India Finance Brief

In India, Small Scale Industries account for 95 percent of the industrial units in the country. They contribute about 40 percent of the gross industrial value added and 45 percent of the total exports of India. SSIs generate more employment opportunities compared to large industries in terms of per unit of capital invested. However, finance is the key input for sustained growth of small scale sector and its accessibility continues to be a matter of concern. SSIs need both long run as well as short run credit. The government of India has taken several steps to improve SSIs. Many financial institutions too offer various credit schemes. Since SSIs contribute significantly to the balanced development of the country, the success of, and sustained growth of these industries in India, lies in judicius financial management.