India celebrates ‘National Small Industry Day’ on August 30th every year. Today is a day to recognize the important impact that small businesses and industries have on the economy of India. It is a day to motivate these companies to grow and generate more job opportunities for the country's young people.

Small businesses are also essential in safeguarding and showcasing Indian handicrafts. These sectors support craftsmen who contribute to preserving the country's diverse heritage of handmade goods.

Acknowledging the role of small businesses in India's development, the nation celebrates National Small Industry Day. The day also serves as a chance for both the central and state governments to promote and assist small industries that provide jobs for many individuals.

Theme of National Small Industry Day 2024

The focus of National Small Industry Day- 2024 revolves around "Utilizing Strength and Strength of Micro-, Small, and Medium-sized Enterprises (MSMEs) to Speed up Sustainable Growth and Eliminate Poverty during Various Crises".

Historical background and importance

In the year 2000, the Ministry of Small-Scale Industries (MSSI) implemented a thorough policy package to support and strengthen small businesses. This package was designed to provide these businesses with the essential assistance needed to expand. The growth of small industries across India was driven by the success of this initiative. One year after acknowledging the accomplishments, the Centre declared August 30 as National Small Industry Day. The day acknowledges the role of small businesses in the nation's development. It also provides a chance for both the central and state governments to promote and aid small enterprises.

In addition to inaugurating new small ventures, the event also includes conversations on enhancing the efficiency of small enterprises.

Small Businesses play a critical role

Inclusion of Plant and Machinery or Equipment totalling less than Rs 10 crore and annual turnover below Rs 50 crore qualifies as a small scale industry. Small businesses are typically linked with producing goods or offering services on a small level. Local workers are employed by these businesses. These small businesses play a crucial role in tackling issues related to unemployment and underemployment.

Establishment of Micro, Small, and Medium Enterprises

The Ministry of Small Scale Industries and the Ministry of Agro and Rural Industries combined on May 9, 2007 to create the Ministry of Micro, Small and Medium Enterprises (MSME). The Ministry creates policies, supports and enables programs, initiatives, and oversees their execution, aiming to aid MSMEs and support their growth.

The MSMED Act, which was enforced in 2006, aimed to tackle various issues impacting MSME, including the sector's coverage and investment limits.

The MSME includes Small & Medium Enterprises (SME) Division, Agro & Rural Industry (ARI) Division, Administration & Financial Institutions (AFI) Division, Integrated Finance Wing (IFW) and Data Analytics and Technical Co-ordination (DATC) Wing, along with the Office of the Development Commissioner (DC, MSME) as an attached office and other subordinate organizations.

The SME Division provides administrative oversight for both the National Small Industries Corporation (NSIC) Ltd., a central public sector enterprise, and the National Institute for Micro, Small & Medium Enterprises (NIMSME), an autonomous national level organization focused on entrepreneurship development and training. The Division is also tasked with carrying out the National SC/ST Hub Scheme, International Cooperation Scheme, and Assistance to Training Institutions, among other responsibilities.

MSME sector create more jobs

Referring to the National Sample Survey (NSS) 73rd round conducted during the period 2015-16, the government has said that MSME sector created 11.10 crore jobs (360.41 lakh in Manufacturing, 0.07 lakh in Non-Captive Electricity Generation and Transmission, 387.18 lakh in Trade and 362.82 lakh in Other Services) in the rural and the urban areas across the country.

UP State had the largest number of MSMEs

Uttar Pradesh had the largest number of estimated MSME with a share of 14.20% of MSME in the country. Top 10 states accounted for a share of 74.05% of the total estimated number of MSME in the country include Uttar Pradeesh, West Bengal, Tamil Nadu, Maharashtra, Karnataka, Bihar, Andhra Pradesh, Gujarat, Rajasthan, and Madhya Pradesh.

Progress in the MSME industry

The Centre has implemented various measures to support the growth of the MSME sector, such as introducing new criteria for classifying MSMEs with a higher threshold based on Investment and Turnover, broadening the scope of the sector. These changes were announced on June 26, 2020.

Other measures include no international bids for purchases up to Rs 200 crores, the introduction of "Udyam Registration" for MSMEs, and the launch of Udyam Assist Platform on January 11, 2023 to formalize Informal Micro Enterprises for accessing priority sector benefits, among others, for improving Ease of Doing Business.