Small Industries Department

Rural and Small Industries

INTRODUCTION

The Tiny and Small Industries sectors in Tamil Nadu have come to play a prominent and vital role in helping the State economy to carve out a niche for itself among other States in the country. Besides making a substantial contribution to the State Domestic Product, these sectors serve as a large employment provider, facilitating the reduction of inter and intra regional disparities, accentuating the rural resource utilization better and also preventing rural exodus.

The advent of liberalisation and globalisation of international trade and industry in the beginning of 90's which gradually percolated down to the Indian industrial scenario necessitated the domestic entrepreneurs to have re-orientation in their outlook. Even though this has resulted in bringing a basket of benefits such as larger inflow of foreign direct investment leading to more employment opportunities etc., the Government is however aware of the negative effects on the tiny and small scale sectors. It has taken effective corrective measures to upgrade the indigenous technology cluster development for better utilisation of rural resources and skills and improve the quality consciousness among the entrepreneurs. Government is also conscious of the comparative advantages of the domestic industry. The Government has identified areas wherein the domestic investors would find hurdles especially in licensing procedures and is striving hard to present an investor friendly atmosphere in the State. The Government is trying to create a good climate for investment.

The well-equipped Small Industries Department, manned by capable hands is gearing itself to meet the challenges posed by the changing atmosphere. This Department has been undertaking major reforms, to entangle the practical difficulties in the implementation of its schemes. The Department is also arranging loans to the units through financial institutions and acts as a bridge for the cooperation of both State and Central agencies for the development of entrepreneurs.

The following is the list of institutions which are dedicated to the objective of promotion of small, tiny and rural industrial sector in Tamil Nadu.

1. Directorate of Industries and Commerce.

2. Tamil Nadu Small Industries Development Corporation Ltd.

3. Tamil Nadu Small Industries Corporation Ltd and

4. Tamil Nadu Leather Development Corporation Ltd.

Their roles are briefly discussed below :