Classification of Industries in India

Industries are the backbone of a nation’s economy, providing essential goods and services while driving growth and development. They are classified based on various factors like raw materials, output, ownership, mode of operation, and size, reflecting the diverse nature of industrial activities.

Diverse Classifications of Industries

1. Based on Raw Materials

• Agro Based Industries: Raw material sourced from the agriculture sector. 
  • Example: Cotton, sugar etc.
• Mineral Based Industries: Raw material sourced from mining. 
  • Example: Iron & steel, cement etc.
• Forest Based Industries: Raw material sourced from forest. 
  • Example: Paper industry, Timber etc

2. Based on Output

• Basic or Key Industries: Supply their goods to other industries. 
  • Example: Iron & steel
• Consumer Industries: Produce goods for direct consumption. 
  • Example: Toothpaste, Television etc

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3. Based on Ownership

• Public Sector: Owned & operated by the government. 
  • Example:  BHEL, SAIL etc.
• Private Sector: Owned & operated by private individuals. 
  • Example: TISCO, RIL.
• Joint Sector: Jointly run by state & private players. 
  • Example: OIL
• Cooperative Sector: Owned & operated by the producers and suppliers of raw materials, workers or both. 
  • Example: Sugar industry in Maharashtra.

4. Based on Mode Of Operation

• Labour Intensive Industry: Large no. of skilled unskilled or semi-skilled labour is employed. 
  • Example: Textile, leather & footwear.
• Capital Goods Industry: Manufactures machine tools, heavy electrical equipment, heavy transport vehicles, mining & earth moving tools etc.
• Industries with Strategic Significance: Industries which are critical for the purpose of earning foreign exchange, research & defence. 
  • Example: Aerospace, shipping, electronics & telecommunication, defence equipment etc.

5. Based on Size

• Small-scale Industries: Use a lesser amount of capital investment and technology, and produce a small volume of products. 
  • Example: handicrafts, cottage industries etc.
• Large-scale Industries: Investment of capital is higher and the technology used is superior in large scale industries. 
  • Example: automobile industry, heavy machinery industry etc.

Types of Manufacturing Industries (MSME)

Conclusion

• From agro based industries sourcing raw materials from agriculture to large-scale manufacturing enterprises contributing to the economy, the industrial sector is a vital component of society.
• By understanding the classifications of industries, we gain insights into their roles, contributions, and significance in shaping the economic landscape of a country.

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