Question
How are small scale industries distinguished from large scale industries?

Answer

Small scale industries are distinguished from the large scale industries on the basis of the maximum investment allowed on the fixed assets of a unit, the number of workers employed and the use of energy. This definition of a small scale industry changes from time to time. In 1950, a small scale industrial unit was one which invested a maximum of rupees five lakhs. At present, the maximum investment allowed is five crores.

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