National Small Industry Day: Check History, Significance and Important Facts
By : Neha Dhyani
Updated : Jan 11, 2022, 10:20
The National Small Industry Day is an annual celebration observed on 30th August every year. It is dedicated to promoting small businesses across the nation and offering job opportunities to the unemployed.
India is home to more than 6.3 crore MSME, contributes 45% of the total exports, and can access international markets.
History and Significance of National Small Industry Day
In August 2000, the Ministry of Small Scale Industries launched a comprehensive policy package for the Small Scale Industries (SSI) sector to provide special support to the small firms in India. The SSI Day was designated to commemorate the effort taken to provide balanced support to existing small, medium, and large-scale enterprises, set up new industries, and uplift the country's financial health.
On 30th August 2000, the Ministry of Small Scale Industries held an SSI convention in New Delhi where national awards were given to the best industries. From then on, the Central Government has taken a special effort to establish small-scale enterprises across India.
The National Small Industry Day marks the importance of small-scale enterprises in creating work opportunities for individuals in rural and urban regions. This is because small businesses are labour-intensive and units of capital engaged in them retain a higher proportion of employment. Furthermore, it helps inequitable allocation of economic power.
Important Facts Regarding Indian Small-Scale Industries
- Small-scale industries refer to those industries where manufacturing and production are done with limited resources. According to the Micro Small and Medium Enterprises Development Act, 2006, an industry is a small enterprise if the investment in the plant and machinery is more than Rs. 25 lakhs but does not exceed Rs. 5 crores.
- The small-scale industry in India accounts for almost 40% of the total goods and services produced and provides employment for people across the nation.
- India's export industry is significantly dependent on small enterprises. These industries manufacture nearly half of the goods exported from India.
- In June 2020, the government approved the upward revision of the MSME definition. This was done in line with the government's primary focus on energizing MSMEs in the country. Under the Aatmanirbhar Bharat Package, the government added composite criteria of both investment and an annual turnover in the definition of MSME.
- The government also launched Self-Reliant India (SRI) Fund to facilitate equity financing of Rs.50,000 crore in the MSME sector and help grow and expand MSMEs in India.
- Other initiatives to promote MSMEs include Udyam Registration, National SC-ST Hub (NSSH), Champions Portal, and the Establishment of Enterprise Development Centers.
- Udyam is an online registration procedure provided to MSMEs to simplify registration without any documentation and fees. The National SC-ST Hub is a scheme launched to promote entrepreneurship culture in the SC-ST community. The Champions portal is a platform that facilitates a single-window solution for all of MSMEs' needs and provides a platform for their grievances, encouragement, and support. The Ministry of MSME established 102 Establishment of Enterprise Development Centers across India to build a network of entrepreneurs and provide professional mentorship and support to existing and aspiring MSMEs.
FAQs about National Small Industry Day
- What is National Small Industry Day?
The National Small Industry Day is a day dedicated to supporting and promoting small industries in India.
- When did National Small Industry Day begin?
The Ministry of Small Scale Industries designated the National Small Industry Day on 30th August 2001.
- What industries can be registered under SSI?
Manufacturing Enterprises and Service Enterprises are industries that can be registered as Small Scale Industries (SSI).