(i) On the basis of sources of raw material industries are classified as: (a) Agro Based Industries (b) Mineral Based Industries. On the basis of source of raw materials used industries are classified into: (i) Agro-based industries: These industries are based on agricultural raw material, e.g., cotton, jute, silk, rubber, sugar, tea, coffee and edible oils. (ii) Mineral-based industries: Industries that use minerals and metals as raw materials are called mineral based industries, e.g., iron and steel, cement, aluminium, machine tools, petrochemicals, etc.