Types of industries on the basis of investment:

On the basis of investment, industries are classified into five types.

They are discussed below.

1. Cottage industry:

An industry run only by the family members using simple tools and with very less use of electricity, machine and investment is called cottage industry.

Example:
Industries producing khadi cloth, papad, khakhra, incense sticks, etc.

2. Tiny industries:
Industries which run on labour intensive production technique along with the investment limit up to ₹ 25 lakhs are known as tiny industries.

Example:
Industries producing artistic products made from metal, leather and clay

3. Small scale industries (SSI):

• Industries that run on labour intensive production technique and with an investment of ₹ 25 lakhs to ₹ 5 crores are called small scale industries (SSI).
• These industries work as ancillary industries for bigger industries.

Example:
Industries producing tools and simple consumer goods like bread and biscuits, furniture, garments, etc.

4. Medium scale industries:

Industries that run on either labour intensive production technique or capital intensive production technique and with an investment of ₹ 5 crores to ₹ 10 crores are known as medium scale industries.

Example:
Industries producing machinery, chemicals, electronic equipment, etc.

5. Large scale industries:

Industries that run on capital intensive production technique and with an investment of more than ₹ 10 crores are known as large-scale industries.

Example:
Industries producing railway coaches and engines, big vehicles, iron and steel, petroleum, etc.