Only the student can decide. It seems a little surprising that a student hasn't already figured this out by the time of reaching doctoral level. But, on the presumption they haven't, they could potentially take an opportunistic approach and apply for positions in both the academy and industry and then select from the best options that arise.

I've had my students go both ways. My litmus test is related to whether the student is truly excited doing research rather than merely checking the thesis box to get a degree. If they are not excited about the research enterprise, finding real satisfaction in the product of their work, then I advise they look at industry. The financial rewards of each choice are also important. If the student seems focused on salary, then again I advise industry. Lastly, I evaluate their ability to communicate their research results through publications. If the student had trouble writing their thesis and other products like conference/journal papers, then I make that fact plain and ask them to assess their ability/desire to become a world-class writer not just a good researcher. In the final analysis, I try to get them to visualize what will make them truly happy and try that first.

Thanks for the interesting reply.

You are welcome

Academia and industry are not separated. They are necessary for each other. Just for a moment, can you imagine academia without industry or industry without academia? But there is a point. The interest of people is different. Everyone should play his/her role in the development of academia or industry (science or technology) according to his/her interest. Therefore, when my students ask me which is better, academia or industry? I answer: It depends on you and your interest. If you do what you love, success will follow you.