Question

What are the types of small scale industries

Answer 1

Dear Student,

The concept of 'industry' has been replaced by 'enterprise'. Enterprises have been classified into two categories:

1. Enterprises which take up production or manufacture of goods related to any industry.
2. Enterprises which provide or render services.

​​Manufacturing enterprises have been further classified on the basis of investment in plant and machinery (exlcuding land and building):

1. Micro enterprises: which have an investment of up to Rs. 25 lakhs.
2. Small enterprises: which have an investment above Rs. 25 lakhs up to Rs. 5 crore.
3. Medium enterprises: which have an investment above Rs. 5 crore up to Rs. 10 crore.

​​Services enterprises have been further classified on the basis of investment in equipment (excluding land and building):

1. Micro enterprises: which have an investment of upto Rs. 10 lakhs.
2. Small enterprises: which have an investment above Rs. 10 lakhs up to Rs. 2 crore.
3. Medium enterprises: which have an investment above Rs. 2 crore up to Rs. 5 crore.

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Regards.