MANUFACTURING INDUSTRIES

IMPORTANCE OF MANUFACTURING INDUSTRIES

• It provides the employment to the people.
• It converts the raw material into finished goods to satisfy human wants.
• Industries modernise the agriculture sector.
• When industrial goods are exported, the foreign exchange is earned.
• It is helpful in increasing national income.
• It removes the regional disparities by setting up industries in backward regions.
“Agriculture and industry are not exclusive of each other. They move hand in hand”
Dependency Of Agriculture Sector on Industry
• Agriculture sector depends on industry for machinery.
• Agriculture sector depends on industry for fertilizers, pesticides, insecticides etc.
• For consumer goods they depend on industries.
Dependency Of Agriculture Sector on Industry
• Agro based industries depends on agriculture sector for raw material.
• Industries that manufacture machinery such as tractors, thrashers, harvesters etc. depends on
agriculture sector.
• Industries that manufacture insecticides, pesticides, fertilizers etc. depend on agriculture.
• Industries obtain labourers from agriculture sector.
Contribution of Industry to National Economy
• Over the last two decades, the share of manufacturing sector has stagnated at 17 per cent of
GDP – out of a total of 27 per cent for the industry which includes 10 per cent for mining,
quarrying, electricity and gas.
• The trend of growth rate in manufacturing over the last decade has been around 7 per cent
per annum.
• Since 2003, manufacturing is once again growing at the rate of 9 to 10 per cent per annum.
• With appropriate policy interventions by the government and renewed efforts by the industry
to improve productivity.
• The National Manufacturing Competitiveness Council (NMCC) has been set up with this
objective.
Factors That Effect Industrial Location
• Availability the raw material.
• Availability of cheap labour.
• Availability of market.
• Availability of good transportation and communication facilities.
 • Availability of banking and insurance facilities.
Classification of Industries
On the basis of source of raw materials used:
• Agro based: cotton, woollen, jute, silk textile, rubber and sugar, tea, coffee, edible oil.
• Mineral based: iron and steel, cement, aluminium, machine tools, petrochemicals.
According to their main role:
• Basic or key industries are those which supply their products as raw materials to
manufacture other goods e.g. iron and steel and copper smelting, aluminium smelting.
• Consumer industries that produce goods for direct use by consumers – sugar, toothpaste,
paper, sewing machines, fans etc.
On the basis of capital investment:
• A small scale industry is defined with reference to the maximum investment of 5 crore.
• The large scale industries are those in which the investment is more than 5 crore.
On the basis of ownership
• Private Sector: In this means of production are owned by individual or group of individuals.
Main objective is profit motive. Such as TISCO, Bajaj limited, etc.
• Public Sector: The means of production are owned by govt. Main objective is social welfare.
Such as Railways, defence. PTI etc.
• Joint sector industries which are jointly run by the state and individuals or a group of
individuals. Oil India Ltd. (OIL) is jointly owned by public and private sector.
• Cooperative sector industries are 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.
Based on the bulk and weight of raw material and finished goods
• Heavy Industry: These are the industries in which the inputs and output both are heavy. Such
as Iron and Steel etc.
• Light industries: These are the industries that use light raw materials and produce light
goods such as electrical goods industries
Agro Based Industries
• Textile Industry:
• In ancient India, cotton textiles were produced with hand spinning and handloom weaving
techniques.
• After the 18th century, power-looms came into use.
• Our traditional industries suffered a setback during the colonial period because they could
not compete with the mill-made cloth from England.
• The first successful textile mill was established in Mumbai in 1854.
• The cotton textile industry was concentrated in the cotton growing belt of Maharashtra and
Gujarat.
 • Availability of raw cotton, market, transport including accessible port facilities, labour, moist
climate, etc. contributed towards its localisation.
• The textile industry is labour intensive technology because people are involved as cotton boll
pluckers and workers engaged in ginning, spinning, weaving.
• While spinning continues to be centralised in Maharashtra, Gujarat and Tamil Nadu,
weaving is highly decentralised to provide scope for incorporating traditional skills and
designs of weaving in cotton, silk, zari, embroidery, etc.
• Our spinning mills are competitive at the global level and capable of using all the fibres we
produce.
• The weaving, knitting and processing units cannot use much of the high quality yarn that is
produced in the country.
• There are some large and modern factories in these segments, but most of the production is in
fragmented small units, which cater to the local market.
• This mismatch is a major drawback for the industry.
Problems of Textile Industry
• Power supply is erratic.
• Machinery needs to be upgraded in the weaving and processing sectors in particular.
• Other problems are the low output of labour and stiff competition with the synthetic fibre
industry. .
Jute Textile Industry
• India is the largest producer of raw jute and jute goods and stands at second place as an
exporter after Bangladesh.
• Factors responsible for their location in the Hugli basin are:
• Proximity of the jute producing areas, inexpensive water transport, supported by a good
network of railways, roadways and waterways 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, Odisha and Uttar Pradesh.
• Kolkata as a large urban centre provides banking, insurance and port facilities for export of
jute goods.
Challenges of Jute Industry
• The industry include stiff competition in the international market from synthetic substitutes.
• From other competitors like Bangladesh, Brazil, Philippines, Egypt and Thailand.
• The internal demand has been on the increase due to the Government policy of mandatory
use of jute packaging.
Sugar Industry
• India stands second as a world producer of sugar but occupies the first place in the
production of gur and khandsari.
• Factors Responsible for Shifting Sugar Industry From The North to Southern and Western
Part of Country:
1. the cane produced here has a higher sucrose content.
 2. The cooler climate also ensures a longer crushing season.
3. The cooperatives are more successful in these states.
Challenges of Sugar Industry
• The seasonal nature of the industry does not provide employment opportunity for whole year.
• Old and inefficient methods of Production.
• Transport delay in reaching cane to factories .
• There is a problem how to make best use of baggase.
Iron and Steel Industry
• The iron and steel industry is the basic industry since all the other industries — heavy ,
medium and light, depend on it for their machinery.
• Steel is needed to manufacture a variety of engineering goods, construction material,
defence, medical, telephonic, scientific equipment and a variety of consumer goods.
• Production and consumption of steel is often regarded as the index of a country’s
development.
• Iron and steel is a heavy industry because all the raw materials as well as finished goods are
heavy and bulky entailing heavy transportation costs.
• 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.
• “Chhotanagpur plateau region has the maximum concentration of iron and steel industries.”
Because:
• Low cost of iron ore.
• High grade raw materials in proximity.
• Cheap labour.
• Vast growth potential in the home market.
Challenges of Iron and Steel Industry
• (a) High costs and limited availability of coking coal.
• (b) Lower productivity of labour.
• (c) Irregular supply of energy.
• (d) Poor infrastructure.
• Most of the public sector undertakings market their steel through Steel Authority of India
Ltd. (SAIL).
Difference Between Mini and Integrated Steel Plant
• Mini steel plants are smaller, have electric furnaces, use steel scrap and sponge iron. They
have re-rollers that use steel ingots as well. They produce mild and alloy steel of given
specifications.
• An integrated steel plant is large, handles everything in one complex – from putting together
raw material to steel making, rolling and shaping.
Aluminium Industry
• Aluminium smelting is the second most important metallurgical industry in India.
• It is light, resistant to corrosion, a good conductor of heat, malleable and becomes strong
when it is mixed with other metals.
• It is used to manufacture aircraft, utensils and wires.
• Aluminium smelting plants in the country are located in Odisha, West Bengal, Kerala, Uttar
Pradesh, Chhattisgarh, Maharashtra and Tamil Nadu.
• Bauxite(the ore of Aluminium), the raw material used in the smelters is a very bulky, dark
reddish coloured rock.
• Regular supply of electricity and an assured source of raw material at minimum cost are the
two prime factors for location of the industry.
Chemical Industry
• The Chemical industry in India is fast growing and diversifying. It comprises both large and
small scale manufacturing units.
• Rapid growth has been recorded in both inorganic and organic sectors.
• Inorganic chemicals include sulphuric acid (used to manufacture fertilizers, synthetic fibres,
plastics, adhesives, paints, dyes stuffs), nitric acid, alkalies, soda ash (used to make glass,
soaps and detergents, paper) and caustic soda.
• Organic chemicals include petrochemicals, which are used for manufacturing of synthetic
fibers, synthetic rubber, plastics, dye-stuffs, drugs and pharmaceuticals.
• Organic chemical plants are located near oil refineries or petrochemical plants.
• The chemical industry is its own largest consumer.
Fertilizer Industry
• The fertilizer industry is centred around the production of nitrogenous fertilizers (mainly
urea), phosphate fertilizers and ammonium phosphate (DAP) and complex fertilizers which
have a combination of nitrogen (N), phosphate (P), and potash (K).
• After the Green Revolution the industry expanded to several other parts of the country.
Cement Industry
• Cement is essential for construction activity such as building houses, factories, bridges,
roads, airports, dams and for other commercial establishments.
• This industry requires bulky and heavy raw materials like limestone, silica and gypsum.
• Coal and electric power are needed apart from rail transportation.
• The first cement plant was set up in Chennai in 1904.
Automobile Industry
• Automobiles provide vehicle for quick transport of good services and passengers.
• Trucks, buses, cars, motor cycles, scooters, three-wheelers and multi-utility vehicles are
manufactured in India at various centres.
• The industry is located around Delhi, Gurugram, Mumbai, Pune, Chennai, Kolkata,
Lucknow, Indore, Hyderabad, Jamshedpur and Bengaluru.
Information Technology and Electronics Industry
• This industry has as the fastest growing industry after globalisation.
• Bengaluru has emerged as the electronic capital of India.
• Other important centres for electronic goods are Mumbai, Delhi, Hyderabad, Pune,
Chennai, Kolkata, Lucknow and Coimbatore.
• A major impact of this industry has been on employment generation.
• The continuing growth in the hardware and software is the key to the success of IT industry in
India.
Measures to Control the water pollution done by Industry
• Minimising use water for processing by reusing and recycling it in two or more successive
stages.
• Harvesting of rainwater to meet water requirements.
• Treating hot water and effluents before releasing them in rivers and ponds.
• Treatment of industrial effluents can be done in three phases
• (a) Primary treatment by mechanical means. This involves screening, grinding, flocculation
and sedimentation.
• (b) Secondary treatment by biological process
• (c) Tertiary treatment by biological, chemical and physical processes. This involves recycling
of wastewater.
Measures to Control the Air pollution done by Industry
• Particulate matter in the air can be reduced by fitting smoke stacks to factories with
electrostatic precipitators, fabric filters, scrubbers and inertial separators.
• Smoke can be reduced by using oil or gas instead of coal in factories.