Classification of Industries based on Size


 
 
Concept Explanation
 

Classification of Industries based on Size

On the basis of size: It refers to the amount of capital invested, number of people employed and the volume of production. Based on size, industries can be classified into Small scale and large scale industries.

  • Cottage industries: They usually work from home and do not use machine like clay industry or toy industry, weaving, pottery, shoe making & jewellery making. Cottage or household industries are a type of small scale industry where the products are manufactured by hand, by the artisans. They may be located in villages or towns.
  • Small scale Industries - They hire skilled labour. They are bigger than cottage industries, but use lesser amount of capital and technology as compared to large scale industries. They also generate a great deal of employment. In small Scale Industries maximum Investment allowed upto 1 Crore . 
  • Large-Scale industries (LSI) - They usually employed an enormous number of workers. They obtain raw materials even from distant regions. The production here is on a mass scale and  voluminous. They sell their goods even to distant markets. These industries having an Investment More Than 1 Crore rupees.  For example : automobile industry, ship building industry etc.
  • Sample Questions
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    Question : 1

    If the invested capital is more than Rs. _____________, then the industry is called a large-scale industry.

    Right Option : C
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    Explanation
    Question : 2

    In _________________ less than 1 crore are invested for its development.

    Right Option : B
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    Explanation
    Question : 3

    When a high amount of capital is invested, it is called __________ industry .

    Right Option : D
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    Explanation
     
     
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