Abstract: The present paper is based on the objective of impact of ICT on small scale Industrial Units of India. An attempt to discuss the different challenges in the sector and overcoming them to make the Small Scale Industries competitive. SMEs play a central role in the overall growth of the industrial economy of the country. Rather, Small and medium Enterprises in India are known as the backbone of the economy. The reason behind is that these enterprises are employing about 40% of India's workforce and contributing 45% to India's manufacturing output, they play a significant role in generating millions of jobs, especially at the low-skill level. The country's 1.3 million SMEs account for 40% of India's total exports. The current scenario clearly states that the growth of our economy is impossible without the growth and development of these enterprises but these enterprises are far behind the large counterparts in the economy.