What is the Importance of Large Scale Industries? Every country needs exploring of coal, iron and steel, exploring of oil and its purification, heavy machineries, heavy electrical equipments, heavy chemicals, ships and aero planes, industries of heavy and basic industries for its development.
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Importance of Small Scale and Cottage Industries in India. There has been a continuous step taken on small scale and cottage industries after independence on every industrial policy of India. Different incentives have also been given for the development of these industries.
Under increasing returns to a variable factor only one factor is variable and others are fixed for increasing output more and more units of variable factor are employed.
There are three types of industries, 1. Major or heavy or large scale industries, 2. Small-scale industries and 3. Village or cottage industries. In the first two categories, machinery is used and less number of men is employed.
Under decreasing returns to a factor, more units of variable factor are employed for increasing output as a result of which total product increases at decreasing rate or marginal product declines.
In India, industries with a fixed asset of more than one hundred million rupees are called large scale industries. These could be manufacturing units or others which use both indigenous and imported technologies.
Small-scale industries are manufacturing units, mainly making accessories for large-scale industries, using mostly indigenous technology. They are usually situated in the vicinity of large-scale industries.
During the three decades of planned development there has been an impressive development of large scale industries, but India still remains predominantly a country of village and small industries.
The law of returns to scale is concerned with the scale of production. The scale of production of a firm is determined by the amount of factors units.
A typical placoid scale consists of mainly two parts the basal plate and spine. The basal plate is shaped and lies embedded in the skin. The basal plate is formed of a trabecular-calcified tissue closely allied to the cement. The inner surface of the basal plate bears an opening, which leads into the pulp cavity.