Question

“Small-Scale Industries require a shield against large scale industries.”

In the light of given statement, elaborate the steps initiated by the government in this direction.

Answer 1

The government has taken several steps to protect and promote Small-Scale Industries (SSIs) against competition from large-scale industries. These include:

1. Reservation Policy: Certain products were reserved exclusively for SSIs to manufacture, ensuring limited competition from large industries.
2. Financial Support: The government provides subsidies, low-interest loans, and credit facilities through institutions like SIDBI to help SSIs grow.
3. Tax Benefits and Incentives: Small industries receive tax exemptions, reduced GST rates, and other incentives to enhance their competitiveness.
4. Technology & Infrastructure Support: Programs like CLCSS (Credit Linked Capital Subsidy Scheme) and industrial clusters help SSIs access modern technology and improve production efficiency.