What is meant by Industries?

Businesses can range from sole proprietor enterprise to big corporation that employs thousands of workers across multiple countries. Depending on the scale of business, organizations can be classified as micro-enterprises, small-scale enterprises, large-scale industries, public enterprises, and multinational corporations.

There are a number of business organizations that form industries depending on their products, forms of manpower, capital requirements, etc. Therefore, there are small-scale industries, medium-range industries, large-scale industries, and multinational corporations available as forms of business worldwide.

Industries are referred to as part of the economy that helps in the production, processing, and modification of commodities to offer new goods or better commodities. The most common industries available are the steel and iron industries, cement industries, chemical, and fertilizers industries, petroleum industries, and textile industries, etc. There are also some industries that provide services. The insurance industry is a good example of a service-based industry.

Industries are classified on the basis of various parameters such as ownership, final product, size or capital invested, infrastructure, etc. Usually, any business unit that is started with capital grows over time. When the units get complimentary conditions, such as a good infrastructure to take the produced items to a nearby market, it tends to grow heavily. In such circumstances, industries grow in leaps and bound and become large-scale industries.

Traditionally, industries dealing with heavy items, such as steel and iron, and aircraft manufacturers have been considered heavy industries. However, in modern times, not-so-heavy companies, such as electronic semiconductor companies have been considered within large-scale businesses due to their sheer production needs and requirement of manpower.

Large-scale companies are usually highly organized. They require heavy manpower for smooth running and are usually incomparable to small-scale companies in terms of production capabilities. They also provide more secure employment and are more organized than small-scale ones. As large-scale companies are huge companies, they contribute to a large share of the GDP of a company. Simply put, large-scale companies are the lifeblood of an economy.

What is a Large-Scale Industry?

As the name suggests, the large-scale industry refers to an industry that has an operation requiring heavy or bulk needs in each step. Large-scale industries, therefore, have huge manpower, and larger infrastructure and they need more raw materials, a larger influx of capital, a larger executive body, etc. for their operation. Large-scale industries may mean both heavy and light industries. Moreover, manufacturing industries, such as steel and textile, and automobile manufacturing falls under large-scale companies. On the other hand, the booming IT industry in India is also considered to be part of large-scale industries.

Large-scale industries usually generate millions of jobs for the economies and they have a considerable contribution to the GDP. As large-scale industries also produce numerous items that are exported to foreign nations. Therefore, large-scale industries are helpful for the growth of the economy of the nation where they operate.

Large Scale Industries in India

Large-scale industries in India can be categorized into the following types of industries:

• Iron and Steel Industry
• Automobile Industry
• Textile Industry
• Fertiliser Industry
• Petroleum and Natural Gas Industry
• Information Technology Industry
• Silk Industry
• Telecommunication Industry
• Paper Industry
• Jute Industry
• Cement Industry

Advantages of Large-Scale Industries

Large-scale industries offer the following advantages:

• Large-scale industries resort to the latest machinery and technology for the production of goods. This helps in improving production. Due to large-scale production, the companies benefit in terms of profitability. It is beneficial for the economy as a whole too.
• Large-scale industries play a key role n the development of industries in the economy. This is essential for industrialization which is a driving force for the growth of an economy in modern times.
• Large-scale industries are dependent on skilled workers. So, the development of large-scale industries helps in the introduction and development of a skilled workforce in the country.
• Large-scale industries need large amounts of raw materials, which opens up employment and other opportunities in the related sectors.
• As large-scale industries are engaged in large-scale production, it helps to reduce the cost of goods and services as these are produced in bulk. Therefore, due to the presence of large-scale companies, we can enjoy less costly products.
• Large-scale industries also help in the growth and development of small-scale industries. Some items or requirements of large-scale companies can be produced only by small-scale firms, thereby, opening more opportunities for industrial and economic growth.

  Hence, small-scale industries produce ancillary products and therefore can thrive on the growth of large-scale industries.

• Large-scale industries can spend the money required for valuable research and development of new products. Some of these products are highly valuable to humanity. For example, the medical industry can take up valuable research that can be useful for the future of the company as well as general human needs. Large-scale companies have a high influx of capital, which is helpful for costly research.
• Large-scale industries also help improve the quality of life of their employees by offering them adequate remuneration and other benefits.

Important notes about Large-Scale Companies

• Large-scale industries refer to industries that have a huge infrastructure, high raw materials, high manpower requirements, and large capital requirements.
• Organizations having a fixed asset of more than 10 crore rupees are considered to be large-scale companies in India.
• The growth of an economy is very much dependent on large-scale industries. Large-scale industries bring in foreign reserves, generate employment opportunities and pave the way for economic growth.

It is notable that large-scale industries are either manufacturing units or those which utilize both indigenous and imported technologies. Here are some common examples of large-scale industries:

Fertilizer, Natural gas, Cement, Coal, Metal processing, Metal extraction, Petrochemical, Petroleum, Mining, Electrical, Food processing units, Banking, Sugar, Tourism, Automobile, Construction, Communication equipment, Vehicle assembly, Chemicals, Earthmovers, Consumer durables (like TV, refrigerators, etc.), Engineering products, Beverages, Agricultural processing, Insurance, and Finance.

Conclusion

Large-scale companies are the lifeblood of the economies where they operate. As they offer enough employment and better remuneration, they are considered helpful in offering support to local economies. This quality of large-scale industries makes the economy more self-dependent as well as more development friendly.

All economies in the world want to have maximum large-scale companies in the modern day. Although there may be some disadvantages like pollution and unequal distribution of wealth associated with large-scale industries, they are better in nature overall. Therefore, large-scale companies must be developed with the purview of better economic results in societies.

FAQs

Q1. Illustrate two advantages of large-scale companies.

Ans. 1. Large-scale industries resort to the latest machinery and technology for the production of goods. This helps in improving production. Due to large-scale production, the companies benefit in terms of profitability. It is beneficial for the economy as a whole too.

2. Large-scale industries play a key role and the development of industries in the economy. This is essential for industrialization which is a driving force for the growth of an economy in modern times.

Q2. What is meant by large-scale companies?

Ans. As the name suggests, the large-scale industry refers to the industry made up of firms that have heavy or bulk requirements in every field of their operation. Therefore, large-scale industries are formed of companies that need huge manpower, larger infrastructure, more raw materials, a larger influx of capital, a larger executive body, etc.

Q3. To be considered a large-scale company in India, how much fixed asset amount must be there in organizations?

Ans. Organizations having a fixed asset of more than 10 crore rupees are considered to be large-scale companies in India.