Functions of NSIC (National Small Industries Corporation)

The NSIC was set up in 1955 to provide machinery to small-scale units on a purchase basis and to assist these units in obtaining orders from government departments and offices. Its head office is in Delhi.

NSIC Offices

• The NSIC functions with 9 zonal offices spread out in the country.
• It has 33 branch offices.
• It also has 33 branch offices strategically placed to make its services more accessible.
• Moreover, there are 14 sub-offices that help expand its reach.
• The NSIC has 10 Business Development Extension Offices aimed at promoting growth. T
• hese 5 centers offer technical assistance to MSMEs.
• The NSIC runs 3 extension centers to increase its influence.
• Finally, there are 2 software technology parks backed by a team of more than 500 experts nationwide.

You can refer to an official NSIC source

Functions of NSIC (National Small Industries Corporation)

NSIC provides industrial finance by way of supply of machines on hire purchase to small industrial units all over the country. Its functions are:

• Creating small-scale businesses to support big industries.
• To provide machinery to SSI units on a hire-purchase basis
• To obtain orders for SSI units from government departments and offices.
• To help small-scale industries in the procurement of scarce and imported raw materials.
• To market the product of SSIS at home and abroad.
• To construct Industrial Estate and establish and run proto-type production-cum-training Centres.
• To impart training to industrial workers.
• To import and supply scarce materials

It has set up proto-type production-cum-training centers to develop various machinery for the transfer of technology and know-how for commercial production and impart training to skilled workers and entrepreneurs in different technical trades. It has set up industrial estates in Africa, Nepal and Vietnam.

Role In Supporting MSMEs In India.

1. Funding:

Helping with credit access: 

NSIC offers schemes like Raw Material Assistance, Credit Facilitation through Banks, and Bill Discounting against Bank Guarantee to bridge the financing gap for MSMEs.

Financial aid: 

NSIC provides support through schemes like Marketing Development Assistance and Marketing Assistance Grants.

2. Market Access and Promotion:

Participation in exhibitions: 

NSIC helps MSMEs participate in trade fairs, both nationally and internationally, to gain exposure and access new markets.

Single Point Registration Scheme: 

This scheme simplifies registration with government agencies, making procurement processes easier for MSMEs.

MSME Global Mart: 

MSME Global Mart is an online platform connecting MSMEs with buyers and suppliers worldwide, helping them expand their reach.

3. Technology Upgradation and Skill Development:

Technical Services Centers: 

NSIC runs centers offering technical consultation, testing facilities, and training programs to enhance the technological capabilities of MSMEs.

Technology Transfer: 

NSIC facilitates the transfer of technology from research institutions to MSMEs, encouraging innovation and modernization.

Skill Development Programs: 

NSIC conducts skilling programs for entrepreneurs and workers, focusing on industry-relevant skills and best practices.

4. Infrastructure and Cluster Development:

When it comes to helping small and medium-sized enterprises (MSMEs), NSIC goes above and beyond. They not only develop and manage industrial estates but also provide access to important infrastructure and shared resources. This means that MSMEs can have the necessary facilities and resources to thrive.

NSIC also takes cluster development seriously. They understand the power of collective strength and resource sharing within specific sectors. By promoting cluster development, NSIC aims to enhance the overall growth and success of MSMEs. This includes improving marketing efforts and leveraging the strengths of different businesses within the same sector.

5. Other Support Services:

NSIC continues beyond infrastructure and cluster development. They offer a range of other support services to assist MSMEs in various ways. For instance, they provide legal assistance to help resolve contractual disputes and navigate complex legal procedures. This ensures that MSMEs have the guidance and support to protect their rights and interests.

Quality testing is another important service provided by NSIC. They operate testing laboratories to ensure that products meet the required standards and maintain high quality. This helps MSMEs build trust with their customers and ensures that their products are reliable and safe.

In addition, NSIC has a dedicated forum to help resolve disputes between MSMEs and government departments. This is crucial in ensuring fair treatment and resolving conflicts promptly. By assisting in dispute resolution, NSIC helps MSMEs maintain positive relationships with government entities.

Impact and Achievements:

NSIC’s efforts have made a significant impact on the MSME sector. Through their multifaceted approach, they have achieved remarkable results. One of their major achievements is increasing access to finance for MSMEs. This means that more businesses have the financial support they need to grow and expand.

NSIC has also played a key role in expanding the market reach of MSMEs. Through domestic and international promotion, they have helped businesses reach new customers and explore new markets. This has opened up opportunities for MSMEs to expand their operations and increase their profitability.

Technological advancements and skilling of the workforce are also areas where NSIC has made a difference. By embracing new technologies and providing training programs, they have helped MSMEs stay competitive in today’s fast-paced world. This has empowered businesses to adapt to changing market trends and improve their overall efficiency.

Overall, NSIC’s dedication to supporting MSMEs has led to enhanced competitiveness and growth across diverse sectors. Their efforts have created a favorable environment for small and medium-sized.

NSIC’s Additional Services:

Apart from the main functions mentioned earlier, NSIC provides a variety of extra services to meet the diverse needs of MSMEs:

• Legal Support: NSIC offers legal guidance on contract drafting, dispute resolution, and regulatory compliance.
• Quality Testing: Through its network of labs, NSIC conducts testing services to ensure products meet quality standards and market requirements.
• Dispute Resolution: NSIC’s forum helps resolve disputes between MSMEs and government departments quickly and affordably.
• Information and Consultancy: MSMEs can access industry-specific information, market research data, and consultancy services for business growth.
• Exhibition Management: NSIC assists with exhibition facilities and participation in trade fairs, promoting market access and brand visibility.
• International Collaboration: NSIC facilitates collaborations and market linkages for MSMEs to explore export opportunities.
• Entrepreneurship Development Programs (EDPs): NSIC conducts EDPs to equip aspiring entrepreneurs with essential skills for successful business ventures.

NSIC’s Impact and Achievements:

NSIC’s comprehensive approach has significantly impacted the growth and development of MSMEs in India:

Increased MSME Numbers:

The number of registered MSMEs in India has grown significantly since NSIC’s establishment, indicating a thriving ecosystem supported by NSIC.

Enhanced Access to Finance:

NSIC’s schemes have made it easier for MSMEs to access credit, leading to increased investment and business expansion.

Expanded Market Reach:

NSIC’s initiatives have helped MSMEs reach wider markets, both domestically and internationally.

Technological Advancement:

Technology transfer and skill development programs have enabled MSMEs to adopt modern technologies and enhance their competitiveness.

Cluster Development:

NSIC has helped MSME clusters by promoting cluster development, which allows them to share resources, exchange knowledge, and increase their bargaining power collectively.

NSIC’s achievements

Here are some impressive numbers and inspiring stories that showcase NSIC’s accomplishments:

By 2022, NSIC has helped distribute more than 11 lakh crore rupees in credit to MSMEs.

Through their B2B platform, MSME Global Mart, over 1 lakh MSMEs have connected with buyers and suppliers worldwide.

Their skill development programs have equipped over 15 lakh individuals with industry-specific skills, empowering them for success.

Let me share a success story: In rural India, a small-scale garment manufacturer received support from NSIC’s training and marketing initiatives. As a result, they expanded their production capacity, secured export orders, and generated employment opportunities within the local community.

Check out NSIC Success Stories

Conclusion

In conclusion, the National Small Industries Corporation (NSIC) stands as a pillar of support for small-scale industries in India. Through its comprehensive range of services and assistance, NSIC strives to empower small entrepreneurs and enable them to thrive in a competitive market.

By providing financial aid, marketing support, technology upgradation, and training programs, NSIC plays a crucial role in nurturing the growth and development of small businesses.

With its unwavering commitment to the success of small industries, NSIC continues to contribute significantly to the overall economic growth of the nation.