Question

classify industries on the basis of capital investement.How are thry different from one another? Explain with examples.

Answer 1

Classification of the industries on the basis of capital investment :
(a) Small Scale Industry(b) Large Scale Industry
Difference : If the investment is more than one crore on any industry, it is considered as a large scale industry. For example, Iron and Steel Industry/Cement Industry. While the investment is less than one crore on an industry, it is considered as a small scale industry e.g. Plastic industry, toy industry.


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Answer 2

classification of industries on basis of capital investment:

(i) Small-scale Industries:

A small scale industry is defined with reference to the maximum investment allowed on the assets of a unit. This limit has changed over a period of time. At present the maximum investment allowed is rupees one crore.

(ii) Large-scale Industries:

If investment is more than one crore on any industry then it is known as a large-scale industry.

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