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

(i) Classification of the industries on the basis of capital investment:

(a) Small Scale Industry

(b) Large Scale Industry

(ii) Difference:

If the investment is more than one crore on any industry, it is considered as a large-scale industry.

For example, Iron and Steel Industry/Cement Industry (any other relevant example). While the investment is less than one crore on an industry, it is considered as a small scale industry e.g. Plastic industry, toy industry.

On the basis of capital investment, the industries are classified into small scale industry and large scale industry. 

• The maximum investment in small scale industry is upto Rs. 1 crore, e.g., toy industry. 
• If the investment is more than one crore rupees, then it is known as large scale industry, e.g., iron and steel industry