CLASS X STUDY MATERIAL- 1

MANUFACTURING INDUSTRIES

 Production of goods in large quantities after processing from raw materials to more
valuable and usable products is called manufacturing.
 People employed in the secondary activities manufacture the primary materials into
finished goods.
 The economic strength of a country is measured by the development of manufacturing
industries.

IMPORTANCE OF MANUFACTURING

 Manufacturing industries not only help in modernising agriculture, which forms the
backbone of our economy, they also reduce the heavy dependence of people on
agricultural income by providing them jobs in secondary and tertiary sectors.
 Industrial development is a precondition for eradication of unemployment and poverty
from our country. This was the main philosophy behind public sector industries and
joint sector ventures in India. It was also aimed at bringing down regional disparities
by establishing industries in tribal and backward areas.
 Export of manufactured goods expands trade and commerce, and brings in much
needed foreign exchange.
 Countries that transform their raw materials into a wide variety of furnished goods of
higher value are prosperous. India’s prosperity lies in increasing and diversifying its
manufacturing industries as quickly as possible.

AGRICULTURE AND INDUSTRY MOVE HAND IN HAND

 Agriculture depends on Industries for the conversion of agricultural produce into
other consumable products.
 The agro-industries in India have given a major boost to agriculture as they use the
agricultural produce as a raw material thus increasing the demand for agriculture.

 Industries depends on the agriculture for raw materials and sell their products such as
irrigation pumps, fertilisers, insecticides, pesticides, plastic and PVC pipes, machines
and tools, etc. to the farmers. Thus, development and competitiveness of
manufacturing industry has not only assisted agriculturists in increasing their
production but also made the production processes very efficient.
Factors affecting The Location of Industries Industrial locations are influenced by:
● availability of raw material,
● labour,
● capital,
● power and
● market
● The key to decision of the factory location is the least cost.
● Government policies and specialised labour also influence the location of industry.

It is rarely possible to find all these factors available at one place. 1

● Consequently, 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 lower cost.
● After an industrial activity starts, urbanisation follows.
● Sometimes, industries are located in or near the cities.
● Thus, industrialisation and urbanisation go hand in hand.
● Cities provide markets and also provide services such as banking, insurance, transport,
labour, consultants and financial advice, etc. to the industry.
● Many industries tend to come together to make use of the advantages offered by the urban
centres known as agglomeration economies.
● Agglomeration Economy: a localized economy in which a large number of companies,
services, and industries exist in close proximity to one another and benefit from the cost
reductions and gains in efficiency that result from this proximity.
CLASSIFICATION OF INDUSTRIES

 ON BASIS OF RAW MATERIAL USED:

Mineral based industries- iron and steel, cement ,aluminium, machine tools,
petrochemicals.
Agro based industries- cotton, woollen, jute, silk textile, rubber and sugar, tea,
coffee, edible oil.

 ACCORDING TO THEIR MAIN ROLE

Basic or key industries: which supply their products or raw materials to
manufacture other goods e.g. iron and steel and copper smelting, aluminium smelting
Consumer Industries: industries that produces goods for direct use by consumers –
sugar, toothpaste, paper, sewing machines, fans etc.

 ON THE BASIS OF CAPITAL INVESTMENT:

A small scale industry is defined with reference to the maximum investment allowed
on the assets of a unit. This limit has changed over a period of time. At present the
maximum investment allowed is rupees one crore.
Large Scale Industry: If investment is more than one crore on any industry then it
is known as a large scale industry.
  ON THE BASIS OF OWNERSHIP
Public sector industries : 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.
Joint sector industries: which are jointly run by 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.

 ON THE BASIS OF 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 industries.
TEXTILE INDUSTRY:

 The textile contributes significantly to industrial production (14 per cent),

employment generation (35 million persons directly – the second largest after
agriculture) and foreign exchange earnings (about 24.6 per cent).

 It contributes 4 per cent towards GDP. It is the only industry in the country, which is
self-reliant and complete in the value chain i.e., from raw material to the highest value
added products.

 Value addition

COTTON TEXTILES:

 In ancient India, cotton textiles were produced with hand spinning and handloom
weaving techniques.
 After the 18th century, power -looms came into use.
 Our traditional industries suffered a setback during the colonial period because they
could not compete with the mill-made cloth from England.

Factors affecting the location of the Cotton Textile Industry:

 Availability of raw cotton,
 market,
 transport including accessible port facilities,
 labour,
  moist climate,
 proximity to towns and urban centres etc.

This industry provides a living to farmers, cotton boll pluckers and workers engaged in
ginning, spinning, weaving, dyeing, designing, packaging, tailoring and sewing.
The industry by creating demands supports many other industries, such as, chemicals and
dyes, mill stores, packaging materials and engineering works.

 While spinning continues to be centralised in Maharashtra, Gujarat and Tamil Nadu,

weaving is highly decentralised to provide scope for incorporating traditional skills
and designs of weaving in cotton, silk, zari, embroidery, etc.

 India has world class production in spinning, but weaving supplies low quality of
fabric as it cannot use much of the high quality yarn produced in the country.
Weaving is done by handloom, powerloom and in mills.

 The handspun khadi provides large scale employment to weavers in their homes as a
cottage industry.

 India has the second largest installed capacity of spindles in the world, next to China,
at around 34 million (2003-04).

 We have a large share in the world trade of cotton yarn, accounting for one fourth of
the total trade.

 However, our trade in garments is only 4 per cent of the world’s total.

WHY?       

 Our spinning mills are competitive at the global level and capable of using all the fibres
we produce.

 The weaving, knitting and processing units cannot use much of the high-quality yarn
that is produced in the country.

 There are some large and modern factories in these segments, but most of the
production is in fragmented small units, which cater to the local market.

 This mismatch is a major drawback for the industry.

 As a result, many of our spinners export cotton yarn while apparel/garment

manufactures have to import fabric.

Challenges faced by the Cotton Textile Industry:

  Although, we have made significant increase in the production of good quality long
staple cotton (9232 lakh bales in 2004-05), the need to import is still felt.

 Power supply is erratic

 machinery needs to be upgraded in the weaving and processing sectors in particular

 low output of labour due to climatic and working conditions

 stiff competition with the synthetic fibre industry.

Let us think!!!!

Why did Mahatma Gandhi lay emphasis on spinning yarn and weaving khadi?

Why is it important for our country to keep the mill sector loomage lower than power
loom and handloom?

Why is it important for us to improve our weaving sector instead of exporting yarn in
large quantities?

JUTE TEXTILES

 India is the largest producer of raw jute and jute goods and stands at second place as an
exporter after Bangladesh.

 There are about 70 jute mills in India. Most of these are located in West Bengal, mainly
along the banks of the Hugli river, in a narrow belt (98 km long and 3 km wide).

 The first jute mill was set up near Kolkata in 1859 at Rishra.

 After Partition in 1947, the jute mills remained in India but three-fourth of the jute
producing area went to Bangladesh

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 movement of raw material to the mills,

 abundant water for processing raw jute,

 cheap labour from West Bengal and adjoining states of Bihar, Orissa and Uttar Pradesh.
 Kolkata as a large urban centre provides banking, insurance and port facilities for export
of jute goods.

Contribution to the economy:

 The jute industry supports 2.61 lakh workers directly and another 40 lakhs small and
marginal farmers who are engaged in cultivation of jute and mesta.

 Many more people are associated indirectly.

Challenges faced by the industry:

 Stiff competition in the international market from synthetic substitutes and from other
competitors like Bangladesh, Brazil, Philippines, Egypt and Thailand.

 However, the internal demand has been on the increase due to the Government policy
of mandatory use of jute packaging.

 In 2005, National Jute Policy was formulated with the objective of increasing
productivity, improving quality, ensuring good prices to the jute farmers and
enhancing the yield per hectare.

 The main markets are U.S.A., Canada, Russia, United Arab Republic, U.K. and
Australia.

 The growing global concern for environment friendly, biodegradable materials, has
once again opened the opportunity for jute products.