The objective of Karve committee was rural development with a focus on 

Small Scale Industries

In 1955, the Village and Small-Scale Industries Committee, also called the Karve Committee, noted the possibility of using small-scale industries for promoting rural development.  A ‘small-scale industry’ is defined with reference to the maximum investment allowed on the assets of a unit. This limit has changed over a period of time. In 1950 a small-scale industrial unit was one which invested a maximum of rupees five lakh. It is believed that small-scale industries are more ‘labor intensive’ i.e., they use more labor than the large-scale industries and, therefore, generate more employment.