Small Scale Industries & Their Importance
Small scale industries are the ones that primarily deal with the manufacture, processing and preservation of goods. Usually, the investment of the small scale industries in machinery and plant does not, in any case, exceed Rs.1 crore. This will also include units engaged in mining, repairing or servicing of the machinery. For the ancillary units, the amount invested in machinery and plant must also not, in any case, exceed Rs. 1 crore in order to be classified as small-scale industry.
Just recently, the investment limit of Rs. 1 crore has been increased to Rs 5 crores for an industry in order to be classified as a 'Small Scale Industry'. Government of India has done this in respect to some particular items including hosiery, drugs & pharmaceuticals, hand tools, sports goods, and stationery items.