In the context of industrial and economic development in India, SIDO is an organisation related primarily to the development of which sector?

Introduction / Context:
This question relates to Indian economic institutions and their focus sectors. SIDO stands for Small Industries Development Organisation. It was created to promote, support and coordinate the growth of small scale industries across India. Many competitive exams ask such questions to test familiarity with the institutional framework of industrial development.

Given Data / Assumptions:

• The acronym SIDO is used without expansion in the question.
• The options list small industries, steel industry, soap industry, sugar industry and shipbuilding industry.
• We assume a standard understanding that SIDO is a government body dealing with small scale industrial development.

Concept / Approach:
The key concept is that SIDO is specifically concerned with micro, small and medium scale enterprises rather than with any single product industry such as steel, sugar or soap. The organisation works under the Ministry of Micro, Small and Medium Enterprises, focusing on policy, training, technology upgradation and support schemes for small units. Recognising this link guides us to the correct option.

Step-by-Step Solution:
Step 1: Recall that SIDO stands for Small Industries Development Organisation. Step 2: The name itself indicates a focus on small industries rather than large scale industries. Step 3: Small industries include a wide range of manufacturing and service units that are below a certain investment or turnover threshold. Step 4: The role of SIDO is to provide support, training, cluster development and policy advice for these small units. Step 5: Therefore, SIDO is related primarily to the development of small industries.

Verification / Alternative check:
If you look at standard Indian economy textbooks for competitive exams, you will find SIDO described as a central agency responsible for coordinating development of small scale industries. The organisation is not tied to a single product like steel or sugar, but rather to the size category of industries. This broad mandate for small industries confirms the correctness of option A.

Why Other Options Are Wrong:
Option B (Steel industry) is wrong because steel is a capital intensive, large scale industry, usually handled by separate public sector undertakings and ministries.
Option C (Soap industry) is incorrect; while some small units may make soap, SIDO role is not restricted to this product.
Option D (Sugar industry) is wrong because sugar production is managed mainly by large mills and cooperatives, not by an organisation focused only on small industries.
Option E (Shipbuilding industry) is also incorrect; shipyards are large, strategic industrial units beyond the typical scale of enterprises that SIDO targets.

Common Pitfalls:
Some candidates may not remember the full form of SIDO and may guess randomly. Others might confuse SIDO with sector specific boards or corporations that handle commodities. A useful strategy is to memorise a few key industrial development bodies and their sectors, such as SIDO for small industries, KVIC for village industries and cooperative bodies for sugar and dairy sectors.

Final Answer:
SIDO is related primarily to the development of small industries.