How  can  industries  be  classified  on  …

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The size of an industry is determined by the capital input, number of labourers employed and the value of production. The can be sub-grouped into three categories:- 1) COTTAGE OR HOUSEHOLD INDUSTRY: These are the smallest manufacturing units. In cottage industry, a craftsman manufacturers the goods by using locally available raw material. He carries out the work at home where his family members join him in making the goods, for eg- potter, blacksmith, weaver and craftsman etc. 2) SMALL SCALE INDUSTRY: Small scale industry is an extended form of a cottage industry. The manufacturing is done by machines in addition to manpower. It requires small machines driven by power, small amount of capital investment and less human labour. The basic raw material is obtained from outside, if not available in local market, and its finished products are sold in open market through traders. For eg- paper goods, toys, furniture, edible oil, leather products,etc. 3) LARGE SCALE INDUSTRY: Large scale industry uses heavy machinery which is driven by power. It requires a wide variety of Raw materials, large scale investment and work force to manufacture the final products. The examples of such industries are - iron & steel, textile, heavy machines and tools, ship-building, etc.