Small industry financing developing countries In most of the developing countries like India, Small Scale Industries (SSI) constitutes an important and crucial segment of the industrial sector.
The investment in such SSIU is very less, but it constitutes more revenue generation as we have many SSI when compared to medium and large scale industries and also provides employment opportunities.
They play an important role in employment creation, resource utilization, and income generation and helping to promote changes in a gradual manner.
resource utilization like coir rope making industries uses the outer husk of a coconut.
In the post-independence era, a strategic position has been allotted to the small scale industries in the industrial policy.
A separate position for SSI has been allotted in the industrial policy.
Advantage of establishing Small scale industries
1. Employment
2. Cottage industries like Clay making industries, meet the local demand as cups, tumblers, plates can be used by local people.
3. Like any unique cultural goods like items like caps, bags made by using natural plant or tree fibers can be exported to foreign countries, where foreign exchange happens.
4. Women either full time or part-time. For example, Lijed papad stated manufacturing papad by providing jobs to women.
5. No migration
6. No migration
7. Make use of industrial waste. Coir for ropes, gunny bads, cots for sleeping.
8. The word ‘disparity’ means “a great difference”
9. Regional disparity means a great difference between any two regions/places. In any country, all the areas are not equally developed, so the regional disparities occur regional disparity is calculated on the basis of the availability of water supply, housing facility, electrification, health, sanitation, education, transportation, marketing facilities and the standard of living of the people.
10. Everything is available locally.
11. Less technology. Like wheat to wheat flour.
12. Using local raw material. Sculptures are made in the village there is ample availability of stones. White rangoli is made from Finely ground white stone powder or chalk on the availability of local resources.
These are the different boards for Small scale industries that will finance SSI. They are divided based on levels.
CENTRAL LEVEL
SSI BOARD - SMALL-SCALE INDUSTRIES BOARD
KVIC - KHADI AND VILLAGE INDUSTRIES COMMISSION
SIDO - Small Industries Development Organization
NSIC - National Small Industries Corporation
NSTEDB - NATIONAL SCIENCE &TECHNOLOGY ENTREPRENEURSHIP DEVELOPMENT BOARD
NPC - National Productivity Council
NISIET - NATIONAL INSTITUTE OF SMALL INDUSTRIES EXTENSION TRAINING
NIESBUD - National Institute for Entrepreneurship and Small Business Development
IIE - Indian Institute of Entrepreneurship
EDI - ENTREPRENEURSHIP DEVELOPMENT INSTITUTE OF INDIA
STATE LEVEL
DIs - DIRECTORATE OF INDUSTRIES
DICs - District Industries Center
SFCs - STATE FINANCIAL CORPORATION
SIDCs/SIICs - STATE INDUSTRIAL DEVELOPMENT CORPORATION
SSIDCs - STATE SMALL INDUSTRIES DEVELOPMENT CORPORATION
OTHERS
NABARD - National Bank for Agricultural and Rural Development
HUDCO - HOUSING AND URBAN DEVELOPMENT CORPORATION
TCOs - TECHNICAL CONSULTANCY ORGANIZATIONS
NGOs - Non-governmental Organizations
SIDBI - Small Industries Development Bank of India
EPCs - Export Promotion Councils
Industry Associations –
CII - Confederation of Indian Industry
FICCI - FEDERATION OF INDIAN CHAMBERS OF COMMERCE AND INDUSTRY
PHDCCI - PROGRESS HARMONY DEVELOPMENT CHAMBER OF COMMERCE AND INDUSTRY
ASSOCHAM - ASSOCIATED CHAMBER OF COMMERCE AND INDUSTRY OF INDIA
FIEO - FEDERATION OF INDIAN EXPORTERS ORGANIZATION
WASME - WORLD ASSOCIATION FOR SMALL AND MEDIUM ENTERPRISES
FASII - FEDERATION OF ASSOCIATIONS OF SMALL INDUSTRIES OF INDIA
LUB - LAGHU UDYOG BHARATI
ICSI - INDIAN COUNCIL OF SMALL INDUSTRIES
CSIR - COUNCIL OF SCIENTIFIC AND INDUSTRIAL RESEARCH
IDBI - Industrial Development Bank of India
IFCI - INDUSTRIAL FINANCE CORPORATION OF INDIA
SISI - Small Industries Service Institute
I shall make a detailed video on all the financial institutions financing in the next video.
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