MANUFACTURING

INDUSTRIES
WHAT IS MANUFACTURING?
MANUFACTURING INDUSTRIES

● Production of goods in large

quantities after processing from raw
materials to more valuable products.

● Comes under secondary activities

● Primary materials ----> finished

goods.

The economic strength of a country is

measured by the development of
manufacturing industries.
IMPORTANCE OF MANUFACTURING INDUSTRIES

Manufacturing sector is considered the backbone

of development in general and economic
development in particular mainly because–

1. Manufacturing industries help in modernising

agriculture

2. They reduce the heavy dependence of people on

agricultural income by providing them jobs in
secondary and tertiary sectors.

3. Eradication of unemployment and poverty from

our country.

4. Bring down regional disparities by establishing

industries in tribal and backward areas.
5. Export of manufactured goods expands
trade and commerce, and brings in much
needed foreign exchange.

4. Countries that transform their raw

materials into a wide variety of finished
goods of higher value are prosperous.

India’s prosperity lies in increasing and

diversifying its manufacturing industries as
quickly as possible.
Agriculture and industry are not exclusive
of each other.

● They move hand in hand.

● For instance, the agro-industries in India

have given a major boost to agriculture by
raising its productivity.

● Industries use agriculture products as raw

materials

● Industries sell their products such as

irrigation pumps, fertilisers, insecticides,
pesticides, plastic and PVC pipes, machines
and tools, etc. to the farmers.
 In the present day world of
globalisation, our industry needs to
be more efficient and competitive.

Self-sufficiency alone is not enough.

Our manufactured goods must be at

par in quality with those in the
international market.

Only then, will we be able to compete

in the international market.
Contribution of Industry to
National Economy
 This is much lower in comparison to some
Over the last two
decades, the share
East Asian economies, where it is 25 to 35%.
of manufacturing
sector has 1. The trend of growth rate in manufacturing
stagnated at 17% of over the last decade has been around 7% per
GDP – out of a total annum.
of 27 per cent for the
industry which 2. The desired growth rate over the next
includes 10% for decade is 12%. Since 2003, manufacturing is
mining, quarrying, once again growing at the rate of 9 to 10% per
electricity and gas. annum.

3. With appropriate policy interventions by the

government and renewed efforts by the
industry to improve productivity, economists
predict that manufacturing can achieve its
target over the next decade.

4. The National Manufacturing

Competitiveness Council (NMCC) has been set
up with this objective.
 INDUSTRIAL LOCATION are Complex in
Nature

Influenced by - availability of raw material,

labour, capital, power and market, etc.

Problem - Rarely possible to find all these

factors available at one place.

Key to decision of Factory location - least

cost.

Government Policies also influence the

location of industry.
 Inputs

Raw materials and/ or component

parts.

Factors of Production

Land, labour, capital, entrepreneur,

infrastructure

Transport

Factory Money

Output (Products)

Transport

Market
 Industries in Pre- Independence Era
Industrialisation & Urbanisation :
Go Hand in Hand Port Cities - Most manufacturing
units were located near Port such as
Mumbai, Kolkata, Chennai, etc.
Urbanisation follows, when
Industrialisation starts. It means :
Consequence - Emergence of
Sometimes, industries are located in or industrially developed urban centres
near the cities. surrounded by a huge agricultural
rural hinterland.
Cities provide market & services -
banking, insurance, transport, labour,
consultants and financial advice, etc.

URBAN AGGLOMERATION - Many

industries tend to come together to
make use of the
advantages offered by the urban
centres.
Classification of Industries
CLASSIFICATION BASIS

RAW MATERIAL

Agro based: cotton,

woollen, jute, silk
textile, rubber and
sugar, tea, coffee,
edible oil.

Mineral based: iron

and steel, cement,
aluminium, machine
tools, petrochemicals
 CLASSIFICATION BASIS

MAIN ROLE CAPITAL INVESTMENT

Basic or key industries

are those which supply A small scale industry: is
their products as raw defined with reference to
materials to the maximum investment
manufacture other allowed on the assets of
goods e.g. iron and steel a unit.
Consumer industries Large-scale industry:
that produce goods for This limit has changed
direct use by consumers over a period of time. At
– sugar, toothpaste, present the maximum
paper, fans etc. investment allowed is
rupees one crore.
 OWNERSHIP

Public sector: 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 examples are the sugar
industry in Maharashtra, the coir industry in Kerala.
 Bulk and weight of raw material
and finished goods

Heavy Industries - Industries that

use heavy raw material & produce
heavy goods such as iron & steel.

Light Industries - That use light raw

materials & produce light goods
such as electrical goods industries.
AGRO-BASED INDUSTRY
 Textile Industries

1. Unique position in the Indian

economy.

2. Significant contribution to industrial

production & employment generation
and foreign exchange.

3. Self-reliant and complete in the

value chain
Value addition in the textile industry
 Cotton Textiles

In ancient India, cotton textiles were

produced with hand spinning &
handloom weaving techniques.

After 18th century- Power-looms came

into use.

Impact of Power loom on Traditional

Industries

➔ They suffered a setback- during

the colonial period.

➔ Failed to compete with the

mill-made cloth from England
 ● In the early years, the cotton textile industry
was concentrated in Maharashtra and
Gujarat.

Why? Availability of raw cotton, market, transport

including accessible port facilities, labour, moist
climate, etc. contributed towards its localisation.

● This industry has close links with agriculture

and 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, packaging materials and engineering
works.
● The first successful textile mill was
established in Mumbai in 1854.

● The two world wars were fought in

Europe, India was a British colony.
There was a demand for cloth in U.K.
hence, they gave a boost to the
development of the cotton textile
industry.
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.

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’s Textile Trade

India exports yarn to Japan. Other importers of

cotton goods from India are USA, U.K, Russia,
France, Nepal, Sri lanka, Singapore, and African
countries.

Our spinning mills are competitive at the global

level

The weaving, knitting and processing units cannot

use much of the high quality yarn that is
produced in the country.

Fragmentation : A Major Drawback for

declining share

This mismatch is a major drawback for the

industry. As a result, many of our spinners export
cotton yarn while apparel/garment manufacturers
have to import fabric.
 PROBLEMS

Irregular Power Supply

Old & Outdated

Machinery

Low output from labour

Stiff competition - from

synthetic fibre

Requirement : Improvement in weaving sector

instead of exporting yarn.
 JUTE TEXTILES

➔ India is the largest producer of raw jute Factors responsible for their location in the
and jute goods and stands at second Hugli basin are:
place as an exporter after Bangladesh.
● Proximity of the jute producing areas;
➔ Most of the mills are located in West
Bengal, mainly along the banks of the ● Inexpensive water transport, supported by a good
Hugli river, in a narrow belt. 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, Odisha and Uttar Pradesh.

Kolkata as a large urban centre provides banking,

insurance and port facilities for export of jute goods.
The first jute mill was set up near
Kolkata in 1855 at Rishra. After Partition
in 1947, the jute mills remained in India
but three-fourth of the jute producing
area went to Bangladesh (erstwhile East
Pakistan).
 Challenges Faced by Jute Industry

Stiff competition in the international market from

synthetic substitutes and from other competitors
like Bangladesh, Brazil, Philippines, Egypt and
Thailand.

To stimulate demand, the products need to be

diversified.

The growing global concern for environment

friendly, biodegradable materials, has once again
opened the opportunity for jute products.
 SUGAR INDUSTRY

1. India stands second as a world producer of sugar

and at first place in the production of gur and
khandsari.

2. The raw material used in this industry is bulky, and

in haulage its sucrose content reduces

3. The mills are located in Uttar Pradesh, Bihar,

Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh,
Gujarat, Punjab, Haryana and Madhya Pradesh. 60%
Pradesh and Bihar.

This industry is seasonal in nature so, it is ideally

suited to the cooperative sector
 What is the reason behind the shift &
concentration of mills in the southern &
western states?

1. In recent years, 2. This is because

mills have shifted the cane
in the southern produced here
and western has a higher
states, especially sucrose content.
in Maharashtra.

3. The cooler 4. Moreover, the

climate also cooperatives are
ensures a longer more successful in
crushing season. these states.
 Major Challenge faced by Sugar
Industry

Seasonal nature of
the industry

Old & inefficient

method of production.

Transport delay in reaching

cane to factories.

Need to maximise the use

of Bagasse (sugarcane
remains).
MINERAL-BASED INDUSTRY
 IRON AND STEEL INDUSTRY

● The iron and steel industry is the basic industry since

all the other industries — heavy, medium and light,
depend on it for their machinery.

● Steel is needed to manufacture a variety of

engineering goods, construction material, defence,
medical, telephonic, scientific equipment and a
variety of consumer goods.

● Production and consumption of steel is often

regarded as the index of a country’s development.
 Iron & Steel Industry : Heavy Industry

All the raw materials as well as finished

goods are heavy and bulky entailing heavy
transportation costs.

Iron ore, coking coal and limestone are required in

the ratio of approximately 4 : 2 : 1.

Manganese is also required to harden the steel

Where should the steel plants be ideally located?

They should be located near the site of raw

materials. so transportation will be easy and
transportation charges will be less.
 MINI STEEL PLANT INTEGRATED STEEL
● In 2019 with 111 million tonnes of PLANT
crude steel production, India
ranked 2nd among the world Smaller & have Large in size
crude steel producers. electric furnaces,
use steel scrap and
● It is the largest producer of sponge iron.
sponge iron.
They produce mild Handles everything in
● In 2019 per capita consumption
and alloy steel of one complex – from
of finished steel in the country
given specifications. putting together raw
was only around 74.3 kg per
material to steel
annum against the world
average of 229.3 kg. making, rolling and
shaping.
Why is the per capita consumption of
steel so low in India?

We are not able to perform to our full

potential largely due to:

(a) High costs and limited availability of

coking coal;

(b) Lower productivity of labour;

(c) Irregular supply of energy; and

(d) Poor infrastructure.

 Most of the public sector undertakings market their steel
through Steel Authority of India Ltd. (SAIL)

❏ In the 1950s China and India produced almost the

same quantity of steel.

❏ Today, China is the largest producer & consumer of

steel.

❏ China is also the world’s largest consumer of steel.

Maximum concentration of iron and steel
industries- Chotanagpur Plateau region.

It is largely, because of the relative advantages

this region has for the development of this
industry.

➔ Low cost of Iron Ore

➔ High grade raw material in proximity

➔ Cheap Labour

➔ Vast growth potential in the home market

 We also import good quality steel from other
countries. However, the overall production of steel is
sufficient to meet our domestic demand.

Liberalisation and Foreign Direct Investment have

given a boost to the industry with the efforts of private
entrepreneurs.

There is a need to allocate resources for research and

development to produce steel more competitively.
 ALUMINIUM SMELTING

Second most important metallurgical industry in

India. RAW MATERIAL

Bauxite - used in the smelters is a very

Properties - It is light, resistant to corrosion, a
good conductor of heat, malleable & becomes bulky, dark reddish coloured rock.
strong when mixed with other metals.
Bauxite Alumina Aluminium
(4-6 tonnes) (2 tonnes) (1 tonnes)
Uses - for manufacturing aircraft, utensils &
wires.
Factors affecting location of Aluminium
Gained popularity as a - substitute of steel, Industry
copper, zinc & lead in a number of industries.
❖ Regular supply of electricity
❖ Raw material at minimum cost
Location - Odisha, West Bengal, Kerala, Uttar
Pradesh, Chhattisgarh, Maharashtra & Tamil
Nadu.
 CHEMICAL INDUSTRIES

The Chemical industry in India is fast growing and

diversifying.

It comprises both large and small scale manufacturing

units

Rapid growth has been recorded in both inorganic and

organic sectors.

Inorganic chemicals include sulphuric acid (used to

manufacture fertilizers, synthetic fibres, plastics,
adhesives, paints, dyes stuffs), nitric acid, alkalies,
soda ash (used to make glass, soaps and detergents,
paper) and caustic soda. These industries are widely
spread over the country.
Rapid growth has been recorded in both
inorganic & organic sectors.

INORGANIC ORGANIC
CHEMICAL CHEMICAL

Includes Sulphuric Includes

acid, nitric acid, petrochemicals.
alkalies, soda ash &
caustic soda.

Used to make glass, Used for

soaps & detergents, manufacturing of
paper. synthetic fibres,
synthetic rubber,
plastics, dye-stuffs,
Drugs &
pharmaceuticals.

These industries are Located near oil

widely spread over the refineries or
country. petrochemical plants.
 The chemical industry is its
own largest consumer.

Basic chemicals undergo

processing to further
produce other chemicals that
are used for -

❏ Industrial application
❏ Agriculture
❏ Directly for consumer
markets.
 FERTILIZER INDUSTRIES

❏ The fertilizer industry is centred around the

production of nitrogenous fertilizers (mainly
urea), phosphatic fertilizers and ammonium
phosphate (DAP) and complex fertilizers which
have a combination of nitrogen (N), phosphate
(P), and potash (K).

❏ The third, i.e. potash is entirely imported as the

country does not have any reserves of
commercially usable potash or potassium
compounds in any form.

❏ After the Green Revolution the industry

expanded.

❏ Major Producers : Gujarat, Tamil Nadu, Uttar

Pradesh, Punjab and Kerala

❏ Other : Andhra Pradesh, Odisha, Rajasthan,

Bihar, Maharashtra, Assam, West Bengal, Goa,
Delhi, Madhya Pradesh and Karnataka.
 CEMENT INDUSTRIES

❏ Cement is essential for construction activity Improvement in the quality has found the
such as building houses, factories, bridges, produce a readily available market in East Asia,
roads, airports, dams and for other
Middle East, Africa and South Asia apart from a
commercial establishments.
large demand within the country.
❏ This industry requires bulky and heavy raw
materials like limestone, silica and gypsum.
This industry is doing well in terms of production
❏ Coal and electric power are needed apart
as well as export.
from rail transportation.

❏ The industry has strategically located

plants in Gujarat that have suitable access
to the market in the Gulf countries.
Efforts are being made to generate adequate
domestic demand and supply in order to sustain
The first cement plant was set up in this industry.
Chennai in 1904. After Independence the
industry expanded.
 AUTOMOBILE
INDUSTRIES

Automobiles provide vehicle for quick transport of

good services and passengers.

Trucks, buses, cars, motor cycles, scooters,

three-wheelers and multi-utility vehicles are
manufactured in India at various centres.

After the liberalisation, the coming in of new and

contemporary models stimulated the demand for
vehicles in the market, which led to the healthy
growth of the industry including passenger cars,
two and three-wheelers.

The industry is located around Delhi, Gurugram,

Mumbai, Pune, Chennai, Kolkata, Lucknow, Indore,
Hyderabad, Jamshedpur and Bengaluru.
 INFORMATION TECHNOLOGY AND
ELECTRONICS INDUSTRIES

➔ The electronics industry covers a wide

range of products from transistor sets to
television telephones, cellular telecom,
telephone exchange, radars, computers
and many other equipments required by
the telecommunication industry.

➔ Bengaluru has emerged as the electronic

capital of India.
Other important centres for electronic goods:

● Mumbai, Delhi, Hyderabad, Pune, Chennai,

Kolkata, Lucknow and Coimbatore.

● The major industry concentration is at Bengaluru,

Noida, Mumbai, Chennai, Hyderabad and Pune.

● A major impact of this industry has been on

employment generation.

● The continuing growth in the hardware and

software is the key to the success of IT industry in
India.
 INDUSTRIAL POLLUTION &
ENVIRONMENTAL DEGRADATION
 AIR POLLUTION

● Caused by the presence of high proportion of undesirable

gases, such as sulphur dioxide and carbon monoxide.

● Airborne particulate materials contain both solid and

liquid particles like dust, sprays mist and smoke.

● Smoke is emitted by chemical and paper factories, brick

kilns, refineries and smelting plants, and burning of fossil
fuels in big and small factories that ignore pollution
norms.

● Toxic gas leaks can be very hazardous with long-term

effects.

● Are you aware of the Bhopal Gas tragedy that occurred?

● Air pollution adversely affects human health, animals,

plants, buildings and the atmosphere as a whole.
 WATER POLLUTION

● Caused by organic and inorganic industrial

wastes and effluents discharged into rivers.

● The main culprits in this regard are paper,

pulp, chemical, textile and dyeing, petroleum
refineries, tanneries and electroplating
industries that let out dyes, detergents,
acids, salts and heavy metals like lead and
mercury pesticides, fertilisers, synthetic
chemicals with carbon, plastics and rubber,
etc. into the water bodies.

● Fly ash, phospo- gypsum and iron and steel

slags are the major solid wastes in India.
 THERMAL POLLUTION

Thermal pollution of water occurs when hot water from

factories and thermal plants is drained into rivers and
ponds before cooling.

What would be the effect on aquatic life?

Wastes from nuclear power plants, nuclear and weapon

production facilities cause cancers, birth defects and
miscarriages.
●
Soil and water pollution are closely related.

● Dumping of wastes specially glass, harmful

chemicals, industrial effluents, packaging, salts and
garbage renders the soil useless.

● Rain water percolates to the soil carrying the

pollutants to the ground and the groundwater also
gets contaminated.
 NOISE POLLUTION

● Noise pollution not only results in irritation

and anger, it can also cause hearing
impairment, increased heart rate and blood
pressure among other physiological effects.

● Unwanted sound is an irritant and a source of

stress. Industrial and construction activities,
machinery, factory equipment, generators,
saws and pneumatic and electric drills also
make a lot of noise.
 CONTROL OF
ENVIRONMENTAL DEGRADATION
 Every litre of waste water discharged by our industry pollutes eight times the quantity of
freshwater. Suggestions to reduce the industrial pollution of fresh water:

3. Treating hot water and effluents before releasing them

1. Minimising use water for processing by in rivers and ponds.
reusing and recycling it in two or more
successive stages Treatment of industrial effluents can be done in three
phases:

Primary treatment by mechanical means. This involves

2. Harvesting of rainwater to meet water
screening, grinding, flocculation & sedimentation.
requirements
Secondary treatment by biological process.

Tertiary treatment by biological, chemical & physical

processes. This involves recycling of wastewater.
Ways to stop pollution :

Overdrawing of groundwater reserves by industry can

be reduced

Particulate matter in the air can be reduced by fitting

smoke stacks to factories with electrostatic
precipitators, fabric filters, scrubbers and inertial
separators.

Smoke can be reduced by using oil or gas instead of

coal in factories.

Machinery and equipment can be used and generators

should be fitted with silencers.

Almost all machinery can be redesigned to increase

energy efficiency and reduce noise.

Noise absorbing material may be used apart from

personal use of earplugs and earphones.
 National Thermal Power Corporation Limited

The challenge of sustainable

development requires integration of
economic development with
environmental concerns.
MAPS
MANUFACTURING
INDUSTRIES

Cotton Textile Industries

1. Kanpur

Kanpur
The textile
industry of
Kanpur
flourished most
in the past due
to the rule of the
British.

Kanpur is known
to be the
"Manchester of
North India".
2. Indore

Indore

The largest
cotton textile
industry of
Madhya PRadesh
is located in
Indore.
3. Surat

Surat
Surat is known as
the textile city of
Gujarat.

The textile
industry is one of
the oldest and
the most
widespread
industries in
Surat.
4. Mumbai

Mumbai

The first
successful textile
mill was
established in
Mumbai in 1854.
5. Coimbatore

Coimbatore is
also known as
the Manchester
of South India. It
is center of
Coimbatore textile spinning
and weaving mills
MANUFACTURING
INDUSTRIES

Iron and Steel Plants

1. Bokaro

Bokaro

Bokaro Steel
Plant (BSL) is
located in the
Bokaro district
of Jharkhand.

It is the fourth
integrated
public sector
steel plant in
India built with
Soviet help.
2. Durgapur

It is one of the
Durgapur integrated steel
plants of Steel
Authority of
India Limited,
located in
Durgapur, in the
eastern Indian
state of West
Bengal.

It was set up
with the help of
United Kingdom.
3. Bhilai

Bhilai
The Bhilai Steel
Plant, located in
Bhilai,
Chhattisgarh, is
India's first and
main producer
of steel rails, as
well as a major
producer of
wide steel plates
and other steel
products.
4. Jamshedpur

Jamshedpur
was the first
industrial city in
India, and
Jamshedpur
almost the
entire town
works in the
steel industry.
5. Vijayanagar

The Jindal
Vijayanagar
Steel plant is
located in the
iron ore belt of
North
Karnataka,
Vijayanagar
spread over
37,000 acres of
land.
6. Salem

Salem Steel
Plant (SSP), a
unit of Steel
Authority of
India Limited
(SAIL), is a steel
plant involved in
the production
of stainless
Salem steel. I
 MANUFACTURING
INDUSTRIES

Software Technology Parks

1. Noida

Noida

STPI-Noida was
the first centre
to come up in
Delhi-NCR in
1993 as an IT
Hub and
controlling
other STPI
centres in
secondary cities
in north and
central India.
2. Gandhinagar

STPI-Gandhinag
Gandhinagar ar is one of the
ten STPI
jurisdictions
having its main
centre in
Gandhinagar,
Gujarat and one
sub-centre
located at Surat
established in
1992.
3. Mumbai
4. Pune

STPI has been

instrumental in
promoting IT
exports from the
Maharashtra
since inception
of STPI-Pune in
Mumbai the year 1990.
Apart from
Pune, STPI
Pune
centers are
operational at
Aurangabad,
Kolhapur,
Nagpur, Nasik,
and Mumbai in
Maharashtra &
Panaji in Goa
5. Hyderabad

Hyderabad has
been the
backbone for
the growth of
software and
hardware
Hyderabad industry in
Andhra Pradesh
& Telangana
since last three
decades and
has enabled
Hyderabad to
emerge as one
of the leading IT
clusters in India.
6. Bengaluru

STPI-Bengaluru
has been the
backbone for
the growth of
software and
hardware
industry in
Karnataka since
last three
decades and
has enabled
Bengaluru to
emerge as one
Bengaluru of the largest IT
clusters across
the globe,
coined as Silicon
Valley of India.
7. Chennai

STPI-Chennai
became
operational in
June 1995.
STPI-Chennai
has five
sub-centres
such as
Coimbatore,
Madurai,
Chennai Puducherry,
Tirunelveli, and
Trichi.
8. Thiruvananthapuram

STPI-
Thiruvananthap
uram, Kerala was
set up in 1992.

Thiruvananthapuram