Chapter - 6
" Manufacturing Industry "
❇️ ️ Manufacturing :-
🔹Manufacturing is the production of valuable goods from raw materials in large quantities by machines.
❇️ Importance of Manufacturing Industries :-
- Manufacturing industry helps in modernizing agriculture.
- The dependence on agriculture for the income of the people from the manufacturing industry is less.
- Manufacturing helps in increasing employment opportunities in the primary and secondary sectors.
- This helps in eradicating unemployment and poverty.
- Export of manufactured goods enhances commerce trade, which fetches the required foreign exchange.
- Large scale manufacturing in a country brings prosperity to the country.
❇️️ Contribution of industries in the national economy :-
🔹The contribution of the manufacturing industry to the GDP for the last two decades is only 17 per cent of the 27 per cent. Because 10 percent is contributed by mineral mining, gas and electric energy.
🔹Manufacturing contributes to 25 to 35 percent of GDP in other East Asian countries as compared to India. The Indian manufacturing sector has grown at the rate of 7 percent per annum for the past decade.
🔹This rate of growth is expected to be 12 percent over the next decade. Since 2003, the manufacturing sector has grown at the rate of 9 to 10 percent per annum.
❇️ Foreign Exchange: -
🔹The process of converting the currency of one country into the currency of another country is called foreign exchange.
❇️ Foreign exchange: -
🔹The medium of money by which the government buys and sells goods from other countries.
❇️️ Industry :-
🔹The broad form of manufacturing is called industry.
❇️ Factors affecting the location of the industry :-
❇️ Physical factors of location of industries :-
- favorable climate
- power tools
- availability of raw materials
❇️ Human factors of location of industries :-
- Labor
- capital
- market
- Transport and communication facilities, banking, insurance etc.
- infrastructure
- entrepreneur
- government policies
️❇️ Classification of industries :-
🔹Industries can be classified as follows:-
️❇️ On the basis of source of raw material used :-
🔹Agriculture based:- Cotton textiles, woolen textiles, jute, silk textiles, rubber, sugar, tea, coffee and vegetable oil industries.
🔹Mineral based:- Iron and steel, cement, aluminum, machine, tool and petrochemical industries.
️ ❇️ On the basis of lead role :-
🔹Basic Industries: - On whose production or raw materials other industries are dependent such as: - Iron steel, copper smelting and aluminum smelting industries.
🔹Consumer Industries: - Those who produce products for the direct use of consumers, such as sugar, toothpaste, paper, fans, sewing machines, etc.
❇️️ On the basis of capital investment :-
🔹Small scale industry:- The industry in which capital investment of up to one crore rupees is made, it is called small scale industry.
🔹Large Industries:- An industry in which capital investment of more than one crore rupees is involved is called a large scale industry.
❇️️ On the basis of ownership :-
🔹Public Sector Industries: Industries owned and controlled by the government. Eg :- SAIL, BHEL, GAIL etc.
🔹Private Sector Industries:- Which are owned and operated by a person or owned or operated by people. TISCO, Bajaj Auto Ltd. Dabur Industries etc.
🔹Joint Industry:- The industries which are run by the joint effort of state government and private sector. Eg :- Oil India Limited.
🔹Co - operative Industries: - Those which are owned by producers, workers or both who supply raw materials. The distribution of profit and loss is also proportionate. Eg :- Coconut Industry of Kerala and Sugar Industry of Maharashtra.
❇️ On the basis of quantity and weight of raw and finished goods :-
🔹Heavy Industries :- Those industries which use heavy and more space-consuming raw materials. Eg :- Iron and steel industry, sugar industry, cement industry etc.
🔹Light Industries: - Those which produce light finished goods by using low weight raw materials such as: - Electrical industries.
❇️️ Agro based industries :-
🔹Industries that convert agricultural products into industrial products are agro-based industries.
🔹Industries like cotton, jute, silk, woolen cloth, sugar and vegetable oil etc. are based on raw materials obtained from agriculture.
❇️️ Textile Industry :-
🔹The textile industry has its own importance in the Indian economy as it contributes significantly to industrial production.
🔹It is the only industry in the country which is complete and self-sufficient in the chain from raw material to highest added value product.
❇️️ Cotton textile industry :-
- The first cotton textile industry was established in Mumbai in 1854.
- Mahatma Gandhi laid emphasis on spinning the spinning wheel and wearing Khadi so that weavers could get employment.
- In the early years the cotton textile industry was confined to the cotton centers of Maharashtra and Gujarat.
- Factors such as availability of cotton, market, transportation, proximity to ports, labour, humid climate etc. promoted its localization.
- Spinning is concentrated in Maharashtra, Gujarat and Tamil Nadu but weaving has become highly decentralized giving traditional skills and designs of weaving in cotton, silk, zari, embroidery, etc.
❇️️ Problems before the cotton textile industry in India :-
- Old and traditional techniques.
- Decreased yield of long fiber cotton.
- Lack of new machinery.
- Competition from the synthetic textiles industry.
- Irregular power supply.
❇️ Major problems of cotton industry :-
- The power supply is erratic.
- The machinery needs to be upgraded.
- Low performance of labour.
- Stiff competition with synthetic fiber industry.
❇️️ Jute (Jute) Industry :-
🔹India is the largest producer of jute and jute manufactured goods and Bangladesh is also the second largest exporter. The jute industry in India is mostly concentrated on the banks of the Hooghly River.
❇️ Why are most of the jute mills in India located in West Bengal?
- West Bengal is the largest producer of jute in India.
- This industry needs more water for the disposal of raw jute, which is available in sufficient quantity from the Hooghly river.
- Cheap laborers are also available from neighboring states like West Bengal, Bihar, Orissa etc.
- Kolkata is the port for export of jute articles.
- Railway, roadways and water transport for convenient transportation of raw materials to the mills.
- Being a big city, Kolkata provides facilities like banking insurance etc.
❇️ Challenges before India's Jute Industry :-
- Things have started to be made from artificial fibers.
- Things made of artificial fiber are cheap.
- Expenditure on jute cultivation becomes huge.
- The competition of foreign competition stands as a challenge in the market.
- Bangladesh stands as a challenger in the international market.
️❇️ Sugar Industry :-
🔹India has the second place in the world in sugar production and it has the first place in the production of jaggery and khandsari.
🔹Sugar mills are spread in the states of Uttar Pradesh, Bihar, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Gujarat, Punjab, Haryana and Madhya Pradesh.
🔹Over the years, the number of these mills has increased in the southern and western states, especially in Maharashtra.
❇️ Due to increased sugar mills in southern and western states :-
- Sugarcane contains high amounts of sucrose.
- cold climate .
- Co-operative societies became more successful.
❇️ Challenges before Sugar Industry in India :-
- This industry is seasonal in nature, of short duration.
- The production of sugarcane per hectare is less.
- Old machines.
- Failure to make maximum use of bagasse.
- Due to inefficient means of transport, sugarcane does not reach the factories on time.
️❇️ Mineral based industries :-
Those industries which use minerals and metals as raw materials are called mineral based industries.
❇️️ Iron and Steel Industry :-
- Iron and steel is a basic industry as all other heavy, light and medium industries depend on the machinery made from them.
- The ratio of iron ore, coking coal and limestone for this industry is about 4:2:1.
- In the year 2016, India was ranked third among crude steel producers in the world by manufacturing 9.56 million toll steel. It is the largest producer of sponge iron.
- Almost all public sector undertakings sell their steel through Steel Authority of India.
- Most of the iron and steel industry is concentrated in the Chota Nagpur plateau region of India.
❇️ Due to the maximum concentration of iron and steel industry in the Chotanagpur plateau region :-
- Low cost of iron ore.
- Availability of high grade raw material nearby.
- Availability of cheap labour.
- Huge growth potential in domestic market.
❇️ Due to the lack of full development of iron and steel industry in India :-
- High cost and limited availability of coking coal.
- low productivity of labor.
- Irregular supply of energy.
- Weak infrastructure.
❇️ Reasons why iron and steel industry is called basic industry :-
- Many other industries are dependent on the iron and steel industry.
- Iron and steel industry provides machinery to other industries such as sugar industry or cement industry etc.
- The industrial progress of the country depends on this industry.
- Provides employment to a large number of people.
❇️ Reasons why iron and steel industry is called heavy industry :-
- All the raw materials like iron ore, coal and lime are heavy in nature.
- The finished products of this industry require high cost for transportation.
️ ❇️ Aluminum Smelting :-
- Aluminum smelting is the second most important metal refining industry in India.
- It is lightweight, corrosion resistant, a good conductor of heat, malleable and can be made more rigid by mixing other metals.
- Aluminum smelting plants in India are located in the states of Odisha, West Bengal, Kerala, Uttar Pradesh, Chhattisgarh, Maharashtra and Tamil Nadu.
❇️ There are two important requirements for the establishment of this industry :-
- Regular energy supply.
- Availability of raw material at low cost.
❇️️ Chemical Industry :-
- The share of the chemical industry in India's GDP is about 3 percent.
- The industry is the third largest in Asia and the 12th largest in the world in terms of size.
- Both organic and inorganic chemicals are produced in India.
🔹Organic Chemicals:- Organic chemistry includes petrochemicals which are used in making synthetic textiles, rubber, plastics, medicines etc.
🔹Inorganic chemistry :- Inorganic chemistry includes sulfuric acid, nitric acid, alkali etc.
❇️️ Fertilizer Industry :-
- The fertilizer industry is centered around nitrogenous fertilizers (mainly urea), phosphatic fertilizers and ammonia phosphates and compound fertilizers.
- There is no stock of potassium compounds in our country. That's why we import potash.
- After the Green Revolution, this industry has expanded to many parts of the country.
❇️️ Cement Industry :-
- This industry requires heavy and bulky raw materials like limestone, silica and gypsum.
- Rail transport, coal and electricity are essential.
- It is used in construction works.
- Units of this industry have been set up in Gujarat because of the availability of trade from here in the Gulf countries.
❇️ The development of cement industry is very important for our country, why?
- It is necessary for the construction of buildings, factories, roads, bridges, dams, houses etc.
- Our cement industry produces best quality cement.
- There is a demand in the countries of Africa.
❇️ Automotive Industry: -
- Motor vehicles are a means of rapid transport of passengers and goods.
- After liberalization, the market for new and modern models of vehicles and the demand for vehicles is huge.
- This industry is established around the cities of Delhi, Gurgaon, Mumbai, Pune, Chennai etc.
❇️️ Liberalization and foreign direct investment in India caused tremendous growth in the motor vehicle industry :-
- After liberalization, the market for new and modern models of vehicles has increased.
- The demand for vehicles has increased. There has been a huge increase in the number of cars, scooters, scooties, bikes, auto rickshaws.
- The use of new technology coupled with foreign direct investment has brought this industry to the level of world class development.
- Today 15 units manufacture cars, 14 units manufacture scooters, motorcycles and autorickshaws.
❇️️ Information Technology and Electronics Industry :-
🔹Products under the electronics industry range from transistors to television, telephone exchanges, radars, computers, and many devices useful for the telecommunications industry.
🔹Bangalore developed as the electronic capital of India. Due to the success of the information and technology industry in India, there has been a continuous development of hardware and software.
❇️️ Contribution of Information Technology Industry of India in Economic Development :-
- Provides employment.
- earns foreign exchange.
- The number of working women has increased.
- Hardware and software are constantly evolving.
- Software Technology Parks provide single window service to experts and high data communication facility.
❇️️ Types of Pollution :-
- thermal pollution
- Water Pollution
- noise pollution
- air pollution
🔹Air pollution :-
- Sulfur dioxide and carbon monoxide emissions by industries.
- Smoke generation by chemical and paper industries, brick kilns and refineries.
🔹Water Pollution :-
- Pollution by industrial waste (organic and inorganic).
- Pollution by paper, chemical, textile industries and industries.
🔹Thermal Pollution :-
- Hot water falling into the river by factories and thermal plants.
🔹Noise Pollution :-
- Hearing ability is affected.
- Heart rate and blood pressure increase.
❇️ Various measures taken by industries to reduce environmental pollution :-
- Polluted water should not be thrown into rivers.
- The water should flow cleanly.
- Hydroelectricity should be used.
- Such machinery should be used which makes less noise.
️❇️ Increasing importance of tourism in India :-
- The world's fastest growing tertiary sector industry.
- Provides total 2500 lakh jobs.
- Total revenue 40 percent of GDP.
- Factor of growth in industries and trade.
- Improvement in the basic infrastructure of the country.
- Useful in enhancing international brotherhood.
🔹 In recent years, the trend of many new forms of tourism industry like medical tourism etc. has also increased.