Role of Small Scale Industries

Role of Small Scale Industries

According to Economic Survey 2010-11, Small Scale Industries (SSI’s) have played an important role in achieving the national objective of growth with equity and inclusion. SSI’s have been entrusted with multiplicity of objectives such as:

1.Employment Generation- They are more labour intensive in nature i-e they require more units of labour and less capital and are best suited for solving the problem of unemployment.

2.Self Employment- They provide immense opportunities for self employment as they can be started with very less capital and training.

3.Less Capital intensive– They require relatively small amount of capital to produce a commodity as compared to large scale industries and thus are ideal to bring about industrial development in a country like India which is capital scarce.

4.Import Light– Low import requirement in the capital structure of SSI’s reduces the need for foreign capital.

5.Export Promotion- The goods produced by them are in great demand in foreign countries, thus they offer vast opportunities for export promotion and earning valuable foreign exchange.

6.Equal Distribution of Income– They have a capacity to bring about more balanced distribution of income and wealth as they are generally set up in the backward areas.

7.Decentralisation of Industries– These are usually located in backward regions instead of already developed urban industrial hubs. Thus they promote the objective of regional development.

8.Support to Large Scale Industries- They are responsible for providing all the basic raw materials to the large scale industries which are the basis of their operations and development.

9.Agricultural Development- The development of SSI’s will divert labour from agriculture to industries which will bring about a more desirable occupational structure. SSI’s can bring about agricultural development through promotion of agro based industries like agricultural machinery, repairs and service workshops,etc.

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10 Comments. Leave new

  • Chitranshi
    May 1, 2015 6:29 am

    Well explained!

  • Akul Dev Saha
    May 1, 2015 6:31 am

    Sums up everything on SSIs. Good

  • Padmaa Murugesan
    May 15, 2015 3:21 pm

    Good effort..!

  • Because of the MNC’s these SSI are adversely affected. Government should and must take proper steps to bring them into light. Nice article.

  • Akshita Bansal
    May 23, 2015 12:46 pm


  • Meghna Sethi
    May 23, 2015 3:57 pm

    Added so much to an untouched topic. Very informative.

  • Anant Poddar
    June 13, 2015 1:22 pm

    Small scale industries play a very important role in boosting up an economy.! Hopefully India gets more in the coming years!

  • Stephy Paul
    June 19, 2015 6:13 pm

    Very informative topic.. You explained the importance of small scale industries well.. Keep it up!!

  • Vasundhra Maheshwari
    July 7, 2015 9:32 am

    well explained!small scale industries are so important for a developing economy like ours.

  • Anirudh Krishnadas
    September 3, 2015 9:33 pm

    Very well codefied 😀
    Small scale industries are like strong concrete base for these MNC 😀
    Many good points included in the article 😀
    The best one was that 😀 as increase in these industries make sure more increase in the employment 😀 . One with least educational qualification but with a greater experience can warn their daily food 😀 ..
    Good Work 😀


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