Production of goods and services for sale by application of human or mechanical power is called industry.
It refers to economic activities that are primarily involved with the conversion of resources into useful products.
The term industry is applied for those activities in which mechanical appliances and technical skills are involved.
In a broad sense, the term industry means a group of firms producing similar or related goods.
Different Types of Industry:
Industries may be defined into three broad categories:
- Primary industries.
- Secondary industries.
- Tertiary Industries.
1) Primary Industries:
These types of industries include all those activities which are connected with the extraction and production of natural resources and reproduction and development of living organisms, plants, etc.
These industries may be further subdivided as follows:
A) Extractive Industries: Extractive industries are concerned with the extraction of materials from earth, sea, and air.
I) It makes an effort to secure possession of the gift of nature.
II) It includes raising and collection of natural products for the subsistence of human being such as mining, fishing, hunting, etc.
III) This type of extractive industry supplies basic raw materials such as sugarcane for the sugar industry, cotton for textile industries, etc.
B) Genetic Industries: The word ‘genetic’ means parentage or hereditary.
Genetic industries are concerned mainly with producing, breeding, multiplying of certain species of plants or animals with the object of earning profit from their sale.
2) Secondary Industries:
These industries are concerned with the materials which have already been extracted at the primary stage. These industries process such materials to produce goods for final consumption or for further processing by other industrial units.
For example, the mining of iron ore is the primary industry but the manufacturing of steel is secondary industries.
These industries may be sub-divided into the following categories:
A) Manufacturing industries: These industries are concerned with changing the form of raw materials and semi-manufactured goods into finished products.
This process of manufacturing changes the form of the raw materials extracted from earth, sea, and air and makes more useful to the consumers by adding new utilities to it.
These industries may be run on a large scale using power-driven complex machinery.
Manufacturing industries may be classified as analytical, synthetically, processing, assembling, and continuous industries.
B) Construction Industries: These are concerned with the making, raising, erecting, fitting or constructing buildings.
These industries use the products of manufacturing industries such as iron, steel, cement, bricks, lime, mortar, etc.
The remarkable feature of these industries is that their products are not sold in the sense of being taken to the markets.
3) Tertiary Industries:
These industries are producing various support services to primary, secondary industries mad trades.
The service industries provide intangible goods and services to the business houses and the ultimate customers.
They do not increase the utility of the goods produced, but also make trading a profitable activity.
Consumers get more advantages by receiving the right kind, quality, and quantity of goods at the right place.
These industries are classified into the following:
A) Personal service industries: These industries by their specialized service approach assist the consumers directly in satisfying their needs and desires.
Some service industries sell their service to both the consumers as well as other business houses. For example, Dyers and cleaners, beauty parlour, interior decorate photograph studios, travel agencies, etc.
B) Commercial service industries: These industries sell different kinds of services to business institutions. The service rendered by these sectors helps other businesses in the promotion, functioning, and conduct of their industrial and trading activities.
These services are called aids or auxiliaries to trade and commerce. These services are packaging, communication, and transport, banking and finance, insurance, warehousing, etc.
Classification of industries on the basis of investment:
The industry may be classified as :
- Heavy industries.
- Light industries.
Classification of industries on the basis of size and scale:
On the basis of size and scale industries may be classified into the following categories:
- Large scale industries.
- Small scale industries.
- Cottage industries.
Classification of industries on the basis of ownership:
Industries may be classified in the basis of industries are:
- Public entrepreneur.
- Public companies.
- Government undertakings.
- Cooperative societies.