Role of Small-Scale and Cottage Industries in Creating Non-Farm Jobs in Rural Assam

Author: Biswajit Choudhury

Rural Assam is primarily dependent on agriculture, but with the growing demand for non-farm employment, small-scale and cottage industries have emerged as vital players in providing sustainable jobs. These industries can bridge the gap between the need for employment and the limited agricultural opportunities in rural areas. In this blog, we explore how small-scale and cottage industries can contribute to the creation of non-farm jobs in rural Assam, backed by data and statistics.

Importance of Non-Farm Jobs in Rural Assam

Agriculture accounts for about 52% of employment in Assam, but it contributes only 20% to the state's GDP, according to the Assam Economic Survey 2022-23. This disproportionate reliance on agriculture for employment has created the need for diversification into non-farm sectors.

Non-farm jobs are crucial for reducing rural poverty, improving living standards, and stabilizing incomes. The Government of Assam has recognized this, leading to initiatives like the Assam State Industrial Policy aimed at promoting small-scale industries in rural areas.

Role of Small-Scale Industries

Small-scale industries (SSIs) in Assam encompass a range of sectors, including food processing, handloom, handicrafts, bamboo-based industries, and traditional textile production like Muga silk. These industries provide jobs directly to local workers and indirectly through supply chains, transport, and retail.

According to a report by the Ministry of Micro, Small, and Medium Enterprises (MSME), SSIs in Assam created over 10 lakh jobs between 2018 and 2022. Many of these jobs were generated in rural areas where agriculture was no longer a viable year-round employment option. In fact, the MSME sector accounts for 28% of rural employment in Assam.

Contribution of Cottage Industries

Cottage industries, particularly in sectors like handloom and handicrafts, play a significant role in rural employment. Assam has a rich tradition of cottage industries, with more than 2 lakh weavers across the state contributing to the production of handloom products like Mekhela Chador and Gamosa.

The Assam Handloom and Textile Department reports that cottage industries employ over 15 lakh people in Assam, a majority of them being women. These industries not only provide employment but also help preserve the cultural heritage of the state.

Government Initiatives

Several schemes have been launched to support the growth of small-scale and cottage industries in rural Assam. The Prime Minister's Employment Generation Programme (PMEGP) has been a key driver, providing financial assistance to rural entrepreneurs for setting up SSIs and cottage industries. As of 2023, PMEGP has supported the creation of over 50,000 units in Assam, generating employment for over 3 lakh individuals.

In addition, the Chief Minister's Samagra Gramya Unnayan Yojana (CMSGUY) aims to double rural incomes by promoting agro-based industries and non-farm activities. Under this scheme, Rs. 30,000 crore has been allocated for rural development, with a significant focus on small-scale industries.

Data and Statistics

• Assam MSME Report 2022: MSME sector employs 28% of the rural workforce.
• Handloom & Cottage Industry Report: Over 15 lakh people are employed in Assam's cottage industries, with women making up 70% of this workforce.
• PMEGP Scheme 2023: Generated employment for over 3 lakh individuals by supporting the creation of 50,000 small-scale and cottage industry units.
• Assam Economic Survey 2022-23: Agriculture employs 52% of the state's workforce but contributes only 20% to its GDP.

Challenges and Solutions

Despite the potential, small-scale and cottage industries in Assam face several challenges, including a lack of modern infrastructure, limited access to finance, and insufficient market linkages. To overcome these hurdles, a stronger focus on skill development, better access to credit, and improved market access through digital platforms are essential.

The Government's focus on promoting digital marketing platforms for rural industries and introducing better vocational training programs can help small-scale and cottage industries thrive and create even more non-farm jobs.

Conclusion

Small-scale and cottage industries have the potential to transform rural Assam by providing sustainable non-farm employment opportunities. With targeted government initiatives, increased financial support, and skill development, these industries can significantly reduce rural unemployment and contribute to the state's economic growth.

For more insights on rural development and non-farm employment opportunities, visit my blog at ruralasom.blogspot.com.