What are the basic industries? Give an example.

Basic industries are one among different classifications of industries. Different goods are manufactured by using the raw materials or products supplied by basic industries or key industries. Examples are aluminium smelting, copper, steel and iron smelting.

Based on different parameters industries are classified, which are given below:

Classification of Industries based on their Roles

Here there are two different types 

  • Basic Industries – details are given above.
  • Consumer Industries – In consumer industries, the goods produced are directly used by the consumers. Examples are fans, sewing machines, paper, toothpaste, sugar etc.

Classification of Industries based on Source of Raw Materials

Under this classification there are two different types of industries:

  • Mineral based industries – Examples of mineral based industries are petrochemicals, machine tools, aluminium, cement, iron and steel.
  • Agro based industries – Examples of agro based industries are edible oil, coffee, tea, sugar, rubber, textile, silk, woollen, jute, cotton.

Classification of industries based on Ownership

Under this classification there are four different types:

  • Joint Sector Industries – In this industry, companies are jointly owned by individuals or groups of individuals and the state. An example of a company which is jointly owned by the private and public sector is Oil India Limited (OIL).
  • Private Sector Industries – This type of industry is operated or owned by a group of individuals or individuals. Examples are Dabur Industries, Bajaj Auto, Tata Steel etc.
  • Public Sector Industries – These types of industries are owned and operated by the Government. Examples are Steel Authority of India Limited (SAIL), Bharat Heavy Electricals Limited (BHEL) etc.
  • Cooperative Sector Industries – These types of industries are owned and operated by workers or suppliers of raw materials, or by both. Here, the resources are pooled and the loss or profit is shared proportionately. Examples are the coir industry in Kerala, and Sugar industry in Maharashtra.

Classification on the basis of Capital Investment

  • A small scale industry is defined as per the capital investment allowed.

Classification based on Weight and Bulk of Finished Goods and Raw Materials:

  • Light Industries – here light raw materials are used to produce light goods, examples of such industries are electrical industries.
  • Heavy Industries – Steel and Iron Industries are examples of Heavy Industries.

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