Ans. Government uses the criterion of size of capital employed in plant and machinery to define Small Scale Industries. It is depicted in the table given below:
Type of Industry Investment Limit (-) Small Scale Industry 1 crore (For 71 products it is 5 crores) Ancillary Industry 1 crore (50% of the output supplied to the parent unit.) Tiny Enterprise 25 Lak Service and Business (Industry related Enterprise) 10 Lakhs Women Enterprise Any of the above (51% of the holding by the women and managed by women) Export Oriented Units (EOUs) 1 Crore (100% EOUs can sell 25% in domestic markets.)
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