Chapter 6
Chapter 6
1. Manufacturing
Production of goods in large quantities after processing from raw materials to more valuable
products is called manufacturing.
Paper is produced from wood
Sugar from sugarcane
Iron and steel from iron ore
Aluminum from bauxite
Economic strength of a country is measured by the development of manufacturing industries.
Manufacturing activities are secondary activities.
Importance of Manufacturing 1
The manufacturing sector is considered the backbone of development due to the following reasons:
Raw material
Labour
Capital
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Describe the importance of manufacturing sector in countries like india? OR Manufacturing sector is considered as the
backbone of economic development of the country. Support the statement with examples.
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Power
Market
Government policies
Manufacturing activity tends to locate at the most appropriate place where all the factors of
industrial location are either available or can be arranged at a lower cost. The figure below shows
the industry market linkage.
Agglomeration Economies
Sometimes industries are located in or near the cities. So we can say that industrialization and
urbanization go hand in hand. Cities provide markets and services such as banking, insurance,
transport, labour, consultants and financial advice to the industry. Many industries tend to come
together to make use these advantages and it is known as agglomeration economies. For example
Mumbai, Kolkatta, Chennai etc.
Key factor of location is least cost, government policies and specialized labour.
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Classification of Industries
A. On the basis of source of raw materials used
1. Agro based- cotton, woolen, jute, silk (textile industries), rubber, and sugar, tea, coffee, edible
oil.
2. Mineral based- iron and steel, cement, aluinium, machine tools, petrochemicals
B. On the basis of their main role
1. Basic of key industries- it supplies their products as raw materials to manufacture other goods.
For example iron and steel and copper smelting, aluminum smelting.
2. Consumer industries- it produces goods for direct use by consumer for example sugar,
toothpaste, paper, sewing machines, fans etc.
C. On the basis of capital investment
1. Small scale- it is defined with reference to the maximm investment allowed on the assets of a
unit. This limit has been changing. At present it is one core. Other categories are medium scale
and large scale industries.
D. On the basis of ownership
1. Public Sector- run and operated by government agencies – BHEL, SAIL etc.
2. Private Sector- owned and operated by individuals or group of individuals. TISCO, BAJAJ,
Reliance etc
3. Joint Sector- jointly run by the state and individuals or a group of individuals. Oil India Ltd.
4. Cooperative sector- owned and operated by the producers or suppliers of raw material,
workers or both. They share the profit and losses. For example sugar industry in MH and Coir
industry in KL.
E. Based on the bulk and weight of raw material and finished goods.
1. Heavy industries- iron and steel industry
2. Light industry- that uses light raw materials and produce light goods such as electrical good
industries.
3. Agro-based Industries
Cotton, jute, silk, woolen textiles, sugar and edible oil, etc. industries are based on agricultural raw
materials.
Textile Industry
It is the only industry in India, which is self-reliant and complete in the value chain i.e., from raw
material to the highest value added products. It contributes to industrial production, employment
generation and foreign exchange earnings. It contributes 14% of industrial production, 35 million job
opportunities and 4% to GDP.
Agriculture gives boost to the industrial sector.2
Agriculture gives raw material to industries.
It provides market for industrial products.
The industries like cotton, jute, silk, woolen, textiles, sugar and edible oil etc. are based on
agriculture raw material.
Cotton Textiles
Why did Gandhi lay emphasis on spinning yarn and weaving Khadi?
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Agriculture and industry are complementary to each other. Explain with examples.
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In ancient India cotton textiles were produced with hand spinning and handloom weaving techniques
after the advent (coming) of power looms in 18th century traditional industries suffered a setback,
especially during the colonial period. Indian products could not compete with mill made cloth from
England.
The first successful textile mill was established in Mumbai in [Link] and after the two
world wars Britain was in need of cloth and they gave boost to the development of cotton industries
in India.
Because of the availability of raw cotton, market, transport, port facilities, labour, moist
climate Cotton textile industries were concentrated in the cotton growing g belt of MH and GT. This
industry has close links with agriculture and provides a living to farmers, cotton boll puckers and
workers engaged in ginning, spinning, weaving, dyeing, designing, packaging, tailoring and sewing.
It supports many other industries, such as, chemicals and dyes, packaging materials and engineering
works. In GT and TN weaving was highly concentrated. It provided a scope for traditional skills and
designs of waving in cotton, silk, zari embroider.
The handspun khadi provided large scale employment to weavers in their homes as a cottage
Industry.
India exported to japan, USA, UK, Russia, France, Nepal Sri Lanka, Singapore, African countries.
Problems
1. Indian spinning mills produced fibres of global slandered. This high quality yarn is used only
by some factories for knitting, weaving and processing.
So spinners exported cotton yarn and manufactures had to import fabrics.
2. Power supply is erratic (irregular)
3. Machineries need to be upgraded in weaving and processing sectors
4. Low output of labour
5. Competition with the synthetic industry.
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D. Abundance of water for the processing of jute
E. Cheap labour from west Bengal, Odisha,
F. Banking, insurance and port facilities for export in Kolkata.
Challenges faced by the industry
Competition- Tight competition in the international market from synthetic substitutes and from
other countries like Bangladesh, Brazil, Philippines, Egypt and Thailand.
Jute policy
It is a policy India government adopted in 2005 to increase productivity, quality, ensure good
prices to jute famers and increase production per hectare.
Internal use of jute increased after the government policy that made it compulsory to use jute for
packing.
Main Indian markets are USA, Canada, Ghana, Saudi Arabia
Sugar Industry
India stands second as a world producer of sugar but occupies the first place in the production of Gur
and Khandsari. This industry is seasonal in nature. Sugar mills are located mainly in UP, BR, MH,
KA, TN, AP, GT, PB, HY, MP. 60% of mills are located in UP & BR.
Challenges of sugar industries
The raw material used in this industry is bulky
Transportation affects the sucrose content
Its seasonal nature.
Old and inefficient methods of production.
Tendency to shift factories to southern and western states (especially in MH)
Sugarcane produced in these areas has more sucrose content.
Favorable climate provides longer crushing period and growing season
Cooperatives are successful in these states.
Modern mills have more crushing capacity.
Why is sugar industry ideally situated in cooperative sector
(i) The sugar industry is seasonal in nature and so is ideally suited to the cooperative sector.
(ii) (ii) For entire year the farmers are engaged in producing sugarcane as it is an annual crop.
(iii) (iii) The seasonal nature of the sugar industry is combated by setting up cooperative where
farmers share the profits and losses
(iv) As the owners are the producers themselves, it reduces the production cost
Mineral-based Industries
Industries that use minerals and metals as raw materials are called mineral-based industries.
Iron and Steel Industry
Iron and steel is the basic industry as all the other industries – heavy, medium and light,
depends on it for their machinery. Steel in required for the manufacture of variety of engineering
goods, construction material, defence, medical, telephonic, scientific equipment and variety of other
goods of our daily use.
It is a heavy industry. All the raw materials, as well as finished goods, are heavy and bulky
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entailing heavy transportation costs.3
Requirements: iron ore, coking coal and lime stone in the ratio of 1:2:1, some manganese is
also required to harden the steel.
Production In India: in 2016 95.6 million tons of crude steel produced. India was in the 3rd
position among the steel producing countries. India is the largest producer of sponge iron4. In
2016 per capita consumption of steel in the country was only around 63 kg per year in the
word it was 208 kg.
In 2019, around 220 million metric tons of iron ore was produced in India. The production
volume remained over 200 million metric tons since the 2017. The states of Odisha,
Chhattisgarh, and Karnataka had a significant volume of iron ore.
“ The Iron Steel Industry is the basic as well as heavy industry “ Support the statement with three
points .Or Why is Iron and Steel Industry is called a basic industry ? Explain.
Public sector marketing is done through Steel Authority of India Ltd (SAIL)
China is largest producer and consumer of steel in the world.
Chotanagpur Plateau Region has the concentration of iron and steel industries because:
Low cost of iron ore.
Iron mines are located in the nearby areas.
Availability of high grade raw materials
Cheap labour
Vast growth potential in the home market.
3
The iron and steel industry is the basic as well as heavy industry. Support the statement. OR why is iron steel industry
called a basic industry?
4
Direct reduced iron (DRI), also called sponge iron, is produced from the direct reduction of iron ore (in the form of lumps, pellets, or
fines) to iron by a reducing gas or elemental carbon produced from natural gas or coal. Many ores are suitable for direct reduction.
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India is an important iron and steel producing country in the world yet; we are not able to
perform to our full potential largely due to -high costs and limited availability of cooking coal,
low productivity of labor, disrupted supply electricity and poor infrastructure5.
Explain any five factors that are responsible for concentration of Iron and Steel industries
mainly in „ Chhotanagpur Plateu Region‟. OR “ Production and Consumption of steel is often
regarded as the index of a country‟s development” Examine the statement.
i. Steel production is the back bone of any country‟s economy since it is the basic unit for the
development of nation.
ii. Almost every industry depends on iron and steel for its manufacturing and production.
iii. In today‟s era of globalisation, consumption of goods is increasing. Thus, it can be
concluded that growth in production of steel is regarded as the index of country‟s
development.
Aluminium Smelting
Aluminium Smelting is the second most important metallurgical industry 6 in India. It is used to
manufacture aircraft, utensils and wires. Bauxite is the raw material used in the smelters.
Aluminium Smelting has gained popularity as a substitute for steel, copper, zinc and lead in a number
of industries. It exhibits the following properties:
Light in weight
Resistant to corrosion
A good conductor of heat
Malleable (flexible)
Becomes strong when it is mixed with other metals
Major aluminium plants in Inda – Odisha, WB, KL,UP, CH, MH, TN
Regular supply of electricity and assured source of raw material at minimum cost are the two primary
factors influencing location.
A factory produces aluminum saucepans with plastic handles. It obtains aluminium from a smelter
and a plastic component from another factory. All the manufactures sauspances are sent to a
warehouses, a) which raw material is likely to be most expenxive to transport and why? B) which
raw material is likely to be the cheapest to transport and why?
a) Aluminum , because it is heavier than plastic and also the saucepan body is bulkier than the
handle
b) Plastic is cheaper for the same reason given in A.
Do you think the cost of transporting the finished products after packing is likely to be cheaper or
more expensive than the cost of transporting aluminum and plastic? and why?
Cost of transporting finished products after packing will be cheaper because they are likely to be
enclosed in rectangular packing boxes, which can be easily transport in larger quantities by
proper stacking either by goods train or by truck.
Chemical Industries
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What are we not able to perform to our full potential in the production of iron and steel in India? OR india is an important
iron and steel producing country in the world. Yet we are not able to perform to our full potential. Find out reasons.
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Industry concerned with the extraction, refining, alloying and fabrication of metals.
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India is in 3rd position in Asia and 12th in World. It contributes 3% of total GDP
The Chemical industry comprises both large and small scale manufacturing units. Rapid growth has
been recorded in both inorganic and organic sectors.
Inorganic chemicals include sulphuric acid nitric acid, alkalies, soda ash and caustic soda.
Organic chemicals include petrochemicals, which are used for manufacturing synthetic fibers,
synthetic rubber, plastics, dye-stuffs, drugs and pharmaceuticals. Organic chemical plants are
located near oil refineries or petrochemical plants (WHY).
Fertilizer Industry
The fertilizer industries are centered around the production of nitrogenous fertilizers (mainly urea),
phosphatic fertilizers and ammonium phosphate (DAP) and complex fertilizers which have a
combination of nitrogen (N), phosphate (P), and potash (K). Gujarat, Tamil Nadu, Uttar Pradesh,
Punjab and Kerala contribute towards half of the fertilizer production.
Potash is entirely imported.
GT, TN, UP, Pb & KL contribute towards half of the fertilizer production in India.
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 and rail transportation.
First cement factory was in Chennai 1904.
This industry is doing well in terms of production as well as export. Decontrol of price and
distribution since 1989 and other reforms led the industry fast growth in capacity, process, technology
and production. Main markets are in East Asia7, middle East, Africa and South Asia8.
Where would it be economically viable to set up the cement manufacturing units?
Since cement manufacturing requires bulky and heavy raw materials like coal, limestone, silica, etc
such industries are likely to be located near to the areas where such minerals are found, to reduce the
cost of transportation of these materials.
Regular availability of electrical power and availability of a railway line are also factors which are
taken into consideration while deciding the location of a cement manufacturing plant.
For example, the industry has strategically located plants in Gujarat that have suitable access to the
market in the Gulf countries.
Automobile Industry
This industry deals with the manufacturing of trucks, buses, cars, motorcycles, scooters, three-
wheelers and multi-utility vehicles. These industries are located around Delhi, Gurugram, Mumbai,
Pune, Chennai, Kolkata, Lucknow, Indore, Hyderabad, Jamshedpur and Bengaluru.
After , the coming of new and contemporary models stimulated the demand for vehicles in
the Indian market, especially passenger‟s cars, three wheelers. Foreign direct investment brought
new technology. At present 15 passengers car manufactures and multi-utility vehicles, 9 commercial
vehicles, 14 two and three wheelers.
Examine the impacts of liberalisation on auto mobile industry of India ?
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China (People's Republic of China), Hong Kong (SAR of PRC), Japan, Macau (SAR of PRC), Mongolia, North Korea (Democratic
People's Republic of Korea), South Korea (Republic of Korea) and Taiwan (Republic of China).
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Afghanistan, India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan and Maldives as the constituent countries.
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i. Multi utility vehicles have been introduced
ii. The coming of new and contemporary models.
iii. Healthy growth of the market
iv. Foreign Direct Investment in new technology
v. Aligned the industry with gobal development
vi. Industry has experienced a quantum jump.
What are the software technology parks? State any two points of significance of information
technology industry in India.
Software technology parks provide single window service and high data communication facility to
software experts .
i. A major impact of this industry has been an employment generation . Up to 31st March
,2005 the IT industry employed over one million persons.
ii. It is encouraging to know that 30percent of the people employed in this sector are
woman.
iii. This industry has been a major foreign exchange earner in the last two or three years
because of its fast growing Business Process Outsourcing sector .
iv. The continuous growth in the hardware and software is the key to the success of IT
industry in India.
What is the importance of Information Technology sector for the Indian economy? Explain
1. Air
2. Water
3. Land
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Business process outsourcing, or BPO, is a business practice in which one organization hires another company to perform a process task
that the hiring organization requires for its own business to operate successfully. ... Over time, organizations in other industries adopted
the practice.
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4. Noise
Air pollution is caused by the presence of a high proportion of undesirable gases, such as sulphur
dioxide and carbon monoxide. Air- borne particulate materials contain both solid and liquid particle
like dust, sprays mist and smoke. Smoke is emitted by chemical and paper factories, brick kilns,
refineries and smelting plants, and burning of fossil fuels leads to air pollution. Toxic gas leaks can
be very dangerous with long term effects10. It adversely affects human health, animals, plants,
buildings and the atmosphere as a whole.
Water pollution is caused by organic and inorganic industrial wastes and effluents discharged into
rivers. The industries which are mainly responsible for water pollution are paper, pulp, chemical,
textile and dyeing, petroleum refineries, tanneries and electroplating industries.
Thermal pollution of water occurs when hot water from factories and thermal plants is drained into
rivers and ponds before cooling.
Waters from nuclear power plants, nclear and weapon production facilitates cause cancers,
birth defects and miscarriage
Soil and water pollution
Dumping wastes like glass, harmful chemicals, industrial effluents, packing, salts and garbage
renders soil useless. Rain water get into the soil carrying the pollutants to the ground water.
Noise pollution is the propagation of noise with harmful impact on the activity of human or animal
life. It results in irritation, anger, because hearing impairment, increased heart rate and blood
pressure.
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On December 3, 1984, about 45 tons of the dangerous gas methyl isocyanate escaped from an insecticide plant that was owned by the
Indian subsidiary of the American firm Union Carbide Corporation. The gas drifted over the densely populated neighbourhoods around
the plant, killing thousands of people immediately and creating a panic as tens of thousands of others attempted to flee Bhopal. The final
death toll was estimated to be between 15,000 and 20,000. Some half a million survivors suffered respiratory problems, eye irritation or
blindness, and other maladies resulting from exposure to the toxic gas; many were awarded compensation of a few hundred dollars.
Investigations later established that substandard operating and safety procedures at the understaffed plant had led to the catastrophe. In
1998 the former factory site was turned over to the state of Madhya Pradesh.
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v. Any other relevant point.
1. Suggest any three measures to minimize the environment degradation by industries in India .
Or
Suggest any three measures to reduce the industrial pollution of fresh water resources .Ans:
i. Minimising use of water for processing by reusing and recycling it in two or more
successive stages.
ii. Harvesting in rain water tomeet water requirements.
iii. Treatement of hot water and effluents before realising them in rivers and ponds.
iv. Chimneys should be fitted with electrostatic precipitators to prevent release of
suspended particulate matters.
2. Suggest any three steps to minimize the environmental degradation causes by the industrial
development in India.
Ans.
Three steps to minimize the environmental degradation caused by the industrial development in
India are:
i. Minimizing use of water for processing by reusing and recycling in two or more
successive stages.
ii. Harvesting of rain water to meet water to meet water requirements.
iii. Treating hot water and influents 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 equipment‟s can be used and generators should be fitted with
silencers.
vii. All most all machinery can be redesigned to increase energy efficient and reduce
noise.
3. Examine what are the causes of industrial pollution of fresh water resources .
Ans. Fresh water resources are polluted by the organic and in organic wastes and effluents
discharged by the industries into rivers. The main culprits are paper and pulp, chemical, textile,
petroleum, refineries , tanneries , electroplating industries etc.
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