The government of India to promote small and budding entrepreneurs of post-independent India, decided to establish a government agency which can mediate and provide help to SMEs. As such, they established National Small Industries Corporation with objectives to provide machinery on hire purchase basis and assisting and marketing in exports.
Further, SMEs registered with NSIC were exempted from paying Earnest money and provided the facility of free participation in government tendered purchases. Also for training persons the training facilities centres and for providing assistance in modernising the small industries several branches of NSIC were opened up by the government over the years in several big and small towns, where small industries were growing.
NSIC also helps in organising supply of raw materials like coal, iron, steel and other materials and even machines needed by SMEs by mediating with other government companies like Coal India Limited, Steel Authority of India Limited, Hindustan Copper Limited and many others, who produce this materials to provide same at concessional rates to SMEs.
Further, it also provides assistance to small scale industries by taking orders from the Government of India owned enterprises and procures these machineries from SMEs units registered with them, thus providing a complete assistance right from financing, training, providing raw materials for manufacturing and marketing of finished products of small scale industries, which would otherwise not be able to survive in face of competition from large and big business conglomerates. It also helps SSI by mediating with government-owned banks to provide cheap finance and loans to budding small private industries of India.
Nowadays, it is also providing assistance by setting up incubation centres and also international technology fairs to provide aspiring entrepreneurs and emerging small enterprises a platform to develop skills, identify appropriate technology, provide hands-on experience on the working projects, manage funds through banks, and practical knowledge on how to set up an enterprise.