Associate Professor,
Among industrial sector growth of India, contribution of Small Scale Industries has been quite appreciable. Now the MSME segment constitutes about 26 million units, contribution of 8 percent in GDP, a share of 45% of total industrial output, over 6000 products manufactured, 40% of export, employment of 60 million people having a potential of creating 1.3 million jobs every year ensuring balanced regional and inclusive growth (Report of the Task Force on MSME, 2010). Indian Constitution under provisions of Directive Principles of State Policy instructs the state to promote the small scale and village industries for bringing social and economic justice to its citizens. Also, Mahatma Gandhi propagated the need to strengthen the SSIs as it is not required to attain the goal of self sufficiency but also contributes in the development process of the country. The present paper has been divided into four sections. In the first section, an attempt has been made to examine the role and importance of SSI sector in the growth of Indian economy. The second section discusses growth of SSIs and Plan outlays during Five Year Plans. The third section is devoted to analysis of performance of SSIs (now collectively known as MSMEs) during the reforms period started in 1991. The last section focuses on some emerging issues and challenges followed by conclusion.
