Answer» Correct Answer - Option 3 : 1 and 3 only
The correct answer is 1 and 3 only.
- In 1955, the Village and Small-scale Industries Committee, also called the Karve Committee, noted the possibility of using small-scale industries for promoting rural development. Hence, Statement 1 is incorrect.
- A ‘small-scale industry’ is defined as the maximum investment allowed on the assets of a unit.
- This limit has changed over a period of time. In 1950 a small-scale industrial unit was one which invested a maximum of rupees five lakh.
- It was believed that small-scale industries are more ‘labor-intensive’ i.e. they use more labor than the large-scale industries, therefore, generate more employment.
- For this purpose, the production of several products was reserved for the small-scale industry; the criterion of the reservation being the ability of these units to manufacture the goods.
- They were also given concessions such as lower excise duty and bank loans at lower interest rates.
- The Micro, Small, and Medium Enterprises (MSME) are classified into two enterprises as per the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. Hence, Statement 2 is correct.
- These are
- Manufacturing Enterprises
- Service Enterprises
| Service Enterprises | Investment in plant & machinery | Investment in equipment |
|---|
| Micro Enterprises | Does not exceed twenty-five lakh rupees. | Does not exceed ten lakh rupees. | | Small Enterprises | More than twenty-five lakh rupees but does not exceed five crore rupees. Hence statement 3 is not correct. | More than ten lakh rupees but does not exceed two crore rupees. | | Medium Enterprises | More than five crore rupees but does not exceed ten crore rupees. | More than two crore rupees but does not exceed five crore rupees. |
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