Which of the following characteristics is NOT associated with small scale manufacturing?

It uses highly qualified skilled labour.

The correct answer is Option (1) → It uses highly qualified skilled labour.

• It uses highly qualified skilled labour. Not correct for small scale manufacturing. Such industries generally rely on semi-skilled or unskilled labour, not highly qualified specialists.

• It uses semi-skilled labour. Correct. Small-scale industries often employ semi-skilled workers.

• It is based on simple power-driven machines. Correct. These industries do not use very advanced or complex machinery.

• It uses local raw materials. Correct. Small-scale units generally depend on locally available raw materials.