Industries

A manufacturing unit that converts raw materials into usable goods is referred to as an industry. (Final goods and capital goods are two types of goods.) This is referred to as the economy’s secondary sector.

The manufacturing of goods, the extraction of metals, and the provision of services are all part of the industry, which is at the heart of a country’s economy. All of the products on the market are finished goods that are the result of various industries.

Primary, secondary, tertiary, quaternary, and quinary economic activities are used to establish these industries.

Classification of Industries

Industries can be classified based on their nature, ownership, raw material, etc.

Raw Materials

Industries are classified into agro-based, mineral-based, marine-based, and forest-based depending on their nature and the kind of raw material they produce.

• Agro-based industries: In these industries plant and animal-based products are their raw materials. For example, food handling, vegetable oil, cotton material, and dairy items etc
• Mineral-based enterprises: We realise that these ventures utilise mineral metals as their unrefined components. The results of these enterprises are utilised for taking care of different ventures, for example, Iron produced using iron metal is the result of mineral-based industry. These are essential enterprises
• Marine-based industries: These industries’ raw material comes from the sea and oceans. For example, seafood processing or fish oil manufacturing industries, etc

• Forest-based industries: These industries utilise forest produce as raw materials. For example, paper, pharmaceuticals, furniture, and construction products.
• Size : It refers to the amount of capital that is invested in the industries, the number of people who are employed, and the volume of production which it produces in a financial year. Based on these, industries can be classified into small-scale and large-scale industries.

Small Scale Industries

• We describe cottage or household industries as small-scale industries where the products are mostly hand-made, and by artisans
•  Small-scale industries use a smaller amount of capital and technology
•  Basket weaving, pottery, and other handicrafts are examples of this industry

Large Scale Industries

• These industries produce large volumes of products
• Higher capital investment and superior technology are required in these industries
• For example, automobiles and heavy machinery industries, etc 

Ownership

Industries can be classified into different sectors. Those sectors are the private sector, state-owned or public sector, joint sector, and cooperative sector.

• Private-sector industries: These industries are owned and operated by individuals or a group of individuals

• Public sector industries:  These industries are owned and operated by the government of a country, such as Hindustan Aeronautics Limited and Steel Authority of India Limited
• Join area businesses: These enterprises are claimed and worked by the state and people or a gathering of people
• For example, Maruti Udyog Limited, etc
• Cooperative sector industries: These industries are owned and operated by the producers or suppliers of raw materials, workers, or both. For example, Anand Milk Union Limited and Sudha Dairy

Evolution of Industries

For a country’s socioeconomic and human development, industrial development is essential. Indian cottage and household industries such as Dhaka muslin, Masulipatnam chintez, Kochi calicos, Silk goods, artistic pottery, and ruminants of ancient architectural work such as the Mehrauli Iron Pillar were well-known before independence.Cotton textiles, silk textiles, pottery, bronze, brass, silver, copper works, dyeing, and calico printing were all popular in India.Before the advent of modern industrialization, Indian pottery, muslin, and silk goods were in high demand.The traditional handicrafts industry, on the other hand, suffered after the British arrived in India. The arrival of English traders and the subsequent industrial revolution led to the adoption of a raw material export policy.The establishment of the cotton textile industry in Bombay in 1854, with predominantly Indian capital and enterprise, marked the beginning of the modern industrial sector in India. The jute industry began in the Hooghly valley at Rishra near Kolkata in 1855, largely thanks to foreign capital and initiative.

In 1853, rail service was established between Bombay and Thane. In 1870, the first paper mill in the country was established in Ballygunj, near Kolkata, and steel was first manufactured using modern methods in Kulti in 1874. In 1907, the Tata Iron and Steel Company was founded in Jamshedpur.This indicates that the modern industrial sector did not emerge until after the mid-nineteenth century.The post-independence industrial policy prioritised the achievement of socioeconomic goals such as job creation, increased productivity, the elimination of regional development imbalances, the strengthening of the agricultural base, the promotion of export-oriented industries, and consumer protection. To reduce regional development imbalances, a deliberate policy of locating industries in economically backward regions has been pursued.The industrial policies of 1948 and 1956 point India’s industrial development in the right direction. The First Five Year Plan kicked off the process of industrialization, which continued through subsequent plan periods.

Factors affecting the location of Industries

The factors which are suitable for  the location of industries are as follows:

• Availability of raw materials as well as land, labour, capital, transport, and market is an important factor as these things will be required for the functioning of the industries
• The government incentives like subsidised power, lower transport cost, and other infrastructure promote the development of backward areas

Industries are often situated where some of these factors are easily available.

Industrial System

An industrial system consists of a process of inputs and outputs.

• We know that inputs are the raw materials like labour, and costs of land, transport, and other infrastructure come under it
• The processes include a wide range of activities that transform the  raw material into finished products
• The outputs are the final product and the income and profits are earned from it