Ch – 5 Industries

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.

Raw materials:

• 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

Size:

• 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

Ownership:

• 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
• Land
• Labour
• Water
• Power
• Capital
• Transport
• Market

Industrial System:

• 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.

Industrial Regions:

• 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.