Manufacturing Industries

Learning Outcomes:

1. Understand the classification and types of industries.
2. Recognize the significance of location in industrial setups.
3. Identify the major industries in India and their geographical distribution.
4. Comprehend the role of raw materials, power, and markets in industrial development.
5. Analyze the impact of liberalization, privatization, and globalization on industries.

Types of Industries

Industries produce essential items such as clothes, books, cars, and medicines. They also significantly contribute to national wealth and employment. Industries are classified based on size, ownership, and raw material used:

1. Size: Industries are classified into large, medium, small scale, and cottage industries.
2. Ownership: Industries are divided into public, private, and joint or cooperative sectors. Public sector industries are government-controlled, while private ones are managed by individuals or corporations. Joint ventures involve both sectors.
3. Product Use: The classification includes basic goods, capital goods, intermediate goods, and consumer goods industries.
4. Raw Material: Agricultural, forest-based, mineral-based, and industrially processed raw material industries exist.

Market and Location of Industries

Market availability plays a key role in the location of industries. For instance, industries such as petroleum refineries and cotton textiles are often located near markets. Transport links also influence industrial locations, with railways, ports, and roads acting as vital connections. Labour availability is crucial, as industries rely on a skilled workforce. The historical significance of cities like Mumbai and Kolkata can be traced back to their roles during colonization.

Important Note: Colonialism significantly shaped the industrial landscape in India, focusing on key port cities for manufacturing and trade.

Factors Influencing Location of Industries

The primary factors are:

1. Raw Materials: Industries using weight-losing materials, like iron and steel, are near raw material sources to reduce costs. Sugar mills, for example, are near cane-growing areas.
2. Power: Industries like aluminium require vast amounts of power, which is why they are located near power sources.
3. Transport Costs: The cost of moving raw materials and finished goods influences the location, especially for weight-losing materials.

Major Industries in India

Iron and Steel Industry

The iron and steel industry is vital for industrial development. It supplies the foundation for tools, infrastructure, and machinery. Located in regions rich in iron ore and coking coal, such as Chhattisgarh and Jharkhand, it ensures easy access to raw materials.

1. TISCO (Tata Iron and Steel): Located near the Mumbai-Kolkata railway line, it sources iron ore from Noamundi and coal from Jharia.
2. IISCO (Indian Iron and Steel Company): Located near the Damodar Valley coalfields, it depends on water from the Barakar River.
3. VISL (Visvesvaraiya Iron and Steel Works): Produces specialized steel and alloys, utilizing hydroelectric power from Jog Falls.

Post-independence, public sector plants like Rourkela, Bhilai, and Durgapur were established under foreign collaboration. Steel Authority of India Limited (SAIL) manages most of these plants today.

Cotton Textile Industry

India’s cotton textile industry has a long tradition dating back to cottage industries that produced muslin and fine cotton. Modernization began with the establishment of mills in Mumbai in 1854, due to its proximity to cotton-growing areas. Cotton is a “pure” raw material, meaning its weight remains the same through production. Thus, the industry has expanded in regions such as Maharashtra, Tamil Nadu, and Gujarat.

1. Decentralized Sector: Includes handlooms and power looms.
2. Organized Sector: Produces yarn and cloth, with major centers in Coimbatore, Madurai, Bengaluru, and Kolkata.

Sugar Industry

India’s sugar industry is the second-largest agro-based industry. Sugar mills are primarily located in the cane-growing regions of Uttar Pradesh and Maharashtra due to the weight-losing nature of sugarcane.

1. Uttar Pradesh: Sugar factories are concentrated in the Ganga-Yamuna doab and Tarai regions.
2. Maharashtra: Produces over one-third of India’s sugar, with mills in regions like Satara and Sangli.
3. Other States: Tamil Nadu, Karnataka, Andhra Pradesh, and Gujarat also contribute to sugar production.

Petrochemical Industry

Petrochemical industries are growing rapidly, producing items like polymers, synthetic fibers, and plastics. These industries rely heavily on crude oil, with production centers in Mumbai, Gujarat, and Andhra Pradesh.

1. IPCL: Indian Petrochemical Corporation Limited produces a range of petrochemical products.
2. PCL: Produces polyester filament yarn and nylon chips.
3. CIPET: Trains professionals for the petrochemical industry.

Polymers, such as polyethylene, form the basis of plastic products due to their durability, flexibility, and low cost.

Important Note: Plastics, although vital for industries, pose environmental challenges due to their non-biodegradable nature.

Information Technology (IT) Industry

The IT sector has revolutionized India’s economy, contributing to both software development and employment generation. Several software parks have been established, offering global companies access to India’s skilled workforce.

Liberalization, Privatization, and Globalization (LPG)

The 1991 Industrial Policy opened doors for foreign investment and modernized India’s economy. Key reforms included:

1. Abolition of Industrial Licensing: Most industries are free from licensing restrictions.
2. Foreign Direct Investment (FDI): Encourages technological upgrades and global managerial practices.
3. Privatization: Reduced public sector involvement in industries like atomic energy and railways.
4. Globalization: Integrated India’s economy with global markets, increasing competition and innovation.

Industrial Regions in India

Industries are concentrated in specific regions due to factors like raw material availability, labor, and power supply. Major regions include:

1. Mumbai-Pune: Known for textiles, petrochemicals, and electronics.
2. Hugli: Developed due to historical factors, with industries like jute, engineering, and chemicals.
3. Bengaluru-Tamil Nadu: A hub for textiles, engineering goods, and electronics.
4. Gujarat: Major textile and petrochemical industries.
5. Chotanagpur: A metallurgical hub, with large iron and steel plants.
6. Gurugram-Delhi-Meerut: Light industries and IT centers.
7. Vishakhapatnam-Guntur: Shipbuilding and petrochemical industries.

Table: Major Industrial Regions vs. Minor Industrial Regions

Important Note: Industrial regions are typically located close to transport links, raw material sources, and markets.

MCQ

Which industry is considered basic to the industrial development of a country?
Answer: Iron and Steel Industry