Small scale industries have played an important role in India's economy over the last five decades, contributing significantly to GDP growth, employment, and exports. From 2000-2005, the number of small scale industry units, production, employment, and exports all grew steadily at an average annual rate of 4-11%. However, the sector faces issues like lack of access to timely credit, outdated technology, infrastructure problems, and marketing constraints that limit its growth potential. The government has recently taken some policy initiatives to help promote and develop the small scale sector.