Classification of Industries in India – Essay

Cotton textiles, sugar and vegetable oil industries are examples of agro-based industries. Industries that depend on minerals for their raw material are classified as mineral based industries. Iron and steel, cement and ship-building industries are examples of mineral based industries.

2. Key and Consumer Industries:

Industries can be classified on the basis of their products. Industries which are very important since on them depend many other industries are called basic or key industries. The iron and steel industry, the heavy machines manufacturing and sulphuric acid industries are examples of basic or key industries. Industries producing goods primarily for their consumption by people, are called consumer or secondary industries. Watch, bicycle and furniture manufacturing industries are examples of consumer or secondary industries.

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3. Heavy and Light Industries:

Industries can be classified on the basis of the nature, quantity and cost of their raw material. Industries using heavy and bulky raw material, use enormous amounts of power, involve huge investment and large transport cost. Since the products are also bulky, they are called heavy industries.

The iron and steel and cement industry are examples of heavy industries. Industries whose raw materials and finished products are not heavy and which can possibly employ female labour are called light industries. Textiles and watch manufacturing industries are examples of light industries.

4. Large Scale and Small Scale Industries:

Industries can be classified on the basis of the number of workers employed and amount of capital used in each unit. Industries employing a large number of workers are called large scale industries. In large scale industries the capital investment in purchasing raw material setting up of machinery, etc arc also huge. Industries employing a relatively small number of workers in each unit or the capital investment in which is less than 2 million rupees are called small scale industries.

5. Village and Cottage Industries:

Industries can be classified on the basis of their location and the market for the finished goods.

(i) Industries common in villages and primarily catering to the local markets are known as village industries. Handloom, khadi, khandsari and gur industries are examples of village industries.

(ii) Industries in which skilled artisans and craftsmen work with wood, cane, ivory, brass, stone, wood to make articles of utility at their home with the help of family members are known as cottage industries. Carpets, sarees, decorative sandalwood items are some of the products of cottage industries. They may be located in villages and towns.

6. Public and Private Sector Industries:

Classification on the basis of the ownership of the industry is perhaps the most significant.

(i) Industries owned by individuals, or firms formed by individuals, are called private sector industries. The iron and steel industry located at Jamshedpur is an example of a private sector industry.

(ii) Industries owned and managed completely by the state or its agencies are known as public- sector industries. The Chittaranjan Locomotive Works and the Iron and Steel Plants at Bhilai are example of public sector industries.

(iii) Industries owned jointly by the state and private firms or individuals are called joint-sector industries. The Oil India Ltd. (OIL) in which the Government of India and the Burma Oil Company of U.K. have equal shares is an example of a joint-sector industry.

(iv) Industries owned and run cooperatively by a group of people, who are generally producers of raw materials for that industry are known as cooperative-sector industries. A sugar-mill owned and run by farmers producing sugar-cane is an example of a cooperative-sector industry.