What is meant by Industry ? How it can be classified ?

The conversion of primary products into secondary products is called industry, or the transformation of raw material into vast variety of finished or manufactured goods on a very large scale is called industry or it is the conversion of raw material into an article of utility which is called industry e.g. conversion of sugarcane to sugar by processing in the mills by the aid of machines on a large scale, is termed as sugar industry,

Compressors and Vacuum Pumps for Chemical Industry


Basis of classifying industries :

On the basis of the number of labour employed. On this basis the industries are classified into three classes :

  • Large scale industries: Large scale industries include cot­ton and jute textile industries. Number of labourers working in this industry is large.
  • Medium scale industries: Medium scale industries include electric fan, sewing machine, cycle, radio, television industries etc.
  • Small scale industries: Small scale industries include soap, basket, match-box, bidi industries etc.


On the basis of the nature of the product manufactured. On this basis industries are classified into three classes :

  • Primary industry is one which is concerned with collecting or making available materials produced by nature. For example— food gathering, hunting, fisheries, forestry, agriculture and mining.
  • Secondary industry is one which is connected with the transformation of material provided by primary industry. For example—Iron and steel industry, textile industry, cement industry, chemical, drug industry etc.
  • Tertiary industries are those which render help and services to all other industries. For example—Management, Banking, Transportation, etc.
On the basis of raw material and finished products. On this basis the industries fall into three categories :
  • Heavy industries
  • Medium industries
  • Light industries.

On the basis of ownership. On the basis of ownership, industries are divided into four categories :

  • Public sector industries
  • Private sector industries
  • Joint sector industries
  • Co-operative sector industries.

On the basis of origin of their raw material. This basis divides the industries into two main classes :

  • Agro-based industries. Agro-based industries are those industries which are based on agricultural products. These industries occupy an important place in our economy, both in respect of their output and the employment opportunities. Textiles, sugar, vegetable oil, tobacco, rubber, paper and dairying are the important ones in this category.
  • Mineral-based industries. The indus­tries, which are based on mineral products are known as mineral-based industries. Unlike the traditional industries, most of the modem industries in India are mineral-based. The iron and steel and chemical industries are the important ones in this category.
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