National Small Industry Day 2022 - Encouraging Economic Growth of India
The 30th of August is set aside each year as National Small Industry Day. It is dedicated to supporting unemployed people seeking employment and encouraging small businesses around the country. The purpose of the day is to increase small businesses' potential for overall growth. National Small Industry Day is celebrated to emphasize the importance of small businesses in India. Small-scale industries play an important part in the growth of the economy of the nation. When it is National Small Industry Day small enterprises are encouraged and praised to become an employment source for the population. The financial health of a country is improved when there is a healthy increase in the medium, small, and large-scale industries that eventually leads to the development of new companies. It is believed that the Small Scale Industry will flourish when different strategies are put into place by the policy of the government. In this article, we've given the background and significance of National Small Industry Day 2022.
The National Small Industry Day is celebrated every year on August 30, to commemorate the contribution made by small-scale industries to the growth of India. On the 30th of August in 2000, the government was reported to have released a comprehensive policy plan for small-scale industry. Since it, National Small Industry Day is celebrated across the nation. Small Scale Industry (SSI) registration is often used in conjunction with micro, small and medium-sized enterprises (MSME) registration, while the MSME Development Act 2006 enables the growth and promotion of MSMEs or SSIs and provides for making them more competitive.
However, MSME Day observed on June 27 each year is declared a day of celebration by the United Nations General Assembly (UNGA) to bring an understanding of the role of MSMEs in sustainable development as well as the global economy. The world is awash with celebrations of MSME Day after a resolution was passed by the UNGA in 2017.
It is believed that the government of India joined the former Ministry of Small-Scale Industries and the Ministry of Agro and Rural Industries in 2007 and established the Ministry of MSME. The share of Indian MSMEs in the GDP of the country was about 30 percent prior to the pandemic, it decreased to 26.83 percent in FY21, as per information provided by the Secretary of State in charge of MSMEs Bhanu Pratap Singh Verma during the Lok Sabha in July of this year.
Additionally, MSMEs' share in India's exports of merchandise decreased to 45.04 percent in FY22, compared to 49.75 percent during FY20 and 49.35 percent in FY21. But, MSME exports had surged 21.8 percent from $155.9 billion in FY20, and 31.9 percent from $143.9 billion in FY21, to $190 billion in FY22. This decline was happening against the context of the government's goal that was announced by the former MSME Minister Nitin Gadkari in the year 2020, to boost the share of MSMEs on exports up to 60%% from 48 percent and to create 5 crore new jobs in addition to the rise in the share of GDP up to 40 percent by 2025.
What are Small Industries?
Small Scale Industries are those industries where the manufacturing or product of services is done on a micro or small scale. Small Industries make a one-time investment in machines, plants and equipment, but they do not go over the amount of Rs. 10 crores, and the annual turnover cannot exceed 50 crores.
National Small Industry Day: Importance
National Small Industry Day is observed to promote the small-scale businesses of India. Small-scale businesses have a significant part to play in the growth of a nation in transition. The government of the central region has taken all efforts to develop and promote small-scale industries. Small Scale Industries are labor-intensive and also focus on sharing economic power. When new industries are established, a variety of job openings increases. Both urban and rural areas are employed by small-scale industries. To help Small Scale Industry(SSI) Entrepreneurs the Ministry of Small-Scale Industries organized SSI Convention on the 30th of August 2001. The National Awards Function was presented in New Delhi. Three parts were included in the program: Inauguration, distribution of National Awards, and an Open House Discussion organized.
Facts to Know About National Small Business Day
Nearly 40% of all goods and services produced in India are produced on a small scale, and this sector provides jobs for citizens all around the country.
Small businesses play a vital role in India's export sector. The majority of the items that India exports are produced by these industries.
The government will have authorised the MSME definition's upward modification in June 2020. This was accomplished in keeping with the government's core goal of reviving MSMEs throughout the nation.
The government expanded the definition of MSME to include composite requirements that take into account both investment and yearly turnover under the Aatmanirbhar Bharat Scheme.
In order to allow equity financing of Rs. 50,000 crores in the MSME sector and aid in the growth and expansion of MSMEs in India, the government also established Self-Reliant India (SRI) Fund.
Udyam Registration, the National SC-ST Hub (NSSH), Champions Portal, and the establishment of Enterprise Development Centers are other programs to support MSMEs.
MSMEs are given access to Udyam, an online registration process that streamlines registration without the need for paperwork or fees. A program called the National SC-ST Hub was started to encourage an entrepreneurial culture in the SC-ST community.
Other Government's Initiatives
There are a variety of programs and schemes that are run by the government to encourage small-scale businesses. Here are a few schemes and programs that are presented by the government
EXPANSION/UP-GRADATION PMEGP/MUDRA UNITS THAT ARE IN USE
The government has introduced the scheme with the intention to offer financial aid for small-sized businesses to expand and upgrade. This scheme also addresses the demands of entrepreneurs who are looking to introduce new technology.
Credit GUARANTEE SCHEME for MICRO AND SME ENTERPRISE (CGTMSE)
CGTMSE was launched to encourage first-generation entrepreneurs to venture into self-employment opportunities by facilitating credit guarantee support for collateral-free/guarantee-free loans to the Micro and Small Enterprises (MSEs).
PROCUREMENT AND MARKETING SUPPORT (PMS) SCHEME:
This scheme can be used by existing entrepreneurs to increase the marketability of their products and services within the MSME sectors. It will help promote new initiatives to access markets, raise awareness and teach MSMEs on a variety of marketing-related subjects.
MICRO AND SMALL ENTERPRISES CLUSTER DEVELOPMENT PROGRAM (MSE-CDP)
The MSE-CDP program supports the long-term sustainability and growth of MSEs through addressing common problems like improvement in technologies, skills, and quality market access, creating/upgrading infrastructure facilities in the existing or new industrial Areas and clusters that comprise MSEs. It also encourages green and sustainable manufacturing techniques in the clusters.
ENTREPRENEURSHIP AND SKILL DEVELOPMENT PROGRAMME (ESDP)
ESDP program was created to help new companies and capacity-building of existing MSMEs and to foster the entrepreneurial spirit within the nation. The scheme is suitable for both prospective and established entrepreneurs.