Industries

Industry refers to an economic activity that is concerned with production of

goods, extraction of
minerals or the provision of services

OR

Organised efforts to produce or manufacture goods and provide services

Classification of Industries

Raw Materials:
1. Agro Based Industries:
Agro based industries are those industries which obtain raw-material from
agriculture. Cotton textile, jute textile, sugar and vegetable oil are
representative industries of agro-based group of industries

2. Mineral Based Industries:

The industries that receive raw materials primarily from minerals such as
iron and steel, aluminium and cement industries fall in this category.
3. Forest Based Industries:

Industries which receives raw material from forests wild trees and plants
Paper card-board, lac, rayon, resin, tanning of leather, leave- utensils, basket
industries are included in this type of industries.

4. Marine Based Industries:

Marine based industries use products from the sea and oceans as raw
materials. Industries processing sea food or manufacturing fish oil are some
examples.

Size: It refers to the amount of capital invested, number of people

employed and the volume of production.
Based on size, industries can be classified into small scale and large scale
industries.

i. Small Scale Industries

Small scale industries manufacture products by hand and include cottage
and household industry. These industries use lesser amount of capital and
technology. For example, Basket-weaving,
pottery and other handicraft industries.
In India small scale industry gives employment to around 35% population.
Small scale industries mostly exist in developing and under developed world.

ii. Large Scale Industries

Large scale industries produce large volumes of products. The investment of
capital is higher and technology is superior.
For example, production of automobiles and heavy machinery.
Has automated production, and is capital- and manpower-intensive, requires
heavy investment in plant and machinery.
After independence India gave emphasis to this sector for development.
Most developed nations shows existence of large scale industries.
On the basis of ownership:
• Public sector, owned and operated by government agencies – BHEL, SAIL
etc.
• Private sector industries owned and operated by individuals or a group of
individuals –TISCO, Bajaj Auto Ltd.,Dabur Industries, Birla.
• Joint sector industries which are jointly runby the state and individuals or
a group of
individuals. Oil India Ltd. (OIL) is jointly owned by public and private sector.
• Cooperative sector industries are owned and operated by the producers
or suppliers of raw materials, workers or both. They pool in the resources and
share the profits or losses proportionately such as the sugar industry in
Maharashtra, the coir industry in Kerala.

Factors Affecting Location of Industries

Industrial System
An industrial system comprises of input, process and output.
The input includes raw materials, labour, land, transport, power and other
infrastructure.
The process includes a wide range of activities, like ginning, spinning,
weaving, dyeing and printing, that convert the raw materials into finished
products.
The output includes the end products which are sold to buyers.
Industrial set ups also depends on the political will.

Industrial Regions
• When a number of industries locate close to each other and share the
benefits of their closeness
they make an Industrial region.
• Industrial regions of the world: Eastern North America, Western and central
Europe, Eastern Europe and Eastern Asia.
• Industrial regions in India: Mumbai- Pune cluster, Bangalore-Tamil Nadu
region, Hugli region,
Ahmedabad-Baroda region, Chottanagpur industrial belt, Vishakhapatnam-
Guntur belt, Gurgao
Delhi-Meerut region and the Kollam-Thiruvanathapuram industrial cluster.
Industrial regions depend on technological advancement of a country too.
Industrial corridors are also being set up now by countries to utilise
maximum potential. China-India economic corridor is one such example

Industrial Disaster
Industrial workers are sometimes required to work in a dangerous
environment.
Technical failure due to any lapse in the regular maintenance of technical
equipment or irresponsible handling of hazardous materials may lead to
accidents.
There are some risk reduction measures which if followed can prevent
large-scale disasters

Risk Reduction Measures

1. Densely populated residential areas should be separated far away from
the industrial areas.
2. People staying in the vicinity of industries should be aware of the storage
of toxins or hazardous substances and their possible effect in case if an
accident occurs.
3. Fire warning and fighting system should be improved.
4. Storage capacity of toxic substances should be limited.
5. Pollution dispersion qualities in the industries should be improved.

Distribution of Major Industries

The iron and steel industry, the textile industry and the information
technology industry are world’s major industries.
Iron and steel industries are located in Germany, USA, China, Japan and
Russia.
In India Iron and Steel industry base is found at Chota Nagpur Plateau which
is rich in mineral resources.
Textile industries are located in India, Hong Kong, South Korea, Japan and
Taiwan.
The Silicon Valley of Central California and Bengaluru region of India are the
major hubs of information technology industry.
Emerging industries are also known as ‘Sunrise Industries’ and include
Information technology, Wellness, Hospitality and Knowledge.

Iron and Steel Industry

Iron and steel industry comprises various inputs, processes and outputs and
it is a mineral-based industry.
Inputs in this industry include raw materials such as iron ore, core and
limestone, labour, capital and other infrastructure.
In processing iron ore is converted into steel by undergoing different stages
like smelting and refining.
The process through which metals are extracted from their ores by heating
beyond their melting point is known as smelting.
An output result obtained is the steel.
Steel is the backbone of modern industry and is used as raw material for
almost all industries.
Availability of raw materials, cheap labour, transport and market were a few
advantages that helped the iron and steel industry to develop in India.
The important steel producing centres in India are

 Burnpur and Durgapur in West Bengal

 Bokaro and Jamshedpur in Jharkhand
 Bhilai in Chhattisgarh
 Rourkela in Orissa

‘Tata Iron and Steel Company Limited’ (TISCO) was the first major steel
producing company set up in 1907 in Jamshedpur, India.
Major steel industries are located in Germany, the USA, China, Japan and
Russia.
India’s steel production increased from one million tonne in 1947 to 30
million tonnes in 2002.
Pittsburgh in the USA is an important steel city and also has many other
factories that use steel as raw material.

• Before 1800 A.D. iron and steel industry was located where raw materials,
power supply and water were easily available.
• Between 1850 to 1900 A.D., the ideal location for the industry was near
coal fields and close to
canals and railways.
• After 1950, iron and steel industry began to be located on large areas of
flat land near sea ports
because by this time steel works had become very large and iron ore had to
be imported from
overseas.

• Before independence, Tata Iron and Steel Company Limited (TISCO) was
only one iron and steel plant in the country which was privately owned.
• After Independence, the government set up several iron and steel plants.
→ TISCO was started in 1907 at Sakchi, near the confluence of the rivers
Subarnarekha and Kharkai. Later on, Sakchi was renamed as Jamshedpur.

Why Sakchi was chosen to set up the steel plant

• This place was only 32 km away from Kalimati station on the Bengal-
Nagpur railway line.
• It was close to the iron ore, coal and manganese deposits as well as to
Kolkata, which provided
large market.
• TISCO, gets coal from Jharia coalfields, and iron ore, limestone, dolomite
and manganese from
Odisha and Chhattisgarh.
• The Kharkai and Subarnarekha rivers ensured sufficient water supply.
Government initiatives
Pittsburgh
• It is an important steel city of the United States of America.
Why iron and steel industry developed in Pittsburgh
• The raw material such as coal is available locally, while the iron ore comes
from the iron mines
Minnesota, about 1500 km from Pittsburgh.
→ Between these mines and Pittsburgh, Great Lakes waterway is present
which is one of the world’s best routes for shipping ore cheaply.
→ Trains carry the ore from the Great Lakes to the Pittsburgh area.

• Finished steel is transported to the market by both land and water routes.
• Other factories present in Pittsburgh area use steel as their raw material to
make many different
products such as railroad equipment, heavy machinery and rails.

Cotton Textile Industry

• The textile industry can be divided on the basis of raw materials i.e., fibres
used in them.
• Fibres can be of two types:

→ Natural: Obtained from wool, silk, cotton, linen and jute.

→ Man-made: It includes nylon, polyester, acrylic and rayon.
• Till the industrial revolution, cotton cloth was made using hand spinning
techniques (wheels) and power looms.
• In 18th century, power looms facilitated the development of cotton textile
industry, first in Britain and later spread to other parts of the world.
• Important producers of cotton textiles: India, China, Japan and the USA.
• Before the British rule, Indian hand spun and hand woven cloth popular
worldwide for their quality and design but the production of hand woven
cotton textile was expensive and time consuming.
→ However, the traditional cotton textile industry could not face the
competition from the new textile mills of the West, which produced cheap
and good quality fabrics through mechanized industrial units.
• The first successful mechanized textile mill was established in Mumbai in
1854.
• Location of cotton textile industry in India:
→ Initially this industry flourished in the states of Maharashtra and Gujarat
because of favourable humid climate.
→ But today, humidity can be created artificially, and raw cotton is a pure
and not weight losing raw material, so this industry has spread to other parts
of the country such as Coimbatore, Kanpur, Chennai, Ahmedabad, Mumbai,
Kolkata, Ludhiana, Puducherry and Panipat.
Easy availability of raw material, suitable climate, Ùat terrain and easy
access to skilled and semi-skilled labour from the densely populated states of
Gujarat and the neighbouring state of Maharashtra resulted in a rapid
expansion of the industry in the region.
Ahmadabad is also known as ‘Manchester of India’.
The port city of Osaka, known as ‘Manchester of Japan’, is the hub of the
textile industry in Japan.

Why textile industry developed in Osaka

• The extensive plain around Osaka ensured that land was easily available
for the growth of cotton.
• Labour is easily available.
• Location of port facilitates import of raw cotton and for exporting textiles.
• The textile industry at Osaka depends completely upon imported raw
materials.
→ Cotton is imported from Egypt, India, China and USA.
• The finished product is mostly exported and has a good market due to
good quality and low price.
• Recently, the cotton textile industry of Osaka has been replaced by other
industries, such as iron and steel, machinery, shipbuilding, automobiles,
electrical equipment and cement.otton textile mills.

Information Technology (IT)

Information Technology is the study, design and implementation of
computer-based information systems.
It deals with the use of technology, i.e. the hardware and the software, to
manage and process information. It enables the conversion, transmission,
storage and retrieval of data.
Silicon chips consist of silicon, which is a semiconductor, and are used in an
integrated circuit.
The major hubs of the IT industry are the Silicon Valley in California and
Bengaluru in India.
Bengaluru is also known as ‘Silicon Plateau.
IT hubs in metropolitan centres of India are Mumbai, New Delhi, Hyderabad
and Chennai.
IT sector provides jobs to maximum population in service sector.
Indian IT engineers and technology is considered to be best among the
world.
The first state government in India to announce an IT Policy was Karnataka in
1992. • Close to some of the most advanced scientific and
technological centres in the world.
• Pleasant climate with an attractive and a clean environment.
• Plenty of space for development and future expansion.
• Located close to major roads and airports.
• Good access to markets and skilled work force.
• The city has the largest and widest availability of skilled managers with
work experience.