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1] Introduction

Small scale industries (SSI) are those industries in which manufacturing, providing services,
distributions, productions are done on a small scale or micro scale.

Small scale industries in India have been the major source of employment during the
global recession and economic slowdown. The Indian economy during the fiscal years
have shown considerable growth performance by contributing to create livelihood
opportunities to millions of people, in magnifying the export potential and in increasing
the overall economic growth of the country.

2] Primary Data/Illustrations

The Ministry of Micro, Small and Medium Enterprises (MSME), a branch of the Government
of India, is the apex body for the formulation and administration of rules, regulations and
laws relating to micro, small and medium enterprises in India. The MSME recognizes the
contribution of micro and small enterprises in growth of economy, export promotions and
employment generations.

3] Findings

SSIs are generally under single ownership. So, it can either be a sole proprietorship or
sometimes a partnership. SSI’s dependence on technology is pretty limited. Hence, they
tend to use labor and manpower for their production activities. Small scale industries
have a restricted zone of operations. Hence, they can meet their local and regional
demand. They use local and readily available resources which helps the economy fully
utilize natural resources with minimum wastage.

4] Analysis/Evaluation

These small-scale industries account for almost 40% of the total goods and services
produced in the Indian economy. Nearly half of the goods (45-55%) of the goods that are
exported from India are produced by these small enterprises. About 35% of direct exports
and 15% of the indirect exports are from the small-scale industries. So, India’s export industry
majorly relies on these small industries for their growth and development. Other than
economic reasons, these industries are also important for the social growth and
development of our country. These industries are usually started by the lower or middle-class
public. They have an opportunity to earn wealth and employee other people. It helps with
income distribution and contributes to social progress.

5] Conclusion

The advancements of small-scale industries is essential for the development of Indian

economy to achieve impartial distribution of income and wealth, economic self-
dependence and economic sustainable developments.