The motivations of human for expanding boundless prosperity for satisfying the never-ending requirements direct them to look for diverse means of wealth accumulation. However, the concept of wealth is dynamic one and ephemeral throughout the human evaluation. In this regard, the small-scale industries have played a very important role in the socio-economic development of India during the past 50 years. However the growth of Small Scale Industries in India is not equal and some regions are lagged behind the others. According to Economic survey of Assam 2007-2008, there is 27,913 small-scale industrial units in Assam and providing employment to 1, 31,099 persons until 2006-2007, which are only 0.50 per cent of total population. However, the Small Scale Industries in Assam is underdeveloped and in this paper an attempt has been made to analyze the production behavour of Small Scale Industry in Assam.

KEYWORDS: Small Scale Industries, growth, production function