The Small Scale Industries sector, over the years, has grown steadily and occupied an important place in the economy. Contribution of the sector in terms of generation of employment, output and exports is quite significant. The number of registered units in the SSI sector has increased from 0.42 million as at end-March 1974 to 3.37 million at end-March 2001. These numbers are exclusive of the units in the unregistered sector.

          The importance of the Small Scale Industries sector is well-recognised from its significant contribution to the socio-economic objectives of growth in generation of employment, output, exports and fostering entrepreneurship. Currently, the sector accounts for around 95 per cent of the industrial units in the country contributing 40 per cent of the manufacturing sector output and approximately one-third of the nation's exports. At the end of March 2001, there were 3.37 million modern SSI units providing direct employment to around 1.86 million persons.

          Despite the important role played by SSI sector in the Indian economy, it is rather difficult to obtain authentic and comprehensive information on various facets of the sector from single source. In order to fill the void in information base, SIDBI, the apex financial institution for SSI sector in India, took initiative in bringing out a series of publication viz. 'SIDBI Report on Small Scale Industries Sector' on an annual basis. First two issues of the Report released at the hands of Hon'ble Union Finance Minister has been received well both within the country and at international level. The SIDBI Report on Small Scale Industries Sector 2001 is third issue in the series.

          The process of liberlisation and globalisation has opnede up new vistas for various sectors of the economy as also posed certain challenges. While on the one hand, it expands the scope of cross-border transactions, on the other, the new osder holds different perception about protection and safeguards that a global trading system should provide to its members. Both these aspects have significant implications for the Indian economy as a whole and the SSI sector in particular.