Industry


 the organized production of a goods or services is called industry. Industries can be manufacturing for service industries. traditionally, however, the world 'industry' referred to any economic activity concerned with the processing of raw materials into finished goods with the help of machines in factories. this process of converting the raw material into finished good is called manufacturing. during the process of manufacturing, value is added to the good, at it becomes of greater use to human.

importance of industries

 Industries 


  • contribute to value addition,
  •  add significantly to the national income,
  •  pave the way for Rapid development, and 
  • generate employment.

 classification of industries

 industry can be classified on the basis of ownership, raw material used and size.
 on the basis of ownership, industry are classified as a public sector industries, private sector industries, joint sector Industries, cooperative society and multinational firms.
 public sector industries are owned, managed and controlled by the state or Central government. these industries operate more for the benefit of the public than for making profits. the price for their products is fixed through planning. for example- the Indian Railway, Hindustan Aeronautic Limited, Indian Oil Corporation, Bharat Heavy Electrical Limited, Air India.
 private sector industries are owned and manage and controlled by an individuals or group of individuals Industries operate mainly for profit. the price of a products is determined by market forces, such as, the demand for the goods and the corresponding supply. examples of some leading private sector company in India include Birla Group of Industries, Reliance Industries ,Tata Group of Companies, etc. joint sector industres are owned, manage and controlled jointly by private firms and government Agencies. these industries operate with the dual goal of making profits and also to ensure the Welfare of the people. for example- Maruti Udyog Limited and Gujarat alkalies.
 Cooperative sector industries are owned, managed and controlled by a group of a people belonging to a cooperative society. the members of the cooperative society usually produce the raw materials. they also process the raw material to add value and thereby  earn more profit. these industries, in  General, operate with the motive of community welfare. some examples include the Amul (Anand Corporative milk producers Union Limited) and the West Bengal State Co-operative bank limited.
 multinational firms are big Companies that operate from several countries. these companies operate with a desire to be globally competitive and to get  maximum profits. for example, Infosys ,NIIT, Tata Steel, Nokia ,Samsung and Coca-Cola are multinational firms.
 on the basis of raw materials used industry can be classified as agro-based industries,  mineral based industries, marine based industries.

agro based industries derive thier raw materails from the agricultural sector.  the cotton textile industry, the jute industry, the vegetable oil industry and the food processing industry, are some examples.


 mineral-based industries get their raw materials from minerals which are the processed and turned into finished products.for example- the iron and steel industry, locomotive industry, automobile industries, cement industry, aluminium industry.

 Marine based industries utilise products from the sea and ocean as raw material. sea-food processing industry and manufacturers of cod-liver oil are some examples.
pastoral based industries acruire their raw material from animal likes  goats,sheep and cattle. they makes products like wool, hide, meat and milk. the woollen textiles industry, the dairy industry and the leather industry, are some examples.
 forest based industries obtain their raw materials from Shrubs,herbs,grasses and trees in the forest. these industries use wood or wood pulp as their raw material. the industries associated with forests produce wood Pulp and Paper,cardboard,rayons,pharmaceuticals, furniture and fittings, timber for construction, and rubber.
 on the basis of size we can classify industries into cottage industry, small scale industry and large scale industries. this classification is based on the capital invested by the company, the total number of employees and the volume of a production.
 cottage industries are also known as the village industry or household industries. in such industry, a few people get together and using simple tools making thing for sale. they usually work from home and do not use machines. toy-making, weaving, pottery, shoemaking and Jewellery-making are some examples of cottage industries.
 these industries generally make things for local consumption using local raw materials.
 however, some handicraft cottage industries do export products. cottage industries are encouraged in India to enable village-based artisans to earn a living by following traditional means of occupation like weaving and pottery.
 small scale industries are small manufacturing units set up with limited capital. they hire skilled labour. they are bigger than the cottage industry, but use lesser amount of a capital and Technology as compared to a large scale industries. they also generate a great deal of employment. though they mainly produce for the domestic markets, they also export to global markets.
 they use machines that run on power,obtain raw materials from outside, produce more in terms of volume compared to a cottage industry and sell their wares through the traders in the market. almost all of them function under private sector.
 the contribution of the small scale industry to the development of the country is significant. small scale industry unit are engaged in  silk weaving, producing Garments, food and Leather items, manufacturing chemical furniture and fitting and automobile components.
 large scale industries use large amounts  of capital, huge machines and modern and superior technology to manufacture goods.
to run the Machines, large scale industries  need huge amounts of power. they usually employ an enormous number of workers. they obtain raw materials even from distant regions. the production  here is on mass scale and is voluminous. they sell thier even to distant markets.
 iron and steel industry, petrochemical industry, textile industry, aircraft,  Railway coach and shipbuilding industry and cement industries are in some example of large scale industries.