Industry – An economic activity which is concerned with production of goods, extraction of minerals or provision of services is called an industry.
Raw material – The basic material from which a product is made is called raw materials.
Classification of Industry:
On the basis of raw materials, industry can be categorized as follows:
Agro-based Industries: Industries which use agricultural products as raw materials, it is called agro – based industry. Ex – cotton textiles, leather, edible oil, etc.
Mineral-based Industries: Industries which use minerals as raw materials, it is called mineral – based industry. Ex – iron and steel, petrochemical, etc. The products of mineral-based industry feed other industries.
Marine-based Industries: Industries which use products from sea and ocean as raw materials, it is called marine – based industry. Ex – sea food industry.
Forest-based Industries: Industries which use forest products as raw materials, it is called forest – based industry. Ex – paper, furniture, pharmaceutical, safety matches, etc.
On the basis of size, i.e. the amount of capital invested, industries can be classified as follows:
Cottage Industry: A business or manufacturing activity carried on in people’s homes, it is called cottage industry. Basket weaving, pottery, etc. are examples of cottage industry. A small amount of capital is invested in small scale industries.
Large Scale Industry: Industries which require huge infrastructure, man-power and a have influx of capital assets, it is called large scale industry. Large scale industry also produces in large volumes, e.g. automobile industry.
On the basis of ownership, industries can be classified as follows:
Private Sector: Industries those are owned and operated by individuals or a group of individuals is called private sector. Ex -TATA and Reliance
Public Sector: Industries those are owned by the government or government agencies, it is called public sector. Ex -SAIL, HAL, etc
Joint Sector: industries those are jointly owned by the government and private owners, it is called joint sector. Ex – Delhi Metro, Maruti, etc
Cooperative Sector: A sector in which workers or producers join together to form a company in which profit and workload are equally shared, it is called a cooperative, Ex – Amul, Lijjat, Mother Dairy, etc.
Factors Affecting Location of Industries:
Availability of raw materials, land, water, labour, power, capital, transport and market are the main factors which affect the location of an industry.
A place where some or all of these factors are available is an ideal place for the growth of industries.
Sometimes, the government provides incentives; in the form of subsidized power and tax holidays; to develop industries in a particular location.
Industrialization usually leads to development and growth of towns and cities.
Industrial System:
Input: Raw materials, labour, land, transport, power and other infrastructure are the inputs of industry.
Processes: A variety of activities which lead to transformation of raw materials into finished products.
Output: Products or services are the outputs of industry.
Industrial Regions:
Major industrial regions of the world are; eastern North America, western and central Europe, Eastern Europe and eastern Asia.
Major industrial regions are usually located in the temperate areas, near sea ports and especially near coal fields.
Important industrial regions of India are as follows:
Mumbai-Pune cluster
Bangalore-Tamil Nadu region
Hugli region
Ahmadabad-Baroda region
Chhottanagpur industrial belt
Vishakhapatnam-Guntur belt
Gurgaon-Delhi-Meerut region
Kollam-Thiruvananthapuram industrial cluster
Distribution of Major Industries:
Iron and steel industry, textile industry and information technology industry are the major industries of the world.
While the IT industry is an emerging industry, the other two are older industries.
Germany, USA, China, Japan and Russia are the major countries with iron and steel industries.
India, Hong Kong, South Korea, Japan and Taiwan are the major countries of textiles industry.
The Silicon Valley in California (USA) and Bangalore in India are the major hubs of the IT industry.
Iron and Steel Industry:
Iron industry is a feeder industry which provides raw materials to various other industries.
Smelting – The process in which metals are extracted from their ores by heating beyond the melting point is called smelting.
Inputs of iron industry:
Iron ore, coal, limestone, labour, capital, site and other infrastructure.
Processes:
The process involves conversion of iron ore into steel. It is done in many stages.
First of all, the raw material is put in a blast furnace for smelting.
Iron is refined after smelting and made into steel.
For making 1 tonne of steel, 4 tonne of iron ore is mixed with 1 tonne of limestone and 8 tonne of coal is used as fuel. Steel is also called the backbone of modern industry.
Almost everything used by us is either made up of steel or is made by machines which are made up of steel. Various items; right from an all pin to a huge ship are made of steel.
Before 1800 A.D. iron and steel industry was located where raw materials, power supply and running water were easily available.
Later proximity to coal fields, canals and railways decided the location of iron and steel industry.
After 1950, the location of iron and steel industry changed to large areas of flat land near sea ports. Proximity to sea ports was necessary for importing iron ores.
In India, iron and steel industry developed in areas with good availability of raw materials.
All the major steel producing centers are in the Chhottanagpur plateau; spread over four states, West Bengal, Jharkhand, Orissa and Chhattisgarh.
Bihlai, Durgapur, Burnpur, Jamshedpur, Rourkela and Bokaro are situated in this region.
Other important steel centers are; Bhadravati and Vijay Nagar in Karnataka, Vishakhapatnam in Andhra Pradesh and Salem in Tamil Nadu. The steel production in India increased from one million tonne in 1947 to 30 million tonnes in 2002.
Jamshedpur:
The first iron and steel plant in India was set up in 1907 at Jamshedpur.
At that time, it was a small village named Sakchi; near the confluence of the rivers Subarnarekha and Kharkai in modern day Jharkhand.
This plant is called Tata Iron and Steel Company (TISCO).
Location Advantages of Sakchi:
It was only 32 km away from Kalimati station on the Bengal-Nagpur railway line.
It was close to the deposits of iron ore, coal and manganese.
It was near Kolkata which provided a large market.
Presence of rivers ensured good supply of water for the factory. There are some large integrated steel plants and various mini steel plants in the Indian iron and steel industry.
Pittsburgh:
It is an important steel city of the United States of America.
Location Advantages of Pittsburgh:
Coal is available locally. Iron ore comes from Minnesota; which is about 1500 km away.
The famous Great Lakes waterway provides one of the best routes of shipment between Minnesota and Pittsburgh. Moreover, well developed railway network also provides infrastructure support.
The Ohio, the Monoghela and Allegheny rivers ensure adequate supply of water.
At present, there are very few large steel mills in Pittsburgh. They are now located in the valleys of Monoghela and Allegheny rivers above Pittsburgh and along the Ohio river below it.
Cotton textile industry:
This is one of the oldest industries.
Till the industrial revolution in the 18th century, manual labour was used for making cotton cloths.
After the industrial revolution, power looms replaced handlooms and it helped in expansion of cotton textiles industry.
The expansion of cotton textiles industry first took place in Britain and then in other parts of the world.
At present; India, China, Japan and USA are the major producers of cotton textiles.
Indian cotton textiles were in great demand because of their fine quality and craftsmanship.
The Muslins of Dhaka, Chintzes of Masulipatanam, Calicos of Calicut and Gold-wrought cotton Burhanpur, Surat and Vadodara were very popular around the world.
But after the industrial revolution in Britain, the Indian cotton textiles could not compete with machine made cloths from Britain.
The first successful cotton textile mill was set up in Mumbai in 1854.
The warm and moist climate of Mumbai, proximity to port, availability of raw material and skilled labour helped in rapid expansion of this industry in the region.
During early years, the cotton textiles industry flourished in Maharashtra and Gujarat.
Humid climate of these states favoured the processing of cotton.
But later, this industry spread to other parts of the country as well because humidity can be artificially created.
Other important centers of cotton textiles are; Coimbatore, Kanpur, Chennai, Kolkata, Ludhiana, Puducherry and Panipat.
Ahmadabad:
The first cotton textiles mill in Ahmadabad was set up in 1859.
Ahmadabad quickly became the second largest textile city in India; after Mumbai.
Hence, Ahmadabad is also known as the “Manchester of India”.
Location Advantage of Ahmadabad:
Proximity to cotton growing areas.
Well-developed rail and road network.
Proximity to Mumbai port.
Warm and humid climate.
Flat terrain makes it easy to develop factories.
Dense population ensures steady supply of labour.
But of late, the textile mills of Ahmadabad are in decline.
Emergence of new centers and non-up gradation of machines and technology in the mills of Ahmadabad are the main reasons for this decline.
Osaka:
Osaka is also known as the “Manchester of Japan”.
Location Advantage of Osaka:
Extensive plain around Osaka ensured availability of land for growth of cotton mills.
Warm and humid climate.
The river Yodo ensures water supply for the mills.
Easy availability of labour.
Proximity to ports ensures import of raw cotton and export of finished textiles.
In modern times, the cotton textiles industries in Osaka have been replaced by other industries.
Information technology:
Storage, processing and distribution of information are the main tasks of information technology industry.
Because of a series of technological, political and socio-economic factors; it has become a global industry.
Silicon Valley in California (USA) and Bangalore in India are the major hubs of IT industry.
Location Advantage of Bangalore:
Presence of a large number of educational and IT institutions which ensures a steady supply of human resources.
Comfortable environment of the city.
Business friendly policies were made by successive governments in Karnataka to promote the IT industry.
Location Advantage of Silicon Valley:
Silicon Valley has more or less similar advantages as in case of Bangalore.
Some other important IT centers in India are; New Delhi, Hyderabad, Chennai, Gurgaon, Pune, Thiruvananthapuram, Kochi and Chandigarh.
