Meaning of Industry
The industry refers to the production of finished goods from raw materials. It denotes the production activities of the business. The goods produced in the industry are both producers good and consumers good. The activities performed in industries require both technical and mechanical skills.
A group of firms which produce the same goods and services are termed as an industry. The industry is a business which involves processing, raising, and producing goods. It leads to the formation of utility by creating consumer goods ready for direct consumption. Growth of industrial sector is important for the development of the country. Industries are the one responsible for the commerce and trade of the country.
These have an efficient role in earning foreign exchange for the country. An industry denotes the market’s supply side. All industries are dependent on each other and affect each other’s functioning. The finished good of one industry becomes the raw material for another one. For example, there are 2 industries: First one producing automobile spare parts and the second one producing cars, so the product of the first one becomes the raw material for the second one.
Types of Industry
It is one which uses natural resources as their raw materials. These industries depend upon nature for caring out of their activities. These take out the raw materials from the earth’s surface. They are found in areas where these natural resources are easily found. Breeding and Reproduction of species come under the primary industry. These industries require little effort and don’t require any processing stage. These are divided into two Extractive industry & Genetic industry. The extractive industry is one which acquires natural resources. The genetic industry is one which aims at the breeding of species.
These industries depend on the primary industry for their activities. They use the goods produces by the primary industry as their raw material. These industries create form utility by producing consumer-ready products. It involves the conversion of raw material into finished good using manpower and machines. Secondary industries are of 2 types: Manufacturing and assembling industry.
These industries are termed as aids to trade as they help in trade. This industry provides service facilities to other industries. Primary & secondary industry depends on these industries for their role. They do not produce any goods like primary and secondary industry. Examples of tertiary industry: transport, insurance & banking industry.