World of Industries

STRUCTURE OF INDUSTRY

The Industrial structure can be classified on the basis of

(a) Type of ownership
(b) Size of investment &
(c) Type of output



STRUCTURE OF INDUSTRY BY TYPE OF OWNERSHIP

When classified according to ownership, Indian industry can be divided into three sectors, namely :

** the public sector
** the private sector &
** the foreign sector


THE PUBLIC SECTOR

There are rural inhabitants who do not derive their livelihood from agricultural activities and similarly there are also urban-dwellers whose source of income may be from agriculture or allied activities. There are workers both in agriculture and industry whose employment pattern and wage level do not follow a definite pattern. Similarly, house-hold based manufacturing activity ans small scale and tiny sector of industry are referred to as the unorganized sector or public sector
of the economy. The handicrafts, artisan professions, khadi and village industries, such as handloom sector, beedi making, agarbatti making, hand paper manufacture etc., can be located in the unorganised sector or public sector of the Indian economy.


THE PRIVATE SECTOR

The organized sector or the public sector of the economy refers to large scale Industrial units and agricultural units with a defined pattern of production and employment. In India a substantial proportion of labour force and output is located in the organized sector or public sector of the economy. Industries such as, Automobiles, chemicals, machine tools, engineering goods, textiles, electronics like TV manufacturing and Computers can be located in the organised or private sector of the Indian economy.



FOREIGN SECTOR

Foreign sector of industry is defined on the basis of shareholding pattern of assets and capital within a firm. The pattern of shareholding within a firm is known as equity. According to Foreign Exchange Regulation Act (FERA) of 1970 any company which allows foreign nationals to participate in its equity holding above 40 per cent of the total equity then that firm is treated as belonging to foreign sector. Foreign Sector is considered important in Indian industry since foreign exchange reserves in India is one of the scarce resources.