Question

State the meaning and importance of small scale industries in brief.

Answer 1

Small Scale Industries:

• Industries that run on labour intensive production technique and with an investment of ₹ 25 lakhs to ₹ 5 crores are called small scale industries (SSI).
• These industries use labour intensive techniques and need less capital compared to large scale industries.

Importance:

• Over and above producing products that can be used directly by consumers these industries also produce products that can be or ancillary used further by large scale industries. Thus, they work as complementary to large industries.
• Small scale industries have played a very important role and are quite progressive during last five decades.
• Small scale industries are very useful for generating employment, giving platform for manufacturing with small capital, industrialization in rural areas, developing backward areas, reducing regional imbalance and to maintain the adequate distribution of national income and wealth.
• Small scale industries are extremely important for social and economic development of India economy.