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Question
Classify industries on the basis of capital investment. How are they different from one another? Explain with examples.
Solution
On the basis of capital investment industries are classified as follows.
1. Small scale industry: The industries whose investment is less than 1 crore are known as small scale industries. Examples of small scale industries are : Toy making, pickle making, goods produced from rubber and plastic etc.
2. Large scale industry: The industries whose investment is more than 1 crore are called large scale industries. Examples of large scale industries are : Iron and steel industry, cotton textile industry etc.
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