Classification of industries on the basis of capital investment:
(i) Small Scale Industry: 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. For example, sports industry, handicraft industry, etc.
(ii) Large Scale Industry: If the investment is more than one crore rupees in any industry, it is considered as a large-scale industry. For example, iron and steel industry, cement industry, etc.