In India, a Small-scale industry is defined with reference to the __________
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Maximum investment allowed on the assets of a unit.
The Government of India classifies an industry as a small-scale industry based on the level of investment made in it.
- Industries, where the amount invested in the fixed assets (particularly plant and machinery) is less than Rs. 1 crore, are regarded as small-scale industries.
- Small-scale industries are referred to as those industries in which the process of manufacturing, production, and servicing are done on a small scale.
- The investment in such industries is one-time and these investments are mostly done in plant and machinery, the total investment in such industries does not exceed 1 crore.