Classify industries on the basis of source of raw material. How are they different from each other? (CBSE 2016)

1. Industries can be classified into Agro Based Industries and Mineral Based Industries on the basis of raw material.

2. Agro Based Industries have their base in agricultural raw materials. These include cotton, woollen, jute, silk, textile, rubber, sugar, tea, coffee, edible oil etc.

3. Mineral Based Industries have their base in minerals and metals as raw materials. These include iron and steel, cement, aluminium, machine tools, petrochemicals etc.

NOTE – In order to better understand the role and manufacturing levels of various industries, they are classified according to certain criteria’s. For example – industries are classified on the basis of raw material – small scale industry or large scale industry, on the basis of ownership – public sector, private sector or joint sector etc.