Monday, January 11, 2010

STRUCTURE OF INDUSTRY BY TYPE OF OUTPUT

STRUCTURE OF INDUSTRY BY TYPE OF OUTPUT

In India four broad categories emerge when classified by type of output :

** Basic Industries
** Capital Goods Industries
** Intermediate Goods Industries &
** Consumer Goods Industries

Incidentally, all four re part of th large-scale sector.

THE BASIC INDUSTRIES

The basic industries are those which provide essential inputs to all industries and agriculture. They are iron and steel, coal, chemicals, aluminium, fertilizers and electric power.



THE CAPITAL GOODS INDUSTRIES

The capital goods industries produce the machinery and equipments required for all industries and agriculture. Machine tools, engineering tools, electrical equipments and automobiles are the examples.



THE INTERMEDIATE GOODS INDUSTRY

The interemediate goods industries consist of those that produce goods which are used in the production process of other goods, rather than for final consumption. Petroleum products, tyre industry, plastic and plastic-based products form part of the indermediate goods industry.



THE CONSUMER GOODS INDUSTRY

The consumer goods industries produce goods for final consumption such as power products, cosmetics, bicycles, electronic goods like TVs, tape-recorders, textiles, watches and so on.

Sometimes basic goods are treated as intermediate goods; intermediate goods at times are also final consumption goods and the reverse may be equally true. However, the classification given above represents the industries by the type of output and followed by the government in India.

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