Differentiate between small scale manufacturing and large scale manufacturing.
Industries are classified into small scale manufacturing and large scale manufacturing industries on the basis of its size.
The following are the differences between small scale manufacturing and large scale manufacturing industries.
Small scale manufacturing industries | Large scale manufacturing industries |
1. These industries require very low capital. | Huge capital is invested in these industries. |
2. Local raw material is used and hence it is cheap. | Various raw materials are used. |
3. Simple power-driven machinery is used. | Advanced technology and heavy machinery are used. |
4. Labourers are semi-skilled. | Labourers are highly skilled and specialised. |
5. There is only small scale production of goods. | There is large scale production of goods. |
6. The products are sold mostly in local markets. | Markets vary from state to international level. |
7. Example – Food Processing industries. | Example – Iron and Steel industries. |
It is seen that small scale industries are encouraged in countries like India where the population is high whereas large scale industries are found in developed countries like the U.S.A and the United Kingdom.
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