What is Industry?

What is Industry?

Industries and sectors are often used interchangeably to describe a group that operates in the same economic sector or shares a similar business type.

The large-scale industry generally requires heavy capital investment in plants and machinery.

It serves a large and diverse market including other manufacturing industries, has a complex industrial organization and frequently a skilled specialized labor force, and generates a large output volume.

The industry mainly refers to those business activities related to the production/manufacturing or processing of products and services.

It completes the process of preparing raw materials or semifinished products.

Extraction of raw materials from mines, producing goods and commodities, planting crops, fish, and flowers, constructing buildings, dams, highways, and more.

These are examples of industrial activities.

The units involved in these activities are called industrial enterprises.

However, services such as banking, insurance, or transportation are all part of the tertiary industry in a broad sense.

Classification of Industries

The economy generally classifies industries into three main parts:

• Primary Industries,
• Secondary Industries, and
• Tertiary Industries.

Secondary industries are further divided into parts:

• heavy, and
• light,

First, let us get a general idea about the different Industries classifications and then look at the classification of Industries based upon the nature of the activity.

An industry is a classification of activities that refers to a group of companies related to their primary business activities.

Primary Industries

Although the primary industry dominates the economies in developing and undeveloped nations.

The share of their economic output tends to decrease as secondary or tertiary sectors are developed.

Primary industries refer to activities like extracting natural resources such as coal, oil, minerals and reproduction, growth, and maintenance of living organisms like animals and plants.

Primary industries can be described as both extractive and gene sectors, like ONGC company which extracts natural gas and oil from the earth.

These are just a few examples of extractive industries.

For example,

• We have farmers who plant crops and business organizations that extract raw materials from mines (coal mines, iron mines) — and getting materials from forests for further processing (e.g., natural honey, wood).
• Fishers that are extracting products from the sea or river (fish, shellfish, prawns, and other seafood).

You may have also seen apple gardens, chicken farms, and many more.

These industries are responsible for raising animals and birds and also growing plants for sale that are called genetic industries.

Genetic sectors are increasing in popularity, including agriculture ( growing crops, herbs ), arboriculture [ growing trees ], Dairy Farming ( farming chickens ), pisciculture ( breeding fishes ), and others.

Secondary Industries

Products from primary industries are often used as raw materials to create a variety of finished goods.

Production and construction are two of the activities of secondary companies.

Manufacturing industries involve the production of finished goods using natural materials or semifinished products.

For example, Nylon is used to make clothes, wood for furniture making, and bauxite to make alumina.

Construction industries are the industries that construct buildings, bridges and highways, dams, tunnels, and railroads, and canals.

They obtain products from other industries and then build various types of structures according to the needs of their customers.

Tertiary Industries

These industries produce or process different services, expediting the functioning of primary, secondary, and trade industries.

These industries’ service activities include:

Transport,

Banking, and

Insurance.

This category consists of the film industry, which produces films, and the tourism industry, which offers services to people such as expediting travel, booking tickets, and hotels rooms.

The following categories are maybe the subdivision Manufacturing industries:

Analytical Industries

You can create different types of goods by analyzing and grouping elements from the same product.

For example,

• Petroleum,
• Diesel,
• Kerosene, and
• Lubricant oils are all made from crude oil.

Synthetic Industries

Synthetic Industries gather different elements and manufacture a new product.

For example,

Soap is made by combining potassium carbonate and vegetable oil, and similarly, cement is made of limestone, coal, and other chemicals.

Processing Industries

Processing Industries are processing raw materials through various successive stages to make a final product.

For example,

• Paper,
• Textile, and
• Sugar.

Assembling Industries

Assembling Industries are those that assemble various manufactured products to create new products such as cars, scooters and bicycles, radios, and televisions.

Assembling Industries are those that assemble various manufactured products to create new products such as cars, scooters and bicycles, radios, and televisions.