what is industry? explain its type by giving example
Answers
What is Industry ? Meaning ↓
The production side of business activity is referred as industry. It is a business activity, which is related to the raising, producing, processing or manufacturing of products.
The products are consumer's goods as well as producer's goods. Consumer goods are goods, which are used finally by consumers. E.g. Food grains, textiles, cosmetics, VCR, etc. Producer's goods are the goods used by manufacturers for producing some other goods. E.g. Machinery, tools, equipments, etc.
Expansion of trade and commerce depends on industrial growth. It represents the supply side of market.
Classification / Types of Industries ↓
There are various types of industries. These are mentioned as follows :-
1. Primary Industry
Primary industry is concerned with production of goods with the help of nature. It is a nature-oriented industry, which requires very little human effort. E.g. Agriculture, farming, forestry, fishing, horticulture, etc.
2. Genetic Industry
Genetic industries are engaged in re-production and multiplication of certain spices of plants and animals with the object of sale. The main aim is to earn profit from such sale. E.g. plant nurseries, cattle rearing, poultry, cattle breeding, etc.
3. Extractive Industry
Extractive industry is concerned with extraction or drawing out goods from the soil, air or water. Generally products of extractive industries come in raw form and they are used by manufacturing and construction industries for producing finished products. E.g. mining industry, coal mineral, oil industry, iron ore, extraction of timber and rubber from forests, etc.
4. Manufacturing Industry
Manufacturing industries are engaged in transforming raw material into finished product with the help of machines and manpower. The finished goods can be either consumer goods or producer goods. E.g. textiles, chemicals, sugar industry, paper industry, etc.
5. Construction Industry
Construction industries take up the work of construction of buildings, bridges, roads, dams, canals, etc. This industry is different from all other types of industry because in case of other industries goods can be produced at one place and sold at another place. But goods produced and sold by constructive industry are erected at one place.
6. Service Industry
In modern times service sector plays an important role in the development of the nation and therefore it is named as service industry. The main industries, which fall under this category, include hotel industry, tourism industry, entertainment industry, etc.
Industry is an economic activity which is concerned with the production and extraction of goods and providing various services.
The various types of industries are:-
According to size:
(i) Large Scale Industry- Large scale industries are industries that employ a lot of people. For example, engineering companies are large scale industries. It use power driven machines, thousands of labours, large capital investment, complex management, raw material from far off places. The products are sent to distant markets. Iron and steel mills, textile mills, etc are some examples of Large Scale Industries.
(ii) Small Scale Industry- A small scale industry is an industrial undertaking in which the investment under fixed assets in plant and machinery or equipment, whether held on ownership term or on lease or hire purchase, does not exceed ₹10 crore for manufacturing enterprise.
(iii) Cottage Industry- A cottage industry is one which is carried on wholly or primarily with the help of members of family, either as a whole or part time occupation. Sometimes cottage industries are lumped with small scale industries, which creates much confusion.
According to raw material:
(i) Agro-based Industry- These industries use plants and animals based products as their raw materials. Examples, food processing, vegetable oil, cotton textile, diary products and leather industries.
(ii) Mineral-based Industry- Mineral-based indistries are based on mining and use 'mineral ore' as raw material. These industries also provide to other industries. They are used for heavy machinery and building materials.
(iii) Marine-based Industry- Marine based industries use raw materials from sea or ocean. Examples, fish, oil.
(iv) Forest-based Industry- These industries use raw materials form the forest like wood. The industries connected with forest are paper, pharmaceutical and furniture.
According to Ownership:
(i) Private sector: Private industries are business that are owned and operated by an individual or group of individuals.
(ii) Public sector: Public industries are owned and managed by the government. Example, Hindustan Aeronautics Limited (HAL)
(iii) Joint sector industries: These industries are jointly operated by the state and individuals. Example, Maruti Udyog.
(iv) Cooperative sector industries: Cooperative industries are operated by the suppliers, producers or workers of raw material. Example