The small scale industries sector occupies a strategic position of unique importance in the Indian economy. It has played a vital role in full filling the socio economic objectives of the nation. It has emerged as a powerful tool in providing relatively larger employment for a given unit of investment, equitable distribution o f wealth and removal of regional economic disparities. Considering the importance of the small scale industry an attempt has been made in this work to analyze the growth and development of small scale industry in India. In the present study an attempt has been made to estimate the relative efficiency of different inputs by using partial factor productivity of labour and capital for the small scale industry in India during the post liberalization period. Further an attempt has been made to estimate the influence of output and technology on factor productivities with the help of multiple regression frame work. The study also aims to examine and analyze production function in small scale industry in India during the liberalization era. It includes the estimation of partial elasticities of output with respect to labour and capital, returns to scale, technological progress and the sources of output growth at India.
