Policies

The small scale industry sector output contributes almost 40% of the gross Industrial value-added 45% of the total exports from India (direct as well as indirect exports) and is the second largest employer of human resources after agriculture. The development of Small Scale Sector has therefore been assigned an important role in India's national plans.

In order to protect, support and promote small enterprises as also to help them become self-supporting, a number of protective and promotional measures have been undertaken by the Government.

The promotional measures cover
 - industrial extension services
 - institutional support in respect of credit facilities,
 - provision of developed sites for construction of sheds,
 - provision of training facilities,
 - supply of machinery on hire-purchase terms,
 - assistance for domestic marketing as well as exports,
 - special incentive for setting up enterprises in backward areas etc.
 - technical consultancy & financial assistance for technological upgradation.

While most of the institutional support services and some incentives are provided by the Central Government, others are offered by the state governments in varying degrees to attract investments and promote small industries in varying degrees to attract investments and promote small industries with a view to enhance industrial production and to generate employment in their respective States.