Question

Classify industries on the basis of capital investment. How are they 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.

Answer 2

SMALL SCALE INDUSTRIES : a small scale industry is defined with reference to the maximum investment allowed on the assets of a unit .
This limit changed over a period of time.
At present the maximum investment allowed is 1 crore.
Examples - weaving industry , plastic bag industry etc........

LARGE SCALE INDUSTRY : If investment is more than 1 crore on any industry then it is large scale industry
Examples - Iron and steel industry , textile industry.....