Scales of Business

Large Scale Industries


A business can range from a single proprietor enterprise to a large corporation which employs thousands of workers across multiple countries. Based on the scale of business, organizations are classified as micro-enterprises, small-scale enterprises, large scale industries, public enterprises, and multinational corporations. In this article, we will take a quick peek at large scale industries.

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What are Large Scale Industries?

Industries which requires huge infrastructure and manpower with an influx of capital assets are Large Scale Industries. In India, large-scale industries are the ones with a fixed asset of more than one hundred million rupees or Rs. 10 crores.

The Indian economy relies heavily on such industries for economic growth, generation of foreign currency, and the creation of job opportunities for millions of Indians.

Here are some advantages of large scale industries:

  • They provide an impetus to the industrialization of the country.
  • Large scale industries, usually, produce capital and basic goods (instruments, machines, chemicals, etc.)
  • They are capable of generating funds for the research and development of new technologies.
  • Due to the large scale of operations, they have the potential to lower the cost of goods.
  • Further, they create opportunities for small-scale and cottage industries to evolve and flourish.
  • Also, the employment opportunities created by large scale industries are huge.

large scale industries

                                                                                                                                         Source: Pixabay

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Learn more about Small Scale Industries here.

Large Scale Industries in India

The term ‘large-scale’ is generic in nature and includes different types of industries. In India, the following heavy industries fall under the purview of large scale industries:

  • Iron and Steel Industry
  • Textile Industry
  • Automobile Manufacturing Industry
  • Over the last two decades, Information and Technology (IT) industry has evolved and has contributed huge revenues while creating thousands of jobs for Indians. Hence, many economists include it in the large-scale industry sector.
  • Telecom Industry

It is important to note that these industries are either manufacturing units or those which use both indigenous and imported technologies. Here are some more examples:

Fertilizer , Cement , Natural gas , Coal , Metal extraction , Metal processing , Petroleum , Mining , Electrical , Petrochemical , Food processing units , Tourism , Banking , Sugar , Construction , Automobile , Communication equipment , Cement , Chemicals , Earth movers , Consumer durables (like television, refrigerators, etc.) , Engineering products , Vehicle assembly , Beverages , Agricultural processing , Insurance and Finance.

In recent years, as the markets opened up due to globalization, there has been a mixed effect on large-scale industries. There are some who have managed to attract international customers, foreign trade and technology, tie-ups. However, there are also others who were unable to cope with the competitiveness ushered in by the open market.

Solved Question on Large Scale Industries

Q1. What are large-scale industries? Also, what is the minimum fixed asset requirement for an industry to be large scale in India?

Answer: Any industry which employs massive infrastructure with an influx of capital assets is a large-scale industry. Further, in India, an industry needs to have fixed assets worth at least Rs. 10 crore to be a large-scale industry.

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