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Introduction to Industry

Last updated date: 04th Mar 2024
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Concept Formation about Introduction of Industry

Have you ever wondered where all the smartphones, laptops come from? You go to a relevant shop to purchase the product you want but from where does that product come into existence in that particular shop? The shopkeeper purchases that product from his or her distributor and the distributor purchases from the manufacturer. The manufacturer produces the final product which is made available in the shop from the raw materials. 

Therefore the manufacturer is the origin of any product. 

An industry is a group of many organizations involved in the production as well as in the manufacturing or handling of the same type of product and service. All the industries are part of the secondary activity. The secondary or the manufacturing converts all the raw materials into products of more value to the people. 

Basically, the industry refers to the economic activities concerned with the production of the goods, extraction of the services as well as provisions or services. Therefore one can say that an industry is concerned with the following:

  • Production of a good that is steel energy.

  • Extraction of the materials that are coal mining.

  • Provisions for the services that are tourism. 

  • There are also emerging industries such as sunrise industries. 

Classification of Industries in India

Raw Materials

  • Agro-Based Industries - These industries use plants and also animal-based products as their raw materials. For example food processing, vegetable oil, cotton textile, dairy products, and also the leather industries. 

  • Mineral-Based Industries- The mineral-based industries are based on mining and use mineral ore as the raw material. These industries also provide to other various industries and they are used for heavy machinery as well as building materials.

  • Marine-Based Industries- These industries use raw materials from the sea or the ocean. For example- fish oil.

  • Forest-Based Industries - The Forest-based industries use their raw materials from the forest like wood. The industries connected with the forests are paper, pharmaceutical, and furniture.


The size of industries is measured by how much money is invested, employee count, and also the goods produced.

  • Small-Scale Industries - The small-scale industries have less capital and technology invested in them. There is often manual labor noticed here. For example, Basket Weaving, pottery, and handicrafts.

  • Large-Scale Industries - The large-scale industries are totally the opposite of that of small-scale industries and here the capital invested is large and advanced technology is in use here. For Example, automobiles and also Heavy Machinery.


  • Private Sector - Private industries are businesses that are owned and also operated by an individual or a group of individuals.

  • Public Sector - Public industries are owned and also managed by the government. For example, Hindustan Aeronautics Limited (HAL)

  • Joint Sector Industries - Joint sector industries are jointly operated by the state and individuals. For example, Maruti Udyog.

  • Cooperative Sector Industries - Cooperative industries are operated by the suppliers, the producers, or the workers of raw material. For example, Amul India.

Industrial Distribution in India

Iron and Steel Industry

The iron and steel industries are known as the feeders of all other industries because the products of these industries are used as raw materials in other industries. 

The input includes raw materials such as iron ore, labor, capital, and also other infrastructure. Iron ore is converted into steel by various processes. 

Finally, the output is steel which is the basic material needed in every other industry. 

Textile Industry

The textile industry is one of the oldest industries in the world which was revolutionized during British rule in India. There are very few demanded fibers such as Muslins from Dhaka Chintzes and Calicos, Gold wrought cotton from Surat, Burhanpur, and Vadodara.

The very famous cloth type which was exported across the countries of Egypt, China etc is the famous Block-printed cotton fabrics from Gujarat. During the prevalence of the Barter system, north Indian silks were exchanged to get their Western Spices. It was even exported in large quantities through the Silk route of China. Textile manufacturing was a largely widespread field during the Mughal Empire. From simple Opium dyed clothes to khadi, India has a long history of Textiles. 

Information Technology

Information technology deals with the storage, processing, and distribution of information and it has gained global attention. India started IT services in Mumbai in 1967. This came into existence with the creation of Tata Consultancy Services. The Tata Consultancy Services officially collaborated with Burroughs, which brought an initiation to IT export services. In the world of economics, India is the largest exporter of IT. It constitutes about 79% of the total revenue. The major information technology hubs in India are:

  • Bangalore 

Bangalore is Indias’ biggest tech hub. It records 38% of the total IT exports making a net worth of \[$\]45 billion to India and is thus called the “Silicon Valley of India ''. 

  • Hyderabad

Hyderabad is the largest bioinformatics company in India. Remarkable tech troops include Accenture, Amazon, Deloitte, Tata Consultancy Services, Microsoft, HCL Technologies, Oracle Corporation, Google, Qualcomm, Dell, Cognizant. 

  • Chennai

Chennai is the third-largest exporter of IT. TIDEL Park in Chennai was recognized as the largest IT park built in Asia. 

  • Pune

Rajiv Gandhi infotech park worth ₹600 billion is located in Pune.  

  • Delhi NCR

Cities like Gurgoan and Noida in Delhi have contributed to the techno industries of the world on a notable scale. 

Classification of Agro-Based Industries

Agro-based industries can be classified into two categories- first the food processing industries and second the nonfood processing industries. Food processing industries generally deal with the preservation of perishable products as well as the utilization of by-products for other purposes. Indias’ capital income and dependency are on agriculture. Thus its significance is also equally high. The economic statistics report of India states that about 18% of the GDP is coming from the agricultural sector. People from different shades of the country are depending on agriculture for their living. However, it is apparently visible that the share of the population working in this humble industry is decreasing day by day. So India is not very far from facing scarcity in case people are putting their efforts into cultivation and raw material production. 

For more information, visit the Vedantu website and grab your access to unlimited book sources for free. Vedantu learning platform provided the latest NCERT textbooks and solutions for the same. 

FAQs on Introduction to Industry

1. Write a short note about the agro-based industries into agro-production processing units in detail.

Agro-Produce Processing Units 

These units are not involved in manufacturing. They mainly deal with the preservation of perishable products and the utilization of by-products for other uses. For example- rice and Dal processing mills.

Agro-Produce Manufacturing Units

These units engage in the manufacturing of very new products where the finished goods are completely different from the used raw materials. For example- Sugar factories, solvent extraction units, and textile mills. 

Agro-Inputs Manufacturing Units

These units are engaged in the manufacturing of the products. These units are either for the mechanization of agriculture or increased agricultural productivity. For example- agricultural implements, seed, fertilizer, and pesticide manufacturing units.

Agro Service Centres

Agro service centres are the workshops and the service centres, which are engaged in repairings as well as in the servicing of the pump sets, diesel engines, tractors, and various types of farm equipment.

2. Write about the industries and their raw materials.  Also, write about industrial clusters and industrial systems.

Metal Industries

The metal industries process non-ferrous metals like aluminium, copper, and zinc, and ferrous materials like steel.

Non-Metallic Minerals Industry

Non-metallic mineral products deal with the production of cement, ceramics, glass, and lime. 

Forest-Based Industries

The forest-based industries consist of woodworking, furniture, pulp & paper manufacturing and converting, and printing.

Industrial Systems

Industrial systems are made up of input, processes, and output. The input of raw materials, labour, land, power, and other infrastructure and the process is the plan the manufacturer has of how to turn raw materials into finished products of value. And then finally, the output is the end of a product from which the income has been earned. 

Industrial Clusters

The industrial clusters occur when various industries are located close to each other and share the benefits of their closeness. Some of the major industrial clusters in India are given below:

  • Mumbai-Pune cluster

  • Bangalore-Tamil Nadu region

  • Hugli region

  • Ahmedabad-Baroda region

  • Chota Nagpur industrial belt

  • Vishakhapatnam-Guntur belt

  • Gurgaon-Delhi-Meerut region

  • Kollam-Thiruvananthapuram industrial cluster

3. What is the importance of agro-based industries in India?

Agro-based industry is important because:

  • It helps in the industrial production of goods

  • Facilitates the provision of labor to landless farmers, tribal communities and people from other sectors who are economically backward.

  • Guaranties a relief from poverty as it has daily never-ending daily works, there supporting the farmers to get a stable income 

  • It is easy to start and establish agro-based industries since this particular output never runs out of worth. 

  • Helps in avoiding wastage of products since it is either biodegradable or will break down in some way. 

4. Write a short note on the small scale industries of India.

The industries which do the manufacture, production, export, marketing etc on a small scale are called small scale industries. Small scale industries have a huge scope on developing countries as this also adds up in contributing to the upliftment of the country as a whole. In India, about 40%-55% of the shipped products are from small or middle scale industries. In accordance with the current trend, such communities use good quality raw material mostly and create high standard products. Since the industry is small, they can relatively accommodate sudden changes occurring in their respective industry. There will be intensive labor. But a disadvantage will be in the shortage of resource materials required for creating the products. Suppose in a moderate tailoring startup of a  woman, she may have plenty of orders and a sufficient number of workers too. But the stitching machines will be fewer.  

5. Write a short note on the large scale industries of India.

The industries which do the manufacture, production, export, marketing etc on a large scale are called large scale industries. Large scale industries require giant infrastructure and intense manpower to run the corporation without fail. India heavily relies on these industries mainly in order to sustain its economic growth and stability.  

Some of the advantages of large scale industries are:

  • Large scale industries do the production of capital and humble goods.

  • They are financially strong 

  • They are able to raise funds for research for the development and up-gradation of new technologies. 

  • They also give opportunities to small scale and minute industries to exist and flourish.