Question

Give the meaning and importance of small scale industries

Answer 1

small scale industrues means industries or businnes set up at domestic level..... it includes pickle and Papad making at domestic level or weaving cloths and bags so that they could be selled at neighbouring houses or even towns...... it is important for those who are unemployed and they could run this business and earn something..... it is also very helpful for womens who are willing to work but could not find means of job

Answer 2

In 1995, the Village and Small-Scale Industries Comitee, also called the Karve Comitee, noted the possibility of using small scale industries for promoting rural development. A 'small-scale industry' is defined to the reference to the maximum investments allowed on the assets of a unit. This limit has changed over a period of time. In 1950 a small scale industrial unit was one which invested a maximum of rupees five lakh; at present the maximum investment allowed is rupees one crore.

It is believed that small scale industries are more 'labour intensive' I.e., they use more labour than the large-scale industries and, therefore generate more employment. But these industries cannot compete with the big industrial firms; it is obvious that development of small-scale industry requires them to be shielded from the large firms. For this purpose, the production of a number of products was reserved for the small scale industry; the criterion of reservation being the ability of these units to manufacture the goods. They were also given concessions such as lower excise duty and bank loans at lower interest rates.