Industries are classified on the basis …

Answer: small scale and large scale industries.

Size refers to the amount of capital invested, number of people employed and the volume of production.

• Industries based on size are classified into small scale and large scale industries.
• Small Scale Industries:
  • Small scale industries manufacture products by hand and include cottage and household industry. These industries use lesser amount of capital and technology. For example, Basket-weaving, pottery, and other handicraft industries.
  • In India, small scale industry gives employment to around 35% population.
• Large Scale Industries:
  • Large scale industries produce large volumes of products. The investment of capital is higher and technology is superior. For example, production of automobiles and heavy machinery.
  • After independence, India gave emphasis to this sector for development.
• Most developed nations shows existence of large scale industries on the other hand more small scale industries are exist in developing and under developed world.

Industries can be classified according to their size

1.       Small Scale Industries

2.       Large Scale Industries