Has the Indian Government done enough for the budding industries of India?


The growth and development of industries particularly small and medium enterprises largely depends upon the availability of the institutional supports to industries in a country.

Enterprises need various kinds of support and facilities in the field of infrastructure, technical assistance, export-import promotion, marketing assistance, fiscal concessions and others to start and run the enterprises. If no such support and facilities are available from institutions, then setting up an enterprise on the part of an entrepreneurs becomes a very difficult task.

The central government and state governments have come forward to establish various institutions with a view to provide the requisite supports and facilities to establish small and medium enterprises. The various institutions established by central and state governments to assist entrepreneurs are discussed in the following pages after discussing the areas of support from the institutions. The support functions of institutions to enterprises in different areas are:


i. To advice entrepreneurs about favourable and unfavourable factors pertaining to various schemes and projects put up to them (project proposal).

ii. To prepare project profiles and feasibility reports of schemes undertaken by the entrepreneurs (project report and feasibility study).

iii. To provide technical guidance to entrepreneurs regarding machinery, imports, import substitution and raw materials (technical service).

iv. To provide training and consultancy services to strengthen the competitive ability and gain advanced knowledge in the field (consultancy service).


v. To help small industries in marketing their product (marketing assistance).

vi. To work as a link between state and central government industrial department (coordination service).

vii. To help entrepreneurs in getting updated informations relating to small scale industrial activities (information provider).

viii. To conduct entrepreneurship development programmes to aware, create and groom entrepreneurs (skill development).


ix. To initiate promotional programmes (promotional measures).

x. To render required support for the development of ancillary units (supporting service).

xi. To evaluate various project proposals put up by the entrepreneurs and suggesting appropriate services in project report preparations and project implementation (evaluation service).

xii. To provide required infrastructure and accommodation facilities to the entrepreneurs.

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