Manufacturing Industries in India-Agro Based

Industrialisation in India
India is one of the top ten industrialised countries in the world. With her command over vast natural
resources and huge manpower resources, she is developing at a rapid pace.

Need for Rapid Industrialisation in India

 Rapid industrialisation is required to make India self-sufficient and self-reliable for fulfilling all her
needs and requirements.
 As India is predominantly an agricultural country, about one two-thirds of the population is dependent
on agriculture. Since agriculture cannot support the growing population, industries need to be
established to solve the problem of unemployment.
 Industries give support to agriculture. For example, agricultural implements are manufactured in
industries.
 Rapid industrialisation is required to keep pace with the technological advancements which have been
made in the world.
 Industries produce goods and equipment required for maintaining the defence of the country.

Factors Affecting the Location of Industries

Geographical and commercial factors affect the location of industries. Geographical factors are
 Raw Materials: Industries are mostly established at areas which are located close to the fields of raw
materials. For example, many iron and steel industries are located near the iron and coal fields.
Industries dealing with the manufacturing of perishable goods are located close to the source of raw
materials. For example, sugarcane industries are located close to the sugarcane fields as the sucrose
content of sugarcane starts drying up after 24 hours of its harvest.
 Water Supply: Industries require water while manufacturing goods. For example, water is used in
textile industries for bleaching and washing purposes. Thus, many industries are located close to the
sources of water.
 Energy: Energy is required for processing raw materials into manufactured goods. Thus, many
industries are located close to the coal fields. Industries are also located in regions where energy
power resources are readily and cheaply available.
 Transport: Transport is required for carrying raw materials to manufacturing units. It is also required
for transporting finished goods to markets. Thus, many industries are located near the port cities which
are also well-connected by road and rail to major towns and market cities.
 Labour: The availability of skilled and unskilled labour is an important factor which decides the
location of industries. Thus, many industries are located at places where cheap labour is readily
available.
 Proximity to Markets: Industries require markets to sell off their finished goods. For example, heavy
industries are located in an industrial area as their products are required by other small industries.
 Climate: It plays an important role in determining the location of agro-based industries. For example,
many cotton textile mills are located in Mumbai and Gujarat as it has a favourable climate which is
required for storing and manufacturing cotton yarn.
Commercial factors deciding the location of industries are
 Policies of the Government: The policies of the government play an important role in deciding the
location of industries. The government makes rules and regulations for the supply of water and
electricity. Further, it formulates policies for protecting and encouraging indigenous industries.
 Capital: Many industries are located in the big cities where most financers and investors are present.
Thus, many big cities are also major industrial centres.
 Organisational Skills: Organisational skills and technical knowledge are required for running any
industry. As a result, we find that many industries are located near educational and management
institutes to hire skilled people.

Classification of Industries
Industries Classification on the basis of Examples
Agro-based: Use agricultural Raw materials Agro-based: Cotton textiles and
products as raw materials tea industry
Mineral-based: Use minerals as Mineral-based: Iron and steel
raw materials industry
Forest-based: Use forest Forest-based: Wood industry
products as raw materials Animal-based: Silk and woollen
Animal-based: Use raw industry
materials provided by animals
Heavy industries: Manufacture Nature of product Heavy industries: Iron and steel
heavy and bulky goods industry
Light industries: Produce Light industries: Bottle
lightweight goods industries
Large-scale industries: Has Size and investments Large-scale industries: Iron and
huge infrastructure and steel Industry
requires large capital Medium-scale industries: Paper
investments mills
Medium-scale industries: Are Small-scale industries: Weaving
neither big nor small industry
Small-scale industries: Are
small and have only small
capital investments
Public sector industries: Ownership Public sector industries: IOC
Owned by the government and SAIL
Private sector industries: Private sector industries:
Owned by individuals Reliance and Wipro
Joint sector industries: Owned Cooperative sector industries:
and managed by both Maruti Suzuki and Exide
government and private Industries
individuals Joint sector industries: AMUL
Cooperative sector industries: and IFFCO
Owned by producers and
distributers collectively
Distribution of Industrial Regions
Major industrial belts in India are

a. The Hooghly Belt: This industrial belt has many jute textiles, cotton textiles, chemicals, engineering,
paper, leather industries etc. Kolkata is a major city in this belt. Proximity to the coal and iron ore
mines of Jharkhand and Bihar, cheap labour, freshwater of River Hooghly has made this an important
industrial belt of the region.

b. The Mumbai–Pune Belt: Cotton textile mills, oil refineries, chemical and fertiliser industries etc. are
located in this belt. Development of hydroelectricity in the Sahyadris and the availability of cheap
labour from Gujarat and Maharashtra have made this an important industrial belt. Further, the port of
Mumbai facilitates the transport facilities in and out of the region.
c. The Ahmedabad–Vadodara Region: Ahmedabad has emerged as a major centre of cotton textile
industries. This region has many industries such as chemical and fertiliser industries, plastics
industries and engineering industries for goods and services. Availability of skilled and unskilled labour
has made it an important industrial region.

d. The Chennai–Coimbatore–Bengaluru Region: Cheap and skilled labour, availability of cotton and
large markets have made this region an important industrial belt. Chennai, Coimbatore and Madurai
are important centres of the belt.

e. The Chotanagpur Plateau Region: This region covers parts of West Bengal and Jharkhand. This
region is rich in minerals such as iron ore, coal, manganese, bauxite and mica. Jamshedpur, Bokaro
and Durgapur are some important centres of steel production. Asansol, Ranchi and Dhanbad are
some important centres of metallurgy and heavy industries. Because of the presence of rich deposits
in this region, many industries are located here.

f. The Mathura–Delhi–Saharanpur–Ambala Region: Two separate belts between Faridabad and

Ambala in Haryana and Mathura and Saharanpur in Uttar Pradesh merge in and around Delhi. The
region has cotton textile, glass industry, chemicals and fertilisers, sugar and engineering industries.
Cheap availability of raw materials, good transport system and large markets have led to the
establishment of many industries in the region.

Agro-Based Industries
The sugar industry is the second largest organised industry next to cotton textile industries. Sugarcane is
a cash crop.
Products of sugarcane industries are sugar, gur and khandsari. Its by-products are
 Molasses: It is obtained during the process of manufacturing sugar. It is used in the alcohol industry
for the distillation of liquor and for producing certain chemicals and synthetic rubber.
 Bagasse: It is the leftover cane. It is used for producing steam which is a source of power for the
sugarcane industry and is used for making wax, carbon paper and shoe polish.
 Press mud is used for making wax, carbon paper and shoe polish.

Distribution of Sugar Industries

 As Maharashtra is the leading producer of sugar in India, the state has 119 sugar mills. Most of the
mills are large.
 Uttar Pradesh is the second largest producer of sugarcane in India. Sugarcane factories are located in
two belts—the Ganga Yamuna Doab (Saharanpur, Meerut, Bualndshahar and Ghaziabad) and the
Terai belt (Basti, Gonda, Gorakhpur etc).
 Other northern Indian states where sugar mills are located are Punjab, Haryana, Madhya Pradesh and
Gujarat.
 Peninsular India has emerged as a leading producer of sugar in India. Tamil Nadu has become the
leading producer of sugar in the region because of higher per hectare yield of sugarcane, higher
sucrose content and long crushing season.
 Sugar factories are also located in Andhra Pradesh (Hyderabad, Vijayawada, Chittoor etc.) and
Karnataka (Belgaum, Bellary, Bijapur etc.).

Sugar Industries have Shifted to the South because

 The climate of South India is free from the effects of summer loo and winter frost which are suitable for
growing superior varieties of sugarcane. The production period is also long.
 Black soil is more fertile than the alluvial soil of north India. The sugarcane here is of superior quality
with higher yield.
 The excellent transport facilities in Maharashtra and Tamil Nadu have resulted in an increased number
of sugarcane mills in these regions.
 The sugarcane farmers in South India have bigger area and are managed by cooperative societies.

Problems Faced by Sugarcane Industries

 Growth of poor quality of sugarcane with low sucrose content.
 High cost of production because of low yield and short crushing season.
 As maximum sugarcane is harvested at the same time, there is pressure on industries during the
harvest time.
 The supply of raw materials to sugar industries is irregular as no plantation industry exists around the
factories.
 Old and obsolete machinery is used in the sugar industry which has not been replaced by new
machinery and modern technology.

Cotton Textile Industries

India is the third largest cotton textile manufacturing country in the world after USA and UK. It is also the
third largest exporter of cotton textiles. Nearly 40% of the country’s labour force is supported by this major
industry.
Many cotton textile industries are located in Maharashtra, Gujarat and Tamil Nadu. They produce three-
fourths of the total output of yarn. The remaining one-fourth is produced by West Bengal, Uttar Pradesh,
Madhya Pradesh, Rajasthan, Andhra Pradesh and Karnataka.
The cotton textile industry is located in almost all the Indian states. About half of the total cotton mills are
located in Mumbai and Ahmedabad. Mumbai is known as the ‘cottonpolis’ of India as it is the most
important centre of cotton production. Mumbai and Ahmedabad have emerged as the most important
manufacturing centres because of the following reasons:
 Both cities are located close to the cotton-growing areas of the Deccan Plateau.
 Humid coastal climate have favoured the establishment in industries in both cities.
 Connectivity of Mumbai and Ahmedabad by rail and road routes to cotton-growing regions and by sea
routes to foreign markets.
 Mumbai is the main port city and Ahmedabad uses port facilities from Kandla.
 Many big and large financial centres are located in Mumbai and Ahmedabad.
 Power supply in Mumbai and Ahmedabad is mostly regular. While power is supplied by the Tata
hydroelectric system in Mumbai, Ukai and Kakrapara hydroelectric projects supply electricity to
Gujarat.
Problems Faced by Cotton Textile Industries
 The yarn in India is produced by small industries and units which largely cater to the local markets.
Thus, while many spinners export cotton yarn, many garment manufacturers have to import fabric.
Therefore, there is a mismatch between the two.
 Most of the machinery installed in the cotton mills are outdated and need to be replaced.
 Irregular power supply has hampered the production.
 Uncertainty in procuring raw materials, low labour productivity, lack of modernisation etc. are some
problems because of which sugar industries are running into loss.
 The cotton industry is facing tough competition from the fibre industry.

Handloom and Khadi Industries

It is one of the oldest industries in India. The industry provides employment to about 10 million people and
contributes over 23% of the total cloth production in the country. The khadi and handloom industries are
located in many Indian states such as Tamil Nadu, Manipur, West Bengal, Nagaland, Kerala, Madhya
Pradesh, Karnataka and Rajasthan.

Problems Faced by Khadi and Handloom Industries

 Insufficient and inferior quality of raw materials
 Lack of technical skills among poor craftsmen
 Old and obsolete technology used in the industries
 Goods which are produced are no match to modern fast-changing fashion and designs
 Stiff competition faced by mill-made cloth
 Lack of capital and cheap credit facilities

Silk Textile Industries

India is one of the largest producers of silk in the world. It manufactures four varieties of silk—mulberry,
eri, tussar and muga. The first modern silk industry was set up at Howrah by the East India Company.

Mulberry Silk
Mulberry silk accounts for about 90% of the total natural produced silk in India. Mulberry silk is produced
from silkworms which are reared from mulberry trees. Rearing of silkworm for producing silk is known as
sericulture. Mulberry silk is produced mainly in Karnataka, Andhra Pradesh, West Bengal, Tamil Nadu
and Jammu and Kashmir.

Distribution
Regions producing mulberry silk are

States Regions
Karnataka Bengaluru, Mysore, Kolar, Mandya, Belgaum and
Coorg
Andhra Pradesh Chittoor, Warangal, Karimnagar, Vishakhapatnam
and Anantnagar
West Bengal Malda, Murshidabad, Birbhum and Bankura
Tamil Nadu Coimbatore, Dharmapuri, Nilgiris, Salem and
Tirunelveli
Bihar and Jharkhand (produce tussar silk) Bhagalpur, Palamau, Hazaribagh and Ranchi
Assam (produce tussar, eri and muga) Goalpara, Kamrup and Nagaon
Problems Faced by the Silk Industry
 Competition from artificial silk
 Import of better quality and cheap raw silk from China
 No systematic testing and grading of silk
 Lack modern power looms for increasing production

Woollen Industry
More than 80% of woollen mills are located in
northern India. The main centres of woollen
production are Delhi, Srinagar, Kanpur, Dhariwal,
Mumbai, Ahmedabad and Gwalior. The woollen
industry in India is not as developed as cotton
textile industries because the demand for woollen
clothes is less as they are required only for three
to four winter months mainly in northern India.
Peninsular India does not experience extreme
winters; hence, the demand for woollen clothes in
these regions is low.

Problems Faced by the Woollen

Industry
 India is a tropical country, and hence, woollen
clothes are required only during winter months
in northern India.
 Many people in India are poor and cannot
spend on purchasing costly woollen clothes.
 Good quality of wool in India has to be
imported.
 Synthetic fibres are replacing woollen
industries.
 Because cotton and synthetic clothes are
more in demand, capitalists prefer to invest in Map showing major textile industries in India
cotton industries.
Many steps have been taken to improve the woollen industry in India. The government has started
encouraging the production of good quality wool in India. Various sheep-breeding farms have been set up
in northwest India. Merino and Corriedale sheep are imported and reared in the country.

Jute Industry
It is the second important agro-based industry in India after the cotton textiles industry. It is one of the
principal earners of foreign exchange.
The jute industry produces gunny bags, hessian, coarse carpets, rugs and cordage. Jute fibres are also
used for packing goods.

Distribution
The jute industry is mainly centred in the Hooghly region as jute is largely grown in the Ganga Delta and
in the Lower Ganga Valley. Other important jute-growing areas in Bengal are Howrah, Titagarh, Jagatal,
Serampore, Bansberia and Sibpur. Jute mills are also located in Bihar, Uttar Pradesh, Andhra Pradesh,
Odisha and Madhya Pradesh.

Factors Promoting the Jute Industry around Kolkata

 The Hooghly valley is a part of the Ganga Valley where jute is predominantly grown.
 The Ganga Brahmaputra Delta has fertile soil which gets renewed every year. This has increased jute
production.
 Humid climate and rainfall ranging 175–200 cm favour the growth of jute crop.
 Plenty of freshwater for retting and cleaning is available from the River Hooghly.
 Availability of labour from the neighbouring areas of Odisha and Uttar Pradesh has led to the growth of
jute industries in the region.
 Kolkata is a port city and is well-connected to the other parts of the country by rail and road.

Problems Faced by the Jute Industry

 After Independence, nearly 70% of jute-producing areas went to Bangladesh. Thus, the industry
suffers from inadequate supply of jute.
 The jute industry in India faces tough competition from Bangladesh, Brazil, Egypt and Thailand.
 The industry is equipped with old and obsolete machinery. Costs of production have also risen.
 Products of paper, plastic and hemp are widely used today as substitutes of jute products.

Remedial Steps Taken by the Government

 A Jute Consultative Council has been set up to advice the government on the jute industry.
 Many research programmes have been undertaken to extend the range of jute products. Some new
jute products are tarpaulins, jute carpets etc.
 Modern machinery has begun to be installed in jute industries.
 Steps have been taken by the government to stabilise jute prices.