Classification of Industries

On the basis of source of raw materials used:
i. Agro based: cotton, woollen, jute, silk textile, rubber and sugar, tea, coffee, edible oil.
ii. Mineral based: iron and steel, cement, aluminium, machine tools, petrochemicals.
According to their main role:
i. Basic or key industries which supply their products as raw materials to manufacture other goods e.g. iron and steel and copper smelting, aluminum smelting.
ii. Consumer industries that produce goods for direct use by consumers – sugar, toothpaste, paper, sewing machines, fans etc.

On the basis of capital investment:

i. Small scale industry: having rupees one crore as the maximum investment on the assets of a unit.
ii. If investment is more than one crore on any industry then it is known as a large scale industry.

On the basis of ownership:

i. Public sector: owned and operated by government agencies – BHEL, SAIL etc.
ii. Private sector industries owned and operated by individuals or a group of individuals –TISCO, Bajaj Auto Ltd., Dabur Industries.
iii. Joint sector industries which are jointly run by the state and individuals or a group of individuals. Oil India Ltd. (OIL) is jointly owned by public and private sector.
iv. Cooperative sector industries are owned and operated by the producers or suppliers of raw materials, workers or both. They pool in the resources and share the profits or losses proportionately such as the sugar industry in Maharashtra, the coir industry in Kerala.

Based on the bulk and weight of raw material and finished goods:

i. Heavy industries such as iron and steel
ii. Light industries that use light raw materials and produce light goods such as electrical industries.