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Industry Definition

  • Industry is collection of firms which are based on related business activities
  • Eg: Cement Industry: Ultra Tech, ACC, Maha, etc
  • Industry wise analysis provides for broad economic insights and projections that enable for future investment decisions

Classification of Industries

What is MNC?

Any company with >10% equity and with operations in more than 1 country is called an MNC

Types of Industries

Large Scale Industry

Industries which employ a large number of labourers in each unit are called large-scale industries.

Example

Cotton or jute textile industries are large scale industries.

Medium Scale Industry

The industries which employ neither very large nor very small number of labourers are put in the category of medium scale industries.

Example

Cycle Industry , radio and television industries are medium scale industries.

What is Missing Middle Phenomenon
  • This phenomenon ‘missing middle’ is unique to India, usually found in the manufacturing industry.
  • Compared to small sector and large sector industries, medium sector industries are very very less, eg: manufacturing industry
  • We call this missing medium sector industries phenomenon as ‘missing middle

Small Scale Industry

Industries which are owned and run by individuals and which employ a small number of labourers are called small scale industries.

Heavy Industry

Industries which use heavy and bulky raw-materials and produce products of the same category are called heavy industries.

Example

Iron and steel industry

Light Industry

The light industries use light raw-materials and produce light finished products.

Example

Electric Fans , Sewing Machines , etc.

Private Sector Industry

Industries owned by individuals or firms such as Bajaj Auto or TISCO are called private sector industries.

Joint Sector Industry

Industries owned jointly by private firms and the state or its agencies.

Example

Gujarat Alkalies Ltd , Oil India Ltd.

Co-operative Sector Industries

Industries owned and run co-operatively by a group of people who are generally producers of raw materials of the given industry such as sugar mill owned and run by farmers are called co-operative sector industries.