Answer: On the basis of the source of raw materials, industries are classified into agro-based, forest-based, mineral-based, animal-based (marine/pastoral) and industries based on industrial products.
- Agro-based industries: use agricultural products as raw materials, e.g. cotton textiles, sugar, jute, vegetable oil, food processing.
- Forest-based industries: use forest products, e.g. paper, furniture, lac, rubber, matchbox and plywood industries.
- Mineral-based industries: use minerals, e.g. iron and steel (iron ore), aluminium (bauxite), cement (limestone), petrochemicals (petroleum).
- Animal-based / marine-based industries: use animal or sea products, e.g. leather, woollen textiles, dairy, fish processing.
- Industries based on industrial products: use products of other industries as raw materials, e.g. automobile and machinery industries using steel, ready-made garments using cloth.
The nature of raw material (weight-losing, perishable) influences the location of these industries.
