11-01-2012, 01:55 PM
SMALL SCALE INDUSTRIES IN INDIA
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DEFINITION OF SSIs
The definition for small-scale industrial undertakings has changed over time. Initially they
were classified into two categories- those using power with less than 50 employees and those
not using power with the employee strength being more than 50 but less than 100. However,
the capital resources invested on plant and machinery buildings have been the primary
criteria to differentiate the small-scale industries from the large and medium scale industries.
An industrial unit can be categorized as a small- scale unit if it fulfils the capital investment
limit fixed by the Government of India for the small-scale sector.
CLASSIFICATION OF SSIs:
A common classification is between traditional small industries and modern small
industries.
Traditional small industries include khadi and handloom, village industries,
handicrafts, sericulture, coir, etc. Modern SSIs produce wide range of goods from
comparatively simple items t sophisticated products such as television sets,
electronics, control system, various engineering products, particularly as ancillaries to
the large industries..
ROLE OF SMALL SCALE INDUSTRIES IN
INDIAN ECONOMY
The small-scale industrial sector plays a pivotal role in the Indian economy in terms
of employment and growth has recorded a high rate of growth since Independence
inspite of stiff competition from large-scale industries. There are several important
reasons why these industries are contributing a lot to the progress of the Indian
economy:
