Question

Which of the following is not true ?

• A. Small industries are the second largest employers of human resources, after agriculture.
• B. Small industries in India account for 95 per cent of the industrial units in the country.
• C. They contribute almost 40 per cent of the gross industrial value added and 45 per cent of the total exports (direct and indirect exports) from India.
• D. They generate lesser number of employment opportunities per unit of capital invested compared to large industries.

Answer 1

The correct option is D They generate lesser number of employment opportunities per unit of capital invested compared to large industries.

Potential for large employment

Small Scale Industries have potential to create employment opportunities on a massive scale. They are labor intensive in character. They use more labor than other factors of production. They can be set up in short time and can provide employment opportunities to more number of people. This is important for a labor abundant country like India.