Based on the source of raw material, industries are classified as follows:
Agro-based industries : The industries which use agricultural produce as raw material and process them into finished products are called agro-based industries. For example, fruit processing industries which produce jam, jelly, sherbet, fruit canning, etc., locate near fruit growing areas.
Mineral-based industries : These industries use minerals as raw material and after processing produce finished products. For example, petrochemical industries use mineral oil as raw material and produce petrol, diesel, lubricants, kerosene, paraffin wax etc.
Forest-based industries : These industries use forest products such as wood, tendu leaves, rubber, turpentine, grass, etc., as raw material and after processing produce finished products. For example, paper industries use wood and make paper, rubber industries use natural rubber to make rubber products, scented oil is made from various grass varieties.
Marine-based industries : These industries use marine resource as raw material and after processing produce finished products. For example, fish canning, fish oil making industries use fish as raw material. Other marine-based industries are industries producing decorative articles/ purses, by using sea shells as raw material or decorative articles of corals.
Pastoral-based industries: These industries use animal product such as milk, meat or body parts of animals such as bones, horns, wool, skin etc. For example, dairy industries use milk, woollen textile mills use wool, or leather industries use skin of animals as raw material.