Indian small industries
A. Definition: Industries exempted from registration under the Industries (Development and Regulation) Act, 1951, where the capital investment is less than 5 lakh rupees and which employ not more than 50 labor force and not more than 100 labor force are called small scale industries. is The Industrial Survey published by the Government of India up to 1966 defined small scale industries thus.
The Industrial Policy of 1991 states that industries where investment in fixed assets does not exceed Rs.60 lakhs are small scale industries. And the industrial companies which work as adjuncts to the large-scale industry, which supply parts and other incomplete goods to the large-scale industry, produce export goods and in which the
capital investment does not exceed 75 lakh rupees are called Ancillary Industries. In February 1997, the investment ceiling for these industries was raised to Rs 3 crore. In 2000 capital investment in small scale industries was fixed at Rs 1 crore. While a ceiling on capital investment of small scale industries is specified, no ceiling on labor employment is specified. India has a shortage of capital but no shortage of labor in that sense. So it seems that the rationale behind fixing the capital ceiling is to promote employment