PROMOTION OF SMALLSCALE INDUSTRIES AND THEIR CONTRIBUTION TO ECONOMIC GROWTH

Abstract

Small Scale Industries have been recognized as the engine of economic growth that helps in promoting equitable development of both rural and urban areas. The SSI sector forms an essential part of Indian economy with substantial contribution to GDP and Employment. These SSI have some intrinsic advantages like low capital intensity, high employment generation capacity, regionally balanced development and even distribution of wealth and income. The present paper has been done with the major objective of exploring the profile of SSI in India and analyzing the contribution of SSI to Indian Economy. The data required for the study were collected through various published reports of Government of India. It was found from the analysis that the contribution of SSI to Indian GDP is very significant and they have provided employment opportunity to people in both rural and urban areas leading to equitable development of the country.