Industry refers to all economic activity that is related with primary, secondary and tertiary activities production of goods, extraction of minerals or the providing of services. In other words, An industry – or sector – is the whole of all economic activities by companies, people, and organizations involved in the production of goods and services for a particular field. Moreover, industries are usually categorized by the goods and services they produce. Hence, Industries can be divided on the basis of raw materials, size and ownership. For example, textile, automobile, food processing etc. On the basis of raw materials, ownership and size the industry is classified as
1. Industry classification on the basis of ownership
- Agricultural based: It uses plant and animal based products as their resources. Food processing, vegetable oil, cotton textile, dairy products and leather industries etc. are some of the examples. Such industries uses mineral ores as their resources for the production. It produces variety of products like heavy machinery, building materials and railway coaches etc.
- Marine Based: Such industries use products from the sea and oceans as resources. For example, industries processing sea food or producing fish oil
- Forest based : Such industries uses forest produce as resources. For example, industries associated with forests are paper, medicines, furniture and buildings.
2. Industry classification on the basis of size
- Small and medium industries: Such industries make less investment. Village and cottage industries like handloom and handicraft, brass metal are some of the examples.
- Large scale industries: Such industries makes huge investment. Automobile , telecommunication etc.
3. On the basis of ownership
- Private : Individuals or group of individuals own and operate such . For example, Reliance industries ltd.
- Public/ state owned : Government own and operate such industries. For example, Hindustan Aeronautics Limited, SAIl etc.
- Joint sector: The State and individuals or group of persons own and operate such industries . For example, Maruti Udyog Limited.
- Co-operative: The producers or suppliers of resources, workers or both own and operate such industries. For example, Anand Milk Union Limited, AMUL milk etc.