Industry and Its Types:

 “Industry is that part of the business activity which produces goods or services through utilization of the available material resources”.

If the goods produced by industry are used by consumers to satisfy their wants, they are called consumer’s goods and if produced by industry for the usage in the further production process, they are called producers’ goods or capital goods.

 Classification or types of industry:

Industry can be classified according to size and production process.

a) By size:

In respect to size, industry may be heavy or light.

1) Heavy Industry:

The industry that produces heavy goods and machinery that in turn develops light industry is called heavy industry i.e. steel, shipping etc

2) Light Industry:

The industry that produces the goods that are used by consumers is called light industry i.e. paper, electronic items.

 b) By Production Process:

Classification of industry according to production process is following:

a) Extractive Industry:

They are those industries which raise products from above and beneath the surface of the earth such are fishing , mining and hunting.

b) Genetic Industry:

They are those industries that grow plant and animals for the purpose of sale to the ultimate consumers such as agriculture, forestry, nurseries and cattle-breeding.

c) Manufacturing Industry:

They are those industries which convert raw material or semi-manufactured goods into finished products such as sugar industry, iron and steel industry and cotton and textile industry

d) Constructive Industry:

Those industries under which construction activities are carried on at a particular place are constructive industry.

e) Service Industry:

The industries engaged in the creation of intangible commodities are service industry.