Diagnosing Definitional Issues of the Small Scale Sector in India

Abstract

Definitional ambiguities of the small scale sector in India are a consequence of the diverse agencies and sources responsible for defining and documenting these units. They pose a challenge in getting a uniform and non-overlapping national level picture. The paper focuses on the evolution of definitional criteria laid down by the concerned Ministry from the post-independence period till date and throws light upon the underlying ambiguities. Simultaneously, other agencies have used different documentational criteria which may have led to under/over estimation in the documentation of the performance of the sector. The authors posit the need for a uniform definition and standard documentation practice.