Industry is concerned with the producing or manufacturing of goods. It is involved in changing the form of goods at any stage from raw material to the finished product, e.g., weaving woolen yearns into cloth. Thus, industry imparts ‘form utility’ to goods.

The goods produced by industrial enterprises may be either for final consumption by consumer or for use in other industrial enterprises for further production. In the former case, they are called consumer goods. For example, bread, butter, cheese, sugar, textiles, shoes, radio, TV, etc. are consumer goods. On the other hand, production of machinery or machine-tools by an engineering firm are called capital goods. It is because they are used by other industrial enterprises for manufacturing consumer goods.

Types of Industries

Industries may be divided into three broad categories, namely (1) primary, (2) secondary, and (3) tertiary (service)

(1)    Primary Industries. Primary industries include all those industries which are concerned with extraction of natural resources and reproduction of living apaches. These industries can further be classified into two categories:

(i)    Extractive Industries. Extractive industries are those which involve extraction of something from natural resources such as minerals form earth, fish from rivers and seas, timber from forest, etc. The products of extractive industry can be directly used as raw materials for others industries.

(ii)    Genetic Industries. The industries involved in the activities of rearing and breeding of living organisms, i.e., birds, plants, animals, etc. are known as Genetic industry. The examples are rearing of cattle for milk, dairy farms, poultry farms, rearing of plants in nursery, growing fish in ponds etc.

(2)    Secondary Industry. Secondary industries make use of products which are extracted and produced by primary industries as their raw materials and produce finished products. For example, mining of iron ore is done in primary industry bit steel manufacturing is done in secondary industry. There are two kinds of secondary industries:

(i)    Manufacturing Industries. These industries are engaged in the process of conversion of raw materials or semi-finished goods into finished goods. These industries create form utility by changing the form of raw materials into finished industries create form utility by changing the form of raw materials into finished products. Timber is converted into furniture, iron into steel, sugarcane in sugar, products. Timber is converted into furniture, iron into steel, sugarcane in sugar cotton in cloth, etc. The manufacturing industries produce tow types of goods :

(a)    Consumer goods. The goods which can be directly consumed by the consumer are known as consumer goods. These goods are used for day-to-day consumption. For example, bread, cloth, oil, soap, etc.

(b)     Industrial goods. The goods which are reproduced for manufacturing consumer goods are known as industrial goods like machinery, equipment tools etc. They are required to manufacture consumer goods.

Manufacturing industries are of the following types:

(a)    Analytical industry. Under this, the basic raw materials are analyzed and separated into different finished products. For example, separating refined crude oil into kerosene, petrol, diesel and lubricating oil, etc.

(b)    Processing industry. The raw materials pass through various processes to become a final product. The finished product of a process becomes the raw material of the next process and so on. Textile, sugar and paper industries are the examples of processing industries.

(c)    Synthetic industry. The raw materials are combined together in the manufacturing process to make the final product. Paint, soap, plastics, yarn, cement and coal, etc., are the examples of these industries.

(ii)    Construction Industries. These are concerned with creation of infrastructure essential for orderly and efficient conduct of main economic activities. It involves construction of buildings, roads, dams, bridges and canals.

The most distinctive feature of construction industries is that their products are not marketed in the ordinary sense of being taken to the markets to be sold. They are created, built or abreacted at fixed sites.

(3)    Tertiary Industries (Service Industries). These are concerned with providing services which facilitate smooth flow of goods and services. They help in the activities of primary and secondary industry. In other words, they provide services which support the activities of primary and secondary industry. That is why it is also known as services industry. The various types of services by tertiary industries are:

(i)    Transport. It facilitates movement of goods from one place to another.
(ii)    Banking. It provides credit facility to industrial and trading firms.
(iii)    Insurance. Provides coverage from various types of risks.
(iv)    Warehousing. It facilitates storage of goods produced by primary and secondary industries.
(v)    Advertising. it provides information about the goods and services to the consumers.

For more help in Industry click the button below to submit your homework assignment