On the basis of ownership, industries can be classified into the following sectors: (a) Private sector, (b) Public sector or state-owned, (c) Joint sector, (d) Cooperative sector.
Private Sector Industries:
Private sector includes privately owned business enterprises. Public sector or state owned enterprises comprise government owned organizations.
The joint sector comprises of industries which are jointly owned by government and private sectors like banks, insurance companies etc. Cooperative sector is the one in which all the business organizations are owned by their employees.
Private sector industries are owned and operated by individuals or a group of individuals. For example, Bharat Heavy Electrical Ltd., Indian Oil Cooperation.
Public sector or state owned Industries
Public sector industries are owned and operated by the government. For example, Hindustan Aeronautics Limited and Steel Authority of India Limited.
In the last decade, the Indian government has been actively fostering public-private partnership in various industries to put an end to its notorious red tape syndrome.
Joint Sector Industries
Joint sector industries are owned and operated by the state and individuals or a group of individuals. For example: Maruti Udyog Limited.
State enterprises are government-owned companies that are not able to be categorized as state-controlled or state-run. They are not controlled by the government even though they are owned by the government.
The parent ministry which oversees this enterprise is listed as the owner of the enterprise. These enterprises are said to be set up due to reasons like government intervention in market failures or lack of availability of private investment capital.
Cooperative Sector Industries
These industries are owned and operated by the producers or suppliers of raw materials, workers or both. For example: Anand Milk Union Limited and Sudha Dairy.
Cooperative sector industries have always been an integral part of the Indian economy. The cooperative sector had its origin in the rural areas where it was promoted by different organisations.
Cooperative movement was extremely popular with the primitive tribal societies, but it took long time to take root in the country due to Islamic influence on Indian society.
