Any part of the Economy that helps in production, processing or modification to more usable forms of available raw materials can be termed as an Industry. The most common manufacturing Industries are the Wood Industry, Metal Industry, Cement Industry, Chemical and Fertilizer Industry, Petroleum Industry, Textile Industry and so on. There are also Industries that produce various services as their final product. One such example is the Insurance Industry.
Nationally and Internationally Industries are Classified on the basis of various parameters such as ownership, final product, size or capital invested, infrastructure and many more. In this topic, we will learn about the Large Industries that are a category based on the Classification according to the size of operation.
Any production or services providing unit that starts with a suitable amount of investment evolves over time. Depending upon the pre-production facilities such as availability of raw materials, manpower, capital flow and post-production provisions of a good market nearby or transport facilities helps the Industry to grow in size and share. Traditionally heavy Industries such as iron and steel manufacturing Industries or aircraft manufacturing Industries are considered Large Scale Industries. In recent years various other Industries dealing with not so heavy items have also emerged as the major players of the Economy. The electronic or semiconductor Industry is a very good example in this category.
Classification of Industries as Large and small help them to maintain the standard of their various operations and responsibilities. In comparison to small Scale Industries, Large Scale Industries are more systematic in nature. They produce their products more efficiently and contribute to the Economy effectively. They also provide better employment opportunities with more job security. Large Scale Industries also invest money for research and design of new products which in the long run Benefits all of us. Thus it can't be wrong to say Large Scale Industries are the driving engines of any Economy.
Large Scale Industries Definition
Industries at different Scales constitute the various parts of an Economy. Large Scale businesses and Industries employ a significant number of people and offer politicians generous support. On the other hand, small enterprises affect the Economy at ground level where individual businessmen succeed. Small-Scale Industries are so small that they are not famous. However, it also contributes to the nation’s prosperity. Based on the Scale, Industries are Classified not just into Large-Scale and small-Scale Industries, but there are other Industries and public enterprises, multinational organizations as well. This article gathers all information about Large-Scale Industries.
What is a Large-Scale Industry?
As the name suggests, everything needed in large scale industries is in bulk or large amounts. All the different resources like workforce, the influx of capital, raw materials, the infrastructure required for the setup and execution of large-scale industry is enormous. It includes various types of industries in its purview. Large scale industry comprises multiple heavy and light industries. The heavy industry like steel, textile, and automobile manufacturing industry falls under the category of large-scale industry. It is also observed that IT has boomed in recent years. A large amount of revenue is generated from the IT industry; thus, the IT industry also comes under the large-scale industrial niche.
All these industries have produced a bulk amount of job opportunities for millions of citizens across the globe. Due to the export of the products manufactured in large-scale industries to different countries, any country's economic growth is highly dependent on its large-scale industries. The large-scale industry also contributes to the generation of foreign currency.
With this understanding, let us go through the importance of large scale industries.
Advantages of Large Scale Industries
The following are the prime advantages of a large-scale industry.
Economical Production using Machinery- The large-scale industry usually installs the latest machinery, which helps in economical bulk production. The machinery works continuously, and enterprises reap the benefits.
The Economy of Labour- Skilled labour put their best to perform. The large-scale industry utilizes the best out of its employees.
Bulk Buying and Selling- The large-scale industry not just involves massive production but also includes the bulk purchase of its raw materials. Thus small profit results in high net profit in large-scale businesses.
Low Overhead Charges- Expenses on administration and distribution on a single unit of production is comparatively less. It is possible because a small amount is invested and distributed over large scale production.
Economical Rent- The whole rent is divided by bulk products. It means when any product is generated in bulk quantity, the cost per unit for rent is too small.
Research and Analysis- Large scale industries can only incur the liberal expenses spent on research and analysis. It is known that successful research and analysis will fetch greater profits in the future.
Reuse of the Bye-products- The bye-products or the wastes of the large-scale industry is often utilized and is not thrown. It helps to lower the cost of production. A small sugar industry will get rid of the molasses produced as a by-product.
Beneficial for Employees- All workers are highly benefited by the large scale industries as they get high salaries, accommodation and various other remunerations.
Below are a few examples of global and Indian large scale industries.
Large Scale Industries Examples
Globally, there are a plethora of large-scale industries that contribute to the economy of different countries. To name few of them are Global Life & Health Insurance Carriers, Global Pension Funds, Global Oil & Gas Exploration & Production, Global Commercial Real Estate, Global Car & Automobile Sales, Cement, Global Car & Automobile Manufacturing, Global Direct General Insurance Carriers, Global Commercial Banks, Global Auto Parts & Accessories Manufacturing, Global Tourism. These are the top ten most significant large-scale industries in terms of revenue.
Indian industries that come under the umbrella of a large-scale industry are the cotton industry, tea industry, jute, cement, paper, engineering industry, food processing, information and electronic technology, and automobile industry. These are the few large scale industries contributing to the economy of India.
Do you know the cotton textile industry is the largest in India? In 2018-2019, India aced the race and ranked at first position cotton production worldwide, followed by the United States.
Globally, India is positioned at the second place for tea production. China is known to be the largest producer of Tea.
If you get a chance to visit Ooty, Tamil Nadu, listen to the veteran Bollywood actress Mumtaz own most of the tea estates.