Small industry day- 30th august

The smallest of things matter. No matter how small it is in terms of capital or size, it provides great value and exerts certain importance if it is worth working on. That being said, Small scale industries are known as SSI or MSMEs and are categorized by the Micro, Small & Medium Enterprises Development Act. Small scale industries are those which provide services and have their productions done at a micro-level. These industries do a one-time investment in machinery, plants, and industries which could be on an ownership basis, hire by purchase or lease basis. But it does not exceed Rs. 1 Crore.

The most common examples of items produced by small scale industries could be right next to you, napkins, toys, papers, pens, chocolates, etc.

Photo by LOGAN WEAVER on Unsplash

30th August is observed as the small scale industry day in India. Yes, they contribute to 40%of the economy of the country.

In order to acknowledge these industries, exhibitions are held every year, by extending them, promoting and assisting them in a financial way in any way and also educating people about the health and employment opportunities they could receive and provide by simple means of informing the public or joining hands with them.

What the population has failed to notice is that due to the pandemic, these industries are the worst affected. Since most of them don’t function online and due to lack of capital and lack of purchases they’ve shut down and are suffering major losses. Since there are as many as 7500 industries, to begin with, there are a lot of government schemes (like Mudra loans, Credit guarantee fund scheme for micro and small enterprise, National small industries corporation subsidy, Credit link capital subsidy strategy for technology upgrading).

But most of them are not registered anywhere since they are just too small. Even GST has its threshold and most micro-enterprises do not qualify. This apparent invisibility tends to work for enterprises as well as against them. Since they are out of the formal network, they do not have to maintain accounts, pay taxes or adhere to regulatory norms, etc. This brings down their costs. But, as it is clear in a time of crisis, it also constrains a government’s ability to help them. For instance, in some developed countries, the government has tried to directly provide wage subsidy and extra credit to smaller firms but that could happen because even smaller firms were being mapped. Hence in every way, the government and its citizens try to create employment opportunities, reduce regional imbalances, try to provide technological developments (online sales), reduce problems related to income and wealth, and also try to have optimum utilization of resources which aren’t exploited and help attain self-reliance. We as citizens also need to understand, sympathize, utilize our access to social media, and help others in any way possible.

Contributed by Nandita content writer at Mitti Ke Rang

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