Q. Consider the following statements:

1. Basic industries produce goods for direct use by consumers.
2. Consumer industries are those which supply their products as raw materials to manufacture other goods.
3. A small scale industry is defined with reference to the products manufactured in it.

Which of the above is / are correct?
Answer: None of the above
Notes: Basic or key industries are those which supply their products as raw materials to manufacture other goods e.g. iron and steel and copper smelting, aluminum smelting. A small scale industry is defined with reference to the maximum investment allowed on the assets of a unit. This limit has changed over a period of time. At present the maximum investment allowed is Rupees one crore. Consumer industries that produce goods for direct use by consumers - sugar, toothpaste, paper, sewing machines, fans, etc.