Ch – 5 Industries – Priya's Learning Centre

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:

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.