Question

Classify industries on the basis of capital investment. How are they different  from one another? Explain with examples.

Answer 1

On the basis of capital investment industries are classified as follows.

1. Small scale industry: The industries whose investment is less than 1 crore are known as small scale industries. Examples of small scale industries are : Toy making, pickle making, goods produced from rubber and plastic etc.

2. Large scale industry: The industries whose investment is more than 1 crore are called large scale industries. Examples of large scale industries are : Iron and steel industry, cotton textile industry etc.