Small Scale Industries play a crucial role in the development of any country and contributes significantly in the economic development of the country. In a developing country like India where large scale industries are restricted to a few hands, Small Scale Industries play a vital role in the development of the country by providing employment, innovation and improving the standard of living of the people. By focusing on the different dimensions and identifying new dimensions of SSI in India, we can boost up the economic growth of the country as a whole. Tourism on the other hand is an important factor and contributor in the income of a country and its state. India is rich in cultural heritage and the huge diversity of India consisting of cultural believes and tourist places that attract a large number of national and international tourists across the globe every year. This gives birth to some new businesses in that state, provides numerous employment avenues, brings in foreign currencies as well as contributes in the total exports of the country. This paper deals with studying the prospective growth and opportunities of Small Scale Industries related to the tourism sector and identifying and suggesting measures to the issues that are being faced by such industries which are already prevailing in the market with special reference to Varanasi district.