Industries can be classified in various ways—by nature of activity, size, ownership, etc. One important basis of classification is the amount of capital investment, which reflects the scale of operations and technological sophistication. In India, the Ministry of Micro, Small and Medium Enterprises (MSME) classifies industries as follows:
1. Micro Industry
- Capital Investment: Up to ₹1 crore in plant and machinery.
- Turnover: Up to ₹5 crores.
- Characteristics:
- Small-scale operations, often run by individuals or families.
- Use of simple tools and technology.
- Located in rural or semi-urban areas.
- Examples:
- Pottery, handmade crafts, agarbatti units.
- Local tailoring shops or food processing units.
Micro industries are essential for inclusive economic development as they generate employment, especially in rural areas, and preserve traditional knowledge systems.
2. Small Industry
- Capital Investment: More than ₹1 crore and up to ₹10 crores.
- Turnover: Up to ₹50 crores.
- Characteristics:
- Moderate capital requirements.
- Employs fewer than 50 workers on average.
- Often family-owned or partnership-based businesses.
- Examples:
- Furniture workshops, garment manufacturing units.
- Automobile component suppliers or rubber product manufacturers.
These industries act as the backbone of the supply chain and provide support to large-scale industries through subcontracting.
3. Medium Industry
- Capital Investment: More than ₹10 crores and up to ₹50 crores.
- Turnover: Up to ₹250 crores.
- Characteristics:
- Operates on a larger scale.
- Employs advanced machinery and better quality control.
- Can compete in both domestic and international markets.
- Examples:
- Steel re-rolling mills, pharma manufacturing units.
4. Large Industry
- Capital Investment: Over ₹50 crores.
- Turnover: Exceeds ₹250 crores.
- Characteristics:
- Capital-intensive and technologically advanced.
- Employs a large workforce with specialized roles.
- Has significant environmental and infrastructural impact.
- Examples:
- Automobile manufacturing (e.g., Tata Motors, Maruti Suzuki).
- Oil refineries, cement factories, large textile industries.
Conclusion
Appropriate technology serves as a critical tool for sustainable and inclusive development. It ensures that technological advancement does not come at the cost of ecological damage or social displacement. When industries are classified on the basis of capital investment, it enables the government and planners to provide targeted support—such as subsidies, tax benefits, and infrastructure—according to the scale and needs of the business. Both appropriate technology and careful industrial classification help in balanced regional development and achieving the larger goals of sustainability and equity.