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Question
Explain the various kinds of industries on the basis of size.
Solution
1. Micro Units: A unit wherein investment in plant and machinery is up to Rs. 25 lakhs in case of manufacturing and up to Rs. 10 lakhs in case of service enterprises.
2. Small Units: A manufacturing unit wherein investment in plant and machinery is more than Rs. 25 lakhs but does not exceed Rs.5 crore. In the case of service enterprises, these limits are Rs. 10 lakhs and Rs. 2 crores respectively.
3. Medium Units: A manufacturing unit wherein investment in plant and machinery is more than Rs.5 crore but does not exceed Rs. 10 crore. In the case of service enterprises, these limits are Rs.2 crore and Rs.5 crore respectively.
4. Large Units: A manufacturing unit wherein, investment in plant and machinery exceeds Rs.10 crore. In the case of a service unit investment in equipment exceeds Rs.5 crore.
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