Introduction to Industry

Introduction to Industry

Introduction to Industry

Have you ever wondered about the origin of your smartphone? You may have purchased it from a shop, but before that, the shopkeeper purchased it from a distributor who in turn bought it from the manufacturer. The manufacturer used raw materials to produce your smartphone, making them the origin of your device. A group of organizations involved in producing and handling the same type of product and service is known as an industry.

Industry: An Introduction

Industries are part of the secondary activity, which converts raw materials into products of more valuable things to people. The industry refers to economic activities that involve the production of goods, extraction of services, and provision of services. In summary, industries are concerned with:

• Production of good (steel energy)
• Extraction of minerals (coal mining)
• Provision for services (tourism)

Classification of Industries

Introduction to Industry

1-Raw material

• Agro-based industries: These industries rely on plant and animal-derived raw materials including food processing, vegetable oil production, cotton textile manufacturing, dairy product production, and leatherworking.
• Mineral based industries: Mineral-based industries obtain their raw materials through mining and supply other industries with materials for heavy machinery and building construction.
• Marine-based industries: Marine-based industries obtain their materials from the sea or ocean, such as fish oil.
• Forest-based industries: Lastly, forest-based industries procure their raw materials from the forest, such as wood, and include paper manufacturing, pharmaceuticals, and furniture production.

2-Size

Industries are evaluated based on the amount of invested capital, the number of employees, and the number of goods produced.

Small-scale industries typically require minimal capital and rely on manual labor.

Examples include basket weaving, pottery, and handicrafts. Conversely, large-scale industries require significant investment and employ advanced technology. Examples of large-scale industries are automobiles and heavy machinery.

3-Ownership

• Private sector: The private sector encompasses businesses that are owned and managed by individuals or groups of individuals.
• Public sector: Public sector industries are owned and operated by the government. An example of a public sector industry is Hindustan Aeronautics Limited (HAL).
• Joint sector industries: Joint sector industries, on the other hand, are run together by the state and private individuals, such as Maruti Udyog.
• Cooperative sector industries: Lastly, cooperative sector industries are operated by producers, suppliers, or workers of raw materials. A well-known example of a cooperative industry is Amul India.

Industrial Systems

Input, processes, and output comprise industrial systems. Input includes raw materials, labor, land, power, and infrastructure, while processes refer to the manufacturer’s plan to transform raw materials into valuable finished products. Finally, output denotes the end product that generates revenue.

Industrial Clusters

Industrial clusters emerge when many industries locate close to one another and share the benefits of their proximity.

Distribution of Major Industries

Introduction to Industry

Industries are classified according to raw materials, size, and ownership.

The iron and steel industry and textile industry are among the oldest world industries that played a significant role in industrialization. Information technology is a newfound industry.

Iron and steel industries have a strong presence in countries such as Germany, the USA, China, Japan, and Russia, whereas the textile industry flourishes in India, Hong Kong, and South Korea.

Information technology, on the other hand, has been concentrated in Silicon Valley in California and Bangalore in India.

• Iron and Steel Industry

The iron and steel industries are renowned for supplying other industries with their necessary materials.

These industries provide raw materials that are utilized in the production processes of a wide range of other industries. Their system involves various inputs, processes, and outputs.

The primary inputs consist of materials like iron ore, capital, labor, and infrastructure. Iron ores are then transformed into steel through different procedures such as refining and smelting. The final output of a such industry is steel.

As the basic material essential in almost every industry, steel and iron can be considered the backbone of modern industry. The iron and steel industries in developing countries like India have utilized the benefits of cheap labor, raw materials, and a ready market.

• Textile Industry

Fabric textile is made by weaving fibers. The fibers used to make the fabric is sourced from raw materials such as cotton or wool which are processed through spinning to create a yarn that can be woven into the fabric.

Fibers can either be natural, like cotton, jute, linen, wool, and silk, or man-made like nylon, rayon, and polyester.

People have been using fabric since ancient times, and the textile industry is one of the oldest in the world.

Before the industrial revolution, the textile industry used wheels and looms to weave fibers. However, with the introduction of power looms in Britain during the revolution, the industry expanded rapidly.

• Information Technology

The storage, processing, and distribution of data are the core aspects of information technology. Over the last decade, this field has gained worldwide recognition owing to a set of political, technological, and socioeconomic developments.