Chapter 6 Manufacturing Industries

Overview

This chapter explains the significance of manufacturing industries for a country's economic development. It classifies industries based on various criteria—raw materials (agro-based, mineral-based), finished products (basic, consumer), capital investment (small-scale), ownership (public, private, joint, cooperative), and bulk/weight (heavy, light). The chapter details major industries like textiles (cotton, jute), sugar, chemicals, cement, automobiles, and IT, discussing their location factors and importance. It also addresses the environmental impact of industries, including air, water, and noise pollution, and outlines measures for pollution control and sustainable industrial development.

Importance Of Manufacturing

Manufacturing is considered the backbone of economic development because it:

• Modernizes agriculture by providing inputs and processing its outputs.
• Reduces dependence on agriculture by creating jobs in secondary and tertiary sectors.
• Is essential for eradicating unemployment and poverty.
• Boosts trade and commerce through exports, earning foreign exchange.
• Transforms raw materials into higher-value finished goods, contributing to national prosperity.

Agriculture and industry are interdependent; agro-based industries support agriculture by providing necessary inputs and markets, while agriculture supplies raw materials to industries.

Industrial Location

Industrial location depends on factors like raw material availability, labor, capital, power, and market access. Industries are often located near cities to benefit from markets and services (banking, transport, labor). Agglomeration economies occur when industries cluster together, leveraging shared infrastructure and services. Historically, industries were concentrated near ports for overseas trade, leading to developed urban centers surrounded by agricultural hinterlands.

Classification Of Industries

Industries can be classified based on:

• Raw Materials:
  • Agro-Based: Cotton textiles, woolen textiles, jute textiles, silk, sugar, edible oil, rubber, tea, coffee.
  • Mineral-Based: Iron and steel, cement, aluminium, petrochemicals, electronics.
• Main Role:
  • Basic/Key Industries: Supply raw materials for other industries (e.g., iron and steel, copper smelting).
  • Consumer Industries: Produce goods for direct consumption (e.g., sugar, paper, fans).
• Capital Investment: Defined by the investment limit, with small-scale industries having a maximum investment of ₹1 crore.
• Ownership:
  • Public Sector: Owned and operated by government agencies (e.g., BHEL, SAIL).
  • Private Sector: Owned by individuals or groups (e.g., TISCO, Bajaj Auto).
  • Joint Sector: Run jointly by public and private entities (e.g., Oil India Ltd.).
  • Cooperative Sector: Owned and operated by producers or suppliers (e.g., sugar industry in Maharashtra, coir industry in Kerala).
• Bulk and Weight:
  • Heavy Industries: Use bulky raw materials and produce heavy goods (e.g., iron and steel).
  • Light Industries: Use light raw materials and produce light goods (e.g., electrical goods).

Agro-Based Industries

These use agricultural products as raw materials, including textiles (cotton, jute, wool, silk), sugar, edible oil, etc.

Textile Industry

The textile industry is significant in India, contributing to production, employment, and foreign exchange. It has a complete value chain from raw material to finished products.

Cotton Textiles

Traditionally produced by hand, it modernized with power looms. Concentrated in Maharashtra and Gujarat due to cotton availability, markets, and ports. Faces challenges like erratic power, outdated machinery, low labor productivity, and competition.

Jute Textiles

India is the largest producer and second-largest exporter. Mills are mainly along the Hugli river in West Bengal, benefiting from raw material proximity, transport, cheap labor, and port facilities. Faces competition from synthetic substitutes.

Sugar Industry

India is the second-largest producer of sugar and the largest of gur. It's seasonal and best suited for the cooperative sector. Mills are concentrated in North India, but there's a shift towards Southern and Western states with higher sucrose content and cooler climates.

Mineral-Based Industries

These use minerals as raw materials.

• Iron and Steel: A basic industry providing material for engineering, construction, defense, etc. India is a major producer, with plants concentrated in the Chota Nagpur plateau due to resource availability and cost advantages. Faces challenges like high raw material costs and poor infrastructure.
• Aluminium: Lightweight, corrosion-resistant, and conductive; used in aircraft, utensils, and wires. Plants are located in Odisha, West Bengal, Kerala, etc., requiring reliable power and minimum raw material cost.
• Chemical Industries: Includes organic (petrochemicals) and inorganic chemicals (acids, alkalis), widely spread and serving various sectors.
• Fertilizer Industry: Focuses on nitrogenous, phosphatic, and complex fertilizers; expanded significantly after the Green Revolution.
• Cement Industry: Essential for construction, requiring bulky raw materials like limestone and gypsum. Plants are located strategically near markets and resources.
• Automobile Industry: Manufacturing cars, trucks, buses, etc., concentrated around major cities, experiencing growth due to liberalization and increased demand.
• Information Technology and Electronics Industry: A growing sector with major hubs like Bengaluru, Mumbai, and Delhi, significantly contributing to employment.

Industrial Pollution And Environmental Degradation

Industrial activities contribute significantly to pollution (air, water, land, noise) and environmental degradation. Thermal power plants, chemical factories, refineries, mining, and waste disposal are major sources of pollution. These have adverse effects on human health, ecosystems, and climate.

Control Of Environmental Degradation

Measures to control pollution include minimizing water use through recycling, rainwater harvesting, treating industrial effluents, fitting smoke stacks with pollution control devices, using cleaner fuels, redesigning machinery for efficiency, and adhering to environmental laws. Sustainable industrial development requires integrating economic growth with environmental concerns.