The statement is true because small-scale industries (SSIs) often struggle to compete with large-scale industries due to limited resources and a lack of economies of scale. To safeguard and encourage SSIs, the government has implemented several measures:
- Reservation of Products: Certain products are reserved exclusively for SSIs, restricting large-scale industries from operating in these areas.
- Priority Lending: Banks are required to extend priority sector loans to SSIs at concessional interest rates, ensuring easier access to credit.
- Technology Upgradation and Modernisation: The government supports SSIs in adopting improved technology and modern equipment through schemes such as the Credit-Linked Capital Subsidy Scheme (CLCSS).
- Marketing Assistance: SSIs receive help in promoting their products through trade fairs, exhibitions, and online marketing platforms.
- Infrastructure Development: The government establishes industrial estates and provides infrastructure facilities specifically for small-scale industries.
- Training and Skill Development: Training and skill development programmes are offered to improve the skills and efficiency of SSI entrepreneurs and workers.
