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2. Medium Scale: The enterprises in which the investment in plant and machinery is more than ₹ 5
crores but less than ₹ l0 crores.

3. Large Scale: The industrial units whose investment in machinery exceeds more than 10 crores.

What are the characteristics of Cottage and Rural Industry?

The cottage industry is an industry which is run either as whole-time or part-time occupation
with full or partial help of the family members. The following are the characteristics of cottage
and rural industry.

 They are run by the members of the family (they do not employ labour)

 They are mainly run by artisans at their homes.

 Requires very small investment

 They often cater to the needs of surrounding localities

 They use the Machines very rarely.

 Usually traditional items like mats, shoes, pottery are made in these units. Other examples are
the units where khadi and handicraft products are produced.

Discuss the enterprises which fall under the category of SSI units.

The following are the enterprises which fall under the category of the SSI units.

1. Tiny Sector: Tine sector refers to those business enterprises whose investment in plant and
machinery is less than ₹ 25 lakhs. However, this amount is likely to increase irrespective of the
location of the unit. To promote these industries, the government has announced a package.
This package allows these units to avail the privileges of many kinds like land allotment,
electricity connection, technology etc. to continuously utilize. This package is not applicable to
other small industries.

2. Ancillary/Auxiliary Small Units: This is a small-scale industry unit that manufactures
components for its parent unit and supplies 50% of its production to its parent unit. These units
benefit from the guaranteed demand from its parent unit. They also have technical and financial
help from their respective parent units.

3. Micro-business: This is a business unit that has invested in plant and machinery not exceeding ₹
25 lakhs.

4. Small-Scale Service and Business (Industry Related) Enterprise: These are MSME (Ministry of
Micro, Small and Medium Enterprises). These are further classified as:

 Micro-enterprise: Investment in equipment is less than ₹ 10 lakhs.