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Q.Differentiate between ‘small scale manufacturing’ and ‘large scale manufacturing’ in the world.

(OR)
Differentiate between agro-based industries and mineral-based industries in the world.
CBSECBSE Class XII Board 2019Subjective· 5mImportance★★★★★
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Part (a): Small-scale — low capital, simple tools, labour-intensive, local market; large-scale — heavy capital, power machinery, mass standardized output, wide markets.

Part (b): Agro-based — use farm produce, light, near farms (textiles, sugar); mineral-based — use minerals, heavy, near deposits/ports (iron & steel, cement).

Manufacturing is often distinguished by the scale of production, which shapes its capital, technology, labour, output, market and location.

  • Capital investment: small-scale manufacturing needs relatively little capital, so it is accessible to individual entrepreneurs; large-scale manufacturing requires very large investment in land, buildings and specialized plant.
  • Technology and machinery: small-scale units use simple, general-purpose or even traditional tools and manual/semi-automated methods; large-scale units use advanced, specialized, often automated machinery on integrated production lines.
  • Labour and capital intensity: small-scale is labour-intensive, employing many workers per unit of capital; large-scale is capital-intensive, using more machinery and fewer, though highly skilled, workers per unit of output.
  • Production volume and market: small-scale produces limited or customized goods for local or regional markets; large-scale mass-produces standardized goods for national and international markets, achieving economies of scale.
  • Location and examples: small-scale units are decentralized (homes, small workshops, rural areas) — handicrafts, pottery, bakeries, tailoring; large-scale units are centralized in big factories and industrial estates — automobiles, iron and steel, textiles, electronics.

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