As an economy grows, the components of the economy also grow. When growth takes place, the structural changes are inevitable. The SSI sector, as a component of Indian economy has grown in all respects in the recent decades. The new policies and shift in development paradigms, particularly in the last decade of the 20th century, have very much influenced the development patterns of SSI sector in India. It would be interesting and also useful to see as to how these policy changes have influenced the structure and development of the SSI sector and also to see as to how the SSI sector has responded or absorbed the policy changes. This is important to prepare the economy to face the future challenges. It is in this direction the present study has been set. Tiruchirappalli taluk, one of the industrially active regions in Tamil Nadu state, has been chosen as an empirical context to look into the structural changes in the SSI sector.