The NSIC in India promotes small, medium, or large-scale industrial development. The establishment of NSIC as a government undertaking in India traces back to 1955 under the Ministry of Micro, Small, and Medium Enterprises (MSME). The establishment of small-scale industries along with strengthening and developing the competitiveness and efficiency of these enterprises always remains the main objective of NSIC in fulfilling its obligation toward the development of the economy of India. Therefore, let us know about the important functions of NSIC (National Small Industries Corporation).
About NSIC (National Small Industries Corporation)
Founded in 1955 and owned by the Government of India, the NSIC is the National Small Industries Corporation under the Ministry of MSME.
The NSIC performs the following duties:
- Performance rating and credit.
- Companies can register at a single point.
It provides a data bank of the industries that fall under the MSME category and the national SC-ST hub.
The NSIC, since its establishment has been envisioned to become a powerful force in the MSME sector getting ready to give service at the national level and also expanding to be spread in other sectors economically. Though initially NSIC was an undertaking of the Indian government, finally it became a 100% owned government company.
Mission and Vision of NSIC
- Mission:The mission is to enable not only marketing, trading, technology, finance, and other administrative assistance, but to also empower and assist micro, small, and medium enterprises (MSMEs).
- Vision:A continuous vision for the NSIC would be supporting and growing the small-scale industries in the country. This company, which is state-run and got recently certified as an IOS 9001-2015 fully owned government entity.
Organisational Structure of NSIC
- The NSIC’s policies are decided by the Board of Directors, which is composed of:
- Six unofficial part-time directors,
- Two functional directors,
- One SIDBI nominee director,
- Two government nominee directors, and
- A full-time chairman/managing director.
- The dedicated team of professionals oversees the company on several levels.
- To run its business, it has 123 offices around India and one in South Africa.
- Through its nine zonal offices, 33 branch offices, 14 sub-offices, 10 Business Development Extension Offices, five technical services centers, three extension centers, and two software technology parks, the National Small Industries Corporation is supported by a staff of more than 500 professionals across the country.
Role of NSIC
- Provide small businesses machinery on a hire-purchase basis; To offer a platform for leasing equipment;
- Aid in small-scale industries' overseas marketing efforts;
- Engage in the government's bulk purchase program; create machine and equipment prototypes to be transferred to small businesses for commercial production; use raw materials depots to disperse raw materials among small businesses;
- Support the advancement and expansion of technology and the execution of modernization initiatives for small-scale businesses;
- Impart instruction in several industrial trades;
- Build industrial estates; to offer mentoring and advising services; to act as incubators for technological businesses; and to facilitate the establishment of small-scale enterprises in other developing countries.
NSIC also provides the following support services to small enterprises through its extension and technical services centers:
- Provides material testing facilities through authorized laboratories, offers guidance on the use of new techniques, designs products using CAD, and offers energy and environmental services at specific locations;
- Training in the classroom and in the real world to improve skills;
- Common facility supports CNC, DNC, EDM, and machining, among other things.
Functions of NSIC (National Small Industries Corporation)
Business Support Services:
- NSIC provides business assistance services for micro, small and medium-sized enterprises in marketing, procuring raw material, providing technology support, facilitating credit, providing training, and consulting.
- The marketing support program is designed to assist SMEs in identifying and exploring new markets for their products or services.
- By means of the raw material procurement support program, small-scale and medium enterprises purchase raw materials at competitive prices.
- The technological support program aids in the adoption of newer technologies, aimed at contributing to the improved overall efficiency of small and medium enterprises.
Credit Facilitation:
- Another main function that NSIC serves is the facilitate the loans to small businesses.
- These loans, which rate competitively with interest from banks and NBFCs, would be entered into through partnerships with banks and NBFCs.
- It also backs up the issue of collateral-free loans extended to SMEs so as to protect the credit inflow process undertaken by banking institutions.
Entrepreneurship Development:
- The entrepreneurship development program implemented by the NSIC helps in promoting entrepreneurship among the youth in India.
- This is an important step towards taking care of an entrepreneurial culture in the nation.
- Aspiring business owners can receive thorough training and assistance from the NSIC under this program.
- Project identification, market research, financial management, and assistance in creating strong business strategies are just a few of the many facets of this service.
Training and Consultancy:
- The advice provided by NSIC aids the SMEs in making critical decisions, optimizing business performance covering various subjects such as finance, marketing, operations, and human resources.
Export Promotion:
- To assist SMEs in growing their export operations and breaking into new markets, the NSIC runs an Export Promotion Program.
- This program provides SMEs with essential support in a number of areas related to global trade.
Technology Upgradation:
- To help SMEs improve their infrastructure and technology, the NSIC provides a Technology Upgradation Program.
- The main goal of this program is to enable SMEs to adopt modern technologies to increase productivity and thus competitiveness.
Key Elements of NSIC
- With its various programs and partnerships with financial institutions, it makes credit and loans more accessible to SMEs.
- They buy and sell raw materials, equipment, and machinery in a competitive manner.
- To enhance SMEs' administrative and specialized skills, they offer training and programs aimed at improving their expertise.
- They are marketing advising services to SMEs on various responsibilities, the board, and business aspects.
- Promoting SMEs' goods and services by assistance with market development, participation in trade shows and exhibits, etc.
Conclusion
Among the organizations established to support small-scale businesses, the National Small businesses Corporation holds a prominent position. It has been striving to fulfil its objective of supporting, encouraging, and fostering the expansion of Micro, Small, and Medium-Sized Enterprises throughout the nation. Therefore, NSIC's function is essential to the growth of small businesses.
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