The industries are classified on the following basis:

1. On the basis of raw material used.

2. According to the utility of the product.

3. On the basis of the capital investment.

4. According to the ownership of the industries.

5. On the basis of the quantity of raw material used.

On the basis of capital investment: It is the type of industry that is classified according to the capital being invested in the industry.

A small-scale industry has a limit over investment. This limit keeps changing, but at present, the maximum investment allowed in the small-scale industry is 1 crore.