On the basis of source of raw materials used industries are classified into:

(i) Agro-based industries: These industries are based on agricultural raw material, e.g., cotton, jute, silk, rubber, sugar, tea, coffee and edible oils.

(ii) Mineral-based industries: Industries that use minerals and metals as raw materials are called mineral based industries, e.g., iron and steel, cement, aluminium, machine tools, petrochemicals, etc.