Discuss any 3 institutions set by the government for the promotion of small and rural industries.
Government provided the following institutional support to overcome the problem of finance and marketing in the small scale sector:
- National Bank for Agricultural and Rural Development (NABARD): This was set up in 1982 to promote integrated rural development. It supports agriculture and also small industries, cottage and village industries and rural artisans. Rural entrepreneurs are provided with credit, counseling and consultancy services; also training and development programmes are organised for them.
- Small Industries Development Bank of India (SIDBI): This was set up as an apex bank to provide direct and indirect financial services under various schemes. This helps in providing the credit requirement to small business organisations. This also helps to coordinate the functions of other institutions in similar activities.
- National Small Industries Corporation (NSIC): This was set up in 1955 to promote, aid and improve the growth of small business units. This institution performs the following functions:
• Supplies machines on easy hire purchase terms
• Procure, supply and distribute raw materials
• Export the products of small business units
• Create awareness for technological advancements
• Establish software technology parks and technology transfer centres
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