Which of the following are true?
a) A small scale industrial unit was defined in 1950 as one which invested a maximum of rupees five lakh.
b) Small scale industries generate more employment in percentage terms.
Answer & explanation
Correct answer: option 1
The correct answer is Option 1: both a and b are true
In 1950, a small scale industrial unit was one which invested maximum of rupees five lakh. This amount of investment varies from time to time. It is believed that small scale industries are more labour intensive i.e., they use more labour than the large scale industries and, therefore, generate more employment.