Question

“Manufacturing industries are classified on several bases.” Examine the main bases of classification in favour of the statement.

Answer 1

Manufacturing industries are classified based on a number of factors to reflect their diversity:

1. Size: Industries are classified as large-scale, small-scale, or cottage (domestic) based on their investment, workforce, and production.
2. Raw Materials: They can be classified as agro-based (sugar, cotton), mineral-based (iron and steel), chemical-based (petrochemicals), or forest-based (paper).
3. Output/Product: Industries are classified into basic industries, which create raw materials for other industries (for example, iron for machines), and consumer goods industries, which make things for direct use.
4. Ownership: They can be classified as public (owned by the government), private (owned by individuals or businesses), or joint/mixed.