Industries
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Industries are categorized based on several criteria, such as size, raw materials used, and ownership.
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Classification
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By Size:
Small Scale: Local, small capital. E.g., Napkins, chocolates.
Large Scale: High capital, large workforce. E.g., Iron and steel, automobiles.
By Raw Materials:
Agro-based: Plant/animal products. E.g., Dairy, leather.
Mineral-based: Mineral ores. E.g., Cement, steel.
Marine-based: Sea products. E.g., Seafood processing.
Forest-based: Forest products. E.g., Paper, furniture.
By Ownership:
Private: Owned by individuals. E.g., Reliance, Tata.
Public: Government-owned. E.g., NTPC, Indian Oil.
Joint: State and private. E.g., Maruti Udyog.
Co-operative: Owned by producers/workers. E.g., Anand Milk Union.
Industrial Policies in India
Industrial Policy Resolution, 1948:
Declared India as a mixed economy.
Emphasized small-scale and cottage industries.
Restricted foreign investments.
Industrial Policy Resolution, 1956 (IPR 1956):
Classified industries into Public Sector, Mixed Sector, and Private Sector.
Introduced provisions for small-scale industries and foreign investments.
Industrial Policy Statement, 1977:
Focused on decentralization and promoting small-scale industries.
Introduced the concept of "Tiny Units" and imposed restrictions on MNCs.
Industrial Policy Statement, 1980:
Aimed at promoting competition, modernization, and technological upgradation.
Liberalized licensing and initiated reforms in industrial regulations.
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New Industrial Policy, 1991:
Emphasized Liberalization, Privatization, and Globalization (LPG).
Abolished industrial licensing for most industries.
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Increased FDI limits and established FIPB for streamlined FDI approvals.
Introduced reforms in public sector management and disinvestment.
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Micro, Small, and Medium Enterprises (MSME)
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The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
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Significant for production, employment, and exports.
Utilizes local raw materials and skills.
Micro Enterprises:
Small Enterprises:
Medium Enterprises:
Important Industrial Sectors
1. Eight Core Industries:
Refinery Products, Electricity, Steel, Coal, Crude Oil, Natural Gas, Cement, Fertilizers.
2. Cotton Textile Industry:
First mill established in Mumbai in 1854.
3. Sugar Industry:
Modern development began in 1903 with a mill in Bihar.
4. Jute Industry:
First mill set up in Kolkata in 1855.
5. Iron and Steel Industry:
Tata Steel (Jamshedpur, 1907), Bhilai (1955), Bokaro (1964), Rourkela (1959).
6. Aluminium Industry:
Bharat Aluminium Company Limited (Chhattisgarh), Hindalco Industries (Jharkhand).
7. Copper Industry:
Hindalco Industries Limited (Gujarat), Hindustan Copper Limited.
8. Zinc Industry:
Hindustan Zinc Limited (Rajasthan).
9. Fertilizer Industry:
IFFCO, Chambal Fertilizers and Chemicals Limited.
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10. Petrochemical Industries:
Mumbai is the hub with major units in Gujarat and Maharashtra.
11. Information Technology and Electronics Industry:
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Major hubs in Bengaluru, Noida, Mumbai, Chennai, Hyderabad, and Pune.
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The Eight Core Industries are:
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Mnemonic: CCC FRENS
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C- Coal.
C- Crude Oil.
C- Cement.
F- Fertilizers.
R- Refinery Products.
E- Electricity.
N- Natural Gas.
S- Steel.
These industries collectively constitute 40.27% of the weight of items
included in the Index of Industrial Production (IIP), as compiled by the
Central Statistical Office (CSO).
Coimbatore is called because it is the most
important cotton textile centre. Manchester of India : Ahmadabad, Manchester of North India : Kanpur
The first cotton textile mill in India was established at Fort Glastor near Kolkata in
1818. Large scale Production of cotton started in Mumbai in 1854.
Jute Industry: First mill set up in Kolkata in 1855 in Rishra.
Iron and Steel Industry :
Bengal Iron Works Company, founded in 1870, evolved into Bengal Iron and Steel
Company by 1890.
TISCO (Tata Iron and Steel Company):
Established by Jamshedji Tata in 1907, now Tata Steel, India's largest and world's 7th
largest steel company.
Government-led Initiatives:
Rourkela Steel Plant: Started in 1961 with German collaboration.
Durgapur Steel Plant: Established in 1956 with British consortium support.
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Bhilai Steel Plant: Founded in 1955 with Soviet Union assistance.
Bokaro Steel Plant: Incorporated in 1964 with Soviet collaboration, merged into SAIL
in 1978. AC
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Navratna Scheme
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The 'Navratna' scheme for Public Sector Undertakings (PSUs), introduced in 1997, requires the following
criteria for eligibility:
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1.Should be a Miniratna-I and Schedule 'A' company.
2.Must have received an 'excellent' or 'very good' MoU rating in three of the last five years.
3.Should achieve a composite score of 60 or above based on six performance indicators.
4.Must report a net profit of more than Rs 5,000 crore for three consecutive years, or maintain an average
annual turnover of Rs 25,000 crore for three years, or have an annual average net worth exceeding Rs
15,000 crore.
Maharatna Companies:
BPCL, SAIL, ONGC, IOCL, BHEL, HPCL, CIL, NTPC, GAIL, Power Finance Corporation, Power Grid Corporation of India,
REC, OIL.
Navratna Companies:
IREDA , BEL, CONCOR, EIL, HAL, MTNL, NALCO, NBCC, NLC, NMDC, RINL, SCIL, RVNL, ONGC Videsh Ltd, RCFL, IRCON,
RITES.
Miniratna Companies:
Airports Authority of India, Antrix Corporation Limited, Bharat Coking Coal Limited, Bharat Dynamics Limited, BEML
Limited, Bharat Sanchar Nigam Limited, and more.
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