Name: Iron and Steel Industry
Uploaded: 2019-07-19
Duration: 6 min 7 s
Description: Let us see in this video how steel is often called the backbone of modern industry and why the iron and steel industries have changed their locations.

Question

Classify industries according to their size. Distinguish between cottage industries and large scale industries.

Accepted Answer

The amount of capital invested, the number of people employed, the quantity of production, and the degree of mechanisation are the criteria used to classify industries according to size. Industries are classified into cottage industries, small-scale industries and large-scale industries on the basis of size.

Differences between cottage industries and large scale industries are as follows:

Cottage industries

Large scale industries

1. These industries use local raw materials.

1. These industries use raw materials obtained from the nearby areas within the country or from distant places outside the country

2. Capital investment is much lower than large scale industries.

2. Capital investment is much higher than large scale industries.

3. Mechanical power is less used. Production involves mainly handwork and simple tools and equipment.

3. Work is highly mechanised and heavy power operated machines are involved in every operation.

4. Family members work in these industries as labour.

4. Hired workers provide labour in these industries.

Classify industries according to their size. Distinguish between cottage industries and large scale industries.

Important Questions on Industries - Classification and Location

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