Classification of Industries


 
 
Concept Explanation
 

Classification of Industries

CLASSIFICATION OF INDUSTRIES

Industries are classified on the basis of the following criteria

(i) On the Basis of Raw Materials used

  • Agro-based Industries - Cotton, woollen, jute, silk, textile, rubber, sugar, tea, coffee and edible oil.
  • Mineral-based Industries - Iron and steel, cement, aluminium, machine tools, petrochemicals.
  • (ii) On the Basis of Role Played by them

  • Basic or key industries - Industries which supply their products as raw materials to other industries. e.g. iron and steel, copper smelting, aluminium smelting.
  •  Consumer industries - Industries which produce goods for direct consumer use. e.g. sugar, рарer, toothpaste, sewing machines, fans etc.
  • (iii) On the Basis of Capital Investment

  •  Small scale industry - Industries with Investment upto 1 crore
  •  Large scale industry - Industries with Investment above 1 crore.
  • (iv) On the Basis of Ownership

  •  Public sector Owned and operated by government agencies e.g. BHEL, SAIL etc
  •  Private sector Owned and operated by individuals or a group of individuals e.g. TISCO, Bajaj Auto Ltd, Dabur Industries.
  •  Joint sector venture - Jointly run by the state and individuals or a group of individuals e.g. Oil India Ltd (OIL).
  •  Cooperative sector - Owned and operated by the producers or suppliers of raw materials, workers or both. They pool in the resources and share the profits or losses proportionately such as the sugar industry in Maharashtra, the coir industry in Kerala.
  • (v) On the Basis of the Bulk and Weight of Raw Material and Finished Goods

  • Heavy industries-Industry in which large machines and heavy or bulky raw materials are used to produce products which are heavy or bulky, including capital goods like automobiles and construction machinery.
  •  Light industries-Industries that produce light utility goods. Electrical industries, toy industry.
  • Sample Questions
    (More Questions for each concept available in Login)
    Question : 1

    What are the different bases for classifying industries?

    Right Option : D
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    Explanation
    Question : 2

    Industries can be classified on the basis of ________ .,

    Right Option : D
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    Explanation
    Question : 3

    _________ a type of economic process that organizes companies into industrial groupings based on similar production processes, similar products, or similar behavior in financial markets.

    Right Option : A
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    Explanation
     
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