Small Scale Industries (SSI) have played a vital role in strengthening the industrial structure of the country. They facilitate the tapping of resources for productive purposes with minimum amount of capital investment. SSI have contributed greatly in bringing down regional imbalance; generating employment opportunities, output, and exports, fostering entrepreneurship and in accelerating economic development.
As per the government definition an industrial undertaking in which the investment in fixed assets in plant and machinery whether held on ownership terms on lease or on hire purchase does not exceed Rs 10 million, can be categorized as small scale undertaking.
To encourage the growth of small scale industries in India, Government has reserved certain products for manufacture in the small scale sector in areas where there is techno-economic justification for such an approach. Large/Medium units can, however, manufacture such reserved items provided they undertake to export 50% or more of their production.
As on 10 October 2008, following items are reserved for exclusive manufacture by micro and small enterprise sector: