Meaning
Industry refers to activities involved in conversion of raw material into useful products. It creates form utility to produce consumer goods for the direct consumption by the customers or capital goods used for the production of consumer goods.
Types of Industry
1. Primary Industry:
It is concerned with the extraction of natural resources and reproduction of living species. It is of two types:
(a) Extractive Industry:
It involves extraction of something from natural resources.
(b) Genetic Industry:
It involves rearing and breeding of living organisms.
2. Secondary Industry:
It uses raw materials extracted and produced by primary industry to produce finished goods. It is of two types:
(a) Manufacturing industry:
It is concerned with creating form utility by converting raw materials or semi finished goods into finished goods. These goods can be consumer goods or capital goods. Consumer goods are those that are purchased by consumers for direct consumption. Capital goods are those that are produced for the further production of consumer goods.
Manufacturing industry is of four types:
1. Analytical Industry:
In this case one basic raw material is processed to produce many finished products.
2. Synthetic Industry:
In this case many raw materials are mixed and processed together to produce a single finished product.
3. Processing Industry:
In this case the raw material is processed through various stages to finally produce a finished product.
4. Assembly Industry:
In this case many finished products are combined together to make a new finished product.
(b) Construction Industry:
This industry is concerned with the construction of bridges, dams, roads, buildings etc. and cannot be shifted physically from place to another.
3. Tertiary/Service Industry:
It is concerned with providing services which facilitate a smooth flow of goods and services form producer to the consumer thus support to primary and secondary industries.
Tertiary Industry can be:
(a) Transport:
Movement of goods from one place to another.
(b) Banking:
Provides financial assistance to the business enterprise.
(c) Insurance:
It covers protection against various types of risks.
(d) Warehousing:
Storage facility for the raw material and finished goods.
(e) Advertising:
Provides information to actual and potential consumers about the product and other necessary particulars.