Raw Material: Industries under this are agro-based, mineral-based marine-based, and forest-based. The industry is a system of production and distribution of goods and services through the private or public sector. It provides a way of life for hundreds of people, which includes manpower, management, raw materials, machinery, and capital.
Size of Industries: Industries can be classified as small, medium and large depending on the size of the unit. Size refers to the amount of capital invested, a number of people employed and the volume of production. Industries based on size are classified into small-scale and large-scale industries.
- Small Scale Industries: Small scale industries manufacture products by hand and include cottage and household industry. These industries use lesser amount of capital and technology. For example, Basket-weaving, pottery and other handicraft industries.
- Large Scale Industries: Large scale industries are most often associated with high capitalization, high technology, and heavily automated production. In addition to the characteristics of a large-scale industry just mentioned, there are several other factors that differentiate large from small industries. The investment of capital is higher and technology is superior. For example, production of automobiles and heavy machinery.
