Small Scale Organisations and their Contribution to the Economic Growth

Essentially the small scale organisations are generally comprised of those industries which manufacture, produce and render services with the help of small machines and less manpower. These enterprises must fall under the guidelines, set by the Government of India. The performance of the small-scale organisations has a direct impact on the growth of the overall economy in terms of number of units, production, employment and exports. It may help to understand its role in the economic development of the country. The role of small-scale organisations has always been supported in a country like India with various opinions such as employment, equality, latent resource, trickling effect, insurance against social tension, distributive effect, creation of social eco-system and decentralization etc. The small scale organisation sector continues to remain an integral part of Indian economy with significant contribution to GDP, industrial production and employment generation in India.