Different Types of Industries: Meaning, Classification and Differences

Different types of industries form the backbone of a country's economy. They share an interdependent relationship - while a country's economy depends on the industry's performance, industries are equally dependent on a country's economy.

Goods and services are primarily produced or manufactured by three different kinds of industries - primary, secondary and tertiary. You will learn about these industries in detail and how they differ from one another in the following article.

As the name suggests, primary industry forms the base for the other two types of industries. This industry is concerned about extracting raw materials and products from nature which will later go through modifications to produce the final products and services for consumers or customers. It is the most important segmentation in the industry ladder as without this, others would not exist. 

Primary industry is heavily dependent on natural resources and raw materials. This is of more significance in developing countries than in developed countries. Agricultural, mining, fishing, etc. are all parts of the primary industry.

Workers, who are also known as "red-collar workers", form the backbone of the primary industry. This industry wholly depends on farmers, fishermen, hunters and miners.

As per the latest studies, around 48.9% of the workforce is employed in the primary sector. As India is a developing country, its dependence on the primary sector is higher than the other two sectors. Around 43% of the workforce is men, and 62.8% are women.

Depending upon resources and materials, the primary industry can be classified into the following sectors: 

• Agriculture 

Agriculture makes up most of the primary industry. Farmers are the pillar of this sector. Based on the goods produced, this sector is further divided into four more categories – food, textiles, raw materials and fuel. 

• Aquaculture  

The fishing industry consists of a widespread business involving various tasks such as selling, shipping, marketing, preserving and processing fish products. Fishery is the world's fastest-growing food-producing industry, and it is predicted to grow byA. It also provides for almost half of the world’s edible seafood products. 

• Forestry 

Forest holds abundant resources and supplies raw materials for various purposes. It contributes significantly to the national economy as well as global economy. From a very small necessity such as rubber to large household necessities such as wood for furniture, the forest industry is an important aspect of everyone's life.  

• Mining 

This sector of the primary industry digs deeper than the soil. Its activities include extraction of raw materials from beneath the surface. Oil, minerals, gemstones, metal etc., are derived through the process of mining.

Secondary industry is built on the raw materials and products accumulated through the primary industry. Manufacturing and construction are two main parts of this industry. This industry is mostly responsible for making our everyday life easier. It utilises a lot of energy as heavy machinery and tools are used. 

However, this industry also impacts the environment heavily because of the waste produced from these industries.

In India, about 50-60% of the population is employed in the primary sector.

.The secondary industry has the following segmentations depending on factories and materials:  

• Manufacturing

Various types of manufacturing industries come under this classification, such as automobiles, aircraft, electronics and housewares. 

• Construction

Construction industry includes building, renovating and repairing buildings and structures.  

• Consumer products

This is one of the primary sub-sections of the secondary industry. From food items to office supplies, this category has the widest range of goods and products available. 

• Art, Craft & Fashion 

Footwear, clothes and handicraft items also come under secondary industry. This sector procures the raw materials from the primary industry and manufactures products for the end consumers.

Tertiary industry is the service-oriented sector among the three types of industries. It can be said that the goods produced in the previous two sectors are utilised in this sector to provide services. The total percentage of workers in this sector is about 26.8% 

Tertiary industry maximises productivity and potential by combining expertise, knowledge and services with the tools and products produced through primary and secondary industries. 

The tertiary industry mostly consists of administrative services, transport, real estate activities, personal services, health, education and social work