Small Scale Industries (SSI) are industries which are characterised by manufacturing and production of goods or rendering of services on a small or micro scale.
As per the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 , the classification of the industries or organizations into micro, small or medium units depends on their capital investment in plant and machinery or equipment. These investments are specified for industries both in the manufacturing sector and the service sector.
| Category | Manufacturing Sector | Service Sector |
| Micro Enterprises | Up to Rs. 25,00,000 | Up to Rs. 10,00,000 |
| Small Enterprises | More than Rs. 25,00,000 up to Rs. 5,00,00 ,000 | More than Rs. 10,00,000 up to Rs. 2,00,00 ,000 |
| Medium Enterprises | More than Rs. 5,00,00,000 up to Rs. 10,00,00 ,000 | More than Rs. 2,00,00,000 up to Rs. 5,00,00 ,000 |
As per the revised definition, small scale industries (in the manufacturing or service sector) make a one-time investment in machinery, plant, and equipment, but it does not exceed Rs.10 crore and annual turnover does not exceed Rs.50 crore.
| Category | Investments | Turnover |
| Micro Enterprises | Up to Rs. 1,00,00,000 | Less than Rs. 5,00,00,000 |
| Small Enterprises | Up to Rs. 10,00,00,000 | Less than Rs. 50,00,00,000 |
| Medium Enterprises | Up to Rs. 20,00,00,000 | Less than Rs. 100,00,00,000 |
As the name suggests, the small scale industries are generally comprised of those industries which manufacture, produce and render services with the help of small machines and less manpower.
The small scale industries play an important role especially in developing countries like India. Since these industries are generally labour-intensive, they play an important role in the creation of employment.
Some of the examples of these small scale industries are:
- School stationeries
- Water bottles manufacturing
- Tissue manufacturers
- Candle making units
- Bakeries
- Small garment manufacturing units
- Packaging units
- Small toy manufacturing units
- Paper Bags
- Leather belt
- Beauty parlours
- Spinning and weaving industry
- Coconut oil making
- Clay products
- Agarbatti making
- Honey processing
- Pickle manufacturing
- Candle manufacturing
- Paper plate manufacturing
- Incense stick manufacturing
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