Question

What is meant by the term industry?

Answer 1

Hint: Industrial development is considered as one of the key indicators of socioeconomic and human development. In India, modern industries were established during the colonial rule in the 1850s when some cotton and jute mills were set up. Before this, India was known for small scale cottage industries that used traditional equipment and manual labour to produce mainly fabric like muslin and silk and pottery. After independence, the industrial sector has expanded substantially because of foreign direct investment and liberalisation and privatisation policies.

Complete Answer:Any economic activity that is concerned with the production of goods, extraction of minerals or the provision of services can be classified as an industry. Also called manufacturing, it is categorised as the secondary sector as it changes raw materials into products for use (the first being agriculture which produces said raw materials). Types of industries can be based on several factors like raw materials, size and ownership. Based on raw materials, industries can be agro-based if the raw materials are produced from agricultural activities, mineral-based if the raw materials are mineral ores, marine-based if the raw materials are products of or related to the sea or ocean and forest-based if the raw materials are obtained from forests. Based on the size, industries can be on a spectrum from small-scaled to large-scaled. Based on ownership, industries can be private sector or owned by private individuals or firms, public-sector or owned by the government and joint sector or owned by both such groups.

Note: The Industrial sector accounts for 26% of the GDP in India and employs 22% of the total workforce. The major industries that contribute to the total manufacturing are iron and steel, textiles, food processing, electricity, engineering, petroleum and oil, pharmaceuticals and information technology.