• The Ministry of Small Scale Industries is the nodal Ministry for formulation of policy, promotion, development, protection and coordination of central assistance for the promotion and development of small scale industries in India. This Ministry designs and implements the policies through its field organisations for the promotion and growth of small scale industries. The Ministry also performs the functions of policy advocacy on behalf of small scale industries (SSI) sector with other Ministries/Departments. The Ministry was bifurcated into two separate ministries, viz.,
  1. Ministry of Small Scale Industries (SSI) and
  2. Ministry of Agro and Rural Industries.(ARI)
  • The Ministry of Small Scale Industries designs policies, programmes, and schemes for the promotion and growth of SSIs. The Small Industries Development Organisation (SIDO), also known as the Office of the Development Commissioner (SSI) which is attached to this ministry is responsible for implementing and monitoring various policies and programmes formulated.
  • The Ministry of Agro and Rural Industries is the prime agency for coordination and development of Village and Khadi industries, tiny and micro enterprises in both urban and rural areas. The various policies, programmes and schemes related to agro and rural industries are implemented by the ministry with the help of its various bodies

National Board for Micro, Small and Medium Enterprises (NBMSME)

  • In pursuance of the MSME Development Act, 2006, the National Board for Micro, Small & Medium Enterprises consisting of a total of 47 members have been constituted. The 20 non-official members on the Board represent industry associations of MSMEs from all over the country while the other 27 members comprise Members of Parliament, Ministers of six State Governments, representatives of RBI, Banks etc. The main agenda of the Board is to solve the various issues relating to development of MSMEs and come out with remedial measures which are undertaken in consultation with the concerned departments/ agencies

Khadi and Village Industries Commission (KVIC).

  • The Khadi & Village Industries Commission (KVIC), established under the Khadi and Village Industries Commission Act, 1956, is a statutory organisation engaged in promoting and developing khadi and village industries for providing employment opportunities in rural areas, thereby strengthening the rural economy. The KVIC has been identified as one of the major organisations in the decentralized sector for generating sustainable rural non farm employment opportunities at low per capita investment. This also helps in checking migration of rural population to urban areas in search of employment opportunities. New reform programmes are undertaken which aim at revitalizing the khadi sector for enhanced sustainability of khadi; increasing incomes for spinners and weavers; increasing employment; enhancing artisan’s welfare and gradually enabling khadi institutions to stand on their own feet.

Mahatma Gandhi Institute for Rural Industrialisation (MGIRI)

  • The national level institute namely Mahatma Gandhi Institute for Rural Industrialization (MGIRI) has been established at Wardha, Maharashtra, to strengthen the R&D activities in khadi and village industry sectors. The main functions of the Institute are to improve the R&D activities under rural industrial sector through encouraging research, extension of R&D, quality control, training and dissemination of technology related information

Small Industries Development Organisation (SIDO) 

  • The SIDO established in 1954 was created for development of various small scale units in different areas. It is a subordinate office of department of SSI and ARI and a nodal agency for identifying the needs of SSI units, coordinating and monitoring the policies and programmes for promotion of the small industries. Over the years, it has seen its role evolved into an agency for advocacy, hand holding and facilitation for the small industries sector. It has over 60 offices and 21 autonomous bodies under its management. These autonomous bodies include Tool Rooms, Training Institutions and Project-cum-Process Development Centres. The SIDO provides a wide spectrum of services to the small industries sector. These include facilities for testing, tool making, training for entrepreneurship development, preparation of project and product profiles, technical and managerial consultancy, assistance for exports, pollution and energy audits etc. The SIDO provides economic information services and advises Government in policy formulation for the promotion and development of SSIs.




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