Small scale industries (SSI) are those industries in which manufacturing, providing services, productions are done on a small scale or micro scale.

Essentially small scale industries comprise of small enterprises who manufacture goods or services with the help of relatively smaller machines and a few workers and employees.

For Manufacturing Units for Goods: Investment in plant and machinery must be between 25 lakhs and five crores.
For Service Providers: Investment in machinery must be between 10 lakhs and two crores.

In developing countries like India, these small scale industries are the lifeline of the economy. These are generally labour-intensive industries, so they create much employment. They also help with per capita income and resource utilization in the economy. They are a very important sector of the economy from a financial and social point of view.

Examples and Ideas of Small Scale Industries / Laghu Gram Udyog
Kosa
Tendu Leaves
Bamboo
Lakh Jewelry
Mahua
Imli
Mahul dona
Compost
Biogas
Aaloo Chips
Chakki Machine of Atta, Rice, Makka
Corn i.e. Makka Removing Machine
Moongfali
Bakeries
Candles
School stationeries
Water bottles
Leather belt
Small toys
Paper Bags
Xerox and printing
T-shirt Printing
Photography
Beauty parlours
Piku fall
Pillow
Wooden Comb

Characteristics of Small Scale Industries
Ownership: Such units are generally under single ownership. So it is a sole proprietorship or sometimes a partnership.

Management: Both the management and the control generally is with the owner/owners. So the owner is actively involved with the daily running of the business.

Limited Reach: Small scale industries have a restricted area of operations. So they meet local and regional demand.

Labor Intensive: These small scale industries tend to use labour and manpower for their production activities. So their dependence on technology is pretty limited.

Flexibility: These units are more adaptable to their changing business environment. So in case of sudden changes or unexpected developments, they are flexible enough to adapt and keep carrying on. Large industries do not have this advantage.

Resources: They use local and readily available resources. This also helps the economy with better utilization of natural resources and less wastage.

Role of Small Scale Industries in the Indian Economy
Total Production
These enterprises account for almost 40% of the total goods and services produced in the Indian economy. They are one of the main reasons for the growth and strengthening of the economy.

Employment
These small scale industries are a major source of employment in the country. The whole labour force cannot find work in the formal sector of the economy. So these labour-intensive industries provide a livelihood to a large portion of the workforce.

Contribution to Export
Nearly half of the goods (45-55%) of the goods that are exported from India are produced by these small enterprises. About 35% of direct exports and 15% of the indirect exports are from the small scale industries. So India’s export industry majorly relies on these small industries for their growth and development.

Welfare of the Public
Other than economic reasons, these industries are also important for the social growth and development of our country. These industries are usually started by the lower or middle-class public. They have an opportunity to earn wealth and employee other people. It helps with income distribution and contributes to social progress.

Create employment
Improve per capita income of lower income groups and also improve their standard of living
They also help backward regions with economic development

REF : https://www.toppr.com/guides/business-environment/scales-of-business/small-scale-industries/

Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country.

India has got tremendous scope for investors and entrepreneurs as far as business opportunities are concerned. Especially India has always been in the limelight in terms SME business. The SME business opportunity in India can be seen in possibly every sector – financial services, telecom, education, automobiles, media, food, real estate and so on.

Small and medium sized enterprises play a central role in the Indian economy. They are a major source of entrepreneurial skills, innovation and employment. SME businesses are the biggest contributor to the economy of any country and the same goes with Indian economy. In fact, SME is one of the most crucial sectors of Indian economy as far as the number of employments generated from this segment. As more than 65% of Indian population lives in rural and semi-rural areas, small business becomes a major source of income for many residing in these areas. After agriculture, small business in India is the second largest employer of human resources.

The SME business market of India is large and bubbling with newer opportunities. Increased purchasing power and consumerism is what drives the business scenario in India. Thus, there is an opportunity for competitive advantage that can benefit investors and entrepreneurs to a large extent. An investment in any best small business opportunity promises lucrative returns and success in less time.

Reasons behind growth in SME business

There are various reasons due to which the small scale business in India has witnessed a spurt of growth. Some of these factors are:

• High contribution to domestic production

• Low investment requirements

• Significant export earnings

• Capacities to develop appropriate indigenous technology

• Operational flexibility

• Contribution towards defense production

• Technology – oriented industries

• Import substitution

• Location wise mobility

• Low intensive imports

• Competitiveness in the domestic market

• Competitiveness in the export markets

“Growth and Performance of Micro, Small and Medium Enterprises in India”

Over last 5 decades MSME sector emerged as extremely effervescent and vigorous segment of Indian economy. MSME plays dual role of providing employment and industrialization of rural/backward areas, thereby reducing regional imbalance and equitable distribution of national income. MSME’s are harmonizing to large industries as supplementary units, which adds to socio economic development. It consists of 36 million units, providing employment over 80 million persons with 8% contribution to GDP.

Leading Industries of MSME Sector:

Ø Retail trade (except of motor vehicle & motor cycles) and Repairs of personal and household goods – 39.85%

Ø Manufacturing of wearing apparels- 8.75%

Ø Manufacturers of foods and beverages-6.94%

Ø Other services activities -6.2%, other business activities – 3.77%

Ø Hotels and restaurants-3.64%

Ø Sales maintenance of motor vehicles and cycles – 3.57%

Ø Furniture manufacturing -3.21%, Textile -2.33%

Ø Fabricated metals except machinery and equipment-2.33% and others 19.4%. Three sub sectors demonstrates promising picture: food processing- high potential because of agro linkage, textiles-innovation, and electronics- linkage with ITES

SMEs employ around 40% of India’s workforce, which is an estimated 80 million people, who are given an opportunity for livelihood and employment via low-skilled jobs. Around 1.3 million SMEs contribute 45% to India’s manufacturing output and 40% of India’s total export. In a way, they form the backbone of the Indian economy. At 48 million, India has the second largest number of SMEs in the world, edging close to China which has around 50 million SMEs.

There are around 6000 products manufactured by 31.7% SMEs while the remaining 68.2% are engaged in delivering various services. This sector, if extended the right support, has the potential to spread industrial growth throughout the country.

MSME- an abbreviation of Micro, Small & Medium enterprises- is the pillar of economic growth in many developed, and developing countries in the world. Often rightly termed as “the engine of growth” for India, MSME has played a prominent role in the development of the country in terms of creating employment opportunities-MSME has employed more than 50 million people, scaling manufacturing capabilities, curtailing regional disparities, balancing the distribution of wealth, and contributing to the GDP-MSME sector forms 8% of GDP.

The advantage of this sector is it requires less investment, thus creating employment on a large scale, and reducing the employment and underemployment problems. Moreover, this sector has survived almost all threats emerging out of still completion from both domestic and international market.

Share of MSME in Manufacturing, Exports and Employment sectors in India:

Sector Percentage (%) share

1 Manufacturing 45%

2 Exports 40%

3 Employment 69%

The contribution of MSME to other sectors has been immensely instrumental. It is the biggest employer after agriculture sector, despite the fact that agriculture sector’s contribution to GDP is less than MSME. While it contributes about 45% to manufacturing sector, and perhaps 40% to Exports, it forms the highest share of Employment sector in India, contributing around 69% to it.

Here are few Projects for Startup:

PISTON FOR INTERNAL COMBUSTION ENGINES

NON GLAZED CERAMIC TILES

ABRASIVE & FLINT PAPER

MATCHBOX

STRAW BOARD SLATES

CEMENT ROOFING TILES

DISPOSABLE PLASTIC CUPS, PLATES AND GLASSES

DISPOSABLE PLATES FROM BANANA LEAVES

NATURAL COLOURS

INSULATOR

BIOGAS PRODUCTION

CHARCOAL FROM COCONUT SHELL

ACETYLENE GAS

CHOCOLATE

GYPSUM PLASTER BOARDS

PAPER BAGS FOR WHITE CEMENT

RUBBER GASKETS

CRUSHED STONE

BITUMEN

BANANA POWDER

COPPER POWDER BY ELECTROLYTIC PROCESS

AUTO LEAF SPRINGS

BRICKS FROM FLY ASH

WOODEN TOOTHPICK

BROOM STICK PROCESSING PLANT

ARTIFICIAL MARBLE TILES

SAND LIME BRICKS MANUFACTURING

RAZOR BLADE

API TUBE

WOODEN DOORS AND FRAMES

ENAMELED COPPER WIRE

ADMIXTURES FOR CONCRETE

TUBE MAKING FOR UMBRELLA

PAPER NAPKINS, TOILET ROLL & FACIAL PAPER FROM TISSUE PAPER ROLLS

SOLAR PANEL

E-WASTE RECYCLING PLANT

LED LIGHT ASSEMBLING

BISCUIT MAKING PLANT

BREAD MAKING PLANT

BAKERY INDUSTRY

SANITARY NAPKIN & BABY DIAPERS

ELECTRIC MOTORS

MOSQUITO REPELLENT LIQUIDATOR

MACARONI, VERMICELLI, NOODLES AND INSTANT NOODLES WITH TASTEMAKER

UPVC PROFILES FOR DOORS AND WINDOWS

CPVC

REF : https://www.linkedin.com/pulse/list-50-selected-projects-micro-small-medium-msme-best-ajay-kr-gupta

Industries which requires huge infrastructure and manpower with an influx of capital assets are Large Scale Industries. In India, large-scale industries are the ones with a fixed asset of more than one hundred million rupees or Rs. 10 crores.

The Indian economy relies heavily on such industries for economic growth, generation of foreign currency, and the creation of job opportunities for millions of Indians.

Here are some advantages of large scale industries:

They provide an impetus to the industrialization of the country.

Large scale industries, usually, produce capital and basic goods (instruments, machines, chemicals, etc.)

They are capable of generating funds for the research and development of new technologies.

Due to the large scale of operations, they have the potential to lower the cost of goods.

Further, they create opportunities for small-scale and cottage industries to evolve and flourish.

Also, the employment opportunities created by large scale industries are huge.

Large Scale Industries in India
The term ‘large-scale’ is generic in nature and includes different types of industries. In India, the following heavy industries fall under the purview of large scale industries:

Iron and Steel Industry

Textile Industry

Automobile Manufacturing Industry

Over the last two decades, Information and Technology (IT) industry has evolved and has contributed huge revenues while creating thousands of jobs for Indians. Hence, many economists include it in the large-scale industry sector like Telecom Industry.

It is important to note that these industries are either manufacturing units or those which use both indigenous and imported technologies. Here are some more examples:

Fertilizer , Cement , Natural gas , Coal , Metal extraction , Metal processing , Petroleum , Mining , Electrical , Petrochemical , Food processing units , Tourism , Banking , Sugar , Construction , Automobile , Communication equipment , Cement , Chemicals , Earth movers , Consumer durables (like television, refrigerators, etc.) , Engineering products , Vehicle assembly , Beverages , Agricultural processing , Insurance and Finance.

In recent years, as the markets opened up due to globalization, there has been a mixed effect on large-scale industries. There are some who have managed to attract international customers, foreign trade and technology, tie-ups. However, there are also others who were unable to cope with the competitiveness ushered in by the open market.

REF : https://www.toppr.com/guides/business-environment/scales-of-business/large-scale-industries/