Karve Committee

• A committee on the village and small scale industries were set up by Planning Commission (now NITI AYOG) in 1955. So it is also being called the Village and Small Scale Industries Committee or Karve Committee after its head Dattatreya Gopal Karve.
• It was set up for the growth and development of small scale industries and rural development.

Small- Scale Industry

• A ‘small-scale industry’ is defined with reference to the maximum investment allowed on the assets of a unit.
• Small-scale industries are more ‘labor-intensive’ i.e., they use more labour than the large-scale industries and, therefore, generate more employment. But these industries cannot compete with big industrial firms.
• For this purpose, the production of a number of products was reserved for the small-scale industry.
• They were also given concessions such as lower excise duty and bank loans at lower interest rates.

Source: Ramesh Singh