What is the definition used by the government of India for Small Scale Industries?

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Government uses the criterion of size of capital employed in plant and machinery to define Small Scale Industries. It is depicted in the table given below:

Type of Industry Investment Limit (RS.)
Small scale industry 1 crore (for 71 products it is 5 crores )
ancillary industry 1 crore (50% of the out put supplied to the parent unit
Tiny Enterprise 25 lakhs
service and business (industry related enterprise) 10 lakhs
women enterprise any of the above (51% of the holding by the women and managed by women)
Export oriented units (EOUs)  1 crore (100% EOUs can sell 25% in domestic markets).

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The Government of India defines the small scale industries as per their investment in plant and machinery. In India the capital is scarce and labour is abundant this measure asks to keep in view the socio-economic environment.

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