VANDANA VIDYAMANDIR CLASSES
Manufacturing Industries
Importance of Manufacturing
The manufacturing sector is considered the
backbone of general and economic
development because:
 Manufacturing industries help in
modernizing agriculture.
 It helps in reducing the heavy
dependence of people on
agricultural income by providing
them with jobs in secondary and
tertiary sectors.
 It helps eradicate unemployment
and poverty in our country.
 It helps in reducing regional
disparities by establishing
industries in tribal and backward
areas.
 The export of manufactured
goods expands trade and
commerce and helps in bringing
foreign exchange.
 Countries with large numbers of
manufacturing industries are
prosperous.
Agricultural sector and manufacturing sector
move hand in hand
 The given statement means that
agricultural and manufacturing
industries are not exclusive of
each other and are quite
interconnected.
 Agro-industries in India have
given a major boost to
agriculture by raising its
productivity and efficiency.
 Agro-industries are units that add
value to agricultural produce,
intermediates, and/or residues by
processing or improving
storability or by providing links
from the farm to the market or
part thereof.
 Industries depend on agriculture
for raw materials and sell their
products such as irrigation
pumps, fertilizers, insecticides,
pesticides, PVC pipes, machines,
tools, etc to farmers.
 So, the development and
competitiveness of
manufacturing industries have
not only assisted agriculturalists
and farmers in increasing their
production but also made the
production processes very
efficient and far better.
Factors responsible for the
location of industries
Physical factors:
 Availability of raw materials – This
factor is more important for
heavy industries like iron and
steel, cement industry, etc.
 Availability of power resources –
Proximity to power resources like
coal, and electricity will attract
more industries.
 Availability of water – Almost all
industries require a huge quantity
of water.
 Availability of favorable climate.
Human factors:
 The availability of skilled and
unskilled laborers attracts more
industries.
 Proximity to market – This
reduces transport costs and
delays.
 Infrastructural facilities – Like
banking, transport,
communication, etc. attract more
industries.
 Government policy – Tax benefits
and subsidies on inputs play an
 important role in industrial
location.
Classification of Industries
Based on the source of raw materials
 Agro-based industries (eg.
Cotton, woolen, jute, silk, etc.)
 Mineral-based industries (eg. Iron
and steel, cement, aluminium,
etc.)
Based on the main role
 Basic or key industries: These
industries supply their products
as raw materials to manufacture
other goods. Examples: iron and
steel industry, copper smelting,
aluminium smelting.
 Consumer industries: These
industries produce goods for
direct use by consumers.
Examples: sugar, paper,
toothpaste, fans, etc.
Based on capital investment
 Small scale industry: Maximum
investment allowed on the assets
of a unit is ₹ 1 Crore.
 Large scale industry: When
investment in the assets of a unit
is more than ₹ 1 Crore.
Based on ownership
 Public sector industries: Public
sector industries are owned and
operated by government
agencies. For example BHEL, SAIL,
etc.
 Private sector industries: Private
sector industries are owned and
operated by individuals or a
group of individuals. For example
TISCO, Bajaj Auto Ltd., Dabur
industries, etc.
 Joint sector industries: Joint
sector industries are jointly run by
the state and individuals or a
group of individuals. For example
Oil India Limited (OIL).
 Cooperative sector industries:
Cooperative sector industries are
owned and operated by the
producers or suppliers of raw
materials, workers, or both. They
pool the resources and share the
profits or losses proportionately.
For example Sugar industry, coir
industry, etc.
Based on the bulk and weight of raw
material and finished goods:
 Heavy industries such as iron and
steel
 Light industries that use light raw
materials and produce light
goods such as electrical goods
industries.
Cotton Textile Industry
In the early years, the cotton textile industry
was concentrated in the cotton-growing belt of
Maharashtra and Gujarat because of availability
of
 raw cotton,
 market,
 transport including accessible
port facilities,
 labor,
 moist climate, etc.
Jute Textiles
Factors responsible for their location in the
Hugli basin are:
 proximity of the jute-producing
areas,
 inexpensive water transport,
 supported by a good network of
railways, roadways, and
waterways to facilitate the
movement of raw materials to the
mills,
 abundant water for processing
raw jute,
 cheap labor from West Bengal
and adjoining states of Bihar,
Odisha, and Uttar Pradesh.
 Kolkata as a large urban center
provides banking, insurance, and
port facilities for the export of
jute goods.
Sugar Industries
In recent years, there has been a tendency for
the mills to shift and concentrate in the
southern and western states, especially in
Maharashtra. This is because
 The cane produced here has a
higher sucrose content.
 The cooler climate also ensures a
longer crushing season.
 The cooperatives are more
successful in these states.
Iron and Steel Industry
Iron ore, coking coal, and limestone are
required in a ratio of approximately 4 : 2 : 1.
Some quantities of manganese, are also
required to harden the steel.
Chhotanagpur plateau region has the
maximum concentration of iron and steel
industries because of:
 low cost of iron ore,
 high-grade raw materials in
proximity,
 cheap labor
 vast growth potential in the home
market.
Industrial Pollution and
Environmental Degradation
Industries cause environmental degradation in
the following ways:
 Air pollution: High proportion of
carbon dioxide, sulphur dioxide,
and carbon monoxide create air
pollution. Suspended particulate
matters also create problems.
 Water pollution: Organic and
inorganic industrial wastes and
effluents cause water pollution.
Paper, pulp, chemicals, textiles,
dyeing, petroleum refineries, etc.
are the main culprits of water
pollution.
 Thermal pollution: Hot water
from factories and thermal plants
is drained into rivers and ponds
before cooling.
 Radioactive waste: wastes from
nuclear power plants cause
cancer, birth defects,
miscarriages, etc.
 Noise pollution: Results in
irritation, hypertension, and
hearing impairment.
Control of Environmental
Degradation
Ways to prevent environmental degradation by
industries:
 Water should be reused and
recycled in the industry. This will
help in minimizing the use of
fresh water.
 Rainwater harvesting should be
promoted.
 Hot water and effluents should
be treated before being released
into rivers and ponds.
 Overdrawing of groundwater
needs to be regulated legally.
 Particulate matter in the air can
be reduced by fitting smoke
stacks into factories with
electrostatic precipitators, fabric
filters, etc.
 Smoke can be reduced by using
oil or gas instead of coal in
factories.
 Machinery and generators should
be fitted with silencers.