Define industry. Explain various types of industries giving examples.
Define industry. Explain various types of industries giving examples.
Industry refers to all those economic activities which are concerned with converting the raw materials and resources into useful goods. The terms is often used to describe a group of firms producing similar type of products.
The following are the various types of industries.
(a) Primary industries: These industries basically undertake activities related to the extraction and processing of natural resources. These industries directly use natural resources as their raw materials and convert them into a consumable form. Agriculture, mining, fishing, etc., are among the activities undertaken by primary industries. Based on the nature of the activities performed, primary industries can be classified as ‘extractive’ or ‘genetic’ industries.
(i) Extractive industries: These industries deal with extraction and refinement of natural resources. The products of these industries serve as raw materials for other industries, which further process these products into useful goods. Agriculture, fisheries, mining, etc., are among the extractive industries.
(ii) Genetic industries: These are the industries that undertake breeding of plants and animals which can be used for further reproduction. Seeds and nursery industries and poultry farming are examples of genetic industries.
(b) Secondary industries: These industries, also known as manufacturing industries, acquire raw materials (i.e., the final products of primary industries) and convert them into final goods after further processing and value-addition. In other words, these industries aim at making the raw materials that they procure more readily consumable by the final consumer. Secondary industries can be further classified in the following manner.
(i) Manufacturing industries: These industries further process raw materials or semi-finished goods into finished products that can be readily used by the final consumer. On the basis of the method of production used by manufacturing industries, they can be further divided into four main categories.
1. Analytical industries: These industries analyse a single product (raw material) and then refine and separate different elements from it to prepare their final products. For example, an oil refinery is an analytical industry in which different products are segregated from crude oil as petroleum, wax, paraffin, etc.
2. Synthetic industries: Synthetic industries combine different raw materials (which serve as ingredients) to produce a completely new product. For instance, a cosmetic cream industry combines various ingredients such as calamine and perfume extracts to produce a final product.
3. Processing industries: In processing industries, the raw material is processed and refined in various stages and converted into the final product. Among the prominent examples of processing industries are the sugar and paper industries.
4. Assembling industries: These type of industries combine various smaller components to form a new final product. As against synthetic industries that combine different raw materials to prepare a new product, assembling industries combine parts that are final products in themselves to produce a new product. The electronics goods industry is an example of an assembling industry.
(ii) Construction industries: These industries are concerned with the construction and development of infrastructure such as buildings, bridges, dams and roads.
(c) Tertiary industries: These industries are regarded as a lifeline of an economy and act as the basic facilitators for the operation of primary and secondary industries. Among the major services provided by tertiary industries , a few are banking and credit facilities, communication and transportation. These industries are not engaged in hardcore production activities but are basically service providers.
The following are the various types of industries.
(a) Primary industries: These industries basically undertake activities related to the extraction and processing of natural resources. These industries directly use natural resources as their raw materials and convert them into a consumable form. Agriculture, mining, fishing, etc., are among the activities undertaken by primary industries. Based on the nature of the activities performed, primary industries can be classified as ‘extractive’ or ‘genetic’ industries.
(i) Extractive industries: These industries deal with extraction and refinement of natural resources. The products of these industries serve as raw materials for other industries, which further process these products into useful goods. Agriculture, fisheries, mining, etc., are among the extractive industries.
(ii) Genetic industries: These are the industries that undertake breeding of plants and animals which can be used for further reproduction. Seeds and nursery industries and poultry farming are examples of genetic industries.
(b) Secondary industries: These industries, also known as manufacturing industries, acquire raw materials (i.e., the final products of primary industries) and convert them into final goods after further processing and value-addition. In other words, these industries aim at making the raw materials that they procure more readily consumable by the final consumer. Secondary industries can be further classified in the following manner.
(i) Manufacturing industries: These industries further process raw materials or semi-finished goods into finished products that can be readily used by the final consumer. On the basis of the method of production used by manufacturing industries, they can be further divided into four main categories.
1. Analytical industries: These industries analyse a single product (raw material) and then refine and separate different elements from it to prepare their final products. For example, an oil refinery is an analytical industry in which different products are segregated from crude oil as petroleum, wax, paraffin, etc.
2. Synthetic industries: Synthetic industries combine different raw materials (which serve as ingredients) to produce a completely new product. For instance, a cosmetic cream industry combines various ingredients such as calamine and perfume extracts to produce a final product.
3. Processing industries: In processing industries, the raw material is processed and refined in various stages and converted into the final product. Among the prominent examples of processing industries are the sugar and paper industries.
4. Assembling industries: These type of industries combine various smaller components to form a new final product. As against synthetic industries that combine different raw materials to prepare a new product, assembling industries combine parts that are final products in themselves to produce a new product. The electronics goods industry is an example of an assembling industry.
(ii) Construction industries: These industries are concerned with the construction and development of infrastructure such as buildings, bridges, dams and roads.
(c) Tertiary industries: These industries are regarded as a lifeline of an economy and act as the basic facilitators for the operation of primary and secondary industries. Among the major services provided by tertiary industries , a few are banking and credit facilities, communication and transportation. These industries are not engaged in hardcore production activities but are basically service providers.
