Small scale industries in India are defined as those with investments of less than Rs. 1 crore. They provide extensive opportunities for employment and production. SSI's contribute over 40% of industrial production and create the largest number of jobs after agriculture. Food products, non-metallic minerals, and metal products are the top employment generating industries. The government promotes and supports SSI's through policies, subsidies, training, and reservations to boost their role in the Indian economy.

1. SSI AND THEIR ROLE IN INDIA
Small scale industrial units are those engaged in the manufacture, processing
or preservation of goods and whose investment in plant and machinery
(original cost) does not exceed Rs.1 crore.
A small scale or cottage industry may be defined as an enterprise or series
of operations carried on by a workman skilled in the craft on his
responsibility, the finished product of which, he markets himself”

2. SSI OPPORTUNITIES IN INDIA
 Less Capital Intensive
 Extensive Promotion & Support by Government
 Reservation for Exclusive Manufacture by small
scale sector
 Project Profiles
 Funding - Finance & Subsidies
 Machinery Procurement
 Raw Material Procurement $Manpower Training

3. ADVANGAGES OF SSI
 PRE-INDEPENDENCE
* Before Independence, the present small scale industry
was meant to denote the village and the urban cottage
industry.
* This group included a variety of industries ranging from
manufacturing of Iron safes, locks, carpets, marble jigs,
baskets, hand-loom cloth and the like.
* In fact, at that time the term „cottage and Small scale
industries‟ was used in juxtaposition to large scale
industries, which were established under the British
patronage.
* They received encouragement and support during the
freedom movement.
* The small scale industries found a prominent place in the
economic Program envisaged by the Indian National
Congress.

4. POST INDEPENDANCE
After 1947
 Jawaharlal Nehru maintained separate entities of small
scale industries. He was of the view that a small industry
was the middle sector and it would overlap both the
cottage and the large industries.
 1977 industrial Policy
 The basic policy support of SSI sector had its roots in the
Industrial Policy Resolution 1977, laid emphasis on
reservation of items.
 The reservation economically viable and technologically
feasible products to be exclusively manufactured by small
scale industry began with a list of 47 items which was
gradually extended to too many products.
 At Present 358 items are in the reserved list.
 The limit on the fixed capital investment for SSI‟s was Rs
7.5 lakhs and for ancillaries it was Rs 10 lakhs. After the
Industrial Policy, the ceiling for investment for SSI‟s was
raised to Rs 60 lakhs and Rs 70 lakhs for ancillaries .

5. 1991 INDUSTRIAL POLICIES
 Equity participation of upto 24% by other industrial undertakings including
foreign companies.
 Hike in investment limit for tiny sector from Rs. 2 lakh to Rs. 5 lakh.
 Support from National Equity Fund for projects upto Rs. 10 lakh.
 Single window loans to cover projects upto Rs. 20 lakhs. Banks to be
involved.
 Relaxation of certain provisions of labor laws.
 Subcontracting Exchanges to be set up by industry associations
 Factoring services through SIDBI to overcome the problem of delayed
payments.
 Women enterprises redefined
 Package for handloom and handicraft sector
 Export development centre in SIDO
 Marketing of mass consumption items by NSIC under a common brand
name.
1995 WTO POLICIES
 The formation of WTO in 1995 resulted in a major challenge to the well
being of the SSI. The protection given to the SSI in the form of reservation
and quantitative restrictions has been withdrawn.
 More than 160 items reserved under the SSI category have been de reserved.

6. ROLE OF SSI
 PRODUCTION
 It contributes almost 42.26%(2017) of
the gross industrial value added in the
Indian economy.
 It has been estimated that a million Rs.
Of investment in fixed assets in the
small scale sector produces 4.62 million.
 The number of small scale units has
increased from an estimated 8.74 lakhs
units in the year 1980-81 to an
estimated 31.21 lakhs in the year 1999
which has increased to 10521109 units
in the year 2017 .

7. DATA PRESENTED HERE

8. EMPLOYMENT
 SSI Sector in India creates largest employment opportunities for the
Indian populace, next only to Agriculture.
 It has been estimated that 100,000 rupees of investment in fixed assets
in the small-scale sector generates employment for four persons.
YEAR NUMBER
EMPLOMENT
(LAKHS NO)
PRODUCTION
PER EMPLOYEE
(RS.THOUSAND
S)AT1993-94
1990-91 158.3 54
2000-01 238.7 77
2001-02 249.3 78
2002-03 260.2 81
2003-04 271.4 84
2004-05 282.6 89
2005-06 294.9 83

9. GENERATION OF EMPLOMENT
INDUSTRIES GROUP WISE
 Food products industry has ranked first in generating employment,
providing employment to 0.48 million persons (13.1%).
 The next two industry groups were Non-metallic mineral products with
employment of 0.45 million persons (12.2%) and Metal products with 0.37
million persons (10.2%).
 In Chemicals & chemical products, Machinery parts, Wood products,
Basic Metal Industries, Paper products & printing, Hosiery & garments,
Repair services and Rubber & plastic products, the contribution ranged
from 9% to 5%, the total contribution by these eight industry groups being
49%.
 In all other industries the contribution was less than 5%.

11. DATA PRESENTED IN AGGREGATE

12. SUGGESTIONS
 Development measures should be
spread
 Rising productivity needs to be made
sustainable
 Assistance programs need to be
tackled
 Skill based needs need to be
improved