Classify industries on the basis of capital investment

Classify industries on the basis of capital investment. How are they different from one another? Explain with examples.

Answer:
Classification of the industries on the basis of capital investment:

  • Small Scale industry
  • Large Scale industry

Difference:

  • f the investment is more than one crore on any industry is considered as a large scale industry, for example, Iron and Steel Industry/Cement Industry.
  • While the investment is less than one crore on an industry is considered as a small scale industry, for example, Plastic industry, Toy industry.