As per the latest definition which is effective since

December 21, 1999, for any industrial unit to be

regarded as Small Scale Industrial unit the following
conditions are to be satisfied: Investment in fixed assets like plants and
equipment's either held on ownership term on lease
or on hire purchase should not be more than Rs 10
million.
Less than 150 employees in a unit.

Classification of SSIs
TRADITIONAL SSIs

It includes khadi and

handloom, village
industries,handicrafts,
sericulture, etc

MODERN SSIs
Modern SSIs produce
wide range of goods
from comparatively
simple items to
sophisticated products
such as television
sets, electronics,
control system,
various engineering
products etc.

Characteristics of SSI

Capital investment is small

Owned by single

Family Owned industries

Workers are expected to do different types of jobs as need arises

Funded by owners savings and dependent on owners entrepreneurship

Profit margins are less

Innovations and risk bearing is HIGH

Management and Organization is POOR

eed and Rationale of SSI

In India plenty of labour is available and capital

investment is less
Small Scale Industries have very good future in this
scenario.
1) Innovative
2) Self Satisfaction
3) Caters to individual taste and styles
4) Small in operation
5) Strength of nation
6) Spread over wide areas

Objectives of SSIs :
1. Creation of employment opportunities
2. Improvement in standard of living
3. Elimination of economic backwardness in rural and undeveloped
areas of the similar society
4. Reducing regional imbalance
5. To provide employment & create regular source of income for the
needy people in the society
6. To encourage entrepreneurship & self-reliance.

Scope of SSIs
Scope for the Small Scale Industry in India is very vast.
Even by the help of Govt. & its policies. It has covered
most socioeconomic fields of this arena. Some common
areas of scope to be listed are,
a)
b)
c)
d)
e)
f)
g)
h)

Manufacturing, Servicing & repairing.

Construction.
Financial.
Retailing.
Wholesale business.
Transporting.
Public Utilities.
Communication.

80% of
industrial
employment

Role of SSI

40% of
Exports

Employment
Mobilization
Equitable
Balanced
Promotes
Indigenization
Supports
Better
industrial
the
regional
distribution
exports
of
generation
growth
resources
relations
development
of
oflarge
income
and industries
entrepreneurial skill

ROLE OF SSI IN DEVLOPEING MORALE Of

WOMEN

SELF ACTUALISATION
ECONOMIC INDEPENDENCE
SELF IDENTIFICATION AND SOCIAL STATUS
INCREASE CONFIDENCE
SELF RESPECT

THANK YOU