MSME & Village Industries

The Indian economy has over time been liberalised and globalised owing to removal of quantitative restrictions, however, the smaller units of the khadi and village industry are facing a stiff competition. A large portion of India’s population lives in the villages where illiteracy still prevails and it is not possible for large industries in urban areas to to absorb the workforce from rural areas.

Considering the fact that people migrate to other areas primarily to find better employment opportunities, it becomes important that they do not stare at an uncertain future.

Keeping such things in consideration, it is necessary to create more employment opportunities in villages by utilising local resources and skills so that rural people can get work in the villages itself. This would also reduce the migration of unemployed rural youths to urban areas in search of jobs. Also, this constant flow of people to urban areas has put the existing civic infrastructure under severe pressure. As a result, the number of jhuggi-jhopari clusters and slum dwellers in urban areas is steadily increasing.

The khadi and village industry sector has got the potential to create new jobs in rural areas and give self-reliance to people so that a strong rural community can be built.

JND Charitable Trust is planning to undertake various measures so that village industries can be revived. The projects that have been envisaged include production of vegetable oil (kachchi ghani), formulation of new herbal substances and herbal soaps, development of bio-manure, bio-pesticides and bio-insecticides, manufacturing soap through non-edible oils, use of different fibres in handmade paper, decorticators for oil seeds and pulses, development of paddy de-huskers and rice polishers, improvement of the potter wheel, new technology for tile making, among others.

The government has undertaken many steps to revive village industries, but the planning and implementation mechanisms are weak as linkages between production, sales and employment generation are not adequately considered. An inadequate link between production and sales strategies has resulted in accumulation of stocks, low return on investment, non-performing asset build-up, low production and shrinking employment opportunities. Co-ordination among implementing agencies at various levels is also lacking.

JND Charitable Trust intends to bridge the gap by utilising the expertise of professionals so that plans of the government are fulfilled through which rural artisans are able to reap the full benefits of their efforts.

Village industries also encounter difficulties in obtaining financing facilities. JND Charitable Trust intends to look into various aspects of the production process and put in place a mechanism that would ensure easy financing facilities. A study will also be conducted by the Trust in which it will be seen whether the schemes have been able to generate additional employment and whether necessary infrastructure has been developed for meeting employment objectives.

JND Charitable Trust will also evaluate whether the schemes have helped for uplifting of the poor and identify problems in their implementation as well as suggest remedial measures to achieve targets.