- 1 Important Terms
- 2 Manufacturing
- 3 Importance of Manufacturing
- 4 Contribution of Industry to National Economy
- 5 Classification of industries on the basis of raw materials
- 6 Classification of industries according to their main role
- 7 Classification of industries on the basis of capital investment
- 8 Classification of industries on the basis of ownership
- 9 Steel
Manufacturing: Production of goods in large quantities after converting raw materials, components or parts into finished goods.
NMCC: The National Manufacturing Competitiveness Council.
Agglomeration Economies: The industries tend to come together to make use of the advantages offered by urban centres.
Entrepreneur: An innovator of new ideas who sets up a business taking on financial risks in the hope of profit.
Large Scale Industries: Industries which employ a large number of labour in each unit. Example- cotton textile industry.
Public Sector Industries : Industries which are owned and operated by government agencies. Example- BHEL.
Agro-Based Industries : Industries which obtain raw materials from agricultural products. Example- sugar industry.
Mineral-Based Industries : Industries that use minerals and metals as raw materials. Example- iron and Steel industry.
Basic Industries : Industries on which depend many other industries for their manufacturing processes. Example- iron and steel industry.
Textile Industries: Textile is a fabric that is knitted or woven and made from yarn. It is the industry responsible for taking a raw material like cotton or wool and spinning it into yarn that is later used to create the fabric.
Ginning: The process of separating the seeds from the cotton fibers is known as ginning.
Spinning: It is the twisting together of drawn-out strands of fibers to form a yarn, and is a major part of the textile industry.
Dyeing: It is the process of adding colour to textile products like fibers, yarns, and fabrics.
Khandsari: It is a type of unrefined raw white sugar made from thickened sugarcane syrup. It is neither bleached nor contains harmful chemicals and additives.
Organic Chemicals: These include petrochemicals, which are used for manufacturing of synthetic fibre, plastics, drugs and pharmaceuticals.
Inorganic Chemicals: These include sulphuric acid, nitric acid, alkalis, soda ash and caustic soda.
Air Pollution: It is caused by the presence of high proportion of undesirable gases, such as sulphur dioxide and carbon monoxide.
Water Pollution: It is caused by organic and inorganic industrial wastes and effluents discharged into rivers.
Thermal Pollution: The pollution caused by the discharge of hot water from factories and thermal plants into rivers and ponds before cooling.
Noise Pollution: It is caused by industrial and construction activities, machinery, generators, electric drills and loudspeakers.
Manufacturing is the production of goods in large quantities after processing raw materials into more valuable products. Industries that manufacture finished products from primary material are called manufacturing industries.
Importance of Manufacturing
The economic strength of a country lies in the development of manufacturing industries because:
(1) Manufacturing industries help in modernising agriculture; which forms the backbone of our economy.
(2) Manufacturing industries also reduce the heavy dependence of people on agricultural income because of the creation of new jobs in secondary and tertiary sectors.
(3) Industrial development helps in eradication of unemployment and poverty.
(4)Export of manufactured goods expands trade and commerce and enhances prosperity.
(5) A country with a high level of manufacturing activities becomes prosperous.
(6) It brings down regional disparities.
(7) It brings much needed foreign exchange.
(8) It increases the GDP/ National Income of the country.
Contribution of Industry to National Economy
The share of manufacturing sector in the GDP (Gross Domestic Product) has stagnated at 17% over the last two decades. The total contribution of industry to the GDP is 27% out of which 10% comes from mining, quarrying, electricity and gas. The growth of the manufacturing sector had been 7% in the last decade. Since 2003, the growth rate has been 9 to 10% per annum. The desired growth rate over the next decade is 12%.
The National Manufacturing Competitiveness Council (NMCC) has been set with the objectives of improving productivity through proper policy interventions by the government and renewed efforts by the industry
Some of the factors which affect the industrial location are as follows :
(1) Availability of raw materials : Large quantities of raw materials are needed for industries. Therefore industries are located near the source of raw materials. It saves the cost of transportation.
(2) Availability of labour : This factor also adds to the cost effectiveness aspect of an industry.
(3) Availability of capital : Industry can be in need of financial resources at any time. Therefore, it is necessary that an industry has these facilities available easily.
(4) Availability of power : It is important that basic facilities like electricity etc. are available.
(5) Availability of market : An industry needs to have a sound market for the goods produced.
(6) Availability of adequate and swift means of transport: Modern industries need cheap, developed and quick means of transportation.
A manufacturing industry promotes the urbanisation of its neighbourhood. Already urbanised areas also attract industries, since they provide ready facilities for transport, banking, labour, consultancy, etc. If an urban centre offers sufficient facilities and advantages, several industries come up there together to form an industrial agglomeration. These industries together form an agglomeration economy. Before Independence, most industries in India were located in port cities to enable easy overseas trade.
Agriculture gives boost to the industrial sector :
(i) Agriculture provides raw material to industries.
(ii) Agriculture provides market for industrial products.
(iii) Agriculture helps boost new industrial products.
(iv) The industries such as cotton, jute, silk, woollen textiles, sugar and edible oil, etc., are based on agricultural raw materials.
Classification of industries on the basis of raw materials
(a) Agro – Based Industries:These industries are based on agricultural raw material.
Example: Cotton, woollen, jute, silk textile, rubber, sugar, tea, coffee, etc.
(b) Mineral-Based Industries: Industries that use minerals and metals as raw materials are called mineral-based industries.
Example: Iron and steel, cement, aluminium, petrochemicals, etc.
Classification of industries according to their main role
(a) Basic or Key Industries: These industries supply their products or raw materials to manufacture other goods, e.g., iron and steel, copper smelting, aluminium smelting.
(b) Consumer Industries: These industries produce goods which are directly used by consumers, e.g., sugar, paper, electronics, soap, etc.
Classification of industries on the basis of capital investment
(a) Small Scale Industry : If the invested capital is upto one crore, then the industry is called a small scale industry. Manufacture small goods. No huge quantity of raw material as well as capital is required.
Example: Garment industry, soap making industry.
(b) Large Scale Industry : If the invested capital is more than one crore, then the industry is called a large scale industry. Manufacture large quantities of finished goods. The quantity of raw material and capital investment are large.
Example: Iron and steel industry, cotton textile industry.
Classification of industries on the basis of ownership
(a) Public Sector: These industries are owned and operated by government agencies, e.g., SAIL, BHEL, ONGC, etc.
(b) Private Sector: These industries are owned and operated by individuals or a group of individuals, e.g., TISCO, Reliance, Mahindra, etc.
(c) Joint Sector: These industries are jointly owned by the government and individuals or a group of individuals, e.g., Oil India Limited.
(d) Cooperative Sector: These industries are owned and operated by the producers or suppliers of raw materials, workers or both.
The resources are pooled by each stakeholder and profits or losses are shared proportionately. AMUL which is milk cooperative is a good example. The sugar industry in Maharashtra is another example.
Classification of industries on the basis of bulk and weight of raw materials and finished goods:
(a) Heavy Industries: Iron and steel.
(b) Light Industries: Electronic industry
Agro-based industries: Industries based on agricultural raw materials.
For example, cotton textiles, jute textiles, woollen textiles, silk textiles, synthetic textiles, sugar industry.
Cotton textiles: It occupies a unique position in the Indian economy, contributes 14% of industrial production. Provides employment to 35 million persons directly.Today, they are spread over 80 towns and cities of India.
Earlier the cotton textile industries were located in Maharashtra and Gujarat because :
(i) Availability of raw cotton.
(ii) Ready markets are available.
(iii) Well-developed means of transportation.
(iv) Abundant skilled and unskilled labour at cheap rate.
(v) Moist climate which is suitable for the cotton industry.
Problems faced by the cotton textiles industry are Scarcity of good quality cotton, obsolete machinery, erratic power supply, low productivity of labour and stiff competition are some of the
“Many of our spinners export cotton yarn while apparel manufacturers have to import fabric.”
(i) India has a world class production and quality in spinning, but weaving supplies low quality of fabric because they are fragmented in small units. The mismatch is a major drawback.
(ii) Although the production of staple cotton has increased but we still need to import good quality staple cotton.
(iii) The industries also face erratic power supply problems which decreases labour productivity.
(iv) Then there is a stiff competition with the synthetic fibre industry and Jute textiles. The machineries are not upgrade.
Jute textiles: There are about 80 jute mills in India and most of these are located in West Bengal, mainly in the Hugli basin. India is the second largest exporter of jute goods after Bangladesh.
Location of Jute industries in Hugli Basin is due to:
(i) Proximity of jute producing areas.
(ii) Cheap water transport supported by a good network.
(iii) Good network of roadways, railways and waterways.
(iv) Abundant water for processing raw jute.
(v) Cheap labour from West Bengal and adjoining states.
(vi) Good banking, insurance and poor facilities in Kolkata.
Problems faced by jute mills :
(a) Stiff competition in international market from Bangladesh, Brazil, Philippines, Egypt, etc.
(b) Stiff competition from synthetic fibre.
(c) Products need to be diversified.
Sugar: There are over 662 sugar mills in the country. 50% of them are found in Uttar Pradesh and Maharashtra. Karnataka, Tamil Nadu, Andhra Pradesh and Gujarat are also important producers of sugar in the country.
Major challenges of sugar industry are:
(i) Seasonal nature of the industry.
(ii) Old and inefficient methods of production.
(iii) Transport delay in reaching sugar factories and the need to maximise the use of bagasse.
Shifting of sugar industries to Southern states is because :
(i) Sugarcane that grows there has higher sucrose content.
(ii) Favourable climate provides longer crushing period and growing season.
(iii) Cooperatives are successful in these states.
(iv) Modern mills have more crushing capacity.
Manufacturing industries that use minerals as raw material are called mineral-based industries. The iron and steel industry is the basic industry on which all other industries depend. The production and per capita consumption of steel is a measure of a country’s economic development.
The main raw materials used in the iron and steel industry are iron ore, coal and limestone. The raw materials and finished products of iron and steel industries are quite bulky; these industries must be located near the mining areas of the required minerals and must be connected by a good transport network.
India is the ninth largest producer of crude steel and the largest producer of sponge iron in the world. India is also a leading exporter of steel in the world.China has become the world’s largest producer and consumer of steel, leaving India far behind.
The per capita consumption of steel in India is only 32 kg. There are 10 primary integrated steel plants in India. These integrated plants handle all stages of steel production, from procurement of basic raw material to producing finished rolled and shaped steel. India has many mini steel plants that produce customised alloy steel using scrap iron or sponge iron as raw material.
Most steel manufacturing industries are located in the Chhota Nagpur Plateau region because of the availability of inexpensive, high-grade raw material and abundant cheap labour.
The main challenges faced by the industry in realising its full potential are limited supply of expensive coking coal, erratic power supply, low output of labour and poor infrastructure. The future of India’s iron and steel industry is bright due to India’s liberalisation policy and foreign direct investment in the industry.
Iron and steel industry is the basic industry as :
(i) All the other industries depend on it for their machinery.
(ii) Steel is needed to manufacture a variety of engineering goods.
(iii) It provides variety of consumer goods.
(iv) Construction material, defence, medical, telephonic, scientific equipments, etc., are the gift of iron and steel industry.
We have maximum concentration of iron and steel industry in Chhota Nagpur Plateau region due to :
(i) Low cost of iron ore. Iron mines are located in the nearby areas.
(ii) High grade raw materials in proximity and other bulky raw materials like, coking coal, limestone are also available in proximity.
(iii) From the adjoining areas of Bihar, Jharkhand and Odisha, cheap labour is available in abundance.
(iv) This region is well connected with roadways and railways that help in the swift movement of raw materials and finished goods to the industry and market areas, respectively.
(v) Kolkata is a well developed port that is near to this area.
We are not able to perform to our full potential in the production of iron and steel in India due to :
(i) High costs and limited availability of cooking coal.
(ii) Lower productivity of labour.
(iii) Irregular supply of power.
(iv) Poor infrastructure.
The importance of IT sector is as follows:
(i) A major impact of this industry has been an employment generation. The IT industry employed over one million persons.
(ii) It is encouraging to know that 30 per cent of the people employed in this sector are women.
(iii) This 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.
(iv) The continuous growth in the hardware and software is the key to the success of the IT industry in India.
Industries have caused severe pollution of our natural resources. Industries cause environmental degradation through four main types of pollution, i.e., air pollution, water pollution, land pollution or soil degradation, and noise pollution.
Smoke contains undesirable gases like carbon dioxide, sulphur dioxide and carbon monoxide, besides solid and liquid particulate matter, in the form of dust and spray mist, which cause air pollution.
(a) Air pollution affects the health of humans, animals and plants alike and also causes damage to buildings. Air pollution is caused by the presence of a high proportion of undesirable gases, such as sulphur dioxide and carbon monoxide. Smoke is emitted by chemical and paper factories, brick kilns, refineries and smelting plants, and burning of fossil fuels in big and small factories.
(b) Water pollution is caused by the discharge of untreated chemical waste like dyes, detergents, acids, heavy metals like lead and mercury, pesticides, fertilisers, and plastics from industries, into freshwater bodies like rivers and lakes. Water pollution is caused by organic and inorganic industrial wastes and effluents discharged into rivers. The discharge of hot water from thermal power plants into rivers before cooling is called thermal pollution of water. The main culprits in this regard are paper, pulp, chemical, textile and dyeing, petroleum, refineries and electroplating industries that let out dyes, detergents, acids, salts and heavy metals like lead and mercury, pesticides, fertilisers, synthetic chemicals with carbon, plastics and rubber, etc., into the water bodies.
Solid wastes like fly ash, phospo-gypsum, and iron and steel slags also cause water pollution. Radioactive waste, hazardous chemicals, glass, plastic, industrial effluents and non-biodegradable garbage are the main agents of land pollution. Rainwater falling on polluted land dissolves and carries many of the pollutants further into the ground and pollutes groundwater.
Noise pollution is due to industrial and construction activities. Machinery, factory equipment, generators, saws and pneumatic and electric drills cause hearing problems and irritation. Loud noise can lead to irritation, loss of hearing, and an increase in blood pressure and heart rate. Industrial machinery, construction activities, generators, and equipment like saws and pneumatic drills are mainly responsible for noise pollution.
One of the most important steps for the control of environmental degradation is treating hot and polluted waste water from industries before releasing it into our rivers and lakes.
Waste water treatment involves :
(a) Primary treatment through screening, grinding, flocculation and sedimentation.
(b) Secondary treatment through bacterial action to digest harmful chemicals.
(c) Tertiary stage of stirring with chemicals to neutralise remaining harmful waste.
Treated waste water can be recycled for reuse in industrial processes. Rainwater harvesting can be used to meet the requirements of water for industrial processes.
Legal provisions must be made to regulate the use of groundwater for industrial use. Smoke stacks, filters, scrubbers, and electrostatic and inertial separators remove a large number of harmful particles from industrial smoke. The emission of smoke itself from industries can be reduced by using more efficient fuels like oil and natural gas in place of coal.
Industrial and generator silencers, and sound-absorbing material are available to reduce the noise level in industries. Industrial workers can use earphones and earplugs for individual protection of health and hearing.
National Thermal Power Corporation or NTPC is a major electricity generation and distribution company in India.
NTPC has demonstrated how conservation of environment and natural resources can happen simultaneously with industrial growth by :
(a) Adopting latest technical know how minimising waste
(b)Providing green cover
(c) Reducing environmental pollution
(d) Continuous monitoring
The pro-active approach adopted by the National Thermal Power Corporation(NTPC) for preserving the natural environment :
(i) Optimum utilisation of equipment adopting latest techniques and upgrading existing equipment.
(ii) Minimising waste generation by maximising ash utilisation.
(iii) Providing green belts for nurturing ecological balance and addressing the question of special purpose vehicles for afforestation.
(iv) Reducing environmental pollution through ash pond management, ash water recycling system and liquid waste management.
(v) Ecological monitoring, reviews and online database management for all its power stations.
Ways to reduce industrial pollution are listed below :
(i) Restructuring the manufacturing processes to reduce or eliminate pollutants, through a process called pollution prevention.
(ii) Creating cooling ponds, which are man-made and are designed to cool the heated water from industries by evaporation, condensation and radiation.
(iii) Filtration of sewage in water treatment plants attached to industries.
(iv) Instructing industries to be set up far from residential areas.
(v) Backing the constitutional provisions by a number of laws − acts, rules, and notifications.
Steps to be taken to minimize environmental degradation by industries
(i) Minimizing use of water for processing by reusing and recycling it in two or more successive stages.
(ii) Harvesting of rainwater to meet water requirements.
(iii) Treating hot water and effluents before releasing them in rivers and ponds.
(iv) Particulate matter in the air can be reduced by fitting smoke stacks to factories with electrostatic precipitators, fabric filters, scrubbers and inertial separators.
(v) Smoke can be reduced by using oil or gas instead of coal in factories.
(vi) Machinery and equipments can be used and generators should be fitted with silencers.
(vii) Almost all machineries can be redesigned to increase energy efficiency and reduce noise.