The Small Scale Industries have acquired pre- eminent position in the economic structure of the country. The contribution of the sector both towards the economic advancement/ development and removal of economic disparities among cross section of the society has been tremendous.

The small scale industries have carved out a unique niche in the Industrial Economy, accounting for around 95 per cent of the industrial units, 40 per cent of the manufacturing sector output, 36 per cent of exports. This sector provides direct employment to 18 million persons in 3.2 million registered SSI units in the country. The activities of the SSI sector are dispersed throughout the entire spectrum of Industrial processes and products including the IT and Biotechnology sector. Apart from getting support from government and promotional agencies for establishing infrastructural facilities, technological up gradation, marketing and other similar measures, a sincere and hard working entrepreneur with a strong dedication and determination is bound to forge ahead. However, with the economic liberalization and globalization, a number of challenges and opportunities have emerged for this sector. Further, this has also been accentuated with the recent war on Terrorism and ongoing recessional climate. This has necessitated new development strategies for SSI sector to put the Indian economy on a sustainable growth track. 

In order to promote industrial growth and also to determine the pattern of assistance to small industries, a series of industrial Policy Resolutions/ Statements have been announced by Government of India and Orissa during the last three decades. The types of incentives extended to SSI units relate to Financial Assistance, Infrastructure Development, Tax Deferment and Exemptions, Investment Subsidies etc. These were targeted to achieve substantial growth in industrial production and productivity. Incentives were extended either on one times basis or in the form of sustained support for a specific period. While some of the incentives were, others were available exclusively for the SSI units. In view of the above challenges the need for a scientific and systematic development of a Small Scale Sector is a must for our country.