“Small businesses are the backbone of our economy and the glue that holds communities together.”— Ralph Nader, American political activist, author, and attorney

August 30 marks National Small Industry Day in India, a day dedicated to recognizing and celebrating the vital role of small-scale industries (SSIs) in shaping the nation’s economic landscape. Established in 2001, this day acknowledges the significant contributions of SSIs to India’s growth, innovation, and employment generation.

Small industries, also known as small-scale industries (SSIs), refer to businesses and enterprises that operate on a smaller scale compared to large industrial firms. They are characterized by their relatively modest size in terms of capital investment, production capacity, and workforce. Small industries play a crucial role in the economy, often serving as a vital source of employment and innovation.

The inception of National Small Industry Day followed a pivotal government decision in the previous year to foster the growth of small industries through a comprehensive policy package. This initiative aimed to address critical issues such as infrastructure development, technological advancement, and payment systems. The merger of the Ministry of Small-Scale Industries and the Ministry of Agro and Rural Industries in 2007 into the Ministry of Micro, Small, and Medium Enterprises (MSME) further solidified the focus on this sector.

Small-scale industries are the backbone of India’s economy. They not only contribute significantly to the Gross Domestic Product (GDP) but also play a crucial role in generating employment and fostering innovation. According to recent reports, MSMEs contribute 30.1% of the gross value added to India’s GDP and account for 45.79% of all India exports. This sector is instrumental in ensuring inclusive industrial growth by providing diverse products and services to both domestic and international markets.

Key Contributions and Achievements

1. Economic Impact:

• MSMEs have created 20.17 crore jobs as of August 2023.
• Udyam registrations have reached 4.91 crore.
• Public procurement worth Rs 82,431 crore during FY24 from micro and small units.

2. Government Schemes and Initiatives:

• The PMEGP scheme has facilitated the establishment of 22,050 units in FY24.
• Vishwakarma applications have registered 16.19 lakh entries.

3. Support for Indigenous Industries:

• Small industries play a crucial role in promoting and preserving indigenous handicrafts, supporting artisans, and sustaining traditional crafts.

This Year’s Theme: Empowering India’s MSMEs

The theme for National Small Industry Day 2024, “Empowering India’s MSMEs,” underscores the commitment to enhancing the capabilities of micro, small, and medium enterprises. This focus is pivotal in addressing challenges such as access to finance, technology integration, and market expansion. Empowering MSMEs will not only boost their growth but also enhance their contribution to the national economy by creating more job opportunities and fostering sustainable development.

By celebrating this day, we honor the contributions of these enterprises and emphasize the need for continued support and innovation within the sector. The ongoing efforts to empower MSMEs reflect the broader goal of achieving inclusive growth and fostering a resilient and dynamic economy. As we commemorate National Small Industry Day, let us recognize the enduring impact of small-scale industries and commit to furthering their development for the betterment of our economy and society.