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Small scale manufacturing is distinguished from household industries by its production techniques and place of manufacture (a workshop outside the home/cottage of the producer). This type of manufacturing uses local raw material, simple power-driven machines and semi-skilled labour. It provides employment and raises local purchasing power. Therefore, countries like India, China, Indonesia and Brazil, etc. have developed labour intensive small-scale manufacturing in order to provide employment to their population.
Q. In small scale industries the manufacturing is done on:
  • a)
    Large scale
  • b)
    Micro scale
  • c)
    Macro scale
  • d)
    None of the Above
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Read the case study given below and answer the questions that follow:...
Small Scale Industries (SSI) are those industries in which the manufacturing, production and rendering of services are done on a small or micro scale. These industries make a one-time investment in machinery, plant, and equipment, but it does not exceed Rs. 10 crore and annual turnover does not exceed Rs.
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Read the case study given below and answer the questions that follow:...
Explanation:

Small scale manufacturing:
Small scale manufacturing refers to the production of goods on a small scale, typically in a workshop outside the home or cottage of the producer. It is characterized by the use of local raw materials, simple power-driven machines, and semi-skilled labor.

Distinguishing features:
Small scale manufacturing is distinguished from household industries by its production techniques and place of manufacture. Unlike household industries that are typically carried out within the home, small scale manufacturing takes place in a workshop outside the home or cottage of the producer.

Production techniques:
Small scale manufacturing relies on the use of simple power-driven machines. These machines are less sophisticated than those used in large-scale manufacturing processes. The production techniques employed in small scale manufacturing are relatively simple and do not require highly skilled labor.

Local raw materials:
Small scale manufacturing uses local raw materials, which are readily available in the immediate vicinity of the workshop. This reduces transportation costs and contributes to the local economy by supporting local suppliers and businesses.

Employment generation:
One of the primary objectives of small scale manufacturing is to provide employment opportunities. By utilizing semi-skilled labor, small scale manufacturing creates job opportunities for the local population. This helps to alleviate unemployment and poverty, and raises the local purchasing power.

Examples:
Countries like India, China, Indonesia, and Brazil have developed labor-intensive small-scale manufacturing sectors to provide employment to their population. These industries cater to the domestic market as well as export markets, contributing to the economic development of these countries.

Therefore, in small scale industries, the manufacturing is done on a micro scale. The production takes place in workshops outside the home or cottage of the producer, using local raw materials, simple power-driven machines, and semi-skilled labor. This type of manufacturing is aimed at providing employment and raising local purchasing power, particularly in countries with large populations like India, China, Indonesia, and Brazil.
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Read the case study given below and answer the questions that follow: Small scale manufacturing is distinguished from household industries by its production techniques and place of manufacture (a workshop outside the home/cottage of the producer). This type of manufacturing uses local raw material, simple power-driven machines and semi-skilled labour. It provides employment and raises local purchasing power. Therefore, countries like India, China, Indonesia and Brazil, etc. have developed labour intensive small-scale manufacturing in order to provide employment to their population.Q. In small scale industries the manufacturing is done on:a)Large scaleb)Micro scalec)Macro scaled)None of the AboveCorrect answer is option 'B'. Can you explain this answer?
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