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Sub Topic: - Classification of Industries- Agro based Industries

Classification of Industries
Basis Classification Industries

Source of Agro-based Cotton, wool, jute, silk, rubber, sugar, tea,coffee
raw material
Mineral-based Iron, steel, cement, aluminium, petrochemicals
Iron and steel, copper smelting, aluminiumsmelting
Basic industries
Role Consumerindustries
Sugar, cosmetics, paper, machines etc.

Small
scale(investmentupto Rs Match-making, handicrafts, toys, plastic containers and other goods
1crore)
Capital/Investment Large scale(investment
above Rs 1crore) Cosmetics, drugs, electronic items
Public sector BHEL, SAIL, NTPC

Ownership Private sector TISCO, BAJAJ, BPL
Joint sector OIL
Cooperatives Sugar industry (Maharashtra), coir industry Kerala
Heavy Industries
Bulk and Weight Iron and Steel Industry.
of Raw Materials
and Finished Light Industries Electrical Industries
Goods

1. On the basis of Raw Materials:

These types of industries are classified depending on the type of raw materials they use.
(a) Agro Based Industries: Use plant and animal based products as their raw materials. E.g.
Food processing, vegetable oil, cotton textile, dairy products, etc.
(b) Mineral Based Industries: 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. E.g. Iron& Steel, Cement, Machine Tools, etc.

2. According to their main role:

(a) Basic or Key Industries: These industries supply their products or raw materials to
manufacture other goods, e.g. iron and steel, copper smelting, aluminium smelting, etc.
(b) Consumer Industries: These industries produce goods which are directly used by
consumers, e.g. sugar, paper, electronics, soap, etc.

3. On the basis of Investment:
These types of industries are classified depending on the amount of capital invested, number of
people employed and the volume of production.
(a) Large Scale Industries: In India, on an industry, if the capital invested is more than 1 crore,
then it is called Large Scale Industry. e.g. Iron & Steel Industries, Automobile Industries, etc.