Posted on

Types of Industry

Before we discuss types of industry, first of all, we must find out the basic difference between a firm and industry.

Firm
A firm is a business unit formed for the purpose of carrying out economic activities. Examples are sole proprietorship, partnership, private or public limited liability company.

Industry
An industry is a group of firms producing a single good or similar economic goods. Examples are textile industry, plastic industry, etc.

a. Manufacturing Industry:
These are industries concerned with the conversion of materials into finished products by mechanical or chemical means. Manufacturing industries include beverages, textile, leather, cement, vehicles, irons and steel, etc. The relative importance attached to these industries at home is very small. This is because most of the raw materials like manpower and capital goods are imported.

b. Construction Industries:
These are industries that deal with the conversion or assembling of component parts or raw materials into finished goods. This industry include dams, roads, bridges, airports, seaports, etc.

c. Extractive or Mining Industry:
These are industries which deal with taking out raw materials from the land or soil. The industry consists of firms which extract petroleum, coal, tin, gold, iron, diamonds, etc.

READ MORE