Question

In how many types the industries can be classified on the basis of size? Explain any two.

Answer 1

On the basis of size, industries can be classified into four types.
(a) Large scale industries: Industrial units where capital investment is $10$crores or more e.g., Tata Iron and Steel Co.
(b) Medium industries: Where capital investment is between $5$ and $10$ crores e.g., Leather industry.
(c) Small scale industries: Such industries in which capital investment is $2$ to $5$ crores e.g., lac industry.
(d) Cottage industries: Where capital investment is normal and which are run with the help of the family members. If such industries are located in a village they are called village or rural industries are located in a village they are called village or rural industries and if they are located in a town they are known as urban, cottage industry.