.

  • The range of developmental work in small-scale industries involves several departments/ministries and several organs of the Central/State Governments.

  • Hence, to facilitate coordination and inter-institutional1inkages, the Small Scale Industries Board has been constituted.

  • It is an apex advisory body constituted to render advice to the Government on all issues about the development of small-scale industries.

  • The Industries Minister of the Government of India is the Chairman of the SAAB.

  • The SSIB comprises 50 members including State Industry Minister, some Members of Parliament, Secretaries of various Departments of Government of India, financial institutions, public sector undertakings, industry associations and eminent experts in the field.

State Small Industries Corporations:

  • Many State Governments have set up Small Industries Corporations in order to undertake several commercial activities.

  • The most important of these activities are the distribution of scarce raw materials, supply of machinery on hire purchase basis, constitution and management of industrial estates, procurement of orders from Government Departments, assistance in export marketing and in certain cases provision of financial, technical, and managerial assistance to small enterprises.

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