The small scale sector has emerged as a dynamic and vibrant sector of the Indian Economy .It has contributed significantly to the realisation of the socio-economic objectives of growth in employment and exports ,fostering entrepreneurship and ensuring industrial dispersal .

During 1999-2000 ,the production fromSSIs was estimated at Rs 5,78,470 crores and provided employment to more than 177 lakh persons in 32 lakh SSI units spread throughout the country .Exports from SSIs have been estimated at Rs48,979 crores in 1998-99 .The small scale sector has been contributing about 40 % of Industrial Production and 35 % of toral direct exports .This sector has been maintaining ,by and large , a higher growth than the industrial sector as a whole .The share of this sector in employment generation is next only to agriculture .

The ongoing process of liberlisation warrants due attention to be given to the medium and long term interests of the small scale sector . This sector ,nurtured hitherto in a protective framework , needs to be enabled to take on the challenges posed to it by the process of liberalisation and glogalisation .The government of conscious of the role and importance of small scale industries in strengthening our economic performance and is therefore committed to putting in place a policy framework that would address the problems of this sector and help it become internationally competitive .In recognition of the importance of the SSI sector and to give focused attention Government has created a separate Ministry for small scale industries and agro rural industries in October 1999 which has subsequently been further converted into a separate Ministry of Small Scale Industries.

Industrialisation is a sine-qua-non of economic progress.Industrialisation in Himachal Pradesh is a comparatively recent phenomenon. From relatively backward and predominantly agriculture state at the time of attaining statehood in1971, it has steadily progressed while establishing more than 182 medium and large scale units covering a wide spectrum of industries and about 28500 small scale industrial units involving a total investment of Rs. 2750 crores and providing direct employment to 1.50 lakh persons. The industrialisation in the state has now achieved the take off stage with well diversified base of industries ranging from traditional handicrafts and handlooms in cottage, tiny and small scale sector to high-tech textile units. Computer Hardware & Software, telecommunication equipment, sophisticated electronics gadgets, cement, paper, basic chemicals, drugs & pharmaceuticals, food processing, engineering and high quality precision tools, besides breweries, distilleries and mineral water units.