Class X- SS Geo, Lesson 6- Manufacturing Industries

Many of the natural resources cannot be utilized directly without processing or converting them into various things. This conversion of primary goods into more refined and usable form is called Manufacturing.

Importance of Industrial Development:

Industrialization plays a vital role in the economic development of a country:

1.  Utilization of Natural Resources: utilization of huge volume of natural resources has become possible with the development of industries in the country.

2.  Balanced Sectoral Development: India has been facing unbalanced sectoral development. Growth in industrialization in the country can attain balanced sect oral development and it can reduce the too much dependence of the economy on the agricultural sector by providing jobs to the people in secondary and tertiary sectors.

3.  Enhanced Capital Formation: with the growing industrialization of the economy, the volume and the rate of capital formation in the country are gradually being enhanced due to increase in the level of income and saving capacity of people in general. Moreover, increasing volume of investment in industries has led to enhancement in the rate of capital formation in the country.

4.  Increase in National Income and Foreign Exchange: Organized and unorganized industries are jointly contributing a good portion of the total national income of the country. Moreover, as a result of industrialization the level of national income and capital income of the country also increase at a satisfactory rate. Export of manufactured goods brings much needed foreign exchange.

5.  Increase in Job Opportunities: development of industrial sector would increase the job opportunities for a large section of the population of the country. Setting up of new industrial units can create job opportunities.

Agriculture and Industry are not exclusive of each other. They move hand in hand.

Contribution of Agriculture to Industry:

1.    Agriculture provides raw materials to industry such as jute, cotton, sugarcane, etc.

2.    Acts as a source of capital formation which can be utilized in the industry.

3.    Provides food to the industrial workers.

4.    Provides good market to the industrial product.

5.    Decreases pressure on industry.

Contribution of Industry to Agriculture:

1.    Provides inputs to agriculture such as fertilizers, pesticides, tractors, etc.

2.    Provides infrastructural facilities.

3.    Can absorb surplus labourers or workers, and reduces pressure on Agriculture.

4.    Increases the market value of agricultural products.

CLASSIFICATION OF INDUTRIES:

1.    On the basis of Capital Investment:

Large Scale Industries ·         Employ large number of labourers in each unit ·         Huge investments are involved>1crore

Small Scale Industries: ·     Owned and run by individuals, employ small number of labourers. ·     Defined capital investment<1 crore

2.    On the basis of Raw material and Finished Goods

Heavy Industries: ·         Use heavy and bulky raw materials ·         Produce heavy and bulky products ·         Eg. Iron and Steel

Light Industries: ·   Use light raw materials ·   Produce light finished goods ·   Eg. Fans, sewing machines

3.    On the Basis of Ownership

Private Sector: ·   Owned by individuals or firms such as Bajaj, TISCO

Public Sector: ·      Owned by the state & its agencies like BHEL, Bhilai Steel Plant, and Durgapur Steel Plant.

Joint Sector: ·         Owned jointly by the private firms and the state or its agencies such as Gujarat Alkalies Ltd. Oil India Ltd.

Cooperative Sector: ·      Owned and run co-operatively by a group of people who are generally producers of raw materials of the given industry, such as Amul Cooperative

4.    On the Basis of Source of Raw Material:

Agro-Based: ·         Which obtain raw materials from agriculture, such as, silk, textile, cotton etc.

Mineral Based: ·      That receive raw materials primarily from minerals such as iron steel, aluminium and cement

5.    According To Their Role:

Cottage Industries: ·         Where artisans set up in their own houses, work with wood, cane, brass, stone etc. ·         Handloom, khadi and leather work at the artisans’ houses

Consumer Industries: ·   Convert raw material or primary products into commodities which are directly used by vegetable oil, etc.

Factors in the Location of Industries:

1.    Availability of Raw Materials: availability of raw materials is the major factor affecting the location of the industry. An agro-based industry will be located in agriculture dominating areas whereas mineral based industry will be located in mineral dominating areas. E.g., cotton textile mills are located in MAH availability of raw cotton.

2.    Power: most of the industries tend to concentrated at the source of power. Though power can be transmitted but those industries which consume large quantities of power are located near the source.

3.    Labour: is the major input in most types of industries. So labour intensive industries mostly concentrate in densely populated areas or labourers migrate to the industrial centre.

4.    Transport: transport system helps in the movement of goods and raw material. Heavy industries like iron and steel industry are located near railway stations or ports so that goods and raw materials can be easily transported.

5.    Market: the entire process of manufacturing is useless until the finished goods reach the market. Nearness to market is essential for quick disposal of manufactured goods and for purchasing raw material. Nearness to market reduces the cost of transportation. Most of the manufacturing industries concentrate in big cities as these provide market and other basic infrastructure. Thus industrialization and urbanization go hand in hand. Cities provide markets and also provide and services such as banking, insurance transport, labour, consultants and financial advice,etc. to the industry. Many industries come together to make use of the advantages offered by the urban centres known as urbanization economies. Gradually, a large industrial agglomeration takes place.

6.    Government Policies: govt. activities in planning the future distribution of industries, for reducing regional disparities, elimination of pollution of air and water and for avoinding their heavy clustering in big cities, has become an important location factor.

AGRO-BASED INDUSTRIES

A: TEXTILE INDUSTRIES:

The textile industry’s predominant presence in the Indian economy is manifested in its significant contribution to industrial production, generation of employment and foreign exchange earnings.

·         Adds 14% to the industries production and about 4% to the GDP

·         Provides employment to 35 million people. Together with allied agriculture sector provides employment to over 90 million people.

·         Contribution of this industry to gross export earnings of the country is over 30% while it adds only 7-8% to the gross import bill of the country.

·         It is the only industry which is self reliant, from raw materials to the highest value added products-garments.

Importance of Textile Industry:

1.    Close association with agriculture: close links with agriculture and provides living to farmers, cotton ball pluckers and workers engaged in ginning, spinning, weaving, dyeing, designing, packaging, tailoring and sewing.

2.    Demand Creative: cotton textile is a demand creative industry; it supports many other industries such as chemicals, dyes, mill stores, packaging materials and engineering works.

3.    Employment: provides employment to large number of skilled as well as unskilled workers. The handspun khadi provides large scale employment to weavers in their homes.

4.    Decentralization: this industry helps in industrial decentralization as 90% of the weaving, cutting and processing are in decentralized sector.

5.    Export: major share of India’s export comes from cotton textile industry. India exports yarn to Japan. Exports cotton goods to USA, UK, Russia, France, East European Countries, Nepal, Singapore, Sri Lanka and African countries.

Location of Cotton Textile Industry: developed in most part of the country, but most mills are concentrated in the states of Maharashtra, Gujarat and Tamil Nadu.

1.    Maharashtra: excels all other states in the development of cotton textile industry. Produces 42.49% mill cloth and 16.65% yarn of India. Mumbai is the largest centre in India with 63 mills out of Maharashtra’s 122 mills. The main reasons of phenomenal growth of cotton textile industry in and around Mumbai:

a.    Climate: humid climate is essential, thread does not break easily.

b.    Transportation: important port to import machinery and long staple cotton.

c.    Power: cheap hydroelectricity

d.    Raw Material: black cotton soil provides cotton as the basic raw material.

e.    Cheap Labour: Mumbai and surrounding cities have high population density, skilled and unskilled labour is available in large numbers.

f.     Market: there is a ready market for Mumbai products in India and Abroad.

g.    Commercial Capital: capital required is easily available as it is the commercial and financial centre of India.

2.    Gujarat: the second largest producer of cotton textiles. This state accounts for over 23% of the mill cloth and over 8% of the yearn production of the country. Ahmadabad is the largest centre 73 out of 118 mills of Gujarat are located. Ahmadabad is the second largest centre of cotton textile industry after Mumbai.

Problems of India Cotton Textile Industry:

1.    Problem of Raw Material: Inadequate quantities: problem of a regular supply of its raw material “cotton”. Position of its raw material remains unstable despite the importance and long period of its growth. India has the largest area under cotton(26% of the world acreage) the output is only 10%. Uncertainties and fluctuation in the prices of raw cotton are two main problems of the cotton textile industry.

2.    Power Problem: inadequate and failing power supply-frequent power cuts and load-shedding affected the industry badly; inadequacy of coal supplies affected the progress.

3.    Obsolete Machinery and Need for Modernization: working with obsolete machinery, approx 80% of the machinery is old and should be scrapped. The problem with replacement of obsolete machinery and modernization is acute as India has to compete with countries like Taiwan, Hong-Kong, South Korea, etc. all of which are using sophisticated machinery.

4.    High Cost and Competition in Foreign Market: facing increasing competition in the world markets, due to low productivity and high cost and consequently high prices of Indian cotton textile.

B: JUTE INDUSTRY:

One of the most important traditional industries in India. Most of the jute mills are concentrated in West Bengal. Kolkata is the most important centre of jute textile in India.

Importance of the Industry:

1.    It is labour intensive, provides employment to skilled as well as unskilled workers.

2.    Jute products are major items for exports. India is the second largest exporter after Bangladesh. It accounts for more than 20% of the total export earning.

Location: West Bengal:  has the largest concentration of jute industry, over 84% of jute products of India come from WB. Andhra Pradesh is other main producer. Most of the mills are within a distance of 64 km. from Kolkata along the Hugli River. There is a narrow belt of jute mills which is 100km long & 3km wide along the banks of Hugli River. The factors responsible for high concentration of jute mills in the Hugli basin:

1.    Raw Materials: Ganga-Brahmaputra delta grows 90% of India’s jute & provides raw material to jute mills here. Coal required for power is obtained from Raniganj & Asansol coal fields.

2.    Transportation: cheap water transportation, a network of rail & roadways.

3.    Water: abundant water available for processing, washing & dyeing from the river Hugli.

4.    Port City: Kolkata being a port city aids in the import of machinery required & exporting of jute products.

5.    Labour: high density of population in WB & in the neighboring parts of Bihar provides abundant cheap labour. Some labour comes from Uttar Pradesh as well.

6.    Finance: easy flow of capital due to Kolkata, banking & insurance facilities are also available.

Problems of the Indian Jute Industry:

1.    Raw Material: after independence most of the jute producing areas went to Bangladesh, resulting in acute shortage of raw jute. Efforts are being made to increase supply of raw jute it still falls short of our current requirement.

2.    International Competition: faces very tough competition from synthetic packing materials of the advanced countries of Europe & N. America. Market for jute has shrunk. Also, facing very stiff competition from Bangladesh, Philippines, Japan, Brazil & Thailand.

3.    Less Dem&: synthetic substitutes in domestic as well as international markets the overall demand for jute products is gradually decreasing in the international market.

4.    High Prices: Indian jute industry is being competed out of international market because of high prices. The high prices are explained by the use of obsolete machinery, the existence of inefficient & economic units, high price of jute & highly unreliable supply position with regard to raw jute.

Indian Government has taken action:

1.    In 2005, National Jute Policy was formulated with the objective of increasing productivity, improving quality, ensuring good prices to the jute farmers & enhancing YpH.

2.    Govt. had made in mandatory to use jute packaging.

Markets: the main markets are USA, UAE, UK, Canada, Russia & Australia. The growing concern for envt friendly, biodegradable materials has once again opened the markets for jute products.

C: SUGAR INDUSTRY:

India is the 4^th major sugar producing country of the world, the first three being Russia, Brazil & Cuba. It occupies an important place among organized industries in India. Most unique feature of this industry is most mills are cooperative as this industry is seasonal in nature.

Importance of Sugar Industry:

1.    Ranks the 3^rd largest in terms of its contribution to the net value added by manufacture.

2.    Employs more than 3.25 lakhs workers, besides creating extensive indirect employment for 25 million cultivators of sugarcane.

3.    Important source of excise duty for central govt. there are 420 factories in India, total capacity is 15 million tones.

Distribution: Uttar Pradesh, Maharashtra, Tamil Nadu, Bihar are the major producers of sugar. Sugar industry has two major areas of concentration. One comprises Uttar Pradesh, Bihar, Haryana & Punjab in north & other that of Maharashtra, Karnataka, Tamil Nadu & Andhra Pradesh in the south. The sugar industry is established in areas of sugar cultivation because:

1.    Its raw material is heavy & perishable; sugarcane cannot be stored for long as the loss of sucrose is inevitable.

2.    It cannot be transported over long distances because it may get dried up.

Difference between the Sugar industries of Northern & Peninsular India:

They are marked differences between the two. As a result of better conditions prevailing in the peninsular india, the sugar industry is gradually shifting from north. This is evident from the fact that north India used to produce about 90% of India’s sugar which is reduced to 35-40% now.

1.    Climate: Sugarcane is a tropical crop, peninsular India has a tropical climate which gives higher yield per unit area as compared to N. India.

2.    Higher Sucrose: due to favourable climatic conditions, the sucrose content is also higher in tropical variety of sugarcane in the south.

3.    Long Crushing Season: longer in the south 7-8 months & only 4 months in the morth.

4.    Better management: the cooperative sugar mills are better managed in the south rather than the north owing the higher literacy rates.

Problems of Sugar Industry:

1.    Low Yield of Sugarcane:  although India has the largest area under sugarcane cultivation, the yield per hectare is extremely low as compared to some of the major sugarcane producing countries of the world.

2.    Short Crushing Season: manufacturing sugar a seasonal phenomenon varying normally from 4 to 7 months per year. The mills & its workers remain idle during the remaining period of the year, thus creating financial problems for the industry as a whole.

3.    High Cost of Production: high cost of sugarcane, inefficient technology, uneconomic process of production & heavy excise duty result in high cost of production. The prodn. Cost of sugar in India is one of the highest.

4.    Old & Obsolete Machinery: most of the machinery in Indian sugar mills especially of Uttar Pradesh & Bihar is old & obsolete, being 50-60 yrs old & needs rehabilitation.

5.    Under-utilization of By-products: by-products of the sugar industry are not being utilized, after crushing the sugar-cane; the baggasse is mostly burnt or given to animals for fodder. Whereas baggasse can be used to make paper.

MINERAL BASED INDUSTRIES

They use minerals as their basic raw materials. These industries form the economic backbone of a country. Iron & steel, heavy engineering & electronics are the major mineral based industries of India.

A: IRON & STEEL:

·         Is a key basic industry as it lays the foundation of other industries, all the other industries heavy, medium & light depend on for their machinery.

·         The production & consumption of iron & steel is one of the most significant measures of the level of industrialization & economic growth of a country.

·         Most of the other industries such as automobiles, locomotives, rail tracks, ship building, machine building, bridges, & dams & many other industries & commercial activities depend upon iron & steel.

·         Is a heavy industry because all the raw material as well as finished goods is heavy & bulky entailing heavy transportation.

·         Important feature most of the units are under public sector as it requires huge investments, have long gestation periods & needs research & development facilities.

LOCATION FACTORS:

RAW MATERIAL:

·         Uses large quantity of heavy raw materials & its localization is primarily controlled by the availability of raw materials, so most of the plants are located where raw where raw material i.e, coal & iron ore is available.

·         Iron ore, cooking coal, limestone & manganese are the main raw material required by the industry.

·         Most of the I&S plants are located in the Chhotanagpur Plateau because all the raw materials are available in this region which is very rich in coal & iron ore deposits & is an important producer of these raw materials.

·         The demand for iron ore is met by the mines in Jharkhand, Bihar, Orissa, MP, Chhattisgarh and Karnataka

·         Coal is supplied by the mines in Bokaro, Raniganj, Jharia, Giridih and Karba.

·         Visweswaraya I&S Works at Bhadravati is located far away from the main coal producing areas of the country and utilizes hydel power from the Sarasvati Power Project.

Production of Steel:

·         India ranks 9^th among the world crude steel producers, with 32.8 million tones of steel production.

·         Largest producer of sponge iron.

·         Per capita consumption of steel is only 32kg/annum.

·         There are 10 primary integrated plants and large number of decentralized secondary units or mini steel plants.

·         All public sector undertakings market their steel through Steel Authority of India(SAIL est. 1974)

·         TISCO markets its steel through Tata Steel.

·         1950 china and India produced almost the same quantity of steel, today china is the largest producer, and china is also the largest consumer of steel.

·         In 2004 India was the largest exporter of steel accounting for 2.25% of the global steel trade.

Mini Steel Plants	Integrated Steel Plants
·      Smaller, electric furnaces use steel scrap and sponge. ·      Require a less capital. ·      Small in size so can be located anywhere.	·       Large handles everything in one complex from putting together raw materials to steel manufacture to rolling and shaping. ·       Require huge capital. ·       Large so need to be located near raw material.

India: Integrated Iron and Steel Plants:

1.    Tata Iron and Steel Company, Jamshedpur, Jharkhand, with a subsidiary steel works ate Gopalpura Orissa.

2.    Indian Iron and Steel Company, near Asansol, West Bengal.

3.    Visveswaraya Iron and Steel Ltd. Bhadravati, Karnataka.

4.    Bhilai Steel Plant, Chhattisgarh(Russian collaboration)

5.    Rourkela Steel Plant, Orissa(German Collaboration)

6.    Durgapur Steel Plant, West Bengal (British Collaboration)

7.    Bokaro Steel Plant, Jharkhand (Russian Collaboration)

8.    Salem Steel Plant, Tamil Nadu

9.    Vishakhapatnam Steel Plant, Andhra Pradesh

10. Vijayanagar Steel Plant, Karnataka

India fails to perform to its potential due to the following reasons:

1.    Shortage of Raw Material- India has high grade iron but not enough coking coal

2.    Lower productivity of Labour

3.    Shortage of Power

4.    Poor Infrastructure

5.    Lower investment in research and development.

To improve the production govt of India had:

1.    Adopted new economic policy of liberalization, privatization and globalization.

2.    Promoting foreign direct investment in the sector.

3.    Launched duty exemption scheme.

B: ALUMINIUM SMELTING:

The 2^nd most important metallurgical industry in india. It is extracted from Bauxite

Use of Aluminium:

1.    Very light, yet strong metal with many uses.

2.    Good for making pots, pans as it is good conductor of heat.

3.    Electrical wires, good conductor of electricity.

4.    Make cans for beverages and other liquids.

5.    Pressed into a thin foil, can be used commercially or domestically for wrapping and storing food.

6.    Light and strong, used for aircrafts. Its alloys are used for most vehicle bodies.

Production of Aluminium:

1.    India is the largest producer of bauxite in south Asia.

2.    India has 8 aluminium smelting plants: Orissa (Nalco & Balco), West Bengal, Kerala, Uttar Pradesh, Chhattisgarh, Maharashtra, and Tamil Nadu.

3.    India produced over 600 million tones of aluminium in 2004.

4.    Orissa is the largest producer of bauxite.

5.    Bauxite, Alumina, aluminium and cryolite are the main raw material required for its extraction.

CHEMICALS INDUSTRIES

Oldest, diversified and fastest growing industries of India. 3^rd largest in asia and occupies the 12^th place in the world in term of its size. Has two components:

1.    Inorganic Chemicals: sulphuric acid, nitric acid, alkalies, soda ash, and caustic soda.

2.    Organic Chemicals: petrochemicals, drugs and pharmaceuticals.

Importance of Chemical Industry:

1.    Employment: major sources of employment for a large number of skilled as well as unskilled workers.

2.    Foreign Exchange: export of chemicals and chemical products brings foreign exchange to India.

3.    Reduction of pressure on land: chemical industry reduces pressure on land by providing employment to workers.

4.    Development of agriculture: chemical industry supplies pesticides and weedicides to agriculture. This has developed agriculture as it controls harmful insects and weeds.

5.    Contribution to GDP and national income: contributes 3% of the GDP, also contributes 20% of the excise revenue to the govt.

FERTILIZER INDUSTRY:

There are about 57 fertilizer units manufacturing nitrogenous and complex nitrogenous fertilizers: 29 for urea and 9 for producing ammonium sulphate as a byproduct and 68 other small units produce single superphosphate. There are 10 public sector undertakings and one in cooperative sector at Hazira in Gujarat under FCI.

Producing States: before the green revolution industry was concentrated in few states but with the success of the green revolution it spread to most of the agricultural states.

Production: the fertilizer industry is centered around the production of nitrogenous fertilizers (mainly urea), phosphates fertilizers and ammonium phosphate (DAP) and complex fertilizers which have a combination of Nitrogen, phosphate and potash. The third is entirely imported as India does not have reserves of commercially usable potash or potassium compounds in any form.

Problems of Industry: Shortage of raw materials & Govt. controls prices.

CEMENT INDUSTRY:

Most advanced and important industry, first cement plant was set up in Chennai in 1904. After the complete decontrol of price and distribution in 1989 and introduction of other policy reforms, cement industry ahs made strides both in process technology and in production.

Importance of Industry:

1.    Cement is essential for all construction activities.

2.    Earns valuable foreign exchange. Improvement in quality of Indian cement has found its ready markets in Bangladesh, Nepal, Malaysia, Indonesia, Middle East and Africa.

Requirement of the Industry:

1.    Limestone, silica, alumina, gypsum, and coal- main raw materials for its production

2.    Industry needs cheap power and transportation.

ELECTRONIC INDUSTRY:

Covers a wide range of products, from 1996-97 to 2001-02; the industry grew by a factor of over three times. Bangalore is the largest centre of electronics good production and is termed as the electronic capital of India. Other major producing centres are; Hyderabad, Delhi, Mumbai, Chennai, Kolkata, Kanpur, Pune, Lucknow, Jaipur Coimbatore. The “spftware” has emerged as the major industry in the filed of electronics. Software exports have become an important part of india’s exports. Govt of India has estd. About 18 software tech. parks which provide single window service and high data communication facility to the software experts. India’s success in software has been built on the foundations of public investments in human capital, outward orientation in policies and a highly competitive private sector industry.

Importance of IT Industry: provides employment to over 1 million people. Is a major foreign exchange earner. Helped in the growth of the service sector. Helped in the growth of service sector.

Industrial Pollution and Environmental Degradation:

1.    Air Pollution:  smoke emitted by the industries pollutes air and water. Air pollution is caused by undesirable gases- carbon monoxide, sulphur dioxide. Airborne particulate materials consist of both solid and liquid particles. Dust, fume, mist spray and smoke contain both types of particles. Human-made sources of pollutants are normally industrial and solid wastes. Air pollution affects human health, animals, plants, materials and the atmosphere.

2.    Water Pollution: sources of water pollution are numerous. Most important are the industrial effluents that are discharged into rivers and their tributaries or distributaries. These are both organic or inorganic. Coal, dyes, soaps, pesticides, fertilizers, plastics and rubber are some common pollutants of water. The principal industries which create water pollution are paperpulp, textiles, chemical, petroleum, refining, tannery and electroplating. Industrial wastes containing toxic metals pollute land and soil.

3.    Noise Pollution:  unwanted loud noise is also pollution. It arises primarily from industry and means of transport. Industrial noise, particularly from mechanical sawas and pneumatic drills, is unbearable and is a nuisance to the public. Noise pollution can cause hearing impairment, increased heart rate and blood pressure and other psychological effects.

4.    Thermal and Nuclear Pollution: Thermal pollution occurs when hot water from factories & thermal plants is drained into rivers, ponds and lakes before cooling. Wastes from nuclear power plants, nuclear weapons production facilities cause cancer, birth defects and miscarriages. Soil and water pollution are closely related. Dumping of wastes especially glass, harmful chemicals industrial effluents, packaging, salts, and garbage renders the soil unless. Rain water percolates the soil carrying the pollutants to the ground and the ground water also gets contaminated.

Control of Environmental Degradable:

Though industrialization is must for economic development of a country but the industrialization is also one major factors responsible for environmental degradation. There is a urgent need tackle this problem.

1.    Use of Recycled Water: contaminated water is a major source of pollution. Water pollution can be checked by minimizing use of water for processing by reusing and recycled it in two or more successive stages.

2.    Rain Water Harvesting: harvesting of rain water should be encouraged to meet water requirements.

3.    Pollution Control: Environment Protection Act 1986, for management of hazardous substances.

4.    Legal Measures and Public Awareness: Many regulatory and legal measures, putting into force Ozone Depleting Substances Rules 2000.

5.    Other Measures: prohibiting the use of groundwater resources without proper permission by the regulatory authorities. Devices fitted with silencers for noise reduction.