|
Industries are classified based on raw material sources (Agro-based and mineral-based), their main role (basic and consumer industries), capital investment (small scale), ownership (public, private, joint, cooperative), and the bulk of raw materials used (heavy and light industries). It provides a comprehensive understanding of their manufacturing processes and contributions to the economy, societal well-being, and resource utilization.
In this article, we will look into the classification of industries based on different criteria. It is an important concept of Class 10 Geography. Students can go through this article to get comprehensive notes on “Classification of Industries”.
Classification of Industries
Industries provide essential goods for our daily lives, ranging from textiles to machinery and from food products to automobiles. Classification based on criteria like raw materials, role, capital investment, and ownership provides insights into manufacturing processes. Agro-based and mineral-based industries depend on agricultural and mineral resources, while basic industries supply raw materials for others. Consumer industries produce goods for direct consumption. Understanding the classification of industries based on various criteria enables us to comprehend their manufacturing processes more effectively.
Based on the Source of Raw Materials
Industries are categorized based on the origin of their raw materials, offering insights into their production processes and dependencies. This classification includes:
- Agro-based Industries: These industries utilize agricultural raw materials such as cotton, wool, jute, silk, rubber, sugar, tea, coffee, and edible oil to produce goods. Examples include textile manufacturing, sugar refining, and food processing.
- Mineral-based Industries: Industries in this category rely on minerals as their primary raw materials. Examples include iron and steel, cement, aluminum, machine tools, and petrochemicals.
Based on Main Role
Industries are classified based on their primary function and contribution to the production chain. This includes:
- Basic Industries: These industries supply raw materials for the manufacturing of other goods. Examples include iron and steel smelting, copper smelting, and aluminum smelting.
- Consumer Industries: These industries produce goods directly used by consumers, such as sugar, toothpaste, paper, sewing machines, and fans.
Based on Capital Investment
Industries are categorized according to the amount of capital invested in their operations, which impacts their scale and scope. This classification includes:
- Small Scale Industries (SSI): Small scale industries are characterized by a limited amount of investment in plant, machinery, and equipment. The maximum investment allowed is typically determined by regulatory authorities and varies across countries and regions.
- Operate on a smaller scale with localized operations, often catering to niche markets or specific geographical areas.
- Employ traditional or less capital-intensive technologies and production methods.
- Promote entrepreneurship, employment generation, and decentralized industrial development.
- Medium Scale Industries: Medium scale industries occupy a position between small and large scale enterprises in terms of capital investment, production capacity, and market presence.
- Often characterized by a mix of traditional and modern technologies, depending on the industry sector and specific requirements.
- Large Scale Industries (LSI): Large scale industries are characterized by substantial capital investment in plant, machinery, infrastructure, and technology. Operate on a large scale with extensive production facilities, serving national or international markets.
- Utilize advanced technologies, automation, and mechanization to achieve economies of scale and enhance productivity.
- Play an important role in driving industrial growth, contributing to GDP, exports, and employment at a macroeconomic level.
Based on Ownership
Industries are categorized based on whether they are owned and operated by the government, private individuals or companies, joint ventures, or cooperative societies.
- Public Sector Industries: Owned and operated by government agencies, examples include BHEL (Bharat Heavy Electricals Limited) and SAIL (Steel Authority of India Limited).
- Private Sector Industries: Owned and operated by individuals or groups of individuals, examples include TISCO (Tata Iron and Steel Company) and Bajaj Auto Ltd.
- Joint Sector Industries: These industries are jointly owned by the state and individuals or groups of individuals. An example is Oil India Ltd. (OIL).
- Cooperative Sector Industries: Owned and operated by producers or suppliers of raw materials, workers, or both. Examples include the sugar industry in Maharashtra and the coir industry in Kerala.
Based on Bulk and Weight of Raw Materials
Industries are classified into heavy industries, which utilize bulky and heavy raw materials like iron and steel, and light industries, which use lighter raw materials to produce goods such as electronics and textiles.
- Heavy Industries: These industries deal with heavy raw materials and produce bulky goods, such as iron and steel.
- Light Industries: These industries use light raw materials and produce lightweight goods, such as electrical goods industries.
Conclusion: Classification of Industries
In conclusion, the classification of industries based on various criteria such as raw materials, main role, capital investment, and ownership provides a comprehensive understanding their diverse nature and contributions to the economy. These classifications help in analyzing the scale, technology, and market reach of different industries, facilitating effective policymaking and industrial development strategies. By recognizing the distinct characteristics and roles of industries, stakeholders can harness their potential for sustainable growth, employment generation, and socio-economic progress. Understanding these classifications is essential for providing a conducive environment for industrial growth and enhancing competitiveness in the global market.
Also Read:
FAQs on Classification of Industries
What are the classification of industries matter?
The classification of industries matters because it provides insights into their diverse nature, operational scale, and contributions to the economy, facilitating effective policymaking and industrial development strategies.
What are the 6 types of industries in India?
The six types of industries in India include agro-based, mineral-based, consumer industries, basic/key industries, small-scale industries, and cooperative sector industries.
Why are industries classified?
Industries are classified to understand their diverse nature, operational characteristics, and contributions to the economy for effective policymaking and resource allocation.
What are the importance of industries?
The importance of industries lies in their role in generating employment, driving economic growth, and meeting the diverse needs of society through the production of goods and services.
What is the classification of industries according to the management?
The classification of industries according to management includes public sector, private sector, joint sector, and cooperative sector industries.
|
