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Small Scale Industries In India: An Evaluation Of Performance In The Post-Liberalized Scenario


  • S Anand
  • V Murugaiah


Small Scale Industries (SSI) facilitate the tapping of resources for productive purposes with minimum amount of capital investment, which in turn helps to strengthen the industrial structure of a nation. SSIs existed in India for a long time in various sectors and contributed significantly in bringing down regional imbalance; generating employment opportunities, output, and exports; fostering entrepreneurship; in accelerating economic development. It occupies a position of prominence in India and contributes over 50% of the industrial production in terms of value-addition. This sector plays a key role in the industrialization process and accounts for one-third of exports, and employs the largest manpower next to agriculture. The process of liberalization, privatization and globalization (LPG) has opened up new opportunities and challenges for this sector. This paper examines the role and importance of small scale industries in India, problems they encounter and performance in terms of their contribution to the overall growth of the Indian economy.

Suggested Citation

  • S Anand & V Murugaiah, 2006. "Small Scale Industries In India: An Evaluation Of Performance In The Post-Liberalized Scenario," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(4), pages 63-77, November.
  • Handle: RePEc:icf:icfjme:v:04:y:2006:i:4:p:63-77

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