9/17/2019 Introduction to Industry: Classification, Types, Distribution and Examples

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Introduction
COMMERCE to Industry
Ever wondered where your smartphone came from? You purchased it from a
NCERT
shop sure, but the shopkeeper purchased it from his distributor, the distributor
SOLUTIONS
purchased it from the manufacturer. And, the manufacturer produced a final
product, your smartphone, from the raw materials available to him. Thus, the
manufacturer is the origin of your smartphone. An industry is a group of
organizations involved in producing/manufacturing or handling the same type of
product and service. So, a group of smartphone manufacturers is known as an
industry.

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9/17/2019 Introduction to Industry: Classification, Types, Distribution and Examples

Industry: An Introduction

Industries are part of the secondary activity. Secondary activities or

manufacturing converts raw material into products of more value to people.
Industry refers to economic activities concerned with the production of goods,
extraction of services and provision or services. Hence we can say that Industries
are concerned with:

Production of good (steel energy)

Extraction of minerals (coal mining)

Provision for services (tourism)

There are also Emerging Industries: ‘Sunrise Industries’

Classification of Industries
1. Raw material

Agro-based industries: These industries use plants and animal-based

products as their raw materials. Examples, food processing, vegetable oil,
cotton textile, dairy products, and leather industries.

Mineral based industries: Mineral-based industries are based on mining

and use ‘mineral ore’ as raw material. These industries also provide to
other industries. They are used for heavy machinery and building
materials.

Marine-based industries: Marine-based industries use raw materials from

sea or ocean. Examples, fish oil.

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9/17/2019 Introduction to Industry: Classification, Types, Distribution and Examples

Forest-based industries: These industries use raw materials from the forest
like wood. The industries connected with forest are paper, pharmaceutical,
and furniture.

2. Size

Size of industries are measured by how much money is invested, employee count
and goods produced.

Small-scale industries: Small-scale industries have less capital and

technology invested in them. There is often manual labour noticed here.
Example, Basket weaving, pottery, and handicrafts.

Large-scale industries: Largescale industries are the exact opposite of

small-scale industries. Here the capital invested is large and advanced
technology is in use here. Example, Automobiles and Heavy Machinery.

3. Ownership

Private sector: Private industries are businesses that are owned and
operated by an individual or group of individuals.

Public sector: Public industries are owned and managed by the

government. Example, Hindustan Aeronautics Limited (HAL)

Joint sector industries: These industries are jointly operated by the state
and individuals. Example, Maruti Udyog.

Cooperative sector industries: Cooperative industries are operated by the

suppliers, producers or workers of raw material. Example, Amul India.

Industrial Systems

Industrial systems are made up of input, processes, and output. The input of raw
materials, labour, land, power, and other infrastructure. The process is the plan
the manufacturer has of how to turn raw materials into finished products of
value. And finally, the output is the end of the product from which the income
earned it.
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Industrial Clusters

Industrial clusters occur when many industries are located close to each other
and share the benefits of their closeness. Major industrial clusters in India are:

Mumbai-Pune cluster

Bangalore-Tamil Nadu region

Hugli region

Ahmedabad-Baroda region

Chottanagpur industrial belt

Vishakhapatnam-Guntur belt

Gurgaon-Delhi-Meerut region

Kollam-Thiruvananthapuram industrial cluster

Distribution of Major Industries

As we learned how industries were classified according to raw material, size, and
ownership. Here we will learn the distribution of some major industries, which
are iron and steel industry and textile industry are the oldest industries that have
had their role in Indian industrialization. Information technology is an emerging
industry.

Iron and steel industries have their firm hold in countries like Germany, USA,
China, Japan, and Russia. While textile industries are flourishing in India, Hong
Kong, and South Korea. The new emerging information technology has their
concentration in Silicon Valley of California and Banglore of India.

Iron and Steel Industry

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9/17/2019 Introduction to Industry: Classification, Types, Distribution and Examples

Iron and Steel industries are famously known as the feeders of all the other
industries. The products of these industries are used as raw materials in other
industries. As we learned the industrial system, this industry comprises of various
inputs, processes, and outputs. The input includes raw material such as iron ore,
labor, capital, and other infrastructure. Iron ore is then converted into steel by
various processes like smelting and refining.

Finally, the output is steel. Steel and iron can be called as the basic material
needed in every other industry. No doubt, they are the backbone of the modern
industry. In a developing country like India, Iron and Steel industry has taken the
advantage of the cheap labor, raw material, and the ready market.

Textile Industry

Textile is a fabric that is woven from fibres. It takes raw material like cotton or
wool and the process called spinning turns it into yarn that is later used to create
the fabric. Fibres can be natural or are man-made. Natural fibres are – cotton,
jute, linen, wool, and silk. Man-made fibres are – nylon, rayon, and polyester.

The man has been wearing and using fabric since ancient times. The textile
industry is one of the oldest industry in the world. And until the industrial
revolution, the textile industry used wheels and looms to weave fibre. During the
revolution, power looms were introduced first in Britain.

After that, textile industry expanded in Mumbai because of its warm, moist
climate, facility of port for importing machinery and exporting the output and
above all the availability of cheap labour. Some of the well known and highly

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demanded fibres are, Muslins from Dhaka Chintzes from Masulipatnam and
Calicos of Calicut, Gold wrought cotton from Surat, Burhanpur, and Vadodara.

Information Technology

Information technology deals with the storage, processing and distribution of

information. During the decade, the industry has gained global attention due to a
series of political, technological and socioeconomic events. India is witnessing the
emergence of information technology hubs in Bangalore, Mumbai, Hyderabad
and Chennai.

The Silicon Valley and Bangalore both share many same aspects in the
development of Information technology such as pleasant climate, skilled
workforce, presence of high quality educational, technological and scientific
centers and access to markets.

Solved Questions for You

Q: Which of this is a joint sector industry?

Only owned by individuals

Owned by the government

Co-Owned by the government and individuals

Owned by producers, workers, and suppliers.

Answer: Owned by the government and individuals.

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9/17/2019 Introduction to Industry: Classification, Types, Distribution and Examples

Q: Name one industry you know about or heard of apart from the ones listed
above.

Answer: Chocolate industry, Chocolate industry in India is dominated by two

companies. The market leader is Cadbury with lion’s share 70%.

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