Classification of Industries based on their size:

• Cottage Industries include baskets making, knitting sweaters, making wooden goods, earthen pots. They need less capital investment, labour and electricity. These industries are mainly run by the family members in their own house. Most of the goods produced here are handmade.

They are run in small factory areas and employ 10 to 100 labourers. Examples: match-sticks making, dyeing and printing, bricks making etc.

• Large Scale Industries engage a large number of workers, need more capital investment and high level of technology. Some of them are industry cottontextile, cement factory, Iron and Steel, automobile industry etc.