This document defines small scale industries and discusses their role in the Indian economy. Small scale industries are defined as those with fixed asset investments not exceeding Rs. 10 Crore. They include manufacturing activities like napkins, chocolates, toys, and services like bakeries, printing, photography. Small scale industries generate employment, use local resources, promote exports and technology. They support large industries and have better industrial relations. Characteristics of small scale industries include being labor intensive, flexible, locally operated, having short setup periods and requiring low capital investments.