Chapter 8
Chapter 8
Key Notes:
Types of Industries
Industries are classified on the basis of size, capital investment and labour force
employed
Industries are also classified as large, medium, small scale, and cottage industries
On the basis of ownership, industries are categorised as : (i) public sector, (ii) private
sector, and (iii) joint and cooperative sector
Industries are also classified on the basis of the use of their products such as : (i) basic
goods industries, (ii) capital goods industries (iii) intermediate goods industries, and
(iv) consumer goods industries
Industries are classified on the basis of raw materials (i) agriculture-based industries,
(ii) forest-based industries, (iii) mineral-based industries, and (iv) industrially
processed raw materialbased industries
Another common classification of industries is based on the nature of the
manufactured products. Eight classes of industries, thus identified are :
Metallurgical Industries,
Mechanical Engineering Industries,
Chemical and Allied Industries,
Textile Industries,
Food Processing Industries,
Electricity Generation,
Electronics and
Communication Industries
Location of Industries
Location of industries is influenced by several factors like access to raw materials, power,
market, capital, transport and labour, etc
1) Raw materials
2) Power
3) Market
4) Transport
Transport by land or water is necessary for the assembly of raw materials and for the
marketing of the finished products
The development of railways in India, connecting the port towns with hinterland
determined the location of many industries around Kolkata, Mumbai and Chennai
All major industrial plants are located on the trunk rail routes
5) Labour
Labour supply is important in two respects (a) workers in large numbers are often
required; (b) people with skill or technical expertise are needed
In our country, modem industry still requires a large number of workers in spite of
increasing mechanisation
For example, the light consumer goods and agro-based industries generally require a
plentiful of labour supply
In India, labour is quite mobile and is available in large numbers due to our large
population
6) Historical factors
Industrial location like Mumbai, Kolkata and Chennai were greatly influenced by our
colonial past
Places like Murshidabad, Dhaka, Bhadohi, Surat, Vadodara, Kozhikode, Coimbatore,
Mysore, etc. emerged as important manufacturing centres
7) Industrial policy
The iron and steel industry is basic to the industrial development of any country
Almost all sectors of the Indian industry depend heavily on the iron and steel industry
for their basic infrastructure
The best location for the iron and steel plants is near the source of raw materials
Raw materials used in iron and steel industry are coking coal, limestone, dolomite,
manganese and fire clay
In India, there is a crescent shaped region comprising parts of Chhattisgarh, Northern
Orissa, Jharkhand and western West Bengal, which is extremely rich in high grade
iron ore, good quality coking coal and other supplementing raw materials
The Indian iron and steel industry consists of large integrated steel plants as well as mini
steel mills. These are
1) TISCO
The Tata Iron and Steel plant lies very close to the Mumbai-Kolkata railway line and
about 240 km away from Kolkata, which is the nearest port for the export of steel
The rivers Subarnarekha and Kharkai provide water to the plant
The iron ore for the plant is obtained from Noamundi and Badam Pahar and coal is
brought from Joda mines in Orissa
Coking coal comes from Jharia and west Bokaro coalfields
2) IISCO
The Indian Iron and Steel Company (IISCO) set up its first factory at Hirapur and later
on another at Kulti
In 1937, the Steel corporation of Bengal was constituted in association with IISCO and
set up another iron and steel producing unit at Burnpur (West Bengal)
The three plants under IISCO are located very close to Damodar valley coal fields
(Raniganj, Jharia, and Ramgarh)
Iron ore comes from Singhbhum in Jharkhand. Water is obtained from the Barakar
River, a tributary of the Damodar
All the plants are located along the Kolkata-Asansol railway line
The steel production from IISCO fell considerably in 1972-73 and the plants were
taken over by the government
The third integrated steel plant, the Visvesvaraiya Iron and Steel Works, initially
called the Mysore Iron and Steel Works
It is located close to an iron ore producing area of Kemangundi in the Bababudan hills
Limestone and manganese are also locally available
Electric furnaces were installed which use hydroelectricity from the Jog Falls hydel
power project
The Bhadravati river supplies water to the plant
After independence, during the Second Five Year Plan (1956-61), three new integrated
steel plants were set up with foreign collaboration: Rourkela in Orissa, Bhilai in
Chhattisgarh and Durgapur in West Bengal
In 1973, the Steel Authority of India Limited (SAIL) was created to manage these
plants
The Rourkela Steel plant was set up in 1959 in the Sundargarh district of Orissa in
collaboration with Germany
The plant was located on the basis of proximity to raw materials, thus, minimising the
cost of transporting weight losing raw material
This plant has a unique locational advantage, as it receives coal from Jharia
(Jharkhand) and iron ore from Sundargarh and Kendujhar
The Hirakud project supplies power for the electric furnaces and water is obtained
from the Koel and Sankh rivers
The Bhilai Steel Plant was established with Russian collaboration in Durg District of
Chhattisgarh and started production in 1959
The iron ore comes from Dalli-Rajhara mine , coal comes from Korba and Kargali coal
fields
The water comes from the Tanduladam and the power from the Korba Themal Power
Station
This plant also lies on the Kolkata-Mumbai railway route
The bulk of the steel produced goes to the Hindustan Shipyard at Vishakhapatnam
Durgapur Steel Plant, in West Bengal, was set up in collaboration with the
government of the United Kingdom and started production in 1962
This plant lies in Raniganj and Jharia coal belt and gets iron ore from Noamundi
Durgapur lies on the main Kolkata-Delhi railway route
Hydel power and water is obtained from the Damodar Valley Corporation (DVC)
This steel plant was set up in 1964 at Bokaro with Russian collaboration
This plant was set up on the principle of transportation cost minimisation by creating
Bokaro-Rourkela combine
It receives iron ore from the Rourkela region and the wagons on return take coal to
Rourkela
Other raw materials come to Bokaro from within a radius of about 350 km
Water and Hydel power is supplied by the Damodar Valley Corporation
New steel plants which were set up in the Fourth Plan period are located in South
India
The Vizag Steel Plant, in Vishakhapatnam in Andhra Pradesh is the first port based
plant which started operating in 1992
The Vijaynagar Steel Plant at Hospet in Karnataka was developed using indigenous
technology. This uses local iron ore and limestone
The Salem Steel Plant in Tamil Nadu was commissioned in 1982
i. It is a tropical country and cotton is the most comfortable fabric for a hot and humid
climate
ii. Large quantity of cotton was grown in India
iii. Abundant skilled labour required for this industry was available in this country
In 1854, the first modern cotton mill was established in Mumbai. Mumbai had several
advantages as a cotton textile manufacturing center. These are-
a. It was very close to the cotton producing areas of Gujarat and other parts of Maharashtra
b. Raw cotton used to be brought to Mumbai port to be transported to England
c. Mumbai even then was the financial centre and the capital needed to start an industry
was available there
d. As a large town, providing employment opportunities attracted labour in large numbers.
Hence, cheap and abundant labour too was available locally
e. The machinery required for a cotton textile mill could be directly imported from England
In 1998, India had 1782 mills; of which, 192 mills were in the public sector and 151 mills in
the cooperative sector. The largest number, that is, 1,439 mills were in the private sector. The
cotton textile industry in India can be broadly divided into two sectors, the organised sector
and the decentralised sector
i. The decentralised sector includes cloth produced in handlooms (including Khadi) and
powerlooms. The production of the organised sector has drastically fallen from 81% in
the mid-20th century to only about 6% in 2000
ii. The powerlooms on the decentralised sector produce more than 59% and the handloom
sector produces about 19 % of all cotton cloth produced in the country
After the first mills were set up in Mumbai and Ahmedabad in the second half of the
19th century
In southern India, mills were set up at Coimbatore, Madurai and Bangalore.
In central India, Nagpur, Indore, Solapur and Vadodara became cotton textile centres
Cotton textile mills were set up at Kanpur based on local investment. Mills were also
set up at Kolkata due to its port facilities
The rapid development of this industry in Tamil Nadu is the result of the abundant
availability of hydel power for the mills
Reason behind the location of the cotton textile mills away from the cotton producing
areas are the development of hydro-electricity and lower labour costs at centres like
Ujjain, Bharuch, Agra, Hathras, Coimbatore and Tirunelveli
The major centres of the cotton textile industry are Ahmedabad, Bhiwandi, Solapur,
Kolhapur, Nagpur, Indore and Ujjain, all these centres are the traditional centres and
are located close to the cotton producing regions
Maharashtra, Gujarat and Tamil Nadu are the leading cotton producing states
West Bengal, Uttar Pradesh, Karnataka, and Punjab are the other important cotton
textile producers
Southern Region
Tamil Nadu has the largest number of mills and most of them produce yarn rather
than clot
Coimbatore has emerged as the most important centre with nearly half the mills
located there
Chennai, Madurai, Tirunelveli, Tuticorin, Thanjavur, Ramanathapuram and Salem are
the other important centres
In Karnataka, the cotton textile industry has developed in the cotton producing areas
in the north-eastern part of the state
Davangere, Hubli, Bellary, Mysore and Bangalore are important centres
In Andhra Pradesh, the cotton textile industry is located in the cotton producing
Telengana region, where most of the mills are spinning mills producing yarn
The important centres are Hyderabad Secunderabad, Warangal and Guntur
Northern Region
Sugar Industry
The sugar industry is the second most important agro-based industry in the country
India is the largest producer of both sugarcane and cane sugar and contributes about
8% of the total sugar production in the world
This industry provides employment for more than 4 lakh persons directly and a large
number of farmers indirectly
Sugar industry is a seasonal industry because of the seasonality of raw materials
i. Sugar cane is the main raw material for the sugar industry
ii. It is a heavy, low value, weight losing and perishable raw material
Maharashtra has emerged as a leading sugar producer in the country and produces
more than one-third of the total production of the sugar in the country
There are 119 sugarmills in the state in a narrow belt extending from Manmad in the
north to Kolhapur in the south
There are 87 mills in the cooperative sector
Southern Region
Other states
The other States which produce sugar are Bihar, Punjab, Haryana, Madhya Pradesh
and Gujarat
Saran, Champaran, Muzaffarnagar, Siwan, Darbhanga, and Gaya are the important
sugarcane producing districts in Bihar
In Haryana, sugar factories are located in Yamuna Nagar, Rohtak, Hissar and
Faridabad districts
Sugar mills are located in the cane growing tracts of Surat, Junagarh, Rajkot, Amreli,
Valsad and Bhavnagar districts
Petrochemical Industries
Manufacturing of Polymers/Plastics
. Polymers are made from ethylene and propylen
The policy has three main dimensions: liberalisation, privatisation and globalisation
The industrial licensing system has been abolished for all except six industries related
to security, strategic or environmental concerns
In the new industrial policy, Foreign Direct Investment (FDI) has been seen as a
supplement to the domestic investment for achieving a higher level of economic
development
FDI benefits the domestic industry as well as the consumers by providing
technological upgradation, access to global managerial skills and practices, optimum
use of natural and human resources, etc
The industrial policy has been liberalised to attract private investor both domestic
and multi-nationals
New sectors like, mining, telecommunications, highway construction and
management have been thrown open to private companies
Globalisation means integrating the economy of the country with the world economy
Under this process, goods and services along with capital, labour and resources can
move freely from one nation to another
The thrust of globalisation has been to increase the domestic and external
competition through extensive application of market mechanism and facilitating
dynamic relationship with the foreign investors and suppliers of technology
It extends from Mumbai-Thane to Pune & in adjoining districts of Nashik & Solapur
Industrial development has been rapid in Kolaba, Ahmednagar, Satara, Sangli and
Jalgaon districts
i. It is located along the Hugli river, this region extends from Bansberia in the north to
Birlanagar in the south for a distance of about 100 km
ii. Industries also have developed in Mednipur in the west
iii. Kolkata-Haora form the nucleus of this industrial region
iv. It developed with the opening of river port on Hugli
v. Kolkata emerged as a leading centre of the country which was connected with interior
parts by railway lines and road routes
vi. Development of tea plantations in Assam and northern hills of West Bengal, the
processing of indigo earlier and jute later coupled with the opening of coalfields of the
Damodar Valley and iron ore deposits of the Chotanagpur plateau, contributed to the
industrial development of the region
vii. Cheap labour available from thickly populated part of Bihar, eastern Uttar Pradesh and
Orissa also contributed to its development
viii. Kolkata, being the capital city of British India (1773-1911), attracted the British capital
ix. Cotton textile industry also grew along with jute industry, paper, engineering, textile
machinery, electrical, chemical, pharmaceuticals, fertiliser and petrochemical industries
have also developed within this region
x. Factory of the Hindustan Motors Limited at Konnagar and diesel engine factory at
Chittaranjan are landmarks of this region
xi. Location of petroleum refinery at Haldia has facilitated the development of a variety of
industries
Important industrial centres of this region are Kolkata, Haora, Haldia, Serampur, Rishra,
Shibpur, Naihati, Kakinara, Shamnagar, Titagarh, Sodepur, Budge Budge, Birlanagar,
Bansberia, Belgurriah, Triveni, Hugli, Belur, etc.
Besides, textiles (cotton, silk and synthetic fabrics) and petrochemical industries,
other industries are heavy and basic chemicals, motor, tractor, diesel engines, textile
machinery, engineering, pharmaceuticals, dyes, pesticides, sugar, dairy products and
food processing
Largest petroleum refinery has been set up at Jamnagar
Important industrial centres of this region are Ahmedabad, Vadodara, Bharuch,
Koyali, Anand, Khera, Surendranagar, Rajkot, Surat, Valsad and Jamnagar
6) Chotanagpur Region
This region extends over Jharkhand, northern Orissa and western West Bengal and is
known for the heavy metallurgical industries
i. Discovery of coal in the Damodar Valley and metallic and non-metallic minerals in
Jharkhand and northern Orissa
ii. Proximity of coal, iron ore and other minerals facilitated the location of heavy industries
in this region
iii. Six large integrated iron and steel plants at Jamshedpur, BurnpurKulti, Durgapur, Bokaro
and Rourkela are located within this region
iv. To meet the power requirement, thermal and hydroelectric plants have been constructed
in the Damodar Valley
v. Densely populated surrounding regions provide cheap labour and Hugli region provides
vast market for its industries
Heavy engineering, machine tools, fertilisers, cement, paper, locomotives and heavy
electricals are some of the important industries in this region
Important centres are Ranchi, Dhanbad, Chaibasa, Sindri, Hazaribag, Jamshedpur,
Bokaro, Rourkela, Durgapur, Asansol and Dalmianagar
This industrial region extends from Vishakhapatnam district to Kurnool and Prakasam
districts in the south
i. This region hinges upon Vishakhapatnam and Machilipatnam ports and developed
agriculture and rich reserves of minerals in their hinterlands
ii. Coalfields of the Godavari basin provide energy
iii. Petroleum refinery based on imported petroleum facilitated the growth of several
petrochemical industries
Sugar, textile, jute, paper, fertiliser, cement, aluminium and light engineering are
principal industries of this region
One lead-zinc smelter is functioning in Guntur district
Iron and steel plant at Vishakhapatnam uses the Bailadila iron ore
Vishakhapatnam, Vijayawada, Vijaynagar, Rajahmundry, Guntur, Eluru and Kurnool
are important industrial centres
This region is located far away from the mineral and power resources, and therefore,
the industries are light and market-oriented
Electronics, light engineering and electrical goods are major industries of this region
Besides, there are cotton, woollen and synthetic fabrics, hosiery, sugar, cement,
machine tools, tractor, cycle, agricultural implements, chemical and vanaspati
industries which have developed on large scale
Agra-Mathura industrial area specialises in glass and leather goods
Mathura with an oil refinery is a petrochemical complex
Other important industrial center are Gurgaon, Delhi, Shahdara, Faridabad, Meerut,
Modinagar, Ghaziabad, Ambala, Agra and Mathura