1. On the basis of Ownership:

Since the start of the planned development of Indian economy in 1951, industries are divided in the following four classes:

1. Private Sector Industries:

Industries owned by individuals or firms such as Bajaj Auto or TISCO situated at Jamshedpur are called private sector industries.

2. Public Sector Industries:

Industries owned by the state and its agencies like Bharat Heavy Electricals Ltd., or Bhilai Steel Plant or Durgapur Steel Plant are public sector industries.

3. Joint Sector Industries:

Industries owned jointly by the private firms and the state or its agencies such as Gujarat Alkalies Ltd., or Oil India Ltd. fall in the group of joint sector industries.

4. Co-operative Sector Industries:

Industries owned and run co-operatively by a group of people who are generally producers of raw materials of the given industry such as a sugar mill owned and run by farmers are called co-operative sector industries.

1. Miscellaneous Industries:

Industries are also classified into the following miscellaneous categories.

1. Village Industries:

Village industries are located in villages and primarily cater to the needs of the rural people. They usually employ local machinery such as oil extraction, grain grinding and agricultural implements.

2. Cottage Industries:

Industries which artisans set up in their own houses, work with wood, cane, brass, stone, etc. are called cottage industries. Handloom, Khadi and Leather Work at the artisans’ house fall in this category.

3. Consumer Goods Industries:

Consumer industries convert raw materials or primary products into commodities directly used by the people. Textiles, Bakeries, Sugar, etc. are some of the consumer goods industries.

4. Ancillary Industries:

The industries which manufacture parts and components to be used by big industries for manufacturing heavy articles like Trucks, Buses, Railway Engines, Tractors, etc. are called ancillary industries.

5. Basic Industries:

Industries on which depend many other industries for their manufacturing processes are called basic industries. Iron and steel industry and power generating industry are included in this category.

6. Capital-Intensive Industries:

Industries requiring huge investments are called capital-intensive industries. Iron and steel, cement and aluminium are outstanding examples of capital-intensive industries.

7. Labour-Intensive Industries:

Industries which require huge labour force for running them are called labour-intensive industries. In these industries, labour is more important than capital. Shoe- making and bidi-manufacturing, etc. are included in these industries.