The growth and development of the Small Scale Industries (SSIs), or the Micro, Small
and Medium Enterprises (MSMEs) sector since 2006, has a direct impact on the
growth of the manufacturing sector as well as overall growth of the Indian economy.
This sector contributes significantly in terms of output, employment and exports of
the overall industrial sector of India. Majority of the enterprises operating in the
MSMEs sector is unregistered and micro in their size and scale of production. Given
the smallness of size and scale, competitiveness of these unregistered enterprises by
means of efficiency and productivity growth is very crucial for survival and long term
economic growth. Further, the manufacturing sector of India is dichotomized into
registered and unregistered manufacturing.