What measures has the government taken to solve the problem of finance and marketing in the samll-scale sector ?

Explanation

The small-scale sector has played a major role in employment generation, regional development and export promotion in India. The Government of India has realised that a lot more can be achieved if the two major bottlenecks that affect the further development of SSIs—inadequate funds and inefficient market penetration—are removed. In pursuit of this objective, the government has established the following agencies.

(a) National Bank for Agriculture and Rural Development (NABARD):
Itwas established in 1982 with the main objective of promoting rural development and integrating the efforts in this direction. This agency is an apex banking body that governs the operations particularly of the rural and ‘gramin’ banks. The main focus of NABARD is to provide cheap and easy credit facility to small, cottage and rural industries.


(b) Small Industries Development Bank of India (SIDBI):
It was set up to provide direct and indirect financial assistance under different schemes. It caters to the credit and finance requirements of especially small-scale enterprises.


(c) World Association for Small and Medium Enterprises (WASME):
It is an international non-governmental organisation that addresses the problems of small- and medium-scale enterprises. It has set up an ‘International Committee for Rural Industrialisation’ with the aim of designing a model for the growth and development of rural industries.


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