Explanation:

1.Requirement of less capital :

Small Scale Industries require less capital when compared to large scale industries. INDIA is a capital scarce country and therefore Small Scale Industries are more suitable in the Indian context. They can be started and run by small entrepreneurs who have limited capital resources

2.Contribution to exports

Contribution to exportsSmall Scale Industries contribute nearly 40 per cent to the industrial exports of the country. Products such as hosiery, knitwear, hand loom, gems and jewellery, handicrafts, coir products, textiles, sports goods, finished LEATHER, leather products, woolen garments, processed food, chemicals and allied products and a large number of engineering goods produced by the SSI sector contribute substantially to India’s exports. Further products produced by Small Scale Industries are used in the manufacture of products manufactured and exported by large scale industries.

3.Equitable distribution

Equitable distributionLarge scale industries lead to inequalities in income distribution and concentration of economic power. But small scale industries distribute resources and wealth more equitably. It is because income is distributed among more number of workers since it is labor intensive. This results in both economic and social WELFARE.