According to the official definition adopted in India since 1998, the investment limit up to Rs.10 million in plant and machinery is treated as SSI sector. However, in respect of certain specified items such as hosiery, hand tools, drugs & pharmaceuticals and stationary items above investment limit in plant and machinery has been enhanced up to Rs.50 million.
Since 1967, there is a policy of reserving selected products in the manufacturing sector for exclusive production in the SSI sector. The list of reserved items has been revised from time-to-time. The policy initiatives in India have always recognised that SSIs contribute to the material progress of the country.