Small Scale Industries play a vital role in regional economic development by generating employment opportunities, promoting entrepreneurship, and utilizing local resources efficiently. The present study examines the growth performance and employment elasticity of the small scale industrial sector in Baramulla district of Jammu and Kashmir during the period from 2005-06 to 2020-21 using secondary data. The analysis focuses on the growth pattern of industrial units, employment generation, and the contribution of Baramulla district to the overall small scale industrial sector of Jammu and Kashmir. Statistical tools such as annual growth rate and employment elasticity have been used to assess the relationship between industrial growth and employment generation. The findings reveal that the small scale industries sector in Baramulla district experienced gradual and stable growth in terms of industrial units and employment up to 2017-18. The district maintained a consistent share in the overall small scale industries sector of Jammu and Kashmir, reflecting its significant role in regional industrial development. The employment elasticity analysis indicates that the expansion of small scale industrial units generally contributed positively to employment generation due to the labour-intensive nature of the sector. However, the later years of the study period witnessed severe structural disruptions, decline in industrial units, and substantial employment losses caused by economic instability, administrative changes, and external shocks such as the COVID-19 pandemic. The study highlights the vulnerability of the small scale industries sector to economic disturbances and emphasizes the need for effective policy support, financial assistance, infrastructural development, and market stability to strengthen industrial resilience and employment sustainability in the district.