Question

3. What measures have been taken by the government for promotion of small business?
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Answer 1

Answer:

WHAT MEASURES HAVE BEEN TAKEN BY THE GOVERNMENT FOR PROMOTION OF SMALL BUSINESS?

Ans. Indian Government has been undertaking measures for establishing, promoting and developing the small business sector especially the rural, cottage and Village Industries in the backwards areas. The various measures taken may be studied under two categories: 1. Institutional Support 2. Incentive for Enterprises in Rural, Backward and Hilly areas.

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Answer 2

The government has set up special economic zones to ensure the survival of small businesses in India.

Explanation:

• The government has undertaken various measures to promote small businesses. Some of the examples are:
• The government has set up special economic zones which have concessions on the rates of electricity, water, land, etc. so that the businesses can be run smoothly in those areas.
• The government has also provided financial assistance by setting up financial aid institutions such as NABARD for small industries.
• The government has also tried to formulate the tax structure in such a way that small businesses can afford to pay the taxes.
• Prices of raw materials have been significantly reduced.