Definition of Industry

• Industry refers to economic activities concerned with production of goods, extraction of

minerals, and services.

• It is part of the secondary sector of the economy.

Types of Industries

1. Based on Size:

Type Features

Large-scale Heavy investment, advanced technology (e.g., steel, automobiles)

Small-scale Low capital, limited labor (e.g., handicrafts, agro-based units)

Cottage industries Home-based, traditional methods (e.g., weaving, pottery)

2. Based on Ownership:

Type Examples

Public sector Owned by government (e.g., SAIL, ONGC)

Private sector Owned by individuals (e.g., Tata, Reliance)

Joint sector Partnership of govt. & private (e.g., Maruti Suzuki)

Cooperative Owned by producers/customers (e.g., AMUL)

3. Based on Raw Material:

Type Examples

Agro-based Sugar, cotton, food processing

Mineral-based Iron & steel, cement

Forest-based Paper, furniture

Marine-based Fish processing, seaweed extraction

Factors Influencing Location of Industries

1. Availability of raw material

2. Transport and communication facilities

3. Power supply

4. Availability of labor
 5. Market access

6. Government policies

7. Climate

Example: Iron & steel industries are located near coal and iron ore mines (e.g., Jamshedpur).

🇮🇳 Major Industries in India

1. Iron and Steel – Backbone of industrial development (e.g., Bhilai, Rourkela)

2. Textile Industry – Largest employment after agriculture

3. Information Technology – Major foreign exchange earner (e.g., Bengaluru, Hyderabad)

4. Automobile Industry – Pune, Chennai, Gurugram

Environmental Impact of Industries

• Air pollution: Smoke from factories

• Water pollution: Discharge of effluents into rivers

• Noise pollution: Machinery noise

• Deforestation: For industrial land

Remedy: Use of clean technology, waste treatment plants, afforestation, and eco-friendly
policies.

Important Terms

• Industrial Cluster: Area where several industries of same type are located.

• SEZ (Special Economic Zone): Industrial area with tax and infrastructure benefits.

• Disinvestment: Selling government shares in public sector units.

Quick Revision Table

Industry Type Example Sector

Agro-based Cotton, Jute Secondary

Mineral-based Iron & Steel Secondary

Public Sector BHEL, SAIL Mixed

Private Sector Infosys, Reliance Private

Industry Type Example Sector

Cottage Industry Pottery, Weaving Traditional

Schemes for Improving Industries & MSMEs in India

1. PMEGP – Prime Minister’s Employment Generation Programme

• Objective: Generate self-employment through micro-enterprises.

• Features:

o Financial assistance for starting new ventures.

o Margin money subsidy of 15%–35% depending on area.

o Implemented by KVIC (Khadi and Village Industries Commission).

• Eligibility: Any individual above 18 years with a project idea (no income cap).

2. MUDRA Yojana (Micro Units Development and Refinance Agency)

• Objective: Provide loans to small businesses and non-corporate enterprises.

• Loan Categories:

o Shishu: Up to ₹50,000

o Kishor: ₹50,000 – ₹5 lakh

o Tarun: ₹5 – ₹10 lakh

• No collateral required.

3. CGTMSE – Credit Guarantee Fund Trust for Micro and Small Enterprises

• Objective: Provide collateral-free loans to MSEs.

• Guarantees up to ₹5 crore for both new and existing units.

• Facilitates easy credit through banks and financial institutions.

4. SAMARTH – Scheme for Capacity Building in Textile Sector

• Target Sector: Textile industries and related MSMEs.

• Objective: Provide skill training and employment.

 • Includes placement-linked training for youth and workers.

5. MSME Champions Portal & Scheme

• Launched: 2020

• Purpose: One-stop digital platform to help MSMEs in areas like finance, raw materials,
exports.

• Also handles grievances and provides handholding.

6. Production Linked Incentive (PLI) Schemes

• Applicable To: Various sectors like electronics, pharma, textiles, drones, etc.

• Objective: Promote large-scale manufacturing and make India an export hub.

• Offers financial incentives based on incremental output.

7. ZED Certification Scheme (Zero Defect, Zero Effect)

• Aim: Encourage MSMEs to manufacture with high quality and eco-friendly standards.

• MSMEs get certifications, training, and financial support to improve quality and reduce
waste.

8. Start-up India

• While not MSME-specific, many small and medium enterprises benefit from:

o Tax exemptions

o Funding support

o Simplified compliance and registration

o Facilitated through Startup India Hub and DPIIT recognition.

9. Technology Centres (Tool Rooms) & Incubation Schemes

• Under Ministry of MSME, these centers provide:

o Skill training

o Product design and development support

o Tooling and prototyping services

10. Udyam Registration

• New simplified portal for MSME registration.

• Mandatory for availing government benefits.

• Linked with PAN and GST — paperless and free of cost.

• Union Budget 2024–25

• 1. Boost to Manufacturing Sector

• PLI Schemes Expansion: More sectors added under Production Linked Incentive (PLI) scheme
to promote large-scale manufacturing (e.g., semiconductors, electronics, EVs).

• Capital Investment: ₹11.1 lakh crore allocated for infrastructure and capital expenditure
(highest ever).

• Green Manufacturing: Incentives for green hydrogen, solar panel manufacturing, and EV
ecosystem.

• 2. Support to MSMEs

• Revamped Credit Guarantee Scheme: ₹2 lakh crore worth of collateral-free loans to be given
under CGTMSE.

• Udyam, e-Shram, NCS, and ASEEM portals integrated to provide end-to-end digital support
to MSMEs.

• Customs Duty Relief: Rationalization for raw materials used by MSMEs to reduce input costs.

• 3. Start-ups & Innovation

• Tax Holiday Extended: Start-ups incorporated till March 31, 2025 are eligible for tax
incentives.

• Innovation Hubs: Support for sectors like AI, biotech, pharma R&D.

• Fund of Funds: Continued support to boost venture capital and angel investment.

• 4. Industrial Corridors & Logistics

• PM Gati Shakti: More multimodal logistics parks and industrial corridors planned.

• ₹75,000 crore allocated for urban infrastructure development to support growing industrial
towns.

• 5. Labour & Skilling

• Skill India Mission: 50 lakh youth to be trained in future-ready skills.

 • Digital Skilling: Focus on AI, robotics, coding for MSME workers and youth in industrial
zones.

• 6. Ease of Doing Business

• Decriminalization of minor offenses in Companies Act and MSME laws.

• Single-window clearance and faster regulatory approvals.

• 7. Sustainable Industry Measures

• ₹35,000 crore for energy transition and net zero goals by 2070.

• Incentives for industries to adopt energy-efficient tech and waste management practices.

• Summary Table

Sector Budget Initiative

MSMEs Revamped CGTMSE, easier credit, reduced duty
Manufacturing Expanded PLI, green tech push
Start-ups Tax holiday extended, VC support
Infrastructure ₹11.1 lakh crore capital spend, Gati Shakti
Skilling 50 lakh trained youth, industry-relevant skills
•