Following is the classification of industries on the basis of capital investment:

(i) Small-scale Industries:

A small scale industry is defined with reference to the maximum investment allowed on the assets of a unit. This limit has changed over a period of time. At present the maximum investment allowed is rupees one crore.

(ii) Large-scale Industries:

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If investment is more than one crore on any industry then it is known as a large-scale industry.