Small scale industries in 1950 were defined as all those industries in which the
maximum investment was ________ lakh rupees.

Correct option is C

The correct answer is: (c) five

•  In 1950, small-scale industries (SSIs) in India were defined as industries where the maximum investment in fixed assets (plant and machinery) was limited to ₹5 lakh.
•  This definition was established to encourage small-scale enterprises and boost local entrepreneurship in post-independence India.
• Over time, this investment limit has been revised several times to account for inflation and changing economic conditions.
• The concept of SSIs eventually evolved into the Micro, Small, and Medium Enterprises (MSME) classification under the MSME Development Act, 2006.