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Administrative Setup For The Small Scale and Rural Industries

Small scale Industries are the type of industries that produces goods and services on a small scale. These industries play an important role in the economic development of a country. The owner invests once on machinery, industries, and plants, or take a lease or hire purchase. These industries do not invest more than one crore due to economic challenges in India. Few examples of small-scale industries are paper, toothpick, pen, bakeries, candles, local chocolate, etc. industries and are mostly settled in an urban area as a separate unit.

The agro and rural industry also knows as cottage and rural industry are not defined by their capital investment and are located in the rural area. They play a crucial role in generating and providing employment to rural people, particularly for local artesian and weaker section of the area. The rural industry also contributes to the rural community by proving employment and restricting the rural people to migrate to the urban area for work. Rural industries are related to agriculture and contribute subordinate employment in rural areas.

  • The Indian Government constituted the ministry of Small Scale Industries (SSI’s), Agro and Rural Industries (ARI’s) as the nodal ministry.
  • Small Scale Industries is built for the coordination of central assistance and setting up the policy.
  • It designs policies, programs, and schemes for the development and improvement of small industries.
  • The small business was divided into two different ministries in 2001, September.
    1. Ministry of Small Scale Industries
    2. Ministry of Agro and Rural Industries
  • It also started the Prime Minister’s Rojgar Yojana.
  • Various policies, programs, and schemes are performed by the department through the Khadi and Village industries Commission (KVIC), Coir Board, Silk Board, Handicrafts Board, etc.
  • State Governments also perform various developmental and promotional schemes and projects.
  • For the development of small scale industries which is administered through the State Directorate of Industries.
  • The central/state level schemes are implemented by the District Industries Centers (DICs) which comes under the State Directorate of Industries.

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