Why is there scope for SSI in developing countries liken India?



Developing countries face the problem of massive unemployment, shortage of finance, unutilized idle resources regional disparities, lack of industrialisation, dependence on agriculture for livelihood etc. SSI prefer techniques of production which require less capital and more labour, uses simple technology, can be widely spread without locational constraints, depends on locally available resources, can broaden the industrial base thus addressing the major problems of development countries. Thus, SSI have immense scope in developing countries.