Small scale industries are mainly dealing with manufacturing, processing and preservation of goods. Usually, small-scale industrial investments on machines and factories are not, in terms of anything, exceeding RS.1 Crore. It will also include units engaged in mining, repair or serve machines. For additional units, the amount invested in machines and plants is also not, in any case, exceeds the hospital. 1 Crore to be classified as a small scale industry.
Recently, the RS investment limit. 1 Crore has increased to RS 5 Crores for the industry to be classified as a ‘small scale industry’. The Indian government has done this in connection with certain items including socks, medicines & pharmaceuticals, hand tools, sports goods, and stationery items.
The small-scale units get ‘small business’ status that has invested 25 LAC in the factory and the machine, regardless of the location of their unit. Even industrial-related companies and business services will benefit small-scale sectors if they have almost hospital investments. 10 Lacs in fixed assets. This investment includes building and landing. To calculate the value of fixed assets, the original price paid by the first owner is considered. The price paid for the owner is then not taken into account.
Small scale industries may seem very small, but the unique features of labor intention are often a characteristic of small-scale industries. It has been calculated that the total number of people employed in the small scale industry in almost equivalent to 1 crore and 90 lakh in India.
Great potential to produce work increases the significance of small-scale industries to most. Countries that face extreme problems from unemployment mainly emphasize the growth and development of these industries. The main advantages of these industries are that they specialize in producing consumer commodities. They followed labor-intensive approaches to produce commodities. Because of the lack of capital, this industry mainly depends on the workforce to produce commodities. Another advantage of this process is to involve the absorption of labor that is not used in the economy. This unemployment work utilization helps reduce poverty and unemployment. Also these industries are more efficient in distributing national income evenly among all contributors. They also offer assistance to promote balanced industrial development in a country.
Thus, the government expands great support for the development and growth of small-scale industries, by protecting them from direct competition provided by large-scale industries.