On the basis of source of raw materials, industries are classified into four categories. They are :
(i) Agro-based Industries : The industries which use agriculture products as their raw material are called agro-based industries.
For example : food processing, vegetable oil, cotton textile, dairy products, leather, fruit pulp, juice, pickle and spices.
(ii) Mineral-based Industries : These industries are those industries, which get raw material from minerals like- Iron and steel and cement industries.
Iron made from iron ore is the product of mineral based industry. This is used as raw material for the manufacturing of a number of other products, such as heavy machinery, building materials and railway coaches.
(iii) Pastoral-based industries : These industries depend upon animals for their raw materials. Hides, skins, shoes, dairy products, etc. are some of the pastoral based industries.
(iv) Forest - based industries: The industries use forests as their raw material and arecalled forest-based industries. Paper, plywood, rayon, bamboo, resin, honey, coir industries, furniture, are some examples of forest based industries.