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The government of India has taken several measures to solve the problem of small scale business and to enable them to play an effective role in the country’s economy. The central and stage government have set up several institution or agencies liberal and assistance to small business. This agency provides technical and managerial assistance to small scale units.  It offers common service and tool room facilities and conducts training programmers or the managerial and technical personnel of small scale units. It has set up16 small industry service institutes, 27 branch institutes, 61 extension centers, 5 production centers and 2 training centers. Four regional testing centers have been set up to provide testing facilities in mechanical, metallurgical, electrical and chemical trades. It has established two new tool rooms at Calcutta and Ludhiana. The central institute of tool designs, Hyderabad and the institute for design of electrical measuring instruments, Bombay have been set up to provide technical guidance and training to small scale entrepreneurs.

The Small Industry Extension Training Institute, Hyderabad organizes training courses in small industry management. It also undertakes feasibility and research studies, collection and dissemination of information, for the guidance of managers of small scale units.