Manufacturing Industries

®        Processing of raw material into more valuable goods is manufacturing (Secondary Sector activity).

Importance

®        Economic strength of country is measured by development of manufacturing sector.

®        Manufacturing industries help in modernising agriculture, which forms the backbone of our economy.

®        Reduce the heavy dependence of people on agricultural sector by providing them jobs in secondary.

®        Eradication of unemployment and poverty from country

®        Earn foreign exchange by export.

®        Minimize regional disparities by establishing industries in tribal and remote areas.

®        Manufacturing sector contribute 17 per cent of GDP

®        Countries that transform their raw materials into a wide variety of furnished goods of higher value are prosperous. Example: Japan

Factors of industrial location

®        availability of raw material,

®        availability of labour,

®        availability of capital,

®        availability of power

®        availability of market,

®        It is rarely possible to find all these factors available at one place. Thus industrial location complex in nature

®        The key to decision of the factory location is the least cost. Government policies and specialised labour also influence the location of industry.

Agglomeration economies.

®        Many industries tend to come together to make use of the advantages offered by the urban centres known as agglomeration economies. Cities provide markets and also provide services such as banking, insurance, transport, labour, consultants and financial advice, etc. to the industry.

Classification of Industries

On the basis of source of raw materials

            (1) Agro based: cotton, woollen, jute, silk textile, rubber and sugar, tea, coffee, edible oil.

            (2) Mineral based: iron and steel, cement, aluminium, machine tools, petrochemicals.

According to their main role:

            (1) Basic or key industries: Provide raw materials to manufacture other goods e.g. iron and steel and copper smelting, aluminum smelting.

            (2) Consumer industries: produce goods for direct use by consumers – sugar, toothpaste, paper, sewing machines, fans etc.

On the basis of capital investment:

            (1) small scale industry: investment is less than one crore

            (2) large scale industry: investment is more than one crore

On the basis of ownership:

            (1) Public sector: owned and operated by government agencies – BHEL, SAIL etc.

            (2) Private sector: owned and operated by individuals or a group of individuals –TISCO, Bajaj Auto Ltd.,

            Dabur Industries.

            (3) Joint sector: owned by the state and individuals or a group of individuals. Oil India Ltd. (OIL) is jointly

            owned by public and private sector. Concept of mixed economy

            (4) Cooperative sector: owned and operated by the producers or suppliers of raw materials, workers or both. They pool in the resources and share the profits or losses proportionately such as the sugar industry in Maharashtra, the coir industry in Kerala.

Based on the bulk and weight of raw material and finished goods:

            (1) Heavy industries: iron and steel

            (2) Light industries: electrical industries such as bulb

Agro-based industries

(I) Textile Industry

®        14 per cent, of total industrial production

®        4% in GDP

®        Employment generation- 35 million

®        Second largest after agriculture,

®        Only industry in the country, which is self-reliant i.e from raw material to finished goods.

(A) Cotton Textiles

®        Oldest industry of India

®        1,946 mills (November 2011), Mainly in Maharashtra and Gujarat.

®        India has the second largest installed capacity of spindles in the world, with 43.13 million spindles (2011-12) after China.

®        India’s trade in garments is only 4 per cent of the world’s total.

®        Spinning (fibre are twisted to form yarn i.e thread) concentrate in Maharashtra and Gujarat.

®        India has large share in the world trade of cotton yarn, accounting for one fourth of the total      trade.

®        Weaving decentralized in India

®        The first successful textile mill was established in Mumbai in 1854.

®        India exports yarn to Japan. Other importers of cotton goods from India are U.S.A., U.K., Russia.

            Why is it important for our country to keep the mill sector loomage lower than power loom and handloom?

            Loomage refers to the yarn consumed by a particular mode of production in the cotton and textile sector. Mill loomage would refer to yarn consumed by mills while power and hand loomage would refer to total yarn consumed by these modes of production respectively.

            Handloom is a machine that is used to weave cloth without any need of power for any operation.

            Power loom is a electrically charged power tool to weave cloth. 

            It is important for our country to keep mill sector loomage lower than powerloom as the latter along with handlooms are used by small scale and cottage industries. They provide sustenance to economically deprived sections of society. Greater consumption of yarns by mill sector would render the individual weavers who rely on powerlooms and handlooms out of work. Thus, it is necessary to enable the poor weavers to sustain themselves in the face of competition provided by mass production.

(B) Jute Textile

®        India at second place as an exporter after Bangladesh

®        The first jute mill was set up near Kolkata in 1859 at Rishra.

®        After Partition in 1947, the jute mills remained in India but three-fourth of the jute producing area went to Bangladesh (erstwhile East Pakistan).
®        Termed as golden fibre

®        Most jute mills located near Hugli river

            Reasons:

®        Proximity of the jute producing areas,

®        Inexpensive water transport,

®        A good network of railways, and roadways to facilitate movement of raw material to the mills,

®        Abundant water for processing raw jute,

®        Cheap labour from West Bengal and adjoining states of Bihar, Orissa and Uttar Pradesh

®        Kolkata as a large urban centre provides banking, insurance and port facilities for export of jute goods.

(C) Sugar Industry

®        Second largest agro based industry

®        India stands second as a world producer after Brazil

®        First place in the production of gur (Jaggery)  and khandsar( raw sugar (unrefined) brown colour i.e brown sugar)

®        This industry is seasonal in nature so, it is ideally suited to the cooperative sector. Haulage reduce sucrose content

®        Sixty per cent mills are in Uttar Pradesh and Bihar.

            Reasons for shifting of sugar industries in south India

®        The cane produced in south India has a higher sucrose content.

®        Cooler climate of south ensures a longer crushing season.

®        The cooperatives are more successful in states like Maharashtra

            Problems:

®        use of baggase.

Mineral based Industries

           

Iron and Steel Industry

®        Production and consumption of steel is often regarded as the index of a country’s development. In 2010-11 per capita consumption of steel in the country was only around 49 kg per person per annum against the world average of 182 kg.

®        Iron ore, coking coal and lime stone are required in the ratio of approximately 4: 2: 1.

®        Some quantities of manganese are also required to harden the steel.

®        In 2010-11, India ranked 4th among the world crude steel producers.
®          China is the largest producer of steel.

®        India is the largest producer of sponge iron.

®        Most of the public sector undertakings market their steel through Steel Authority of India Ltd. (SAIL).

            Chotanagpur plateau region has the maximum concentration of iron and steel industries.

           

            Important Iron and steel plants:

            (1) Salem: Tamilnadu

            (2) Bharavati: Karnataka

            (3) Vijaynagar: Karnataka

            (4) Bhilai: Chattisgarh

            (5) Rourkela: Odhisa

            (6) Jamshedpur: Jharkhand

            (7) Bokaro: Jharkhand

            (8) Burnpur: West Bengal

            (9) Durgapur: West Bengal

Aluminium Smelting

®        Second most important metallurgical industry in India

®        4 to 6 tonne of bauxite® 2 tonne of alumina® 1 tonne of aluminium

®        Regular supply of electricity and an assured source of raw material at minimum cost are the two prime factors for location of the industry.

®        Nalco (National Aluminium Company): India based manufacturer and distributer of Aluminium products

Chemical industries

®        Contributes approximately 3 per cent of the GDP

®        It is the third largest in Asia and occupies the twelfth place in the world in term of its size.

®        Organic chemical plants are located near oil refineries or petrochemical plants.

Fertiliser Industry

®        India is the third largest producer of nitrogenous fertilisers.

®        Potash is entirely imported in the country

Cement Industry

®        Industry requires bulky and heavy raw materials like limestone, silica, alumina and gypsum.

®        The first cement plant was set up in Chennai in 1904.

Automobile Industry

®        There are 15 manufacturers of passenger cars and multiutility vehicles, 9 of commercial vehicles, 14 of the two and three-wheelers.

®        This industry had experienced a quantum jump in less than 15 years. Foreign Direct Investment brought in new technology and aligned the industry with global developments.

Information Technology and Electronics Industry

®        Bangalore has emerged as the electronic capital of India.

®        By 2010-11 (STPI) Software Technology Parks of India have come up across 46 locations at different centres of India.

®        30 per cent of the people employed in this sector are women.

®        Industry has been a major foreign exchange earner in the last two or three years because of its fast growing Business Processes Outsourcing (BPO) sector.

®        BPO: An act of giving third party on contract the responsibility of running the system or service for eg. Call centres.

Note:

            The National Manufacturing Competitiveness Council (NMCC) has been set up to improve productivity of manufacturing sector.

            Spindle: A device to spin fibre into thread.