There are different forms of business organisations ranging from a sole proprietorship to large scale businesses that employ over a thousand employees. Based on the scale of the business, various classifications can be done, such as small scale industries, large scale industries, public enterprises and multinational corporations.
What are Large Scale Industries?
Large scale industries are referred to as those industries that are having huge infrastructure, raw material, high manpower requirements and large capital requirements. Those organisations having a fixed asset of more than 10 crore rupees are considered to be large scale industries.
The growth of the economy is very much dependent on these industries. Such industries work towards bringing in foreign reserves, generating employment opportunities and paving the way for economic growth.
Large Scale Industries in India
Large scale industries in India can be categorised into the following types of industries:
1. Iron and Steel Industry
2. Automobile Industry
5. Information Technology Industry
6. Petroleum and Natural Gas Industry
7. Silk Industry
8. Fertiliser Industry
9. Jute Industry
10. Paper Industry
11. Cement Industry
Advantages of Large Scale Industries
Large scale industries offer the following advantages:
1. Large scale industries use the latest machinery and technology, which helps in improving the production. Due to large scale production, the companies benefit as well as it is beneficial for the economy as a whole.
2. Large scale industries help in the development of industries in the economy, which is essential for industrialisation.
3. Large scale industries require skilled workers and therefore, the development of large scale industries help in the development of a skilled workforce in the country.
4. Large scale industries require large amounts of raw materials, which opens up employment opportunities in the related sectors.
5. As large scale industries are involved in large scale production, it provides an opportunity to reduce the cost of goods and services as these are produced in bulk.
6. Large scale industries help in the development of small scale industries, as the requirement of items cannot be met only by a single industry.
Hence, small scale industries are required to produce the ancillary products and therefore small scale industries thrive on the growth of large scale industries.
7. Large scale industries can incur expenses required for research and development as they have a high influx of capital. Such research will help in generating more profits in future.
8. Large scale industries also help improve the quality of life of its employees by providing them with adequate remuneration and other benefits.
This concludes the topic of Large Scale Industries, which is an important concept for the students of Commerce. For more of such interesting articles, stay tuned to BYJU’S.