An industrial policy of a country is the country’s official effort to encourage for development and growth of its economy. It is also called IP in short and industrial strategy. It focused on manufacturing sectors and service sectors. The government takes decisions for improving the competitiveness and capabilities of domestic firms. The Govt. Takes the decision to promote structural transformation. A country’s infrastructures play a major role in the economy and so it has a key role in IP.
Industry sectors/producing sectors is called a secondary sector where all the human basic need are produced. Premises where all branches of human needs are produced by the transformation of raw materials to finished goods.
As per the ministry of MSME, this sector has the following classifications:-
1.Micro Scale Units in the industrial policy of India:–
The microscale unit is that category in which investment in the cost of plant and machinery will be maximum up to Rs.25.00 lakhs only. The nature of classification is based only on P/M investment. This sector has a large number of employments. These units develop domestic markets and play an important role in the country`s economy.
2. Small Scale Units in the industrial policy of India:–
Small scale units play a very important role in generating employment. It has a major share in the country`s economy. Small scale industry is that which has invested in plant and machinery in between Rs.25.00 lakhs to Rs.5.00 crores only.
3. Medium-scale Units in the industrial policy of India:–
Section 7 of Micro, Small & Medium Enterprises Development Act, 2006, says that a medium-scale industry is that which has invested in plant and machinery in-between Rs.5.00 crores to Rs.10.00 crores.
Now the service sector, the service sector means repairing and servicing along with providing service in different sectors. Service sectors play an important role in the economy of the country. It is called a tertiary sector and plays the third position out of three traditional economic sectors.
This sector has also been classified into three sectors:-
This sector is an important part of our economics. It provides self-employment to a greater extent. The micro sector of India is the largest sector in the world next to china. It has been classified on the cost of plant and machinery which has invested to maximum Rs.10.00 lakhs.
2Small Service Sectors:–
This sector provides a wide range of services covering a large number of products from traditional to current high tech items.It plays a vital role in solving un-employments. It has also been classified on the cost of plant and machinery which has invested to a maximum in between Rs.10.00 lakhs to 2.00 crores.
3 Medium Service Sectors:–
The Medium scale service sectors have also been classified on investment of P/M. This scale of the service sector is contributing significantly output, employment export, etc. in the economy. This sector plays a critical role in the economy by providing employment to a large extent of unskilled and semi-skilled laborers and raises the production of manufacturing sectors extending support to bigger industries.It has been classified on the cost of plant and machinery which has invested to the maximum in between Rs.2.00 crore to Rs.5.00 crores.
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ALL ABOVE CONTENTS ARE AS PER CENTRAL GOVT. SMALL SCALE INDUSTRIES DEPARTMENT.
BUT THE PRESENT CENTRAL GOVT HAS CHANGED THE ABOVE OLD DEFINITION AND HAS DESIGNED ON ANNUAL REVENUE GENERATED BY THE UNITS. THIS POLICY OF THE GOVT WAS DECIDED ON 04/2019 IS AS FOLLOW:-
AS PER THE NEW POLICY OF THE CENTRAL GOVT:–
1. The micro-industry/business/enterprise is that which generates the revenue up to Rs 5.00 crores.
2. A small industry/ business/enterprise is that which generates the revenue in between Rs. 5.00 crores to Rs 75.00 crores.
3. The medium industry/business/enterprise is that which generates the revenue in between Rs 75.00 crores Rs 250.00 crores.