Define classification of industries?

On the basis of raw materials, industry can be categorized as follows:

1. Agro-based Industries: When plants and animal based products are used as raw materials, it is called agro-based industry, e.g. cotton textiles, leather, edible oil, etc.
2. Mineral-based Industries: When minerals are the raw materials, it is called mineral-based industry, e.g. iron and steel, petrochemical, etc. The products of mineral-based industry feed other industries.
3. Marine-based Industries: When products from seas and oceans are used as raw materials, it is called marine-based industry, e.g. sea food industry.
4. Forest-based Industries: When forest produce are the raw materials, it is called forest-based industry, e.g. paper, furniture, pharmaceutical, safety matches, etc.

On the basis of size, i.e. the amount of capital invested, industries can be classified as follows:

1. Cottage Industry: When products are manufactured by hand and by artisans, it is called cottage industry. Basket weaving, pottery, etc. are examples of cottage industry. A small amount of capital is invested in small scale industries.
2. Large Scale Industry: When a high amount of capital is invested, it is called large scale industry. Large scale industry also produces in large volumes, e.g. automobile industry.

On the basis of ownership, industries can be classified as follows:

1. Private Sector: These are owned and operated by individuals or a group of individuals, e.g. TATA and Reliance.
2. Public Sector: These are owned by the government or government agencies, e.g. SAIL, HAL, etc.
3. Joint Sector: These are jointly owned by the government and private owners, e.g. Delhi Metro, Maruti, etc.
4. Cooperative Sector: When workers or producers join together to form a company in which profit and workload are equally shared, it is called a cooperative, e.g. Amul, Lijjat, Mother Dairy, etc.