Classification of Industries

6.1.1 Classification of Industries

Description

Quick Overview

This section explains the classification of industries based on various criteria, including their raw materials, roles, ownership, and investment levels.

Standard

The classification of industries is essential for understanding manufacturing processes. Industries are categorized into agro-based and mineral-based, further divided into basic and consumer types, public and private ownership, small and large scale, and heavy and light industries.

Detailed

Detailed Summary

In this section, we explore the classification of industries which play a pivotal role in the economic framework of a country like India. Industries can be classified based on several criteria such as:

  1. Source of Raw Materials: Industries are categorized into agro-based (relying on agricultural products) and mineral-based (utilizing metals and minerals). This classification helps identify the raw materials essential for various manufacturing processes.
  2. Role: Industries can further be classified into basic industries, which supply raw materials for other industries (like iron and steel), and consumer industries that produce goods for direct consumption (like sugar and household items).
  3. Capital Investment: Industries are divided into small-scale and large-scale based on their investment levels, impacting their operational size and economic contribution.
  4. Ownership: This classification includes public sector industries (government-owned), private sector industries (owned by individuals or groups), cooperative sector industries (owned by producers), and joint sector industries (a partnership between private and public sectors).
  5. Bulk and Weight: Industries are also classified into heavy industries (like iron and steel) and light industries (such as electronics) based on the weight of raw materials and finished goods.

Understanding these classifications aids in comprehending the structure and functioning of the industrial sector, highlighting the interconnection between agriculture and industry while emphasizing the need for technological advancement and global competitiveness.

Key Concepts

  • Agro-based Industries: Industries relying on agricultural products for manufacturing.

  • Mineral-based Industries: Industries that use minerals and ores for production.

  • Basic Industries: Supply raw materials for other industries.

  • Consumer Industries: Produce finished goods for direct use by consumers.

  • Small Scale Industries: Defined by investment limits on manufacturing assets.

  • Public Sector Industries: Owned and managed by the government.

  • Private Sector Industries: Owned and operated by individuals or groups.

  • Heavy Industries: Require heavy raw materials and produce bulky goods.

  • Light Industries: Utilize lighter materials for manufacturing lighter goods.

Memory Aids

🎵 Rhymes Time

  • Agro, mineral, light and heavy; Mix together, make it ready.

📖 Fascinating Stories

  • Once upon a time, in a land with lush fields and mines, industries thrived. The agro-based industries provided food and clothing, while mineral industries built bridges and homes, showing their importance to the kingdom’s prosperity.

🧠 Other Memory Gems

  • Remember AM for Agro and Mineral; then B for Basic and C for Consumer.

🎯 Super Acronyms

SLP

  • S: for Small scale
  • L: for Large scale
  • P: for Public sector.

Examples

  • An example of an agro-based industry is the cotton textile industry, which produces textiles using cotton.

  • An example of a mineral-based industry is the aluminum manufacturing industry, which relies on bauxite as a raw material.

  • TISCO (Tata Iron and Steel Company) is a key example of a private sector industry.

  • BHEL (Bharat Heavy Electricals Limited) represents a public sector industry.

Glossary of Terms

  • Term: Agrobased Industries

    Definition:

    Industries that rely on agricultural products as their primary raw material.

  • Term: Mineralbased Industries

    Definition:

    Industries that use minerals and metals as raw materials.

  • Term: Basic Industries

    Definition:

    Industries that produce raw materials for other industries.

  • Term: Consumer Industries

    Definition:

    Industries that produce goods for direct consumption by consumers.

  • Term: Small Scale Industries

    Definition:

    Industries with a maximum investment limit on assets, currently set at one crore.

  • Term: Heavy Industries

    Definition:

    Industries that produce heavy goods and use heavy raw materials.

  • Term: Light Industries

    Definition:

    Industries that produce light goods and use lighter raw materials.

  • Term: Public Sector Industries

    Definition:

    Industries owned and operated by government agencies.

  • Term: Private Sector Industries

    Definition:

    Industries owned and operated by private individuals or groups.

  • Term: Cooperative Sector Industries

    Definition:

    Industries owned and operated by producers or workers who share resources and profits.