Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsINDUSTRIAL SECTOR3 Marks
Question
Explain Industrial structure on ground of investment.
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Answer
Classification of Industries based on Investment size:
$(1)$ Cottage Industries:
Industries which are run mainly through the members of the family without using electrical machines only with simple instruments with negligible capital investment is known as cottage industry E.g., Khadi, Papad, Embroidery, Incense stick, carpentry, black-smith's work, etc.
These industries employee more people prior to the Britishers arrival in India.
Cottage industries has unique place in India.
$(2)$ Tiny Industries:
The industries in which less than $Rs.25$ lacs is invested and run by complete labour based production technique are called tiny industries or very small industries.
E.g. Making artistic things from leather, metal, clay, etc.
$(3)$ Small Scale Industries:
The industries in which from $Rs.25$ to $Rs.5$ Crore is invested and it is run by only labour based production technique and it is supporting to large industries are called Small Scale Industries.
E.g., Industries manufacturing consumer goods, automation goods, manufacturing of specific parts of items produced by big industrial units
Generally, compare to medium and large industries, started with comparatively less capital and to more labour based with local factors are of less importance are known as small industries.
$(4)$ Medium Scale Industries:
The industries in which the amount invested in more than $Rs.5$ crore and less than $Rs.10$ crore and with labour intensive and capital based technique are called medium scale industries.
E.g. Machinery, chemicals, electronic instruments etc. making industries.
$(5)$ Large Scale Industries:
The industries which adopts only capital based production technique and more than $Rs.10$ crore is invested is called large scale industries.
E.g. Equipment related to Steel Plants, Big vehicles, Cement, Tools of railway, etc. are made by large scale industries.
The following characteristics are observed in such industries:
$(1)$ Large Scale Investment.
$(2)$ Large Scale Production.
$(3)$ Capital based and modern production technique.
$(4)$ They are found mainly in urban areas.
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