Question

What is an industry? Why are industries important?

Answer 1

Answer:

The industry is a category of active enterprises and organizations which produce or sell products, services, or sources of revenue. Industries are commonly categorized in economics as the primary industry, secondary industry and tertiary industry.

Classification of industry

Industries are classified on the basis of raw materials, size and ownership.

Industries Classified on the basis of Raw Materials

• Agro-based industries – Use plant and animal-based products as their raw materials-examples are food processing, vegetable oil, cotton textile, dairy products and leather industries.
• Mineral-based industries – Primary industries use mineral ores as their raw materials- products of these industries feed another industries-one product is Iron made from iron ore- used as raw material for the manufacture of a number of other products, such as heavy machinery, building materials and railway coaches.
• Marine based industries – Use products from the sea and oceans as raw materials- Given examples are Industries processing seafood or manufacturing fish oil.
• The forest-based industries – Utilise forest produces as raw material- industries associated with forests are pulp and paper, pharmaceuticals, furniture and buildings.

Industries Classified on the Basis of Size

Size refers to the amount of capital invested, the number of people employed and the volume of production.

• Small scale industries – Use a lesser amount of capital and technology. Silk weaving and food processing industries are small scale industries
• Large Scale Industries – Produce large volumes of products, investment of capital is higher, the technology used is superior. Production of automobiles and heavy machinery are large scale industries.

Industries Classified on the basis of Ownership

The private sector, state-owned or public sector, joint sector and cooperative sector are the classification of industry based on ownership.

• Private Sector Industries – Owned and operated by individuals or a group of individuals.
• Public Sector Industries – Owned and operated by the government, such as Hindustan Aeronautics Limited and Steel Authority of India Limited.
• Joint Sector Industries – Owned and operated by the state and individuals or a group of individuals.
• Cooperative Sector Industries -Owned and operated by the producers or suppliers of raw materials.

Importance of industry

The importance of the industry is listed below.

• By providing machinery, chemicals, irrigation facilities, insecticides, pesticides, and other items, industrial growth aids in the modernization of agricultural activities.
• Industrial development aids in the reduction of unemployment and poverty.
• Industrial development can generate foreign exchange by exporting finished items, allowing it to expand trade and commerce.