Industry refers to an economic activity that is concerned with production of goods, extraction of minerals or the provision of services.
Classification of Industries:
It can be classified on the basis of raw materials, size and ownership.
- Based on the type of raw materials used by the industry, we can further classify them into:
- Agro Based Industry:
- It uses plant and animal based products as their raw materials.
- Eg: Diary products, Leather industries
- Mineral Based Industry:
- It uses mineral ores as their raw materials.
- Eg: Iron & Steel industry, Building materials industry
- Marine Based Industry:
- It uses products from sea and oceans as their raw materials.
- Eg: Sea food processing industry, Fish oil industry
- Forest Based Industry:
- It uses forest produce as their raw materials.
- Eg: Pharmaceutical industry, Paper industry
- Based on the amount of capital invested, number of people employed and the volume of production, we can further classify them as:
- Cottage or Household industry:
- Here products are mostly manufactured by hands.
- Eg: Basket weaving, Pottery
- Small Scale Industry:
- It uses lesser amount of capital and technology compared to large scale industries.
- Eg: Toy making, Honey processing
- Large Scale Industry:
- It has high capital investment and superior technology.
- Eg: Automobile industry, Heavy machinery industry
- Based on the ownership of industry, they can be classified as:
- Private Sector Industry:
- It is owned and operated by individuals or a group of individuals.
- Eg: Reliance Industries Limited, Tata Consultancy Services
- Public Sector Industry:
- It is owned and operated by the government.
- Eg: State Bank of India, Indian Oil Corporation
- Joint Sector Industry:
- It is owned and operated by the state and individuals or a group of individuals.
- Eg: Maruti Udyog, Cochin Refineries
- Co-operative Sector Industries:
- It is owned and operated by the producers or suppliers of raw materials, workers or both.
- Eg: Anand Milk Union Limited, Sudha Dairy
Factors Affecting Location Of Industries:
- Availability of raw materials
- It consists of inputs, processes and outputs.
- Inputs include raw materials, labour, cost of land, transport, power and other infrastructure.
- Processes include the activities which convert the raw materials into finished products.
- Outputs consist of end products and income earned from it.
- Important Industrial regions are mostly located in the temperate zones, near sea-ports and coal fields.
- Major industrial regions of the world are eastern North America, western and central Europe, eastern Europe, and eastern Asia.
- Major industrial regions of India are Mumbai-Pune cluster, Bangalore-Tamil Nadu region, Hugli region, Ahmedabad-Baroda region, etc.