What is Industry?

Meaning
The production side of business activity is referred as industry. It is a business activity, which
is related to the raising, producing, processing or manufacturing of products.
The products are consumer's goods as well as producer's goods. Consumer goods are goods,
which are used finally by consumers. E.g. Food grains, textiles, cosmetics, VCR, etc. Producer's
goods are the goods used by manufacturers for producing some other goods. E.g. Machinery,
tools, equipments, etc.
Expansion of trade and commerce depends on industrial growth. It represents the supply side
of market.

Classification / Types of Industries

There are various types of industries. These are mentioned as follows: -

1. Primary Industry

Primary industry is concerned with production of goods with the help of nature. It is a nature-
oriented industry, which requires very little human effort. E.g. Agriculture, farming, forestry,
fishing, horticulture, etc.

2. Genetic Industry

Genetic industries are engaged in re-production and multiplication of certain spices of plants and
animals with the object of sale. The main aim is to earn profit from such sale. E.g. plant nurseries,
cattle rearing, poultry, cattle breeding, etc.

3. Extractive Industry Extractive

Extractive Industry Extractive industry is concerned with extraction or drawing out goods from
the soil, air or water. Generally, products of extractive industries come in raw form and they are
used by manufacturing and construction industries for producing finished products. E.g. mining
industry, coal mineral, oil industry, iron ore, extraction of timber and rubber from forests, etc.

4. Manufacturing Industry

Manufacturing industries are engaged in transforming raw material into finished product with the
help of machines and manpower. The finished goods can be either consumer goods or producer
goods. E.g. textiles, chemicals, sugar industry, paper industry, etc.

5. Construction Industry

Construction industries take up the work of construction of buildings, bridges, roads, dams,
canals, etc. This industry is different from all other types of industry because in case of other
industries goods can be produced at one place and sold at another place. But goods produced
and sold by constructive industry are erected at one place.
6. Service Industry

In modern times service sector plays an important role in the development of the nation and
therefore it is named as service industry. The main industries, which fall under this category,
include hotel industry, tourism industry, entertainment industry, etc.

Industrial development
The Industrial Revolution led to the development of factories for large-scale production, with
consequent changes in society. Originally the factories were steam-powered, but later
transitioned to electricity once an electrical grid was developed. The mechanized assembly line
was introduced to assemble parts in a repeatable fashion, with individual workers performing
specific steps during the process. This led to significant increases in efficiency, lowering the cost
of the end process. Later automation was increasingly used to replace human operators. This
process has accelerated with the development of the computer and the robot.

Industrial Development in India

A large number of industries have been established in the post-independence India in private,
public and joint sectors. There are a lot of industrial resources and raw materials available in India.
Bhilai, Bokaro, Rourkela, Ranchi, Jamshedpur, Renukoot, etc., emerged as major centers during
the first one and a half decades of independence.

However, later on, industrialization at medium and small scale was taken up in all the states. The
main sectors of industrialization today are electronics, transport and telecommunication.
Compared to advanced countries, there is very little industrialization in India. About 10 per cent
of the total workers are employed in the organized industrial sector. Both private and public
sectors have grown side by side since independence.

In 1948, it was decided to reserve right of control with the state over coal, steel, aviation,
petroleum industries, etc. All other industries were open to private enterprises. In 1956, a
resolution was passed under which private capital was allowed to enter into the reserved sectors
of industry. A number of top-ranking industrialists were members of the Central Advisory Council
and Development Council.

The state enterprises and public sector undertakings ran into heavy losses, and this put a question
mark on the capabilities of the Indian State and its approaches in managing its own establishment.
A debate started on private-public sector partnership and divide. The debated tilted in favor of
the private sector.

Many of the government enterprises were handed over to private entrepreneurs and
industrialists. Privatization has entered in a selected way in offices and transport sector, including
roads, railways and airways. Contractualism is the new slogan today.

Large-scale industries started in the first fifteen years of planning in India. Rate of industrial
growth was fluctuating between 2 to 12 per cent. However, we have observed a steady industrial
progress after 1967. The enduring factors which have contributed to the growth are vast natural
resources, economic surplus, large labour force, high urban concentration, concentration of
surplus within a small social group, availability of trained personnel, a stable political structure,
powerful means of state economic control, etc. Currently, the growth rate is around 8 per cent.
Today, India is one of the top developing countries compared to the countries of Africa and South
America.

However, production of luxury goods, control of monopolies, sluggish rate of agricultural

development, etc., have come as obstacles in industrial development. Despite these factors,
investments in private sector have been increasing.