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Answer» High rate of development: - Large scale industries are few. Also they invest very huge capital and so they need high profits to run their expenses.
- These industries develop the economy at an irregular rate because they cannot change their products and production methods as per the changes of market.
- Contrast to this, small scale industries are set up with small amount of capital. So, several producers are producing a given product. This increases the volume of production and income in the economy.
- Additionally, small scale industries are more capable to bring change in products and production techniques as per market changes because they do not need very huge capital or long term investment.
- Owing to these benefits small scale industries give very high rate of development highly needed to develop nation.
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