Importance of Small Industries Development Organization (SIDO) for Indian industrialists

Small industries are back bone of any nation. Development of SSI means bringing all way prosperous and growth of the nation. This is so as it directly or indirectly generate wealth, improves the economic condition of people by generate employment, contributes to GDP and so on.


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Thus realizing the importance of this sector, government has come forward with extending many a facilities and supports for the development of SSI in the country. SIDO is one amongst them.

International Perspective Planning Team in 1955 made its recommendations and the Government of India set up following institutions for the development of village and small industries.

  • Central Small Industry Organisation (CSIO)
  • National Small Industry Corporation (NSIC)
  • Small Industry Extension Training Institute (SIETI)
  • Khadi and Village Industry Commission (KVIC)


At the heart of all agencies dealing with the development of small industry is the CSIO—now renamed as Small Industries Development Organisation (SIDO), SIDO has grown into vast organization with:

  • Network of more than 33 SISIs;
  • Branch Service Institutions (37);
  • Extension Centre’s (37)
  • Regional Testing Centre’s
  • Process-cum-product Development Centre’s
  • Training centers
  • Production Centre’s
  • Field Testing Stations

SIDO is as apex body and nodal agency for formulating, policy-making, coordinating and monitoring agency for the development of small scale entrepreneurs.

It is headed by Additional Secretary and the Development Commissioner, small Scale Industry; who maintains a close liaison with government, financial institutions and other agencies which are involved in the promotion and development of small scale units.

SIDO is the nodal agency that advises the Ministry of Industry (and other Ministries) in formulating policies and programmers for the development of SSIs.


It also overseas the ‘package of services’ rendered by the SISIs at field level and provides comprehensive range of consultancy services and technical, managerial and marketing assistance to SSI units over the years, it has sun its role evolve into an agency for advocacy, hand holding and facilitation for the small industries sector.

It has over 60 offices and 21 autonomous bodies under its management. SIDO provides a wide spectrum of services to the small industries sector like testing, training for entrepreneur’s preparation of projects and product profiles, technical and managerial consultancy, export assistance, etc.

SIDO provides economic information services and advises to the government in policy formulation for the promotion and development of SSIs.

Functions of SIDO

  • To formulate policies regarding the promotion and development of SSI at national level.
  • The implement those plans, programmers and policies of the government in respect of industrial development of the country.
  • To coordinate the activities of all departments, institutions and agencies involved in promoting the SSI.
  • To render all way support and encourage the entrepreneurs to set up and sort out the hurdles.
  • To conduct regular and ad hoc training courses through SISI’s, Branch SISI’s and extension/production centers;
  • To organize EDPs, motivational campaigns etc. for rural artisans, educated unemployed, women entrepreneurs, and physically handicapped persons;
  • To secure reservations of certain products to be manufactured only by SSI’s.
  • To assist and encourage entrepreneurs to set up industrial units in rural and industrially backward areas and industrially backward areas;
  • To estimate the requirements of raw materials of SSI units and to arrange their supplies.


Other than this, SIDO conducts the following types of management courses.

  • Training in Technical grades
  • Training in Management Disciplines.
  • Training of SIDO Officers.

SIDO keeps its officers abreast of the latest developments in their respective fields of specialization. Global trends and national developments have accentuated SIDO’s role as a catalyst of growth of small enterprises in the country.

The new areas of current operations undertaken by SIDO are;

1. WTO Cell:

A WTO Cell has been established in the office of DC (SSI) with following objectives:

i) To keep abreast and updated with regard to all WTO agreements;

ii) To disseminate information to SSI Associations regarding recent developments;

iii) To co-ordinate with other Ministries and Departments;

iv) To prepare policy for SSIs in tune with

v) WTO agreements.

vi) To organize WTO Seminars, Workshops etc.

2. Small Enterprise Information and Resource Centre Network:

SIDO launched a project (SENSET) in April 1997 for the development and promotion of SSIs. It aims at creating an electronic network (Intranet) for its 21 electronics nodes all over the country, promoting data bases for small enterprises, providing technical know-how, training input and all other basic facilities for setting up and growth of SSI in the country.

3. ISO 9000/ISO 14001 Certification Reimbursement Scheme:

Incentive schemes of Reimbursement of expenses for acquiring quality management system (QMS) ISO 900 Certification Environment Management (EMS) ISO-14001 certification to the extent of 75% or Rs. 75,000 whichever is lower.

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