7. Classification of industries based on size and capital

These industries require huge capital for the purchase of equipment and machinery. Any industry that requires more than one crore for establishment is called a Large scale industry. 

Small units that require capital of less than one crore are classified as Small scale industries.

It is a type of small-scale industry. It is a decentralised manufacturing business often operated out of a home rather than a purpose-built facility. Hence, they are also called the household industry. They often focus on the production of labour-intensive goods but face a significant disadvantage when competing with factory-based manufacturers that mass-produce goods. These industries are also classified as miscellaneous categories.