Classification of industries on the basis of raw material

" Classification of Industries "


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

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<> On the basis of Source of Raw Material

Industries can be agro-based, mineral-based, marine-based and forest-based, depending on the type of raw materials they use.

a) Agro-based Industries.
They use plants and animal-based product as raw materials. food processing, cotton textile, vegetable oil, diary products, sugar, tea, coffee, leather Industries are the examples of agro-based industries.

b) Mineral- based Industries.
They are primary industries that use mineral ores as their raw materials. The product of these industries are used as raw materials by other industries. e.g . iron and steel, cement, petrochemical etc.

c) Marine-based Industries.
They use products from the sea and oceans as raw materials. Industries processing seafood or manufacturing fish-oil are some examples.

d) Forest-based Industries.
They utilise forest produce as raw materials. The industries associated with forest are pulp and paper, pharmaceuticals, furniture and buildings.

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<> On the basis of Size.

It refers to the amount of capital invested, number of people employed and the volume of production. Based on size, industries can be small-scale industries and large-scale industries. These industries can be distinguished on the basis of capital and technology used.

a) Large-scale Industries.
If investment is more than one crore rupees in India, then it is called a Large-scale Industry, e.g. iron and steel, Automobile industries etc.

b) Small-scale Industries.
If the capital investment is less than one crore rupees in India, it is termed as small-scale industry, e.g. silk weaving and good processing industries.

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<> On the basis of Ownership.

a) Public sector Industries.
They are owned and operated by government agencies. e.g. BHEL (Bharat heavy electronically Ltd), SAIL (Steel authority of India limited) etc.

b) Private sector Industries.
They are owned and operated by individuals, or group of individuals, e.g. Reliance textiles, Tata motors, Dabur industries.

c) Joint sector Industries.
They are jointly run by the state and individuals or a group of individuals, e.g. oil India Ltd is jointly owned by both private & public sectors.

d) Co-operative Sector Industries.
They 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, e.g. AMUL(Anand Milk Union Ltd)