The definition of Small-Scale Industry (SSI) varies from one country to another. It also varies from one time to another in the same country depending upon stage and level of development, government policy and administrative structure of the particular country. All these different definitions either relate to capital or employment or both or any other criteria.
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(1) According to Fiscal Commission, 1950:
“A unit operating mainly with hired labor usually 10 to 50 hands”.
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(2) According to Small-Scale Industries Board, 1955:
“A unit employing less than 50 persons if using power and less than 100 persons without the use of power and with a capital investment not exceeding Rs. 5 lakes”.
(3) According to Ministry of Commerce and Industry 1960:
“An industrial unit with a capital investment of not more than Rs. 5 lakes irrespective of the number of persons employed”.
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(4) According to Ministry of Commerce and Industry 1966:
“An undertaking having a capital investment in plant and machinery of not more than Rs. 7.5 lakes and Rs. 10 lakes in case of ancillary units”.
(5) According to Government of India, 1975:
“An undertaking having a capital investment of not more than Rs. 10 lakes and Rs. 15 lakes in case of ancillary units.”
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(6) According to government of India, 1980:
“An undertaking having an investment in plant and machinery of not more than Rs. 20 lakes and Rs. 25 lakes in case of ancillary units”.
(7) According to Government of India, 1985:
“An undertaking having an investment in plant and machinery of not more than Rs. 35 lakes and not more than Rs. 45 lakhs in case of ancillary units”.
(8) According to Government of India, 1991:
“An undertaking having an investment in plant and machinery of not more than Rs. 60 lakes and not more than 75 lakhs in case of ancillary units:.
(9) According to Government of India, 1997:
“An undertaking having an investment in plant and machinery of not more than Rs. 3 crores.
(10) According to Government of India, 2000:
“An undertaking having an investment in plant and machinery of not more than Rs. 1 crore”.
It is evident from the above discussed definitions that there was an upward revision in the investment limit on plant and machinery in Small Scale Industry from Rs. 5 lakhs to Rs. 3 crores over years but this limit has been reduced from Rs. 3 crores to Rs. 1 crore in the year 1999-2000 by the Government of India.