Small scale industries (SSI) have a significant role in the Indian economy in view of its contribution to production, employment, and export. However, since 1991 small scale industries in India find themselves in an intensely competitive environment due to globalization, domestic economic liberalization, and dilution of sector specific protective measures. The formation of World Trade Organization in 1995 also forced the member countries (including India) to drastically scale down the restrictions on import. This article analyzes the various factors influencing the growth of small scale industries in India. information technology (IT) is one of the significant factors, which is, in general, not used by the small scale industries in India for their production and business process, in the growth of small scale industries in India. Further on the basis of Nolan’s ‘Stages of growth model’ the stages of use of information technology in small scale industries are studied.