Get complete information on Classifications of industries

1. Basic or Key Industries:

Industries on which many other industries depend are called basic or key industries, e.g., Iron and Steel Industry, heavy machines and sulphuric acid industries.

2. Heavy and Light Industries:

Industries using heavy and bulky raw materials, large amount of power, huge investment, large transport costs are known as heavy industries (product is also heavy), e.g., iron and steel industry.

Light industries are those whose raw material and finished products are not heavy and can employ female labour, e.g., textiles, watch-making, etc.

3. Large Scale Industries:

Large scale industries employ a large number of workers, require large investment and production is on a large scale, e.g., iron and steel, petrochemical.

4. Small Scale Industries:

Small scale industries may be defined as industrial units with a capital investment of not more than Rs. 750,000 irrespective of the number of workers employed. Most small scale industries are located near urban centres. They produce goods for local as well as foreign markets. Work is done with simple tools and equipments and financial help is given by the government. Examples of small scale industries are the manufacture of bicycles, sewing machines, tools, sports goods, soaps, electric fans, footwear and handloom weaving.

(a) Cottage Industries.

(i) Cottage industries are located in the village, in the home of the producers, while small scale industries are located near towns and cities.

(ii) Cottage industries include village industries and handicrafts since both are located in the village.

(iii) Cottage industries play an important role in the economy of the country as they employ about 40 million people.

(b) Village Industries.

(i) Village industries are traditional in nature and depend on local raw material. These cater to the needs of the local population.

(ii) Examples of village industries are the manufacture of gur and khandsari, cane and bamboo baskets, shoe making, pottery and leather tanning.

(iii) Village Industries are common in villages and mainly cater to the local markets, e.g., Khadi, Khandsari and gur industries.

(iv) Cottage industries are those in which skilled artisans and craftsmen work with wood, cane, ivory, brass, etc. to make articles of utility at their home with the help of family members.

(c) Handicrafts Industries.

(i) Handicrafts industries include a large number of crafts supported by centuries of experience and skill.

(ii) Examples of handicrafts industries are wood carving, lacquer work, decorative furniture, bidi and filigree work.

(iii) The All India Handicrafts Board was set up in 1952 to promote sales, research work and development of new designs.

(d) Advantages of Small Scale Industries:

(i) Small scale industries provide part time jobs to millions of people especially farmers.

(ii) They help in earning valuable foreign exchange.

(iii) To a certain extent they solve the problem of unemployment.

(iv) They prevent an unnecessary shift in population from rural to urban areas.

5. Private and Public Sector Industries. Industries owned by individuals or managed by private industrialists are known as Private Industries, e.g., cotton mills, chemicals. Public Sector Industries are those which are owned and managed completely by the state, e.g., railways, road transport, ports, posts and telegraphs.

6. Factors responsible for the Location of Industries.

(a) Availability of raw materials.

(b) Power should be easily available.

(c) Both skilled and unskilled labour should be available.

(d) Cheap and easy availability of transport.

(e) Industries should be close to centres of consumption.