What is Small Industries Development Organization? Its main functions

Small Industries Development Organization (SIDO) is an organization working under the Department of Small Industries and Auxiliary Rural Industries. It is an apex body and nodal agency to encourage, formulate policies and programs for their development, coordinate with and monitor small scale industries and rural industries.

The Development Commissioner is appointed as the head of the Small Industries Development Organization. They are assisted by various directors and advisors in developing and implementing programs for various functions such as training and management, industrial investigation, prospects for development of small scale industries, consultancy, industrial estates, etc.

Major Functions of Small Industries Development Organization

The major functions of the Small Industries Development Organization can be divided into three categories.

Coordinating Work (Co-Ordination):

  • To develop an effective national policy for the development of small scale industries and rural industries.
  • To coordinate with the policies and programs made by various State Governments.
  • To maintain liaison with the concerned Central Ministries, NITI Aayog, Financial Institutions, State Governments etc. for the development and upliftment of small scale industries.
  • Coordinating in various programs for the development of the wealth of small scale industries is also included in the work of the Small Industries Organization.

Work-related to Industrial Development

  • To encourage small scale industries and for their development to make a list of reserved items for their production.
  • To collect data of consumer goods which are being imported from outside countries in the country and then, by providing necessary assistance, promote the establishment of industrial units for the production of these goods.
  • To develop the subsidiary units of small scale industries, providing necessary assistance to them is also included in the functions of the Small Industries Organization.
  • To encourage small scale industries, cottage and small scale industries to actively participate in the government store purchase program by providing them with necessary guidance, market advice and necessary assistance.

Extension Work

  • Improving the technical process of small scale industries, selecting suitable machinery, determining the technical services required in making factory layouts and designs are also included in the list of tasks of small scale industries organization.
  • To provide necessary consultancy and necessary training services to small scale industries in the country to sustain them in the competitive market or to strengthen their competitiveness.
  • To ensure that the small scale industries are able to sell their products effectively in the market, providing marketing support to them is also included in the functions of the small scale industry organization.
  • To help small scale industries in economic investigation and information to assess their economic condition.

All the above-mentioned functions of the Small Industries Organization are carried out through a national network of institutions and related agencies set up for specific tasks. Presently more than 27 offices of Small Industries Development Organization, 31 Small Industries Service Institutes, 37 Extension Centers, 3 Process Development Centers and 4 Production Centers are working in completing these works.

In the country, such boards as Khadi and Village Industries, Coir Board, Central Silk Board, etc., have been created for the purpose of promoting a specific industrial sector. All small scale industries, except those under the specific agencies or boards, come under the purview of the Small Industries Development Organization.

By now it is clear that the Small Industries Development Organization is one of the topmost bodies of the Ministry of Small Industries, which assists the government in formulating policy for the upliftment of small scale industries under the chairmanship of Additional Secretary and Development Commissioner. However, the promotion and development of small scale industries is primarily the responsibility of the state governments.

But the objective of the Central Government through the Small Industries Development Organization is to develop the industries applicable in the Union Territories and to provide assistance to the State Governments in the development of small scale industries in other states.

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Archana Sharma
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