Classify industries on the basis of the capital investment. How are they different from one another? Explain with examples.(Delhi - 2016)
Answers
Answer:
On the basis of the capital investment, industries can be classified into two categories i.e. small-scale industry and large-scale industry.
2. A small-scale industry is different from a large-scale industry in terms of the amount of investment involved in both these categories.
3. For example – a small scale industry like toy manufacturing has a maximum limit of investment of rupees one crore. Any investment beyond the number of rupees one crore say, for example, iron and steel industry is considered to be a large scale industry.
NOTE – In order to better understand the role and manufacturing levels of various industries, they are classified according to certain criteria’s. For example – industries are classified on the basis of raw material – agro-based or mineral based industries, on the basis of ownership – public sector, private sector or joint sector etc.
Explanation: