Industry and Its Type

As you know, Industry refers to the production of goods and materials. In the other words, Industry is that part of business activities in which the production of goods takes place for the sale by the application of mechanical power or human. It is completely concerned with the modified form of goods from any stage from raw material to the finished material. Therefore, Industry also creates certain utilities for the satisfaction of human wants and to earn profits. For example, mines, factories, etc., make available a huge range of goods and these goods are for the convenience of the people. In the simple words of Evelyn Thomas, “Industrial activities are concerned with the growing, extending and manufacturing of material goods”. Procuring coal from the coalmines, breeding cattle, constructing houses, converting cotton into cloth are examples of industry.

Under the second approach, industry means a group of factories basically dealing in a product line. For example, all the factories which produce fertilizer are collectively called fertilizer industry. Same way, all automobile factories represent automobile industry. But presently, this approach is not relevant. We adopt the first approach.

CLASSIFICATION OF INDUSTRY

There are various approaches of classifying industries. All these approaches are as follows: –

1. On basis of the nature of activity

a) Extractive Industries

b) Genetic Industries

c) Manufacturing Industries

d) Construction Industries

2. On basis of the nature of goods produced

a) Consumer goods Industries

b) Producer goods Industries

3. On basis of the level of investment

a) Heavy Industries

b) Light Industries

4 On basis of size of the activity

a) Small scale Industries

b) Large scale Industries

5 On basis of area of operations

a) Regional Industries

b) National Industries

c) Multinational Industries

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This blog is written by GULISTAN BANO.