Classify industries on the basis of their size and ownership.

On the basis of size

1. Cottage industries — The cottage industries utilize local raw materials and basic tools and equipment. These industries are mostly found in rural areas. The products are mainly for sale in the local markets. Labour is supplied by the members of the family. Farmers or craftsmen in their free time make goods such as ropes, baskets and handloom cloth.
2. Small-scale industries — They use power-driven machines. Raw materials are obtained from outside and goods are sold through traders. They are generally owned by an individual and employ less number of labourers. They produce cloth, paper goods, toys, furniture, machine parts, electrical goods, utensils and leather goods.
3. Large-scale industries — They use heavy power-driven machines, huge capital investment, thousands of labourers and a complex management system. They bring in raw materials from far-off places and send the finished products to distant markets. Iron and steel mills, textile mills, transport equipment and petrochemicals are examples of large-scale industries.

On the basis of ownership

1. Private sector industries — They are owned and managed by an individual or a group of individuals. Reliance Industries Limited, Tata Steel and Hindustan Motors are private sector industries.
2. Public sector industries — They are owned and managed by the central or state governments or their agencies. Bhilai Steel Plant and Bharat Heavy Electricals Limited are examples of public sector industries.
3. Joint sector industries — They are owned and managed jointly by private firms and government agencies. Gujarat Alkalies and Chemicals Limited, Punjab National Bank and Oil India Limited are joint sector industries.
4. Cooperative sector industries — They are owned and managed by a group of people. Generally the members are the producers of raw materials. Examples of such industries are handloom, food processing and dairy products.
5. Multinational corporations — They are set up in collaboration with foreign investors. They are owned and managed by members of two or more countries. For example, Maruti Suzuki India Limited.