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Q.Which of the following industries produce raw material for other industries ? (A) Small scale industries (B) Basic or key industries (C) Household industries (D) Joint sector industries

CBSECBSE Class XII Board 2023MCQ· 1mImportance★★★★★
✓ Free question

Basic or key industries produce raw materials and essential inputs that feed into other industries, forming the foundation of industrial production.

Industries can be classified in many ways, and one important distinction rests on what they produce and for whom. Some industries make finished goods that reach consumers directly—clothes, furniture, packaged food. Others exist primarily to supply the building blocks that other industries need to function. This second category is what we call basic or key industries.

Basic industries manufacture raw materials, semi-finished goods, and essential inputs that become the feedstock for downstream manufacturing. Think of steel mills, cement plants, petrochemical complexes, and coal mines. A steel plant doesn't sell its output to households; it supplies construction companies, automobile manufacturers, machinery makers, and shipbuilders. Similarly, a petrochemical unit produces polymers and chemicals that the plastics industry, pharmaceutical companies, and textile manufacturers depend upon. Without these foundational industries, the entire industrial chain would collapse.

The term "key" reflects their strategic importance. Because so many other industries rely on their output, basic industries occupy a critical position in economic planning. Governments often prioritize their development, sometimes taking direct control or offering heavy subsidies, because a shortage of steel or power or cement creates bottlenecks across the economy.

Now consider the other options. Small-scale industries are defined by investment limits and employment size, not by what they produce—they can make anything from toys to machine parts. Household industries operate from homes with family labor, typically producing handicrafts or food items for local sale. Joint sector industries refer to ownership structure (government and private capital together), again saying nothing about whether they supply raw materials or finished goods.

Important

Basic industries are called "basic" because they form the base of the industrial pyramid—their products are inputs, not final consumption goods.

✓Final answer

In short, basic or key industries (B) produce raw materials and intermediate goods that other industries use as inputs, making them the foundation of industrial production. The answer is (B).

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