Question

Classify industries on the basis of capital investment ownership raw materials

Answer 1

An economic activity which involves extraction of minerals,

production of goods or the provision of services is referred to as an industry.

Industries can be classified on the basis of size, ownership and raw materials.

Size

It refers to volume of production, number of people employed

and the amount of capital invested. Industries can be divided into two types on

the basis of size. They are:

a. Small scale industries - In cottage or household

industries the artisans make the products by hand. Compared to large scale

industries they use less amount of capital and technology. For example, basket

weaving and pottery.

b. Large scale industries - Investment of capital is higher

and superior technology is used in large scale industries. For example,

automobiles and heavy machinery.

Ownership

On the basis of ownership the industries can be divided as:

a. Private sector industries - They are owned by owned and

operated by an individual or a group of individuals.

b. Public sector industries - They are owned and operated by

the government. For example, Steel Authority of India Limited and Hindustan

Aeronautics Limited.

c. Joint sector industries - They are owned and operated by

the state and individuals or a group of individuals. For example, Maruti Udyog

Limited.

d. Co-operative sector industries - They are owned and

operated by the producers or suppliers of raw materials, workers or both. For

example, Anand Milk Union and Sudha Dairy.

Raw materials

On the basis of raw materials industries can be classified

as follows:

a. Agro based industries - They use plant and animal based

products as raw materials. For example, food processing and cotton textile

industries.

b. Mineral based industries - They are primary industries

which use mineral ores as raw materials. Their products are use in other

industries. For example, industries which make iron from iron ore. Iron is used

as a raw material by other industries which manufacture heavy machinery or

building materials.

c. Marine based industries - Products from the sea and

oceans are used as raw materials by them. For example, industries which process

sea food or manufacture fish oil.

d. Forest based industries - Forest produce is used as raw

material by them. For example, pulp and paper industrieS