INDUSTRY SECTOR:

As on 2018 Industry sector accounts for 29% of GDP and employs 25% of populations. Manufacturing the processing of natural resources into more useful value-added items. These industries use raw materials from primary sectors and transform them into valuable product, so they called as secondary sector activities.

These raw materials used in manufacturing industry may be either in their natural form such as cotton, wool, iron ore etc. or may be in the semi processed form like cotton yarn, pig iron etc.

which can further be used for making more useful goods. Thus, the finished product of one industry may serve as the raw material for another industry. Industries are the backbone of a countries economic development. Over two centuries the world visually witnessed the direct relationship between the level of industrial development and the economic prosperity of a country.

Developed countries like the USA, Japan, Russia are highly industrialized and less developed countries mostly export their natural resources and import finished goods at higher prices and continue to remain economically backward. In India manufacturing industries contributed about 30 per cent of the gross domestic product. These industries provide employment to about 28 million people. Thus, industries are a major source of national income and employment.

Industries convert the raw material from primary sector to final product or input for another industry.

1. On the Basis of Source of Raw Material:

 On the basis of source of raw materials, industries are classified as under:

1. Agro Based Industries:

Agro based industries are those industries which obtain raw material from agriculture. Cotton textile, jute textile, sugar and vegetable oil are representative industries of Agro-based group of industries

2. Mineral Based Industries:

The industries that receive raw materials primarily from minerals such as iron and steel, aluminium and cement industries fall in this category.

3. Pastoral-Based Industries:

These industries depend upon animals for their raw material. Hides, skins, bones, horns, shoes, dairy, etc. are some of the pastoral-based industries.

4. Forest Based Industries:

Paper cardboard, lac, rayon, resin, tanning of leather, leave- utensils, basket industries are included in this type of industries.

1. On the Basis of Raw-Material and Finished Goods:

Industries classified on the basis of raw materials and finished goods are:

1. Heavy Industries:

Industries which use heavy and bulky raw-materials and produce products of the same category are called heavy industries. Iron and steel industry presents a good example of heavy industries.

2. Light Industries:

The light industries use light raw-materials and produce light finished products. Electric fans, sewing machines are light industries.

III. On the Basis of Strength of Labour:

1. Large Scale Industry:

Industries which employ a large number of labourers in each unit are called large-scale industries. Cotton or jute textile industries are large scale industries.

2. Medium Scale Industries:

The industries which employ neither very large nor very small number of labourers are put in the category of medium scale industries. Cycle Industry, Radio And Television Industries are some examples of medium scale industries.

3. Small Scale Industries:

Industries which are owned and run by individuals, and which employ a small number of labourers are called small scale industries.