Question

Describe three different ways in which industry are classified.​

Answer 1

Answer:

Industries can be classified in a variety of ways. At the top level, industry is often classified according to the three-sector theory into sectors: primary (extraction and agriculture), secondary (manufacturing), and tertiary (services).

Answer 2

Industries are classified on different basis such as raw materials, size and ownership. If we talk about the basis of size, then there are four types of industries, i.e. large scale industries, small scale industries, medium industries and cottage industries. Industries on the basis of size differ from others due the amount of capital invested, number of individuals employed and the volume of production.

The two types of industries on the basis of size are:

1. Large scale industries: It is defined as those industries where the requirement of capital investment exceeds from 10 crores or above. There are a large number of individuals employed in the industry and have high volume of sales. For Example, Tata Iron and Steel Company and the commodities manufactured are cotton, jute or textile industries, banking, tourism etc.
2. Small scale industries: It is defined as those industries where the requirement of capital investment ranges between 2 to 5 crores. There are small number individuals employed in the industries and receive low volume of sales. For example, the Lac industry and the commodities manufactured are food supply, coaching class etc.