what are small scale industries

Small scale industries (SSI) are businesses that manufacture, produce, and render services on a small or micro scale level. These industries are characterized by their limited capital investment, lower labor engagement, and limited integration of technology compared to large-scale industries. Small scale industries are flexible and adaptable to a changing business environment, unlike large industries. They work in a restricted area, which makes them able to meet local and regional requirements. Small scale industries use resources that are local and are primarily serving local or regional markets, focusing on the needs and demands of the immediate community. SSIs are known as the lifeline of an economy, which is very important for a country like India. Being a labor-intensive industry, it is very helpful in creating employment opportunities for the population of the country. They are also a crucial part of an economy from a financial standpoint, as they help in stabilizing the per capita income of the country.