Difference between large and small scale industry?
Answers
Answer:
In general, any industry can be classified as a small scale industry or large scale industry as per the investment made in procuring the plant and machinery for manufacturing goods. In this way, small scale industries are said to be the ones whose investment in the capital assets is limited to the amount specified by the Government of the country.
On the contrary, those industries which make an investment in their plant and machinery beyond that limit, are considered as large scale industries.
Nevertheless, there are several other factors like a number of workers employed, the geographical area occupied, the volume of the output, etc. which can also be used to classify the industries. Let’s move further to understand the difference between small scale and large scale industries.
Small scale industries are those industries in which the manufacturing, production and rendering of services are done on a small or micro scale. These industries make a one-time investment in machinery, plants, and industries, but it does not exceed Rs 1 Crore.
large scale industry are the cotton industry, tea industry, jute, cement, paper, engineering industry, food processing, information and electronic technology, and automobile industry. These are the few large scale industries contributing to the economy of India.
