CHAPTER - 5

                  INDUSTRIES

• Secondary activities are those activities which change raw materials into products of more value of people. 

• Industry refers to an economic activity that is concerned with production of goods, 

extraction of minerals or the provision of services. 

• Raw Material: Industries under this are of agro-based, mineral-based marine-based and 

forest-based.

• size of Industries: 

(i) Size refers to the amount of capital invested, number of people employed and the 

volume of production. 

(ii) Industries based on size are classified into small scale and large scale industries. 

• Small Scale Industries: 

(i) Small scale industries manufacture products by hand and include cottage and 

household industry. These industries use lesser amount of capital and technology. 

(ii) For example, Basket-weaving, pottery and other handicraft industries. 

• Large Scale Industries: 

(i) Large scale industries produce large volumes of products. The investment of capital is 

higher and technology is superior. 

(ii) For example, production of automobiles and heavy machinery. 

• Ownership: On the basis of ownership, industries can be classified into the following 

sectors: (a) Private sector, (b) Public sector or state owned, (c) Joint sector, (d) Cooperative 

sector.

• Private Sector Industries: 

(i) Private sector industries are owned and operated by individuals or a group of 

individuals. For example, Bharat Heavy Electrical Ltd., Indian Oil Cooperation. 

(ii) Public sector industries are owned and operated by the government. For example, 

Hindustan Aeronautics Limited and Steel Authority of India Limited. 

• Joint Sector Industries: Joint sector industries are owned and operated by the state and 

individuals or a group of individuals. For example: Maruti Udyog Limited.

• Cooperative Sector Industies: These industries are owned and operated by the producers 

or suppliers of raw materials, workers or both. For example: Anand Milk Union Limited and 

Sudha Dairy.

• Factors Affecting Location of Industries: 

(i) The availability of raw material, land, water, labour, power, capital, transport and 

market are the factors and market are the factor affecting the location of industries. 

(ii) Industrialization leads to development and growth of towns and cities. 

• Industrial System: 

(i) An industrial system consists of inputs, processes and outputs. 

(ii) Raw materials, labour and costs of land, transport, power and other infrastructure are 

the inputs. 

(iii) The processes include a wide range of activities that convert the raw materials into 

finished products. 

(iv) The result or the outputs are the end of product and income earned from it.