Small-scale industries in India, also known as SSIs, form the lifeline of an economy. Therefore, it is very significant for a country like India. Being a labour-intensive industry still requires small capital. This is very effective in generating job openings. 

The investment in such industries is one-time. Small-scale industries connect small enterprises that manufacture goods or provide services. The industry operates with the help of smaller machines and fewer workers. The whole investment in limit in plant & machinery in such industries does not exceed 1 crore.

However, in a developing country like India, small-scale industries export approximately half of the products (45-55%). Some small-scale industries are created because of the need for vendors for multinational companies.

Generally, those industries that manufacture, produce, and render services form small-scale industries. These enterprises must fall under the regulations, set by the Government of India.

Small-scale industries are categorized into three:-
  • Manufacturing Industries: Manufacturing small-scale industries examples are power looms, engineering industries, food processing, etc. Generally, individuals own these types of small-scale industries. They produce finished goods either for consumption or used in processing industries. 
  • Ancillary Industries: Ancillary industries can also be identified as those companies that make machines for multinational companies or medium-scale industries. They don’t generally make all the parts themselves. 
  • Service Industries: Repair shops and maintenance industries come under the category of service industries
  • Feeder industries and mining or quarries are other types of industries.
What are the objectives of the small-scale industries?
  • Create more employment opportunities.
  • Develop the rural and less developed regions of the economy.
  • Reduce regional imbalances.
  • Optimum utilization of unexploited resources of the country.
  • Improve the standard of living of people.
  • Equal distribution of income and wealth.
  • Solve the unemployment problem.
  • Use the latest technology aimed at producing better quality products at lower costs.
Registration of SSI & Overview

SSI registration is a registration provided by the Ministry of MSME through the Directorate of Industries of the State Government. The Government gives several subsidies to businesses, and SSI registration helps businesses become eligible for them. One should register online through Udyam Registration. The process of SSI/MSME registration & guidelines:

Micro and small enterprises, as defined by the MSME Act, of 2006, can obtain SSI registration. A small enterprise is an enterprise whose investment does not exceed Rs.10 crore, and whose turnover does not exceed Rs.50 crore.

  • Visit the Udaym Registration portal 
  •  Click on the “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II”.
  • Fill in your “Aadhaar Number” and “Name of the Entrepreneur”
  • Click on the “Validate and Generate OTP” button. 
  • You will receive OTP to your mobile number. 
  • Enter OPT on the PAN verification page. 
  •  Enter PAN details and click on the “Validate PAN” button.
  • The Udyam Registration page will open. Fill in all the personal details and industry details such as industry name, address, and bank account details. 
  • Click on the “Submit and Get Final OTP” button.
  • A message of successful registration with a reference number will appear. 
  • After verification of registration, the MSME Registration Certificate is issued.
What are the Benefits of obtaining SSI Registration?
  • The government offers various tax rebates to Small Scale Industries
  • A credit for Minimum Alternate Tax is allowed to be carried forward for up to 15 years instead of 10 years.
  • Many government tenders are only open to the SSI.
  • Easy access to credit.
  • Many rebates and concessions are available once registered.
  • The cost of acquiring a patent, or the cost of setting up the industry reduces.
  • Given the higher preference for government license and certification.
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