Explanation:

In 1950 a small-scale industrial unit was one which invested a maximum of rupees five lakh; at present, the maximum investment allowed is rupees one crore.
It was believed that small-scale industries are more ‘labour intensive’ i.e., they use more labour than the large-scale industries and, therefore, generate more employment. But these industries cannot compete with the big industrial firms; it is obvious that development of small-scale industry requires them to be shielded from the large firms.Read more on Sarthaks.com - https://www.sarthaks.com/1096951/small-scale-industries-play-a-vital-role-in-indian-economy-give-reasons