Small Industry Day 2024: History, Significance and All You Need to Know – News18

Small Industry Day is observed in India every year on August 30. This day recognises the contributions of small businesses and industries to the economy. It also highlights the crucial role that small enterprises play in fostering innovation, creating jobs, and driving economic growth. At present, SSIs contribute nearly 40 per cent of the gross industrial value added to the Indian economy.

Small Industry Day: History

The origins of Small Industry Day can be traced back to the year 2000 when the Indian government introduced a comprehensive policy package for small-scale industries (SSI). To mark this significant development, the Ministry of Small-Scale Industries declared August 30 as Small Industries Day.

The first celebration took place on August 30, 2001, when the Ministry organised a convention for small entrepreneurs in the national capital. Over time, both government institutions and the public have recognised the importance of these enterprises.

Small Industry Day: Significance

The central government has consistently worked to establish small-scale enterprises across the country to boost employment opportunities. The main reason behind observing this day is to highlight the important role of small-scale industries in creating job opportunities for people in both rural and urban areas.

Small businesses are particularly labour-intensive, meaning they provide a higher proportion of employment per unit of capital invested.

To celebrate Small Industry Day, embracing Prime Minister Narendra Modi’s call to “vocal for local” is key.

Supporting small businesses by purchasing their goods or services helps them thrive and expand which further creates more job opportunities. You can also contribute by promoting a local business you find interesting on social media.

The terms Small Scale Industry (SSI) registration and micro, small, and medium enterprise (MSME) registration are often used interchangeably. The MSME Development Act of 2006 was created to help the growth, expansion, and competitiveness of MSMEs or SSIs.

On May 9, 2007, the former Ministry of Small-Scale Industries and the Ministry of Agro and Rural Industries were merged to create the Ministry of Micro, Small, and Medium Enterprises (MSME).

The United Nations General Assembly officially designated June 27 as MSME Day to increase public awareness of the vital role that micro, small, and medium enterprises (MSMEs) play in promoting sustainable development and contributing to the global economy.

India’s MSME sector contributed nearly 30 per cent to the country’s GDP in FY22 and accounted for 42 per cent of exports in FY23. According to a SIDBI-TransUnion CIBIL report, the number of Indian MSMEs is projected to increase from 6.30 crore to approximately 7.50 crore, growing at a compound annual growth rate (CAGR) of 2.5 per cent.