The contribution of the small industries to the social-economic development of India is explained below:

a. Small scale industries account for 95% of the total industries in India.

b. 40% of the total industrial output if attributed to the industries.

c. 45% of the total exports of India belongs to the sector. Handicraft, jewelry, etc are some of the items that are exported.

d. They contribute to the balanced development of the country. They produce simple products using indigenous Technology with locally available resources.

e. They have to generate many primitive opportunities in rural areas. They are the second-largest employer of human resources. They generate more number of employment opportunities for the unit of capital invested as compared to the large industries.

f. They produce a wide variety of products such as readymade garments, stationery products, leather, soaps, processed food, steel Furniture, safety matches, paints, agricultural tools, handicrafts, etc.

g. These Industries use locally available resources which are less expensive and thus they have the advantage of the low cost of production. The cost of its establishment is also low.

h. It helps to reduce the Migration of workers from rural areas to the urban areas in search of employment.

i. It gives an opportunity to the talented and skilled workers to show their talent globally.

j. Due to the small size of the small scale industries, decisions can be taken quickly and timely.

k. These Industries have the ability of adaptability and personal touch which is important to maintain good customer relations.

l. The products produced by these Industries can be customized according to the needs of the individual customers because of the simple and flexible production designs.