Classification of Industries
Based on the source of raw material:
- Agro-based: cotton, woollen, jute, silk textile, rubber and sugar, tea, coffee, and edible oil.
- Mineral-based: iron and steel, cement, aluminium, machine tools, petrochemicals.
Based on their main role:
- Basic or key industries are those which supply raw materials to manufacture other goods e.g. iron and steel and copper smelting, aluminium smelting.
- Consumer industries are those which produce goods directly for consumers – sugar, toothpaste, paper, sewing machines, fans etc.
Based on capital investment:
- A small-scale industry is classified based on the maximum investment allowed on the assets of a unit .
- This limit has changed over the period.
- At present, the maximum investment allowed is rupees one crore.
- large-scale industries are those that require big infrastructure , huge manpower , raw material and large capital investment .
- Industries with assets of more than 10 crores are considered large-scale industries.
Based on ownership:
- The public sector is owned and operated by government agencies
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For Example,
- BHEL, SAIL etc.
- Private sector industries are owned and operated by individuals or a group of individuals
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For Example,
- TISCO, Bajaj Auto Ltd., and Dabur Industries.
- Joint sector industries are jointly run by the state and individuals or a group of individuals.
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For Example,
- Oil India Ltd. (OIL)
- Cooperative sector industries are owned and operated by the producers or suppliers of raw materials, workers or both. They pool resources and share the profits or losses proportionately.
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For example,
- Sugar industry in Maharashtra
- Coir industry in Kerala.
Based on the bulk and weight of raw material and finished goods:
- Heavy industries such as iron and steel
- Light industries use light raw materials and produce light goods such as electrical goods industries .
