3.1. Types of Industries

Industries are classified in a number of ways.

♤ On the basis of size, capital investment and labour force employed, industries are classified as large, medium, small scale, and cottage industries.

♤ On the basis of ownership, industries are categorised as : (i) public sector, (ii) private sector, and (iii) joint and cooperative sector, Public sector enterprises are government/state controlled companies or corporations funded by governments. Industries of strategic and national importance are usually in the public sector.

♤ Industries are also classified on the basis of the use of their products such as: (i) basic goods industries, (ii) capital goods industries (iii) intermediate goods industries, and (iv) consumer goods industries.

♤ Another method of classifying industries is on the basis of raw materials used by them. Accordingly, these can be: (i) agriculture based industries, (ii) forest-based industries, (iii) mineral-based industries, and (iv) industrially processed raw material based industries.

♤ Another common classification of industries is based on the nature of the manufactured products. Eight classes of industries, thus identified are: (1) Metallurgical Industries, (2) Mechanical Engineering Industries, (3) Chemical and Allied Industries, (4) Textile Industries,

(5) Food Processing Industries, (6) Electricity Generation, (7) Electronics and (8) Communication Industries.

S.N.

Basis

Types of

Industries

Chief Characterises

Examples

Source of Raw Material

(i)Agro-based industries

(i) Agricultural products used as raw materials

(ii) Minerals used as raw materials (iii) Raw materials used from forests (iv) Finished products are used as raw

materials for other industries.

(i) Cotton, textile, jute, sugar and paper industry

(ii) Iron and steel, chemical and cement industry (iii) Matchsticks and Bidi industries (iv)

Motor industries use

				manufactured iron and steel.
2	Ownership	(i) Public Sector (ii) Private Sector (iii) Mixed Sector (iv) Cooperative Sector (v) Multinational Companies	(i) Operated and controlled by government (ii) Operated and controlled by an individual or a group as a company; (iii) Established jointly by public and private sector; (iv)Industry established by a co-operative society of raw material producers (v)Foreign companies established their companies with Indian companies	(i) Bokaro Steel Plant, Chittaranjan Locomotive works; (ii) Tata Iron & Steel, Birla Cement; (iii)Maruti Udyog; (iv) Sugar Industry (Maharashtra), Amul (Gujarat); (v)BMW car manufacturer of Germany
3	Major Functions	(i) Basic Industry (ii) Consumer Goods Industry (iii) Capital Goods Industry (iv) Half Manufacturer Industry	(i) Their finished product is used as raw material for other industries (ii) Their finished produce is directly consumed; (iii)Such machines are made which can be used to produce other goods. (iv) Raw materials produced for other industries	(i) Iron & steel Industry (ii) Toothpaste, Soap, Sugar Industries (iii) Produce machines for sugar and cotton mills (iv) Plastic grains industries
4	Knowledge Based Industries	-	Application of special knowledge of manufacturing Hi-tech expertise, engineering and management, Fast growth rate	Software Industry
5	Manufactur ed Goods	(i) Metallurgical (ii) Mechanical Engineering (iii) Chemical and Related Activities (iv)Textiles (v) Fertiliser (vi) Electronics and Electricals	-	-