What is the impact and effect of machinery on small scale industries. Write a paragraph in about 100-120 words.
Answers
Explanation:
Essentially small scale industries comprise of small enterprises who manufacture goods or services with the help of relatively smaller machines and a few workers and employees. Basically, the enterprise must fall under the guidelines set by the Government of India. At the time being such limits are as follows,
For Manufacturing Units for Goods: Investment in plant and machinery must be between 25 lakhs and five crores.
For Service Providers: Investment in machinery must be between 10 lakhs and two crores.
In developing countries like India, these small scale industries are the lifeline of the economy. These are generally labour-intensive industries, so they create much employment. They also help with per capita income and resource utilization in the economy. They are a very important sector of the economy from a financial and social point of view.