Classification of Indian industries

Classification of  Indian industries

Industries in India may be classified as follows:

1. capital and labour employed,

2. nature of raw materials used,

3. sources of raw materials, and

4. nature of ownership of industrial organization.

 

1. Classification based on capital and labour employed:

(a) Large Scale Industries:

(b) Small Scale Industries:

2. Classification Based on nature of raw materials used:

(a) Heavy Industries:

(b) Light Industries:

3. Classification Based on source of raw materials used:

(a) Agro-based industries:

(b) Mineral based industries:

4. Classification based on the nature of ownership of organizations:

(a) Public Sector industries (organization):

(b) Private Sector Industries:

(c) Joint Sector Industries:

(d) Co-operative Sector industries:

 

1. Classification based on capital and labour employed:

Capital and labour employed is one of the characteristics through which Indian industries can be classified into Large Scale industries, Small Scale Industries and Cottage industries.

(a) Large Scale Industries:

The industries that require huge amount of capital investment for setting up and large human resources to manage their operations are called Large Scale industries. These industries manufacture their products in large scale. Iron and steel industry, Cement industry, Aluminium industry are good examples for large-scale industries. Large-scale industries get the benefit of economies of scale.

(b) Small Scale Industries:

The industries that require small amount of capital investment for setting up and can be managed by a small group of people are called Small Scale Industries. These industries manufacture their products in small scale. Packaging industry, mineral water industry, ancillary industries are good examples for small scale industries. Small-scale industries do not get the benefit of economies of scale.

The industries that are carried on by the members of the same family either wholly or partly with the help of friends are called cottage industries. Cottage industries are labour intensive and traditional industries. These industries require less investment. The expertise involved in the manufacturing is passed on to the generation to generation. Coir making, mat-weaving, pottery and carpentry are examples for the cottage industries. The raw materials required for these industries such as fibres, clayey or alluvial soil are available in villages of India. For these reasons, cottage industries are localised in the villages.

 

2. Classification Based on nature of raw materials used:

Nature of raw materials used is another characteristic through which industries in India can be classified. Based on the different type of raw materials, industries in India can be classified into Heavy industries and Light industries.

(a) Heavy Industries:

The industries that require heavy and bulky raw materials and manufacture heavy and bulky products are called heavy industries. These industries manufacture their product on a large scale. Iron and steel industries, Automobile industries, power equipment manufacturing industries are examples for heavy industry. Products of these industries are more valuable and have more utility.

(b) Light Industries:

The industries that require light (weightless or delicate) raw materials and manufacture light products are called light industries. These industries manufacture their products in large scale. Consumer durable industries, electrical equipment industry, Drug industries are good examples for light industries. Products of these industries have less cost and more utility.

 

3. Classification Based on source of raw materials used:

Industries in India can also be classified based on the source of raw materials supplied. They are Agro-based industries and Mineral-based industries.

(a) Agro-based industries:

The industries that source their raw materials from agriculture are called agro-based industries. Cotton textile industry, jute industry, sugar industry, paper manufacturing industry, silk industry, and edible oil industries are examples for agro-based industries.

(b) Mineral based industries:

The industries that source their raw materials from mines such as coal mine and iron mines are called mineral industries. Iron and steel industry, coal industry, copper industry, and aluminium industry are examples for mineral-based industries.

 

4. Classification based on the nature of ownership of organizations:

There are four types of industries based on the nature of ownership of the organization. They are, Public Sector Industries, Private Sector Industries, Joint Sector Industries and Co-operative Sector Industry. Based on the ownership of industrial organization, industries in India can be clan Author into-

1. Public Sector industries, Eg., Hindustan Machine Tools.

2. Private Sector industries, Eg., Reliance Industries Ltd.

3. Joint Sector industries, Eg., Vidhesh Sanchar Nigam Ltd.

4. Cooperative Sector industry, Eg., Anand Dairy Development Board.

(a) Public Sector industries (organization):

The industries that are owned and operated by government are termed public sector industries. The main motive of these industries is to provide service to the people. Steel Authority of India, Bharat Sanchar Nigam and Oil and Natural Gas Commission are public sector organizations.

(b) Private Sector Industries:

The industries that are owned and operated by private entrepreneurs are termed as private sector industries. The main motive of these industries is to earn profit from their operations. Bajaj Auto Limited, Reliance Industries and Tata Iron and Steel Company are private sector organizations.

(c) Joint Sector Industries:

The industries that are owned and operated jointly by private as well as government organizations or agencies are termed as joint sector industries. Gujarat Alkalis Limited, Videsh Sanchar Nigam, Oil India Limited are joint sector organizations. Joint sector organizations work based on the principle of Public-Private partnership.

(d) Co-operative Sector industries:

The industries that are owned and operated by a group of people, who are generally producers of raw materials used in the industry, are termed as co-operative sector industries. Anand Dairy Development Board is a good example for co-operative sector industries. Co-operative sector industries work based on the principle of mutual help and co-operation.