Question

Classify industries on the basis of capital investment how are they different from one another explain with examples

Answer 1

Following is the classification of industries on the basis of capital investment:

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 1 crore.Large-scale Industries: If investment is more than rupees 1 crore on any industry, then it is known as a large-scale industry.

Answer 2

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.