Posted by Anjali Kaur on May 22, 2020
Small Scale Industry

Small Scale Industries

Industries are of different types; one of the classifications of the industries is based on its operation. Based on their scale, industries can be large or small. Let’s discuss small scale industries.

In simple words, SSIs are small in operation, it is more labor-intensive and requires less capital investment. In 1955, the village and small scale industries committee also called Karve committee, saw the possibility of using small scale industries for promoting rural development. As I discussed, a small-scale industry is defined concerning the maximum investment allowed on the assets of a unit. This limit has changed over some time. In 1950, a small-scale industrial unit was one where maximum investment required was five lac rupees, at present (2020) it is five crore rupees. Now let’s take a look at the features of these industries.

Features of SSIs

  1. SSI is more labor-intensive as they use more labor than compared to the large scale industries. Hence, SSIs help in generating more employment.
  2. The production of some products is reserved for these industries only. For example, sole leather, screwdrivers, hammers, forks, etc.
  3. They also enjoy concessions like bank loans at lower interest rates.

To summarize, these industries use less capital, more labor and, some products are exclusively reserved for them. You can read more about rural development in India.

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