Manufacturing Industries L - 1

MANUFACTURING
INDUSTRIES
What is Manufacturing ?
Production of goods in large quantities

after processing from raw materials to
more valuable products.
People employed in the secondary

activities manufacture the primary
materials into finished goods.
Importance of
Manufacturing
IMPORTANCE OF MANUFACTURING
❏ Help in modernising agriculture.
❏ Reduce the heavy dependence of people

on agricultural income by providing
them jobs in secondary and tertiary
sectors.
❏ Eradicates - Unemployment and Poverty
❏ Aims - at bringing down regional

disparities by establishing industries in
tribal and backward areas.
❏ Export of manufactured goods - Brings

Foreign Exchange.
India’s prosperity lies in increasing and
diversifying its manufacturing industries
as quickly as possible.
Agriculture & Industries : Move hand in
hand
Agro-industries -
Boosts agriculture by
raising it's productivity. Industries
They sell their depend upon
products such as agriculture for
irrigation pumps, raw material
fertilisersz insecticide,
PVC Pipes, etc.
In the present day
world of globalisation,
our industry needs to
be more efficient,
competitive &
Self-sufficient
Explain with examples the
interdependence of agriculture and
industries.
Answer :
1. Agriculture serves as a major source
of raw materials for industries
2. Agro-based industries aid
agriculture.
3. Agriculture provides food to people
working in industries.
Contribution of Industry
to National Economy
Share of manufacturing sector stagnant
at 17% of GDP out of total of 27% for the
industry- over the last two decades.
This is much lower in comparison to some

East Asian economies, where it is 25 to
35%.
The National Manufacturing

Competitiveness Council (NMCC)
has been set up by the Government to take
appropriate policy measures to improve
the productivity of manufacturing sector.
Industrial Location
INDUSTRIAL LOCATION - 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.
Industrialisation & Urbanisation : Go Hand
in Hand
Urbanisation follows, when Industrialisation

starts.
Sometimes, industries are located in or near

the cities.
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.
Industries in Pre- Independence
Era
Port Cities - Most manufacturing

units were located near Port such
as Mumbai, Kolkata, Chennai, etc.
Consequence - Emergence of
industrially developed urban
centres surrounded by a huge
agricultural rural hinterland.
Classification of
Industries
On the basis of source of raw
materials used
Agro based
Cotton, woollen, jute,
silk textile,
rubber etc.
Mineral based
Iron and steel,
cement, aluminium,
machine tools,
petrochemical.
On the basis of their main role
Basic or key industries

Industries which supply
their products as raw
materials to manufacture
other goods e.g. iron and
steel and copper
smelting, etc. Consumer Industries
Industries that produce
goods for direct use by
consumers – sugar,
toothpaste, paper,
sewing machines, fans
etc.
On the basis of capital investment
Small-scale
Industries
Industries with
investments upto
one crore. Large-scale
Industries
Industries with
investments
more than one
crore.
On the basis of 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., etc.
Joint sector industries
Jointly run by the state and

individuals or a group of
individuals. Oil India Ltd. (OIL)
Cooperative sector industries - Owned

& operated by the producers or
suppliers of raw materials, workers or
both.
➔ Share the profits or losses

proportionately.
➔ Examples are the sugar industry

in Maharashtra, the coir industry
in Kerala.
On the basis of 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.
Explain the factors which are responsible for
location of industries.
Answer : The location of manufacturing

industries depends on a number of physical
and socio economic factors.
1.NEARNESS TO THE SOURCE OF RAW

MATERIAL :
2.POWER RESOURCES
3.MEANS OF TRANSPORTATION
4. LABOUR
5. GOVERNMENT POLICIES
6. AVAILABILITY OF MARKET
Agro - Based Industries
Cotton, jute, silk, woollen textiles, sugar
and edible oil, etc. industries are based
on agricultural raw materials
Textile Industries
1. Occupies unique
position in the
Indian
economy.
2. Significant 4. Self-reliant and

contribution to complete in the
industrial value chain i.e.,
production & from raw material
employment to the highest
generation. value added
products.
3. Contributes 4%
in GDP
Value addition in the textile industry
COTTON TEXTILES
COTTON TEXTILES
Ancient India Cotton Textiles - 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
First successful textile mill was
established in Mumbai in 1854.
High demand for clothes in UK

due to two world wars gave a
boost to the development of the
cotton textile industry in British
India.
1. Early years -
Cotton textiles
industries 2. Why ?
concentrated- Availability of raw
Maharashtra & cotton, market,
Gujarat. transport, labour,
moist climate, etc.
4. Support other
3. Generate industries - By
employment - boll creating demand.
pluckers & workers Example: chemicals
engaged in ginning, & dyes, packaging
spinning, weaving, materials
dyeing, designing, engineering
packaging, tailoring works.
1. Spinning continues to
be centralized in
Maharashtra, Gujarat
& Tamil Nadu.
2. Weaving is highly
3. India has world class decentralised to provide
production in spinning, scope for incorporating
but weaving supplies low traditional skills and
quality of fabric designs of weaving in
cotton, silk, zari,
embroidery, etc.
Weaving is done by - handloom,

powerloom & 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, USA, U.K,

Russia, France, Nepal, Sri lanka,
Singapore, etc.
India - Second largest installed

capacity of spindles in the world,
after China.
Share in World Trade of Cotton Yarn -

accounts for 1/4th of the total.
Even after Industrial development,
India accounts only 4% in Garments
trade. Why ?
Our spinning mills are competitive at the
global level and capable of using all the
fibres we produce.
PROBLEM - 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
There are some large and modern factories

in these segments, but most of the production
is in fragmented small units, which cater to the
local market.
As a result, many of our spinners export cotton

yarn while apparel/garment manufactures
have to import fabric.
SUPPOSE
Yarn is sold at Rs. 85 per

kg. If it is sold as a
trouser it fetches Rs 800
per kg. Value is added at
every stage from fibre to
yarn to fabric and to
garment.
Requirement : Improvement in weaving
sector instead of exporting yarn
Although, we have made significant

increase in the production of good
quality cotton the need to import is still
felt.
PROBLEMS
Irregular Low
Power output
Supply from
labour
Old &
Outdated
Machinery Stiff
competition
- from
synthetic
fibre
JUTE TEXTILES
India largest producer of - raw jute &
jute goods.
2nd largest exporter after Bangladesh.
There were about 80 jute mills in 2010-11
Mills located - West Bengal, mainly along

the banks of the Hugli river, in a narrow
belt.
HUGLI BASIN - An Ideal location for Jute Mills
Factors responsible -
Proximity of the jute producing areas,
Inexpensive water transport - Supported by a

good 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.
Kolkata as a large urban centre - provides

banking, insurance and port facilities for
export of jute goods.
First jute mill was set
up near Kolkata in 1855
at Rishra.
After Partition in 1947 -

3/4th of the jute
producing area went to
Bangladesh
Stiff competition in the
international market
from synthetic
substitutes.
Competition from
international
competitors like -
Bangladesh, Brazil,
Philippines, Egypt and
Thailand.
SUGAR INDUSTRY
1. India - 2nd largest
producer of Sugar
though,
1st largest producer of
gur and khandsari.
3. Industry ideal for- the 2. Raw material used-

cooperative sector. Bulky.
PROBLEM - During
REASON - Seasonal haulage its sucrose
Nature content reduces
What is the reason
behind the shift &
concentration of mills in
the southern & western
states
2. Cooler
climate
ensures longer
crushing
season.
1. Cane 3. Success of
produced here cooperatives in
are of higher these states,
sucrose especially
content Maharashtra
Challenges faced by Sugar
Industry
1. Seasonal
2. Old &
nature of the
inefficient
industry
method of
production.
4. Need to
3. Transport delay maximise the use
in reaching cane of Baggase
to factories (sugarcane
remains)
Mention any six factors responsible
for the location of jute mills in the
Hugli basin.
“The textile industry is the only industry
in the country which is self-reliant and
complete in the value chain.” Justify the
statement.

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MANUFACTURING

Production of goods in large quantities

People employed in the secondary

❏ Help in modernising agriculture.

❏ Reduce the heavy dependence of people

❏ Eradicates - Unemployment and Poverty

❏ Aims - at bringing down regional

❏ Export of manufactured goods - Brings

This is much lower in comparison to some

The National Manufacturing

Inﬂuenced by - availability of raw material,

Problem - Rarely possible to ﬁnd all these

Key to decision of Factory location - least

Government Policies also inﬂuence the

Urbanisation follows, when Industrialisation

Sometimes, industries are located in or near

Cities provide market & services - banking,

URBAN AGGLOMERATION - Many industries

Port Cities - Most manufacturing

Basic or key industries

Owned and operated by

Industries owned and

Jointly run by the state and

Cooperative sector industries - Owned

➔ Share the proﬁts or losses

➔ Examples are the sugar industry

Heavy Industries - Industries that

Light Industries - That use light raw

Answer : The location of manufacturing

1.NEARNESS TO THE SOURCE OF RAW

2. Signiﬁcant 4. Self-reliant and

Ancient India Cotton Textiles - Produced with

After 18th century- Power-looms came into use.

Impact of Power loom on Traditional Industries

➔ They suffered a setback- during the

➔ Failed to compete with the mill-made cloth

High demand for clothes in UK

Weaving is done by - handloom,

India exports yarn to Japan, USA, U.K,

India - Second largest installed

Share in World Trade of Cotton Yarn -

PROBLEM - weaving, knitting and processing

Fragmentation : A Major Drawback for

There are some large and modern factories

As a result, many of our spinners export cotton

Yarn is sold at Rs. 85 per

Although, we have made signiﬁcant

2nd largest exporter after Bangladesh.

There were about 80 jute mills in 2010-11

Mills located - West Bengal, mainly along

Proximity of the jute producing areas,

Inexpensive water transport - Supported by a

Abundant water - for processing raw

Cheap labour - from West Bengal and

Kolkata as a large urban centre - provides

After Partition in 1947 -

3. Industry ideal for- the 2. Raw material used-

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