This document discusses small-scale industries (SSI) in India. It outlines how the ceiling limit for what constitutes an SSI has increased over time. SSIs are important for industrialization and the government has various policies to support their development. Key benefits of SSIs include utilizing available labor and requiring relatively low capital investment. While some SSIs may grow larger, others are at risk of becoming obsolete. The document also outlines the scope and common areas that SSIs cover in India, as well as their growth and impact on employment and exports. Steps for starting an SSI are provided.

1. 1.
2.
3.
4.
• Important for Industrialization.
• Govt. has varies policies to develop SSI
• Gross IDEAS => GROSS investment of
land,building plant etc.
• MINISTRY OF INDUSTRY

3. 1) Conventional
2)Operational
3)National Income Accounting

4. Sl No.
Year
Ceiling limit for SSI
1
1950
Capital assets up to Rs. 5 Lakhs
2
1958
Capital investment up to 5lakhs
3
1960
Gross value of fixed assets up to Rs. 5 Lakhs
4
1966
Value of plant and machinery up to Rs.7.5 Lakhs
5
1975
Plant and machinery up to Rs.10 Lakhs
6
1980
Up to Rs.20 Lakhs on Plant and machinery
7
1985
Up to Rs.35 Lakhs on Plant and machinery
8
1991
Up to Rs.60 on Plant and machinery
9
1997
Up to Rs.3 crore on Plant and machinery

6. Few of them may grow as medium scale
industry
Technology may become obsolete resulting in
closure of SSI
Generally found in urban or semi-urban
areas.

7. In India plenty of labour is available and capital
investment is less
 “Small Scale Industries” have very good future
in this scenario.
1) Innovative
2) Self Satisfaction
3) Caters to individual taste and styles
4) Small in operation
5) Strength of nation
6) Spread over wide areas

9. Scope for the Small Scale Industry in India is very vast.
Even by the help of Govt. & its policies. It has covered
most socioeconomic fields of this arena. Some common
areas of scope to be listed are,
a)
b)
c)
d)
e)
f)
g)
h)
Manufacturing, Servicing & repairing.
Construction.
Financial.
Retailing.
Wholesale business.
Transporting.
Public Utilities.
Communication.

10. 1. Registered Small Scale Industries growth rate also
from 2.5
Lakhs during 1973-74 to 36 Lakhs in 2006-07
2. The production of goods improved from 7200 crore in 1973-74 to
700,000 crore in 2006-07
3. Employment increased from 40 Lakhs in 1973-74 to 200 lakhs in
2006-07
4. Accordingly exports rate also increased to Rs.75,000 Lakhs
5. In this way SSI accounts for 35% in total manufacturing, 80% in total
employment and 38% of total exports of the country.

12. 1. Selection of Industry type
2. Arrangement of technology
3. Study of equipment requirement
4. Study of resource requirement
5. Selection of land and premises
6. Study of Investment requirement
7. Study of Plant & equipment requirement
8. Study of raw material & source of supply requirement
9. Study of economic viability pricing strategy, financing
and Breakeven analysis
10.Application for loan to financial institution
11.Project report preparation
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13. Steps to start SSI
12.Getting NOC and permission from local body
(municipality/corporation/village panchayat)
13.The same above from Directorate of Industries
14.Apply for power connection
15.Recruit staff and workers
16.Order for plant & machinery
17.Order raw material
18.Installing the machinery & Trial runs
19.Production and sales
20.Profits & pay creditors
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