Wednesday 19 November 2014

Smart Notes on Indian (Economic) Geography Part - 18

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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