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Small scale sector in india

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A small scale ncdustrial unit is defined in terms of initial investment in plant and machinery whether held in ownership terms or by lease or by hire purchase. The definition has been periodically revised by raising the ceiling of investment.
the small scale units were defined as undertakings with a fixed capital investment of less than Rs.7.5 Iakhs and ancillary units with a fixed capital investment of Rs. 10 lakhs. In 1975 the investment limit was raised to Rs. 10 Iakhs for small scale units and Rs. 15 lakhs in case of ancillaries. In 1977 the concept of tiny unit was introduced; it was defined in terms of investment limit upto Rs. 1 Iakh. Under the industrial Policy Statement of 1980, this limit was further raised to Rs. 20 Iakhs for small scale units, Rs. 25 Iakhs for ancillary units and Rs. 2 Iakhs for tiny units. In 1985 the investment limit was again raised to Rs. 35 laths for small scale units and Rs. 45 lakhs for ancillary units.
According to the Industrial Policy Statement of 1990, the investment ceiling for small scale units has been raised from Rs. 35 Iakhs to Rs. 60 lakhs and for ancillary units from Rs.45 lakhs to Rs. 75 Iakhs. Investment ceiling with respect to tiny units has been increased from Rs. 2 lakhs to Rs. 5 lakhs. In 1997 the investment limit has been further raised ‘to Rs.3 crore for both small scale and ancillary units. The investment limit for tiny units has been enhanced to Rs. 25 lakh.

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