QUESTION – Classification of Industry
Answer – There are various approaches of classification industries. All these approaches are listed below.
1 On the basis of the nature of activity
a) Ex tractive industries
b) Genetic industries
d) Construction industries
2 On the basis of the nature of goods produced
a) Consumer goods industries
b) Producer goods industries
3 On the basis of the level of investment
a) Heavy industries
b) Light industries
4 On the basis of size of the activity
a) Small scale industries
b) Large scale industries
5 On the basis of area of operations
a) Regional industries
b) National industries
C) Multinational industries
Since the theme of the discussion in this unit is centred around human activity, the classification based on the nalure of activity is more appropriate for us. So, let us discuss about the first classification in detail.
a) Extractive Industries: Activities engaged in the discovery and extraction of natural resources like minerals, animals, plants, trees, etc., from the surface or beneath the surface of the earth or air or water come under this category. Extractive industries are also called exhaustive industries because with every attempt there is a depletion of resources and this wealth exhausts. Mining, farming, quarrying, hunting, fishing, etc., come under this category.
B) Genetic Industries: Activities which are concerned with reproducing and multiplying plants and animals with the objective ~Tea~ning profit from their sale come under this category. Examples are nurseries which multiply and scll plants, poultry farins, cattle breeding farms, fish culture, etc.
There is one important difference between an extractive industry and a generic industry. In the case of extractivc industry, mall cannot add to the wealth which he withdraws from the earth; sea, and air. However, in the case of genetic industry, man not only adds to the growth but also reproduces the nature made goods.
C) Manufacturing Industries: These types of industries are engaged in the conversion or transformation of raw-materials and semi-finished materials into finished products. Generally, the products of extractive industries become raw-materials for manufacturing indusiries. In other words, manufacturing industries create ‘form utility’ to the products of extractive industries. Cement industry, sugar industry, cotton textile industry, iron and steel industry, fertilizer industry, etc., are some examples for manufacturing industries.
d) Construction Industries: These industries are engaged in the construction activities like the co~istruction of buildings, bridges, dams, roads, canals, railway lines, etc. These industries consume the products of manufacturing industries (e.g., bricks, cement, iron and steel) and extractive industries (e.g., quarries, wood). The products of construction . industries are immovable. They are erected, built or fabricated at a fixed site.