MANUFACTURING
INDUSTRIES
1.
Production of goods in large quantities after processing from raw materials to more
valuable products is called manufacturing.
2.
The economic strength of a
country is measured by the development of manufacturing industries.
3.
Manufacturing sector is
considered the backbone of development
4.
India’s prosperity lies in
increasing and diversifying its manufacturing industries as quickly as possible
Contribution of Industry to National Economy
1.
Over the last two decades, the
share of manufacturing sector has stagnated at 17 per cent of GDP –
2.
Out of a total of 27 per cent
for the industry which includes 10 per cent for mining, quarrying, electricity
and gas.
3.
Where it is 25 to 35 per cent.
The trend of growth rate in manufacturing over the last decade has been around
7 per cent per annum.
4.
The desired growth rate over
the next decade is 12 per cent.
5.
With appropriate policy
interventions by the government and renewed efforts by the industry to improve
productivity,
6.
The National Manufacturing
Competitiveness Council (NMCC) has been set up with this objective.
Industrial Location
These are influenced by availability of raw
material, labour, capital, power and market, etc.
Agglomeration economies
·
Many industries tend to come
together to make use of the advantages offered by the urban centres known as
agglomeration economies
Classification of Industries
On
the basis of source of raw materials used:
1.
Agro based: cotton, woollen,
jute, silk textile, rubber and sugar, tea, coffee, edible oil
2.
Mineral based: iron and steel,
cement, aluminium, machine tools, petrochemicals.
According
to their main role
1.
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.
2.
Consumer industries that
produce goods for direct use by consumers – sugar, toothpaste, paper, sewing
machines, fans etc.
3.
A small scale industry is
defined with reference to the maximum investment allowed on the assets of a
unit.
4.
This limit has changed over a
period of time. At present the maximum investment allowed is rupees one crore
On
the basis of ownership:
1.
Public sector, owned and
operated by government agencies – BHEL, SAIL etc.
2.
Private sector industries owned
and operated by individuals or a group of individuals –TISCO, Bajaj Auto Ltd.,
Dabur Industries
3.
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.
4.
Cooperative sector industries
are owned and operated by the producers or suppliers of raw materials, workers
or both.
5.
They pool in the resources and
share the profits or losses proportionately such as the sugar industry in
Maharashtra, the coir industry in Kerala.
Heavy industries such as iron and steel
1.
Light industries that use light
raw materials and produce light goods such as electrical industries.
Agro
Based Industries
1.
Cotton, jute, silk, woollen
textiles, sugar and edible oil, etc. industry are based on agricultural raw
materials.
Textile Industry
1.
The textile industry occupies
unique position in the Indian economy
2.
It contributes significantly to
industrial production (14 per cent), employment generation (35 million persons
directly
3.
The second largest after
agriculture) and foreign exchange earnings (about 24.6 per cent).
4.
It contributes 4 per cent
towards GDP. It is the only industry in the country,
5.
Which is self-reliant and
complete in the value chain i.e., from raw material to the highest value added
products
Cotton Textiles
1.
In ancient India, cotton
textiles were produced with hand spinning and handloom weaving techniques.
2.
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.
3.
Today, there are nearly 1600
cotton and human made fibre textile mills in the country.
4.
The first successful textile
mill was established in Mumbai in 1854.
5.
The two world wars were fought
in Europe, India was a British colony. There was a demand for cloth in U.K
6.
Hence, they gave a boost to the
development of the cotton textile industry.
7.
In the early years, the cotton
textile industry was concentrated in the cotton growing belt of Maharashtra and
Gujarat
8.
Availability of raw cotton,
market, transport including accessible port facilities, labour, moist climate,
etc.
9.
Contributed towards its
localisation
10.
This industry has close links
with agriculture and provides a living to farmers, cotton boll pluckers and
workers engaged in
11.
Ginning, spinning, weaving,
dyeing, designing, packaging, tailoring and sewing.
12.
The industry by creating
demands supports many other industries, such as, chemicals and dyes, mill
stores, packaging materials and engineering works.
13.
While spinning continues to be
centralised in Maharashtra, Gujarat and Tamil Nadu
14.
Weaving is highly decentralised
to provide scope for incorporating traditional skills and designs of weaving in
cotton, silk, zari, embroidery, etc.
15.
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.
16.
The handspun khadi provides
large scale employment to weavers in their homes as a cottage industry.
17.
India exports yarn to Japan.
Other importers of cotton goods from India are U.S.A., U.K., Russia, France,
East European countries, Nepal, Singapore, Sri Lanka, and African countries.
18.
India has the second largest
installed capacity of spindles in the world, next to China, at around 34
million (2003-04)
19.
Since the mid-eighties, the
spinning sector has received a lot of attention.
20.
We have a large share in the
world trade of cotton yarn, accounting for one fourth of the total trade
21.
Our trade in garments is only 4
per cent of the world’s total.
22.
The weaving, knitting and
processing units cannot use much of the high quality yarn that is produced in
the country.
23.
The weaving, knitting and
processing units cannot use much of the high quality yarn that is produced in
the country.
24.
But most of the production is
in fragmented small units,
25.
This mismatch is a major
drawback for the industry.
Jute Textiles
1.
India is the largest producer
of raw jute and jute goods and stands at second place as an exporter after
Bangladesh.
2.
There are about 70 jute mills
in India.
3.
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).
4.
The first jute mill was set up
near Kolkata in 1859 at Rishra
5.
After Partition in 1947, the
jute mills remained in India but three-fourth of the jute producing area went
to Bangladesh (erstwhile East Pakistan).
6.
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,
7.
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.
8.
Kolkata as a large urban centre
provides banking, insurance and port facilities for export of jute goods
9.
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.
10.
Challenges faced by the
industry include stiff competition in the international market from synthetic
substitutes and from other competitors like Bangladesh, Brazil, Philippines,
Egypt and Thailand.
11.
However, the internal demand
has been on the increase due to the Government policy of mandatory use of jute
packaging.
12.
And, the products need to be
diversified. In 2005, National Jute Policy was formulated with the objective of
increasing productivity,
13.
Improving quality, ensuring
good prices to the jute farmers and enhancing the yield per hectare.
14.
The main markets are U.S.A.,
Canada, Russia, United Arab Republic, U.K. and Australia.
Sugar Industry
1.
India stands second as a world
producer of sugar but occupies the first place in the production of gurand
khandsari.
2.
The raw material used in this
industry is bulky, and in haulage its sucrose content reduces.
3.
There are over 460 sugar mills
in the country spread over Uttar Pradesh, Bihar, Maharashtra, Karnataka, Tamil
Nadu, Andhra Pradesh and Gujarat along with Punjab, Haryana and Madhya Pradesh.
4.
Sixty per cent mills are in
Uttar Pradesh and Bihar.
5.
This industry is seasonal in
nature so, it is ideally suited to the cooperative sector.
6.
In recent years, there is a
tendency for the mills to shift and concentrate in the southern and western
states, especially in Maharashtra
7.
This is because the cane produced
here has a higher sucrose content.
8.
The cooler climate also ensures
a longer crushing season.
9.
Moreover, the cooperatives are
more successful in these states.
10.
Major challenges include the
seasonal nature of the industry
11.
Old and inefficient methods of
production, transport delay in reaching cane to factories and the need to
maximise the use of baggase.
12.
Industries that use minerals
and metals as raw materials are called mineral based industries
Iron and Steel Industry
1.
The iron and steel Industry is
the basic industry since all the other industries — heavy, medium and light,
depend on it for their machinery.
2.
Steel is needed to manufacture
a variety of engineering goods, construction material, defence, medical,
telephonic, scientific equipment and a variety of consumer goods.
3.
Production and consumption of
steel is often regarded as the index of a country’s development.
4.
Iron and steel is a heavy
industry because all the raw materials as well as finished goods are heavy and
bulky entailing heavy transportation costs.
5.
Iron ore, coking coal and lime
stone are required in the ratio of approximately 4: 2: 1.
6.
Some quantities of manganese,
are also required to harden the steel.
7.
Today with 32.8 million tons of
steel production, India ranks ninth among the world crude steel producers.
8.
It is the largest producer of
sponge iron. Inspite of large quantity of production of steel, per capita
consumption per annum is only 32 kg.
9.
Presently, there are 10 primary
integrated and many mini steel plants in India.
10.
All public sector undertakings
market their steel through, Steel Authority of India Ltd. (SAIL) while TISCO
markets its produce through Tata Steel.
11.
In the 1950s China and India
produced almost the same quantity of steel.
12.
In 2004, India was the largest
exporter of steel which accounted for 2.25 per cent of the global steel trade.
13.
In 2004, India was the largest
exporter of steel which accounted for 2.25 per cent of the global steel trade.
14.
It is largely, because of the
relative advantages this region has for the development of this industry.
15.
These include, low cost of iron
ore, high grade raw materials in proximity, cheap labour and vast growth
potential in the home market.
16.
Though, India is an important
iron and steel producing country in the world yet, we are not able to perform
to our full potential largely due to
·
High costs and limited
availability of coking coal
·
Lower productivity of labour
·
Irregular supply of energy and
·
Poor infrastructure.
Aluminium Smelting
1.
Aluminium smelting is the
second most important metallurgical industry in India.
2.
It is used to manufacture
aircraft, utensils and wires.
3.
There are 8 aluminium smelting
plants in the country located in
·
Orissa (Nalco and Balco)
·
West Bengal
·
Kerala
·
Uttar Pradesh
·
Chhattisgarh
·
Maharashtra
·
Tamil Nadu
4.
In 2004, India produced over
600 million tons of aluminium
5.
Bauxite, the raw material used
in the smelters is a very bulky, dark reddish coloured rock.
6.
Regular supply of electricity
and an assured source of raw material at minimum cost are the two prime factors
for location of the industry.
Chemical Industries
1.
The Chemical industry in India
is fast growing and diversifying
2.
It contributes approximately 3
per cent of the GDP
3.
It is the third largest in Asia
and occupies the twelfth place in the world in term of its size.
4.
It comprises both large and
small scale manufacturing units
5.
Rapid growth has been recorded
in both inorganic and organic sectors.
6.
Inorganic chemicals include
sulphuric acid (used to manufacture fertilisers, synthetic fibres, plastics,
adhesives, paints, dyes stuffs), nitric acid, alkalies, soda ash (used to make
glass, soaps and detergents, paper) and caustic soda.
7.
Organic chemicals include
petrochemicals, which are used for manufacturing of synthetic fibers, synthetic
rubber, plastics, dye-stuffs, drugs and pharmaceuticals.
8.
Organic chemical plants are
located near oil refineries or petrochemical plants.
9.
The chemical industry is its
own largest consumer
10.
Basic chemicals undergo
processing to further produce other chemicals that are used for industrial
application
11.
Agriculture or directly for
consumer markets.
12.
The fertiliser industry is
centred on the production of nitrogenous fertilisers (mainly urea), phosphatic
fertilisers and ammonium phosphate (DAP
13.
Complex fertilisers which have
a combination of nitrogen (N), phosphate (P), and potash (K).
14.
The third, i.e. potash is
15.
Entirely imported as the
country does not have any reserves of commercially usable potash or potassium
compounds in any form.
16.
India is the third largest
producer of nitrogenous fertilisers.
17.
There are 57 fertiliser units
manufacturing nitrogenous and complex nitrogenous fertilisers
18.
29 for urea and 9 for producing
ammonium sulphate as a by-product and 68 other small units produce single
superphosphate
19.
At present, there are 10 public
sector undertakings and one in cooperative sector at Hazira in Gujarat under
the Fertiliser Corporation of India.
20.
Gujarat, Tamil Nadu, Uttar
Pradesh, Punjab and Kerala contribute towards half the fertiliser production.
21.
Other significant producers are
Andhra Pradesh, Orissa, Rajasthan, Bihar, Maharashtra, Assam, West Bengal, Goa,
Delhi, Madhya Pradesh and Karnataka.
Cement Industry
1.
Cement is essential for
construction activity such as building houses, factories, bridges, roads,
airports, dams and for other commercial establishments.
2.
This industry requires bulky
and heavy raw materials like limestone, silica, alumina and gypsum.
3.
Coal and electric power are
needed apart from rail transportation
4.
The first cement plant was set
up in Chennai in 1904
5.
After Independence the industry
expanded. Decontrol of price and distribution since 1989 and other policy
reforms led the cement industry
6.
To make rapid strides in
capacity, process, technology and production.
7.
There are 128 large plants and
8.
332 mini cement plants in the
country.
9.
Improvement in the quality has
found the produce a readily available market in East Asia, Middle East, Africa
and South Asia apart from a large demand within the country
10.
This industry is doing well in
terms of production as well as export.
Automobile Industry
1.
Automobiles provide vehicle for
quick transport of good services and passengers.
2.
Trucks, buses, cars, motor
cycles, scooters, three-wheelers and multi-utility vehicles are manufactured in
India at various centres.
3.
After the liberalisation, the
coming in of new and contemporary models stimulated the demand for vehicles in
the market
4.
This led to the healthy growth
of the industry including passenger cars, two and three-wheelers.
5.
This industry had experienced a
quantum jump in less than 15 years.
6.
Foreign Direct Investment
brought in new technology and aligned the industry with global developments.
7.
At present, there are 15
manufacturers of passenger cars and multiutility vehicles, 9 of commercial
vehicles, 14 of the two and three-wheelers.
Information Technology and
Electronics Industry
1.
The electronics industry covers
a wide range of products from transistor sets to television, telephones,
cellular telecom, pagers, telephone exchange, radars, computers and many other equipment’s
required by the telecommunication industry.
2.
Bangalore has emerged as the
electronic capital of India
3.
Other important centres for
electronic goods are Mumbai, Delhi, Hyderabad, Pune, Chennai, Kolkata, Lucknow
and Coimbatore.
4.
18 software technology parks
provide single window service and high data communication facility to software
experts.
5.
. It is encouraging to know
that 30 per cent of the people employed in this sector are women.
6.
This industry has been a major
foreign exchange earner in the last two or three years because of its fast growing
Business Processes Outsourcing (BPO) sector.
7.
The continuing growth in the
hardware and software is the key to the success of IT industry in India.
8.
Industrial Pollution and
Environmental Degradation
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