Mission and Vision of NSIC
- Mission: To promote and support the growth of small-scale industries by providing a conducive environment and comprehensive support services.
- Vision: To emerge as a premier facilitator for the development and competitiveness of small businesses in India.
Features & benefits of NSIC
- Access to financial assistance for business expansion and modernisation.
- Marketing support to enhance market reach and visibility.
- Technology support to improve productivity and efficiency.
- Facilitation of government schemes and incentives for small businesses.
Required documents for NSIC registration
- Mandatory Core Documents
Required for all businesses: Udyam Registration Certificate (MSME proof), self-attested PAN, GST registration, proof of business premises (ownership or lease), latest electricity bill, and banker’s report as per NSIC Annexure-E.
- Financial & Technical Documents
For businesses operating for at least one year: audited financial statements for the last three years, results of operations with CA UDIN, list of plant and machinery, quality control details, and information on technical personnel.
- Entity-Specific Documents
Additional documents depending on business type:
- Proprietorship: Annexure-D
- Partnership: Partnership deed, GPA
- Company: Incorporation certificate, MoA/AoA, board resolution
- LLP: LLP agreement, Forms 2 & 8
- Society/Trust: Registration certificate, members list, resolution
- Optional / Industry-Specific Documents
ISO certification, BIS licence, and performance statements for government orders.
Registration process & charges
- Submit the required documents along with the registration form.
- Pay the registration fee as per the prescribed charges.
- Await approval and issuance of the NSIC registration certificate.
Schemes of NSIC
NSIC offers various schemes to support small businesses, including:
- Single Point Registration Scheme
- Performance and Credit Rating Scheme
- Raw Material Assistance Scheme
- Marketing Assistance Scheme
Explore the table below for a detailed overview of NSIC schemes
| Scheme Name |
Description |
| Single Point Registration Scheme |
Facilitates registration of small businesses with various government agencies. |
| Performance and Credit Rating Scheme |
Provides credit rating services to enhance credibility and access to finance. |
| Raw Material Assistance Scheme |
Offers assistance in procuring raw materials at concessional rates. |
| Marketing Assistance Scheme |
Provides support for marketing activities to enhance market reach and sales. |
Marketing support
NSIC offers extensive marketing support to small businesses, including:
- Consortium arrangements for bulk purchases.
- Participation in trade fairs and exhibitions.
- Export marketing assistance.
NSIC Technology Support
NSIC provides the following support services to small enterprises through its Technical Services Centres:
- Material testing through accredited laboratories
- Guidance on the use of new techniques
- Access to common facilities for machining, EDM, CNC, and similar processes
- Product design support, including CAD services
- Energy and environmental services at selected centres
- Classroom and practical training programmes for skill development
Consortia and tender marketing
The objective of this scheme is to promote products made by micro and small entrepreneurs. It helps entrepreneurs market their products, either individually or collectively, through a 'Consortium.'
Key features of the scheme include:
- Micro and Small Enterprises registered under the Single Point Registration Scheme (SPRS) are eligible to participate in the Consortia and Tender Market Scheme.
- The scheme facilitates the selection of units to participate in open and single tenders on a nomination basis.
- It also addresses security deposit requirements and provides Earnest Money Deposit (EMD) on a back-to-back basis.
- The scheme supports the formation of consortia, capacity building of MSEs by grouping similar product manufacturers, and participation in tenders through consortia to secure bulk orders.
- Legal documents, such as individual agreements by units, consortia agreements, board resolutions, and power of attorney, have been revised to align with the scheme’s provisions.
- The Government of India, through the Ministry of MSME, issued a Gazette Notification (No. S.O. 581(E) dated 23rd March 2012) for the Public Procurement Order 2012, aimed at facilitating and promoting the development of Micro and Small Enterprises.
- Enterprises formed under this scheme will supply necessary items and provide services to government departments, PSUs, and other entities as required.
Infomediary services
NSIC provides information dissemination services to small businesses, including market trends, government policies, and industry updates, to enable informed decision-making.
Marketing intelligence
The Marketing Intelligence Cell focuses on gathering intelligence and relevant data to understand current and potential customers, as well as their needs, preferences, and market behaviors. The goal is to leverage this information to drive the growth of MSMEs in India.
Key features of Marketing Intelligence include:
- A database of bulk buyers for each product, including those in government and public sectors.
- Information on tenders issued by government and public sectors.
- A database of rate contracts with various government and public sector undertakings.
- A database of Indian exporters.
- A database of international buyers.
- A database of technology suppliers and projects for MSMEs.
- Business partner matchmaking services.
- A list of Micro & Small Enterprises registered with NSIC for government purchases, raw material assistance, performance and credit rating schemes, and MSME industrial associations.
Technology incubation - PPP mode
NSIC collaborates with private partners to establish technology incubation centres, providing infrastructure and support services to promote innovation and entrepreneurship.
Government schemes implemented by NSIC
NSIC implements various government schemes and programmes aimed at supporting small businesses, including:
- Make in India
- Startup India
- Stand Up India
- Marketing Assistance Scheme
- Aspire
Make in India Scheme
- The Make in India scheme is an initiative aimed at boosting domestic manufacturing and attracting foreign investment. It seeks to transform India into a global manufacturing hub by promoting innovation, enhancing infrastructure, and easing business regulations. This initiative focuses on improving the ease of doing business and supporting sectors like automobiles, textiles, and electronics. By encouraging companies to manufacture products within India, the scheme aims to create jobs, foster skill development, and drive economic growth.
Startup India
- Startup India is a flagship initiative designed to nurture and support startups across the country. Launched by the Government of India, it aims to create a conducive environment for innovation by offering various benefits such as tax exemptions, funding opportunities, and simplified regulatory processes. The program provides a platform for entrepreneurs to access mentorship, networking, and resources essential for scaling their businesses. Additionally, it focuses on fostering a culture of entrepreneurship and facilitating easier access to capital and markets. For more information on how Startup India can help your venture thrive, visit Startup India.
Stand Up India
- Stand Up India is an initiative aimed at promoting entrepreneurship among women and marginalized communities. Launched by the Government of India, it provides financial assistance and support to set up greenfield enterprises in the manufacturing, services, or trading sectors. The scheme offers bank loans between Rs. 10 lakh and Rs. 1 crore to Scheduled Castes (SCs), Scheduled Tribes (STs), and women entrepreneurs, facilitating easier access to capital. Stand Up India also includes mentorship and training to help businesses grow and succeed.
Marketing Assistance Scheme
The MSME sector in India has experienced significant growth in recent years, emerging as a dynamic force within the Indian economy. Various MSME schemes have facilitated business establishment and created employment opportunities with minimal capital investment.
Marketing plays a crucial role in promoting and expanding any business. To support enterprise growth, the Ministry of Micro, Small & Medium Enterprises, through the National Small Industries Corporation (NSIC)—a public sector enterprise—provides marketing support to MSMEs under the Marketing Assistance Scheme.
Key objectives of this scheme include:
- Enhancing the marketing capabilities and competitiveness of MSMEs.
- Showcasing the strengths and competencies of MSMEs.
- Educating MSMEs about current market trends and their business impact.
- Forming consortia to help MSMEs market their products and services.
- Offering platforms for MSMEs to engage with large buyers.
- Promoting various government programs.
- Improving the marketing skills of micro and small enterprise entrepreneurs.
Aspire
NSIC's Aspire scheme aims to promote entrepreneurship among youth by providing training, mentoring, and financial support for starting and growing small businesses. Aspiring entrepreneurs can now plan their finances effectively, ensuring seamless financial management as they embark on their entrepreneurial journey through the Aspire scheme.
Impact of NSIC on small businesses in India
Financial Support
- Credit Access: Provides loans, working capital, and low-interest credit through bank partnerships.
- Raw Materials: Supports financing of both domestic and imported raw materials for quality production.
Marketing & Procurement
- Government Tenders: Offers free tender sets, EMD exemptions, and preferential access with a 25% target allocation.
- Market Reach: Organises buyer-seller meets, exhibitions, and the MSME Mart (B2B portal) to expand business opportunities.
Technology & Skill Upgradation
- Technology Transfer: Enables access to modern machinery through hire-purchase arrangements.
- Skill Development: Provides training programmes and incubation centres via NTSCs.
Efficiency & Competitiveness
- Digital Tools: Offers subsidised ERP, CRM, and accounting software.
- Productivity: Enhances operational efficiency, technology adoption, and product quality.
Achievements of NSIC
- Financial Empowerment: Provided billions in credit and investments through schemes like the SRI Fund, supported MSMEs with working capital, and offered credit rating services to improve access to loans.
- Market Access & Growth: Assisted MSMEs in securing government tenders via SPRS, expanded their reach nationally and internationally, and organised job fairs to boost placements and business growth.
- Raw Material Support: Procured and supplied bulk raw materials, helping small businesses manage supply chains and reduce costs.
- Technology & Skill Development: NSIC Technical Services Centres (TSC) trained thousands in practical skills for electronics, tooling, and other sectors, supporting job placements.
- Entrepreneurship Promotion: Ran orientation programmes, supported SC/ST entrepreneurs, and promoted women entrepreneurs, recognising their important contribution to the economy.
- Integrated Support: Offered end-to-end assistance, covering raw materials, marketing, technology upgrades, and financial management, creating a strong ecosystem for MSMEs.
Difference between NSIC and MSME
Feature
|
NSIC Registration
|
MSME (Udyam) Registration
|
Nature
|
A commercial certification providing specialised benefits.
|
Legal recognition for businesses in the MSME sector.
|
Scope
|
Mainly for Micro and Small enterprises.
|
Covers Micro, Small, and Medium enterprises.
|
Registration Fee
|
Charged based on business turnover.
|
Free of cost via the Udyam Portal.
|
Validity
|
Valid for 2 years and requires renewal.
|
Permanent; does not expire.
|
Primary Goal
|
Support in procurement, government tenders, and technical development.
|
Provides recognition, tax benefits, and basic financial assistance.
|
Conclusion
In conclusion, the National Small Industries Corporation (NSIC) plays a crucial role in supporting the growth and development of small-scale industries in India. With a range of services and schemes tailored to the needs of small businesses, NSIC empowers entrepreneurs to overcome challenges and achieve success. At Bajaj Finance, we're committed to supporting small businesses with our business loan, providing the necessary financial assistance to realise their aspirations.
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