Small Scale Industries may sound small but actually plays a very important part in the overall growth of an economy. Small Scale Industries can be characterized by the unique feature of labor intensiveness. The total number of people employed in this industry has been calculated to be near about one crore and ninety lakhs in India, the main proponents of Small scale industries.Small scale industrial undertaking in which the investments in fixed assests in plant and machinery,excluding land and building whether held on ownership term or on hire purchase does not exceed Rs. one crore

The importance of this industry increases manifold due to the immense employment generating potential. The countries which are characterized by acute unemployment problem especially put emphasis on the model of Small Scale Industries. It has been observed that India along with the countries in the Indian continent have gone long strides in this field.

The small-scale sector has emerged as a dynamic and vibrant sector of the Indian economy. The sector acts as a "nursery" for the development of entrepreneurial talent. This sector which manufactures a wide range of more than 7500 products, supplies the lower income groups with inexpensive consumer goods and services, as well as meeting the sophisticated requirements of technology based industries in India and abroad.Due to its flexibility, the sector is bettered placed to face challenges and changes. It is ideally poised to attract both technology and funds to generate rapid growth and sustained process of technology up gradation and quality improvement in future.

Due to all these policy measures the growth in the SSI industry has really improved. SSIs today not only contributed to the domestic production but also help the country in earning foreign exchange.