Small Scale Industry Criteria 1 Size of business

Small Scale Industry

Criteria • 1. Size of business • 2. Qualitative criteria.

Size of business • • • Total capital investment Total value of fixed assets No. of persons employed Total investment in plant and machinery Volume or value of production Volume or value of sales turnover

Qualitative criteria • • Ownership Nature of management Technology Geographical area of operation

Defn of SSI Year Authority Criteria 1950 Fiscal commission Hired labour 10 -50 1955 Small Scale industries Board Capital invest of less than Rs. 5 lakhs and Less than 50 persons if using power Less than 100 persons if not using power 1960 Ministry of commerce and industry Capital investment of less than Rs. 5 lakhs irrespective of no of employees 1966 Ministry of industry Capital investment in P&M less than Rs. 7. 5 lakhs and Rs. 10 lakhs for ancillary units 1975 GOI Capital investment in P& M less than Rs. 10 lakhs and 15 lakhs in case of ancillary units 1980 GOI 20 lakhs for Small and 25 for ancillary 1985 GOI 35 for small and 45 for ancillary 1991 GOI 60 for small and 75 for ancillary

Micro, Small and medium Enterprises Act • MSMED Act, 2006 • Introduced medium sector and micro enterprises • Instead of “industries” the term “enterprises” has been introduced.

Micro, Small and medium Enterprises Act Manufacturing enterprises Service enterprises Micro Upto Rs. 25 lakhs Upto Rs. 10 lakhs Small More than. Rs. 25 lakhs More than Rs. 10 and upto Rs. 5 crores lakhs and upto Rs. 2 crores Medium More than Rs. 5 crores and upto Rs. 10 crores More than 2 crores and upto Rs. 5 crores

Importance of SSIs Labour intensive Equitable distribution of income and wealth Dispersal of mfg activities Linkages Local entrepreneurship Investment opportunities for rural people leading to capital formation • Export potential • • •