Have you ever thought about the items that you have purchased? Like where did this item came from, how did it got distributed so that it can reach to you?. In Introduction to Industry, we will learn this in greater detail.
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Introduction to Industry
You usually purchase an item from a shopkeeper and the shopkeeper purchases that item from the distributor.
Furthermore, this item reaches to the distributor from the manufacturer. The manufacturer produced this item from the raw materials available to him. This is how the industry functions.
It is generally a group of organizations that are involved in manufacturing and producing the part for the same type of services and products. An introduction to industry is incomplete without mentioning the above process.
Usually, industries are involved in the secondary activity of the manufacturing of the goods. There are different types of secondary activities that convert the raw materials into products that give more value to the people.
Here, in this scenario, industry refers to the economic activities that are related to the production of goods, extraction of services, etc.
Thus, it can also be said that the industry is concerned with the production of goods as in the case of steel, provision of services in the case of tourism, and extraction of minerals in the case of coal mining.
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- Foreign Trade
- Balance of Payment
- Structure of Balance of Payments
- Balance of Trade
- Foreign Investment
- Devaluation of Currency
- Exchange Rate
Classification of Industry
- Size
- Raw material
- Ownership
Size
In this case, the size of an industry is measured through the investment of money, goods produced, and employees involved.
There are large scale industries and small scale industries. In large scale industries, the technology is advanced and the capital investment is huge.
Examples are heavy machinery or the oil and petrol industry.
Small scale industries are exactly the opposite of large scale industries. They require less capital and the technology used is not advance.
Furthermore, in this type of industry, the use of manual labor is more
Examples of this industry are pottery, weaving, etc.
Learn more about Industries of India and World here in detail
Raw material
You can divide the raw material from industry to industry.
For example, there are agro-industries, marine-industries, mineral industries, etc.
In agro-based industries, plants and animal-based items are used as the raw materials.
For example, cotton textile, dairy, products, leather industries, etc.
In marine-based industries, the raw materials used are from the ocean or sea.
For example, fish oil. While mineral-based industries are based on mining and they normally use mineral ore as their raw material.
Furthermore, This type of raw materials can be used for building materials or for heavy machinery.
Let us understand more about Indian Industrial Policies here
Ownership
An industry can be privately owned, publicly owned, or jointly owned. In the private sector, the businesses and operations of a business are operated and owned either by an individual or the group of individuals.
In joint sector industries, both state and individual jointly own the company. For example, Maruti Udyog.
While in the public sector, the government manages and owns the industry. For example, Oil and natural gas corporation (ONGC).
Practice questions on Introduction to Industry
Q. The Industries are classified on the basis of?
A. Size          B. Ownership          C. Raw materials          D. All of the above
Answer:Â D. All of the above
Q. How do we measure the size of the industry?
A. Money invested        B. Labor force          C. Advance technology          D. All of the above
Answer:Â D. All of the above
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