What is an industry? Classify industry based on output.

Explanation

An industry is a geographically located manufacturing unit maintaining books of accounts and, records under a management system. As the term industry is comprehensive, it is also used as synonymous with manufacturing When one uses terms like .steel industry. and chemical industry. one thinks of factories and processes. Based on output there are two types of industries:
(1) Basic industries: The industry whose products are used to make other goods by using them as raw materials are basic industries. Eg. Iron and steel industry for making machineries for textile industries to make clothes.
(ii) Consumer goods industries: The consumer goods industries produced goods which are consumed by consumers directly. Example, industries producing breads and biscuits, tea, soaps and toiletries, paper for writing, televisions, etc. are consumer goods or non-basic industries.