8.1 What is an industry?

INDUSTRY : WHAT DOES IT MEANS AFTERALL?

You know that we generally use terms like manufacturing industry, automobile industry, IT industry etc. So industry refers to a group of companies which are engaged in producing the same or similar product(s) or service(s) representing the primary sector (agriculture, fishing, forestry etc), secondary sector (manufacturing and construction etc), tertiary sector (service industry) and the foreign sector.

For example, all the companies in India like Tata Motors, Maruti, Mahindra & Mahindra, Hindustan Motors etc that are producing cars, trucks, tractors and other automobile products are clubbed together to represent the automobile
industry because they have common elements of demand, supply, competition and regulation. These companies (industry) need not be located in the same place.

Types Of Industries Or Sectors:

Industry can be broadly classified under the heads of manufacturing, services and trading and some examples of such grouping are: