Question
Factors affecting the growth of Industries and their classification.

Answer

Industries form the secondary sector as they involve manufacturing and adding value to primary goods to satisfy human wants.
  • There are two factors affecting the growth of industries Physical raw materials, energy resources, water, favourable climate.
  • Cultural labour, market, transport, capital, banking and government policies.
  • The Industries are classified on the basis of:
  • Size of Labour:
  • Large scale units are both capital and labour intensive, they give a lot of employment,
  • For E.g. The cotton textile industry.
  • Medium and small scale industries are both less capital and labour intensive.
  • Cottage industries are the least capital intensive but more labour intensive, however, they are unable to provide the kind of employment that is provided by the large scale ones.
  • Raw Material:
  • Heavy industries use heavy and bulky raw material and their products are also heavy for E.g. Iron and Steel Industries.
  • Light industries use light raw material and produce light goods like industries producing electric fans, sewing machines.
  • There are industries which are based on agro products like cotton textile, sugar, jute, etc.
  • There are industries which are based on minerals like iron and steel, aluminum refining, copper refining, cement, etc.
  • Ownership:
  • Industries may have private ownership like Bajaj Auto Ltd and Tata Iron and Steel Company Ltd., or they may be government owned in the public sector like Bharat Heavy Electrical Ltd. $(BHEL).$
  • Joint Sector industries have combined ownership of private and public sector.
  • For E.g. Indian Oil Ltd $(IOL).$ Several industries are owned by the co-operative sector.
  • For E.g. $IFFCO$ Indian Farmers Fertilizers Co-operative Ltd.

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