MANUFACTURING INDUSTRIES LESSON 8
INTRODUCTION
Manufacturing industries means those units where primary products
are processed and made into finished products.
Industries are important :-
▪ Provide employment to large labour force
▪ Contribute in national income
TYPES OF INDUSTRIES
Size of capital investment, labour force employed :
▪ Large industries
▪ Medium Industries
▪ Small scale industries
▪ Cottage industries
Ownership
▪ Public sector
▪ Private sector
▪ Joint sector
▪ Cooperative sector
Use of products:
▪ Basic goods industries
▪ Capital goods industries
▪ Intermediate goods industries
▪ Consumer goods industries
Raw materials:
▪ Agri based industries
▪ Forest based industries
▪ Mineral based industries
▪ Industrially processed raw material based industries
Nature of manufactured products:
▪ Metallurgical
▪ Mechanical Engineering
▪ Chemical & allied products
▪ Textile industry
▪ Food processing industries
▪ Electricity generation
▪ Electronics
▪ Communication Industries
LOCATION OF INDUSTRIES
Location of industries is influenced by factors like access to raw
material , power, market , capital & transport
Economical to locate industries at place where cost of production &
delivery cost are least
1. RAW MATERIAL:
▪ Weight losing material using industries are located to close to raw
material regions.
▪ Iron & coal both are weight losing raw material therefore located
close to raw material regions
▪ Pulp industry , copper industry , perishable goods industry are also
located close to raw material regions
2. POWER:
▪ Provides force to run machines
▪ Aluminum , synthetic nitrogen are located near sources of power as
they require large amount of energy.
3. MARKET:
▪ Provide outlets for manufactured goods
▪ Heavy machine , machine tools are located near demand areas as
these are market oriented
▪ Cotton textile , petrol refineries also located close to market
4. TRANSPORT:
▪ Also important fore industrial location
▪ Industries are concentrated in metropolitan cities due to better
transport system
▪ Many ports are developed from historic times
5. LABOUR:
▪ Industries require labour for value adding
▪ In India labour is available in large numbers
6. HISTORICAL FACTORS:
▪ Mumbai, Kolkata, Chennai & Delhi are industrial nodes due to our colonial past
▪ Manufacturing centres experienced rapid growth due to competition from British goods
▪ British promoted few industries in selected areas
7. INDUSTRIAL POLICY
▪ India aims at bringing economic growth with balance regional growth
▪ Rourkela , Bhilai were established to develop backward tribal areas
▪ Govt. provide many incentive to industries in backward areas
MAJOR INDUSTRIES:
▪ Iron & steel industry is basic to industrial development of country
▪ Cotton & textile are traditional industries
▪ Sugar Industries is based on local raw materials
▪ Petrochemical & IT industries also pivotal in development
IRON & STEEL INDUSTRY
▪ Its development lead rapid industrial development in India .
▪ Raw materials:- Iron ore, coking coal, limestone , manganese etc.
▪ Raw materials are spread in Chhattisgarh , Odisha, Jharkhand , W. Bengal
▪ Raw materials are weight losing thus located close to raw material sources
▪ Indian iron & steel industry consist Integrated steel plants & Mini steel mills
INTEGRATED STEEL PLANTS
TISCO (Tata Iron & Steel Plant)
▪ Near to Mumbai-Kolkata Railway Line
▪ Kolkata port exports steel from plant
▪ Subarnarekha & Kharkhai provide water to plant
▪ Iron ore obtained from Naomundi & Badampahar
▪ TISCO gets coal from Joda Mines (Odisha)
▪ Coking coal from Jharia
IISCO (Indian Iron & Steel Company)
▪ Established first factory at Hirapur , second at Kulti, Third at
Burnpur in West Bengal
▪ All three factories located close to Damodar Valley Coal fields
▪ Gets Iron ore from Singhbhum (Jharkhand)
▪ Gets water from Barakar river
▪ All three palnts located close to Kolkata-Asansol railway’
▪ Steel production from IISCO fell after plants were taken over
by govt.
VISL ( Visvesaraiya Iron & Steel Works Ltd.)
▪ Initially called Mysore Iron & Steel works
▪ Gets iron ore from Baba Budan Hills
▪ Gets hydroelectricity from Jog Falls hydel project
▪ Bhadravati supplies water to VISL
▪ Produce special steel & alloys
*During Second five year plan three new integrated steel plants set up
with foreign collaborations
*Steel Authority Of India was founded in 1973 to control & manage
plants
ROURKELA STEEL PLANT
▪ Setup in 1959 in Odisha
▪ Set up with collaboration of Germany
▪ Receives coal from Jharia (Jharkhand) & iron from Sundargarh &
Kendujhar
▪ Hirakud project supplies power
▪ Water supplied by Sankh & Koel rivers
BHILAI STEEL PLANT
▪ Established in 1959 in Chhattisgarh
▪ Setup with Russian collaboration
▪ Iron ore from Dalli Rajhara mine
▪ Coal from Korba & Kargali coal fields
▪ Water from Tandaludam
▪ Power from the Korba Thermal Power station
▪ Steel produced goes to Hindustan Shipyard in Vishakaptnam
▪ Lies on Kolkata – Mumbai railway route
DURGAPUR STEEL PLANT
▪ Established in 1962 in West Bengal
▪ Setup with collaboration of United Kingdom
▪ Lies in Raniganj & Jharia coal belt
▪ Gets iron from ore from Naomundi
▪ Hydel & water obtained from Damodar Valley Corporation
BOKARO STEEL PLANT
▪ Setup in 1964 at Bokaro (Jharkhand)
▪ Setup with Russian collaboration
▪ Gets iron ore from Rourkela region
▪ Water & hydel power from Damodar valley corporation
OTHER STEEL PLANTS
VIZAG STEEL PLANT
▪ Located in Vishakhapatnam (Andhra Pradesh)
▪ Started in 1992
▪ It is first port based plant
VIJAYNAGAR STEEL PLANT
▪ Located in Hosapete (Karnataka)
▪ Developed using indigenous technology
▪ Use local iron ore & limestone
SALEM STEEL PLANT
▪ Located in Tamil Nadu
▪ Commissioned in 1982
There are other steel plants which use scrap iron to make into steel known
as Mini Mills.
COTTON TEXTILE INDUSTRY
It is traditional industry
India was famous for production of muslin , calicos & chintz
REASONS FOR DVP OF COTTON INDUSTRY:-
▪ India is a tropical country , cotton is comfortable in hot & humid climate.
▪ Cotton is grown in large quantities & labour is available in large number
▪ First cotton mill setup in 1854 in Mumbai, as it was close to cotton producing area of Gujrat & Maharashtra
▪ Mumbai was a financial centre & capital was present along with cheap & abundant labour
▪ It faced recession after partition, after independence flourished
▪ It can be classified as organized & decentralized sector , production of
organized sector fell drastically
Factors to determine location are:- power, labour, capital & market
Swadeshi movement & Railways gave impetus to this industry
Cotton mills were setup in Coimbatore, Bengaluru, Nagpur Indore
Due to development of hydroelectricity and cheap labour this
industry can be located away from raw material source.
Leading Cotton producer:- Maharashtra, Gujarat & Tamil Nadu
Tamil nadu has largest number of cotton mills
In west Bengal mills are located in Hugli & Howrah
SUGAR INDUSTRY
Second most important agro based industry in India
India is the largest producer of Sugarcane & Cane sugar
Khandasari & Gur (Jaggery ) are also produced
This industry provide employment on a large scale
Seasonal industry.
First sugar mill was established in 1903 in Bihar
LOCATION OF SUGAR INDUSTRY
It is a weight losing crop
Sugar factories are located near fields as the sucrose content dries
during carrying & its better to crush it within 24 hours of harvest
Maharashtra is the leading sugar producer followed by UP
Sugar factories are concentrated in two belts :-
▪ Ganga –Yamuna Doab
▪ Taria region
In Tamil Nadu sugar factories are in Coimbatore , Vellore etc.
Bihar & Punjab are other producers
PETROCHEMICAL INDUSTRIES
It provide many items derived from crude petroleum for other
industries, growing rapidly
Divided into four sub-groups:-
- Polymers
- Synthetic fibres
- Elastomers
- Surfactant Intermediate
Mumbai is hub of petrochemical. Industries
IPCL (Indian Petrochemical corporation ltd.), PCL(Petrofils
Cooperative Ltd.) & CIPET (Central institute of plastic engineering &
Technology are three organization working in this sector
Polymers are raw material in plastic industry
Plastic products preferred because of their strength, flexibility, &
cheap prices
Mumbai , Barauni & Rishra are important plastic producers
Synthetic fibres are widely used in fabric manufacture
Plastics, emerged as greatest threat to our environment and its use
is discouraged
KNOWLEDGE BASED INDUSTRY
Advancement in IT sector influenced our economy
Indian software industry has emerged as fastest growing in economy
There are 58 software technology parks in India
IT software accounts 2% of India’s GDP
Indian software companies have acquired international quality
certification
IT sector‘s major impact on job creation which is doubled every year
LPG-1991
Objectives:-
▪ Build on gains already made
▪ Correct economic weakness
▪ Maintain sustained growth in productivity
▪ Employment & international competitiveness
Initiated Measures:-
▪ Abolition of industrial licensing
▪ Free entry of foreign technology
▪ Foreign investment policy
▪ Access to capital market
▪ Open trade
Three main dimensions of New Economic Policy are L, P, & G
Industrial licensing abolished except for security & strategic
environmental concerns
Now only three industries are reserved for public sector which are
Railways, Atomic energy & Defence
Threshold limits of assets have been removed no industry now
require approval for investing
FDI benefits domestic industry & consumers
Now govt discourage industries to setup in large cities
Now telecom , highway , mining are open to private industries
FDI : CRTICAL ANALYSIS
FDI has not been up to the expectation there has been a big gap between approved & actual FDI
Globalisation means to integrate economy of country with world
Globalisation aims to increase domestic & external competition by:
▪ Opening economy to FDI
▪ Removing restrictions to entry of MNC’s
▪ Allow Indian companies to collaborate with foreign companies
▪ Carrying out massive import liberalization programmes
▪ Opting for exchange rate adjustments for exports promotion
Major share of FDI went to core sectors infrastructure was untouched
Gap between developing & developed states has become wider
Major share of investment went to already developed states
North-Eastern states are worst sufferers & other economically weaker
states couldn’t compete with developed state in attracting investment
INDUSTRIAL REGIONS IN INDIA
Industrial regions are not evenly distributed in the country
Indices used to identify cluster of industries:
▪ Number of industrial units
▪ Number of industrial workers
▪ Quantity of power used
▪ Total industrial output
▪ Value added by manufacturing
MUMBAI-PUNE INDUSTRIAL REGION
Extends from Mumbai-Thane to Pune , Nashik & Solapur
Rapid Industrial development in Satara , Ahmednagar & Jalgaon
Development of this region started with the location of cotton textile industry in Mumbai
Suez Canal opened in 1869 contributed in growth of Mumbai port
With cotton textile industry ,drilling stations like Mumbai High , nuclear plants also developed
Goods produced:- Engineering goods , Transport equipment ,food etc.
Important centres :- Mumbai , Thane, Pune Solapur
HUGLI INDUSTRIAL REGION
Located along Hugli river
Extends from Bansberia to Birlanagar
Kolkata- Haora form the nucleus of this region
Developed with development of Kolkata port, affected by partition
Tea plantations in Assam , Jute processing , coal fields, iron deposits contributed in industrial development of this region
Cheap labour is also the reason for this region’s development
First Jute mill was established at Rishra in 1855 attracted modern industries in the region
Other industries like cotton, paper also grew with jute industry
Major Landmarks:- Hindustan Motors Ltd & Diesel engine factory at Chittaranjan
Important centres:- Kolkata, Haora, Haldia & Rishra
Decline of jute industry is the cause of slow down of this region
BENGALURU- CHENNAI REGION
Witnessed rapid industrial growth in post independence period
Industries were confined to Bengaluru, Salem, Madurai
Development of this region is dependent on the Pykara hydroelectric plant built in 1932
Cotton textile industry grew rapidly
HAL, machine tools , Bharat electronics emerged in the region
Textile, Diesel engines , radio cement are other important industries
Recent developments:- Salem steel plant & fertilizer plant
GUJARAT INDUSTRIAL REGION
Lies between Ahmedabad & Vadodara, extends to Surat & Jamnagar
Development is associated with location of cotton textile industry
Became important with decline of Cotton Textile industry in Mumbai
This region is close to both raw material & market
Petrochemical industries established due to oilfields
Kandla port a reason for rapid growth
Other industries are:- Motor , machinery , pesticides etc.
Jamnagar has largest petroleum refinery in India
CHHOTANAGPUR REGION
Extends over Jharkhand, North Odisha & West Bengal
Known as metallurgical industries
Owes its development to discovery of coal & metallic non metallic minerals in this region
Proximity of coal, iron ore facilitate location of heavy industries
Six integrated steel plants are located in this region
DVC provide power to this region
Cheap labour also a reason for development of this region
Important centres:- Ranchi, Bokaro & Durgapur
VISHAKAPATNAM REGION
Extends from Vishakapatnam to Kurnool & Prakasam
Industrial development of this region because of Vishakapatnam & Machilipatnam ports & developed agriculture
Energy provided by Godavari Basin
Known for ship building
Petroleum refinery facilitated the growth of petrochemical industries
Principal industries: Sugar, Textile, Jute etc.
Industrial centres:- Vishakapatnam , Vijayawada, Vijaynagar
GURUGRAM DELHI MEERUT REGION
Industries have shown fast growth in recent times
Industries are light & market oriented as this region is far from mineral & power sources
Major Industries:- Electronics , light , engineering & electrical goods
Other Industries:- Woollen , Synthetic fabrics sugar & cement
Software industry is a recent addition
Agra Mathura industrial area specialize in glass & leather goods, Mathur is a petrochemical complex
Industrial centres:- Delhi, Meerut , Gurugram , Agra
KOLLAM – THIRUVANANTHAPURAM REGION
Spread over Thiruvananthapuram, Kollam, Ernakulam
Plantation, agriculture & hydropower provide industrial base to this region
Agri products processing & market oriented light industries dominate this region
Cotton textile, Sugar , Rubber & Fish based industry are important
Petroleum refinery at Kocchi attracted other industries in this region
Important industrial centres:- Kollam,Kocchi & Thiruvananthapuram