- On the basis of raw materials, industries are classified as agro-based, mineral-based, forest-based and animal-based industries.
- On the basis of nature of products, industries are divided into heavy industries (capital and bulky goods) and light industries (consumer goods).
- On the basis of investment and turnover, industries are classified as micro, small, medium and large-scale industries.
- On the basis of ownership, industries are public sector, private sector, joint sector and co-operative sector industries.
- On the basis of function and market, industries include basic industries, consumer industries, ancillary industries and service (tertiary) industries.
Definitions [1]
Define industry.
It is a process by which the raw materials are changed into finished products.
Key Points
Key Points: Factors Affecting The Location Of Industries
- Availability of raw materials strongly influences industrial location as it reduces transport cost, especially for bulky or perishable materials.
- Adequate water and uninterrupted power supply are essential for manufacturing processes, cooling, cleaning and energy needs.
- Good transport facilities help in easy movement of raw materials to factories and finished goods to markets.
- Availability of skilled and unskilled labour and access to a ready market encourage industries to locate in a region.
- Commercial factors like capital, banking facilities, government policies and organisational efficiency play a major role in industrial location decisions.
Key Points: Classification of Industries
