The NSIC operates under the aegis of the Ministry of Micro, Small, and Medium Enterprises and is entrusted with the important role of offering a diverse range of services to small businesses throughout the nation.
Through schemes like the Single Point Registration Scheme and MSME Global Mart, NSIC facilitates government procurement and enhances the market reach of SMEs and more MSME registrations in the country. Moreover, it assists in technology upgradation, credit facilitation, and export promotion, ensuring SMEs stay competitive on a global scale. In this blog, we will see the functions of National Small Industries Corporation in India.
What is National Small Industries Corporation?
The National Small Industries Corporation is a government agency with the status of mini Ratna and was established in 1955 by the Ministry of MSME of the government of India.
The functions of the national small industries corporation are:
· Credit and performance rating.
· Registration of companies at a single point.
· Providing a data bank of the industries within the category of MSME and the national SC-ST hub, among other functions that the corporation is interested in.
The main aim of NSIC is to support and help the growth of industries in micro and small-scale businesses throughout the country while also serving as a powerful force in the industry. While initially, the corporation was the government agency of India, it was later changed to a completely owned enterprise of the government.
Mission and Vision of NSIC
Vision: to establish itself as a stalwart organisation that furthers the development of industries within the MSME category.
Mission: to promote MSMEs and provide assistance by enabling a range of support services, including but not limited to marketing, finance, technology and the like.
Organisational Structure of National Small Industries Corporation
The Board of Directors, which consists of a full-time chairman/managing director, two functional directors, one SIDBI nominee director, two government nominee directors, and six unofficial part-time directors, sets the policies for the National Small Industries Corporation. The committed group of experts manages the firm on numerous levels. It employs 123 offices around India and one in South Africa to carry out its operations.
The National Small Industries Corporation is supported by a team of over 500 professionals nationwide through its nine zonal offices, 33 branch offices, 14 sub-offices, 10 Business Development Extension Offices, five technical services centres, three extension centres, and two software technology parks.
Types Of NSIC Schemes
The various types of schemes under NSIC are as follows:
- Single Point Registration Scheme
The aim of implementing the scheme was to augment government purchases from MSMEs.
- Raw material assistance scheme
The raw material assistance scheme is meant to help the industry by financing raw material purchases for products from local and global markets. This also enables the MSMEs to focus their attention on manufacturing products of pristine quality.
- MSME Global Mart
A B2B portal under NSIC, this was started to provide not only technology but also financial help at prices that seem reasonable to the industry.
- Consortia and Tender Marketing Scheme
One of this scheme’s major aims is to market and promote the products that participants in the industry produce.
What are the Functions of National Small Industries Corporation in India?
The functions of NSIC are:
Business Support Services
The NSIC provides a wide range of business support services to small and medium enterprises. These services include marketing assistance, raw material procurement assistance, technology support, credit facilitation, and training and consultancy.
The marketing assistance program aims to help SMEs identify and explore new product and service markets. The raw material procurement assistance program helps SMEs source raw materials at competitive rates. In contrast, the technology support program assists SMEs in adopting new and advanced technologies to enhance their productivity and efficiency.
Credit Facilitation
One major function of NSIC is facilitating credit for small businesses. The NSIC has tie-ups with various financial institutions, banks and non-banking financial companies to provide credit to SMEs at attractive interest rates.
The NSIC also provides guarantees and collateral-free loans to SMEs, which helps them secure credit without having to pledge their assets as collateral.
Training and Consultancy
NSIC’s guidance encompasses finance, marketing, operations, human resources, and more, facilitating SMEs in making informed decisions and optimising their overall business performance.
Technology Upgradation
The NSIC offers a Technology Upgradation Program meant to assist SMEs in enhancing their technology and infrastructure. The primary objective of this program is to enable SMEs to embrace new and advanced technologies, thereby bolstering their competitiveness and productivity.
Export Promotion
The NSIC operates an Export Promotion Program designed to support SMEs in expanding their export activities and entering new markets. This program offers vital assistance to SMEs across various facets of international trade.
Entrepreneurship Development
The NSIC operates an Entrepreneurship Development Program with the primary goal of nurturing and promoting entrepreneurship among India’s youth. This program is a vital initiative in promoting a culture of entrepreneurship in the country.
Under this program, the NSIC offers comprehensive training and support to aspiring entrepreneurs. This support encompasses various aspects, including project identification, market research, financial management, and guidance in formulating robust business plans.
Final Thoughts
The National Small Industries Corporation plays an important role in India’s economic growth, particularly in the growth and development of small and medium sized enterprises. Its functions include a wide spectrum of support services, all aimed at empowering SMEs and entrepreneurs.
The organisation’s dedication to entrepreneurship development, training, and consultancy equips aspiring entrepreneurs with the tools and knowledge needed to transform ideas into thriving businesses. With its extensive network of offices and centres, NSIC is an indispensable force driving the growth and prosperity of small-scale industries in India. Its multiple functions highlight its commitment to making SMEs a powerful force in India’s economic growth.
