Question

What is the definition used by Government of India for small scale industries?

Answer 1

The Government of India classifies an industry as a small scale industry on the basis of the level of investment made in it. Industries where the amount invested in the fixed assets (particularly plant and machinery) is less than Rs. 1 crore are regarded as small-scale industries. However, export-oriented units that use modern production techniques are considered as small-scale industries if their investment does not exceed Rs. 5 crore.