Role of Credit Facilities in the Growth of Small Scale Industries in India
Sangya Upadhyay
Introduction-
The rapid rise of the small industry sector in India has been a prominent characteristic of the Indian economy since independence. The small sector was assigned a unique role in the Industrial Policy Resolutions of 1948 and 1956 for producing new jobs with little capital expenditure. Because of their inherent advantages such as low capital requirements, high employment generation, decentralisation of industrial activity, utilisation of locally available resources, and expansion of the entrepreneurial base, small and medium enterprises play a critical role in our country's socioeconomic development.
These businesses serve as auxiliary units to large-scale industries and contribute significantly to socioeconomic growth. Micro, Small, and Medium Enterprises (MSME) play an important role in creating huge numbers of jobs at a lower cost of capital than large-scale businesses. It not only aids in the industrialization of rural and backward areas, but it also aids in the industrialization of rural and backward place lowering regional disparities and ensuring a more equitable distribution of national wealth as well as wealth as supplementary units, MSMEs are beneficial to large-scale industries and this industry makes a significant contribution to the country's socioeconomic development. India has two national heritage industries: Khadi and Village Industries (KVI). one of the in India, one of the most essential characteristics of KVI is that it generates jobs a relatively low investment per capita The KVI sector caters to more than the fundamental requirements of the population processed items from the country's huge rural.
The Indian government recognizes the importance of micro, small, and medium enterprises as a crucial driver of economic growth, development, and job creation. The importance of policies, their identification, and execution contribute to the government's primary goal of safeguarding, supporting, and promoting India's SMEs. The government has adopted promotional and protective measures to help the MSME sector (Pooja, 2009)
