Use-Based Classification Of Industries

USE-BASED CLASSIFICATION OF INDUSTRIES Based on the nature of output and its use, industries can be classified into basic industries, capital goods industries, intermediate goods industries, and consumer goods industries. Basic Industries: Basic industries provide essential inputs for developing other industries and the economy. They form the foundation for other industries' growth. For example, the iron and steel industry supports the engineering industry's development. Fertilizers are a basic input for agriculture. Coal, oil and electricity are also basic industries since modern industry depends on their supply. Capital Goods Industries: Capital goods industries produce machinery, equipment, or tools - things that help produce other goods or services, not directly meeting consumption needs. They are capital intensive, requiring heavy investment. Intermediate Goods: Intermediate goods are semi-finished products used as inputs for further processing by other industries - parts, components, or materials for more production. Consumer Goods Industries: Consumer goods industries produce output that meets final consumer needs. Consumer goods are classified into durables (long-lasting goods like cars, fans, TVs) and non-durables (consumed quickly like food, soaps, bulbs). Durables can be repaired to extend life. Examples: Basic Industries - Mining, fertilizers, chemicals, cement, steel, electricity Capital Goods - Machine tractors, cables, vehicles tools, Intermediate Goods - Textiles, tyres, plastics, metal products, dry cells Consumer Durable Goods - Fans, bikes, phones Consumer Non-Durable Goods Food, tobacco, paper, footwear, soaps Input-Based Classification Industries can also be classified based on their major input source into agrobased, forest-based, marine-based, metal-based, chemical-based, etc. Agro-industries mainly use agricultural inputs like sugar, jute, and cotton textiles. Forest-based industries rely on forest products like plywood and paper. Marine-based industries depend on sea products like fish. Metal-based industries like engineering use metals as major inputs. Chemical-based industries like fertilizers, pesticides, paints, medicines use chemicals as basic inputs. Proprietary-Based Classification Looking at ownership, industries are categorized as public sector, private sector, joint sector, and cooperative sector. In India, the public sector earlier dominated strategic, basic, and heavy industries. The private sector leads many consumer goods industries but is also important in other industries. The cooperative sector is huge in sugar, textiles, and fertilizers. The joint sector has both government and private ownership in some enterprises.