MANUFACTURING INDUSTRIES [Classification of Industries ]

Classification of Industries 

List the various manufactured products you use in your daily life such as – transistors, electric bulbs, vegetable oil, cement, glassware, petrol, matches, scooters, automobiles, medicines and so on. If we classify the various industries based on a particular criterion then we would be able to understand their manufacturing better.  

Industries may be classified as follows:

On the basis of source of raw materials used: 

• Agro based: cotton, woollen, jute, silk textile, rubber and sugar, tea, coffee, edible oil. 

• Mineral based: iron and steel, cement, aluminium, machine tools, petrochemicals.

According to their main role: 

• Basic or key industries are those which supply their products as raw materials to manufacture other goods e.g. iron and steel and copper smelting, aluminum smelting. 

• Consumer industries that produce goods for direct use by consumers – sugar, toothpaste, paper, sewing machines, fans etc.

On the basis of capital investment: 

• A small scale industry is defined with reference to the maximum investment allowed on the assets of a unit. This limit has changed over a period of time. At present the maximum investment allowed is rupees one crore.

On the basis of ownership: 

• Public sector, owned and operated by government agencies – BHEL, SAIL etc. 

• Private sector industries owned and operated by individuals or a group of individuals –TISCO, Bajaj Auto Ltd., Dabur Industries. 

• Joint sector industries which are jointly run by the state and individuals or a group of individuals. Oil India Ltd. (OIL) is jointly owned by public and private sector. 

• Cooperative sector industries are owned and operated by the producers or suppliers of raw materials, workers or both.  They pool in the resources and share the profits or losses proportionately. Such examples are the sugar industry in Maharashtra, the 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 that use light raw materials and produce light goods such as electrical goods industries.

CLASSIFICATION OF INDUSTRIES

Very Short Answers

1. Classify industries on the basis of ownership.

Ans.

(i) Public sector,

(ii) Private sector,

(iii) Joint sector; and

(iv) Cooperative sector.

2. Name an industry that is run jointly by the state and individuals or a group of individuals.

Ans. Oil India Limited

3. Mention the name of an industry which is owned and operated by individuals or a group of individuals.

Ans. Private Sector Companies e.g. Dabur India Limited.

4. Name the industry if the capital investment in it is more than one core.

Ans. Large scale industry

5. Which industry expanded to several parts of the country after the Green Revolution?

Ans. Fertilizer Industry

6. What are basic industries?

Ans. Industries which supply their products or raw materials to manufacture other gads e.g., iron and steel.

Short Answers

1. Classify industries on the basis of source of raw material. How are they different from each other?          

Ans.

(i) Agro-Based Industries: Cotton, jute, silk, woollen textiles, sugar and edible oil, etc. industries are based on agricultural raw materials.

(ii) Mineral-Based Industries: Industries that use minerals and metals as raw materials are called mineral based industries. Iron and steel, cement, aluminium, machine tools and petrochemicals are the examples of mineral-based industries.

2. Distinguish between joint and co-operative industries with examples.

Ans.

Joint Industries

(i) Joint industries are jointly run by the owned and group of operated by the producers or suppliers of individuals.

(ii) Raw material providers do not get any profits or losses proportionately.

(iii) For example, Oil India Ltd. (OIL).

Cooperative Industries—

(i) Cooperative sector industries state and individuals or raw materials, workers or both.

(ii) They pool in the resources and share the share in the profit made by the industry.

(iii) For example, sugar industry in Maharashtra, the coir industry in Kerala.

3. Classify industries into two categories on the basis of capital investment. Give two examples of each category.

Ans. On the basis of capital investment, the industries are classified into two categories:

(1) Small scale industries: If the investment is up to one core rupees.

Examples: Manufacturing of electric bulbs, watches, etc.

(2) Large scale industries: If the capital investment is more than one core rupees.

Examples: Cotton textiles, iron and steel industries, etc.