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Small scale industries (SSI) are those industries in which manufacturing, providing services, productions are done on a small scale or micro scale. They play a vital role in the social and economic development of any country and make a one-time investment in machinery, plant, and equipment, but it does not exceed Rs.10 crore and annual turnover does not exceed Rs.50 crore. For example – Napkins, tissues, chocolates, toothpicks, water bottles, small toys, papers, pens.

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SSI are labour intensive yet they require little capital. They comprise od small enterprises that manufacture goods or provide services with the help of smaller machines and a few workers and employees.

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The Small scale industries in India are the lifeline of the Indian economy and must fall under the guidelines set by the Government of India. They offer many job opportunities for skilled labours and are essential for the economy both socially and financially.

For developing countries like India, these industries bloom because of huge demand and opportunity. Some SSI’s also export goods, thereby bringing foreign currencies to India. In India, nearly half of the products (45-55%) shipped are from small scale and mid-scale industries. Some small-scale industries are created because of the demand for vendors for multinational companies.

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