Classification of Industries

Classification of Industries

An Industrial process consists of inputs, procedures, and outputs. Inputs are raw labor, materials, as well as the costs of land, transportation, energy, and many other infrastructure. Procedures include a wide variety of activities that convert raw materials into end products.

The outputs are the finished product and the revenue earned from it. In the case of the textile industry, inputs can be human labor, cotton, factory cost, and transportation. The procedures include spinning, ginning, dyeing, weaving, as well as printing. The output is the shirt or pants that you wear.

Classification of Industries

Industries can be generally classified based on raw materials, size, as well as ownership. Let us know the classification of industries separately.

1. Raw Materials

Industries can be agricultural-based industries, marine-based industries, mineral-based industries, as well as forestry industries, depending on the kind of raw materials they often use.

Agricultural-Based Industries

Agro-industries use products of plant and animal origin as raw materials. Food processing, cotton textiles, vegetable oil, and dairy, in addition to leather industries, are examples of agriculture-based industries.

Mineral-Based Industries

These industries are primary industries that use minerals as raw materials. The raw materials of these industries feed other businesses. The product of the mineral-based industry is iron made from iron ore. This is generally used as raw material for the production of many other products, for example – building materials, heavy machinery, as well as railway carriages.

Marine-Based Industries

These industries generally use products from the oceans and sea as their raw materials. Industries that process and manufacture fish oil or seafood are some examples.

Forest-Based Industries

These industries generally use forest products as their raw materials. Industries associated with forests are paper and pulp, furniture, pharmaceuticals, and construction. Visit to read about Did Emissions Start to Rise Alongside the Industrial Revolution?

Raw Materials

2. Size

It refers to the number of people employed, the amount of capital invested, as well as the volume of manufacture. Industries can be classified into large and small-scale industries, the classification of industries has been done based on size as well.

Small-Scale Industries

Small-scale industries use a smaller amount of money and equipment compared to large-scale industries which produce huge volumes of products. The food processing as well as silk weaving industries are small-scale industries. Household or cottage industries are a kind of small-scale industry where products are made by hand.

Large-Scale Industries

In large-scale industries, the capital investment is higher as well and the technology used is superior. The manufacture of heavy machinery and automobiles are large-scale Industries.

3. Ownership

Industries can be classified into public or private sector, state-owned, joint sector, as well as cooperative sector.

Private Sector

These industries are generally owned and operated by people or a group of people.

Public Sector

These industries are owned and operated by the government, for example -National Thermal Power Corporation and Oil and Natural Gas Limited (ONGC).

Joint Sector Industries

Joint sector industries are owned and operated by the state and persons or a group of persons. Cochin Refineries and Allied Chemicals Limited are examples of a joint sector industry.

Co-operative Sector Industries

Industries in the cooperative sector are owned and operated by the suppliers or producers of workers, raw materials, or both. Horticultural Producers’ Cooperative Marketing and Processing Society (HOPCOMS), and Indian Coffee House are cooperative venture success stories.


The location of Industries is influenced by different factors like transportation facilities, availability of raw materials, labor, market, power, and water supply, government policies, as well as environmental considerations. The right location can assist an industry to succeed, even though the wrong location can cause numerous challenges as well as difficulties.