Question

Classification of industries ?

Answer 1

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Answer 2

Manufacturing industries are classified into various groups on the basis of their size, nature of of finished products, sources of raw material and their ownership.

The classification of industries are given here, they are as follows :

On the basis of Size : The size of an industry is determined by the capital input, number of labours employed and the value of production. Accordingly, these industries are sub-grouped into three categories :

• cottage / household industry : These are the smallest manufacturing units. In cottage industry, a craftsman manufacturers the goods by using locally available raw material. She / He carries out the work at home where the family members to join in the making the goods, for example, potter, blacksmith blacksmith, Weaver and craftsman, etc,...

• small scale industry : Small scale industries in an extended form of cottage industry. The manufacturing is done by machines in addition to the manpower. It required small machines driven by power, small amount of capital investment and less human labour. The basic raw material is obtained from outside, if not available in local market ; and its finished products are sold in open market through traders. For example, paper goods, toys, furniture, edible, leather products, etc,...

• Large scale industry : Large scale industries used heavy machinery, which is driven by Power. It requires a wide variety of raw materials, large-scale investment and workforce to manufacture the final products. The example of such industries are iron and steel, textile, heavy machines and tools, ship-building, petrochemicals, etc,....

On the basis of finished products : The industries are grouped into 2 sub-categories they are :

• Basic industry : Finished products of this industries are used as raw material for other industries. For instance, iron and steel industries produces steel which is used in the manufacturing of machine tools. Thus, iron and steel industries becomes a basic industry.

• Consumer goods industry : This industry produces good for direct use by consumers. Edible oils, tea, soap, Bread, biscuits, radio, television, etc,....

On the basis of of source of raw material : The industries are grouped into the four categories :

• Angro-based industry : The industries using the agricultural products as their raw material are known as angro-based industries like tea, sugar, cotton textile, vegetable oil, etc,...

• Forest based industry : This industries which use forest products as their raw material are called as forest based industries.

• Animal based industry : These industries use animal products as raw material like egg, leather, fish, milk, etc,....

• Mineral based industry : These industries are dependent on minerals as their raw materials, for example, iron and steel, copper smelting, petrochemical, cement, etc,....