impact of libralization on Small scale industries?
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Explanation:
Due to removal of QRs, de-licensing and de-reservations, opening up the industrial sector to internal external competition, lowering of tariffs etc. are major cause of deregulation of industrial sector. It has an adverse effect on the small scale sector (Agarwal & Goel, 2014) .
Previously, the definition of small scale industries depended upon the business’s capital and labour. This definition is still used to demarcate between small, medium and large-scale industries.
The Central Government has the authority to determine capital investment requirements for small-scale industries. These requirements are listed under the Industries (Development and Regulation) Act, 1951.
A small enterprise in which investment in plant & machinery ranges between Rs. 25 lakhs to Rs. 5 crores is a small-scale industry.
Similarly, for industries that provide services, the investment requirement is between Rs. 10 lakhs and Rs. 2 crores.