The Government of India has been trying to provide incentives to the Small-Scale Industries in order to support their existence. The assistance provided by the Central Government is discussed below.
1. Technical Assistance: The Technical assistance and guidance are provided by various organizations such as NSIC, through TTC, SIDO, through Small Industries Services Institutes and Extension Centers. These institutes are manned by experts in different fields/ trades/ industries. These experts visit these industries, study their problems on the spot and give technical assistance and guidance.
2. Assistance for obtaining Raw Materials: Every registered small unit, on obtaining the registration certificate is required to submit all the requirements to the Directorate of Industries (DOI) for procuring essential raw materials. Many organizations are also lending a helping hand in his regards such as NSIC and others.
3. Cash Assistance: Government provides cash assistance under the self-employment scheme to the rural youth (entrepreneurs). Similarly, it is also made available to scheduled castes/tribes and women entrepreneurs.
4. Supply of Plant and Machinery on Hire-purchase basis: These are organizations like National Small Industries Corporation (NSIC) or State level Small Industries Corporations who give financial assistance to purchase plant and machinery to the entrepreneurs on their own or on hire-purchase basis. They also provide 100% finance to facilitate SSIs in diversification and technology up gradation. Entrepreneurs can also avail a tax rebate on full-year rentals.
5. Marketing Assistance: This assistance is very important for a small scale unit. For availing this, the units have to be registered with the NSIC under the single point registration scheme. The Objectives of this programme are to ensure fair margin to producers of goods, to maintain standardization and quality control with testing facilities, to market products under the common brand name, to provide publicity to SSI products etc.
6. Assistance to Small Entrepreneurs: The NSIC has developed five financial centers at New Delhi, Mumbai, Ahmedabad, Bangalore and Goa to provide finance to small entrepreneurs for activities related to marketing, bills discounting, raw materials, purchases, and exports. To train and equip the entrepreneurs, the government has developed various training institutes in the field of entrepreneurial activities/entrepreneurship. The NISIET (Hyderabad), NIESBUD (New Delhi), Integrated Training Centers (Nilokheri) are the main training institutes which function under the administrative control of SIDO.
7. Rural Industrial Project Assistance: The Rural Industrial programme (RIP) of SIDBI provides a cohesive and integrated package of basic inputs like information, motivation, training, and credit, backed by appropriate technology and market linkages. For these purposes, SIDBI has identified implementing agencies such as NGOs, development professionals, and technical consultancy organizations (TCO), and these agencies are assigned the task of developing RIP at a fee given by the bank.