What is Industry? Explain its classification.
Industry is said to be that part of business activities which works in order to produce want satisfying goods with the help of material resources readily, available. Its work is to use the natural resources and bring them into a form that is useful for further .use. e.g. farms, factories, mines etc. Human beings in the industry are engaged in various activities like extraction, production, processing, construction and fabrication of products.
Classification of Industry:
There are various approaches of classifying industries. On the basis of nature of activity:
- Extraction Industries: These are engaged in the discovery and extraction of natural resources like minerals, animals, plants etc. from surface of the earth or beneath, or air, water etc. e.g.—mining, farming, fishing, hunting etc.
- Genetic Industries: In genetic industries, activities which are concerned with reproducing and multiplying of plants and animals are performed in order to earn profit from their sale. e.g. Nurseries, fish culture, poultry farms etc.
- Manufacturing Industries: These industries are engaged in the conversion or transformation of raw materials and semi-finished materials into finished products. Extraction industries provide their products as raw materials to the manufacturing industries. e.g.—Iron and steel, cement, fertilizer etc.
- Construction Industries: Construction activities like construction of bridges, dams, roads, canals etc. are performed by these industries. For example—buildings, roads, canals, dams etc,
Other approaches are:
- On the basis of nature of goods produced Consumer goods and producer goods industries.
- On the basis of the level of investment, Heavy industries and light industries.
- On the basis of the size of the activity.Small scale industries and large scale industries.
- On the basis of area of operations. Regional, national and multinational industries.