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Classification oF Industries

Industries can be classified into 3 categories based on:
  • Raw Materials
  • Size
  • Ownership


Raw Materials

Industries can be further classified according to the raw material they use.
  • Agro based Industries
  • Mineral based Industries
  • Marine based Industries
  • Forest based Industries
  • Agro based Industries
    • Agro based industries use plant and animal based products as their raw materials.

    •   Food processing, vegetable oil, cotton textile, dairy products and leather industries are examples of agro-based industries.
    • Mineral based Industries
      • Mineral based industries are primary industries that use mineral ores as their raw materials.
      • The products of these industries feed other industries.
      • Iron made from iron ore is the product of mineral based industry. This is used as raw material for the manufacture of a number of other products, such as heavy machinery, building materials and railway coaches.

    Iron being made from Iron Ore

    • Marine based Industries
    • Marine based industries use products from the sea and oceans as raw materials.
    • Examples of Marine based industries are processing sea food or manufacturing fish oil.

    Processing Sea Food

    • Forest based Industries
    • Forest based industries utilize forest produce as raw materials. The industries associated
    • Manufacture of furniture, paper and pharmaceuticals are examples of forest based industries.

    Manufacture of Furniture


Industries can be classified according to their size

  • Small Scale Industries
  • Large Scale Industries

Size refers to…

  • Amount of Capital Invested
  • Number of People Employed
  • Volume of Production

Small Scale Industries
Cottage or household industries are a type of small scale industry where the products are manufactured by hand, by the artisans.



Basket weaving  









  • Small scale industries use very little capital.

  • The craftsmen follow traditional methods while making their products and modern technology has no place here.

  • The capital invested by small scale industries is very small.

  • Basket weaving, Pottery, handicrafts, silk weaving, food processing and dress-making are all small-scale Industries.

Large Scale Industries
Large scale industries make huge investments and use modern technology in their manufacturing process.


An Automobile Factory

  • Large scale industries invest huge capitals.
  • The technology used is very superior and the large quantities of the product are manufactured.
  • The labour force involved in large scale industries is also very large.
  • Automobile industry, manufacture of consumer goods like Television sets, iron and steel industries can be classified under large scale industries.



Industries can further be classified in relationship to the ownership of the concerned industry …
  • Private Sector

Private sector industries are owned and operated by individuals or a group of individuals.

  • State Owned or Public Sector

The public sector industries are owned and operated by the government, such as Hindustan Aeronautics Limited and Steel Authority of India Limited.

  • Joint Sector

Joint sector industries are owned and operated by the state and individuals or a group of individuals. Maruti Udyog Limited is an example of joint sector industry.

  • Cooperative Sector

Co-operative sector industries are owned and operated by the producers or suppliers of raw materials, workers or both. Anand Milk Union Limited and Sudha Dairy are success stories of a co-operative venture.


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