Growth and performance of small scale industries in Karnataka

Small scale industries (SSI) refer to those small entrepreneurs who are engaged in production, manufacturing or service at a micro-scale. Small scale industries have played a vital role in the economic and social development of the country in the pre and post-independence era. Small scale industries constitute the backbone of a developing economy with its effective, efficient, flexible and innovative entrepreneurial spirit. Small scale industries are considered an engine of economic growth all over the world. In the present scenario of globalisation and information technology, SSIs are playing a significant role in supply chains of larger organisations. To sustain their importance and performance, SSIs are feeling more pressures to improve their competitiveness as compared to past protective markets. In view of the above, this paper attempts to discuss the role of small scale industries in Karnataka with special focus on financial outlay during planned periods and compound annual growth rate in terms of number of SSI units, investment and Employability.