Question

Explain the classification of industries on the basis of size.

Answer 1

Instructions:

• Discuss the classification

Solution:

• On the basis of size, industries are classified into three types–
  • Small-scale industries: These are small businesses run by families or a small group of people from their homes. The products are manufactured manually and these require low investment. Some of the small-scale industries are pottery, tailoring and many more.
  • Medium-scale industries: These have more capital, better technology, and more workers as compared to small-scale industries. But they still use primitive technology, have low capital and production is limited. Some examples are rice mills, silk weaving industries, etc.
  • Large-scale industries. These are large industries, using big machines, high investment and a huge labour force. These industries do large-scale production. Some examples are iron and steel, automobile, etc.