Chapter 6: Manufacturing Industries
What is Manufacturing?
- Manufacturing is the process of converting raw materials into more valuable finished goods.
- It belongs to the secondary sector of the economy (primary is farming/mining; tertiary is services).
- Example: Cotton (raw material) → Spun into thread → Woven into cloth → Sold as a shirt.
Importance of Manufacturing
- Value addition – Raw materials are turned into valuable goods.
- Employment – Creates jobs and reduces pressure on agriculture.
- Exports – Earns foreign exchange for the country. Expand trade and commerce.
- Growth – Boosts economic development and helps in modernization.
- Backward & forward linkages – Encourages development of other sectors (like transport, banking, etc.)
Contribution of Industry to the National Economy
Question - Why is Industry Important for the Economy?
- Increases GDP (Gross Domestic Product):
- Employment Generation:
- Foreign Exchange:
- Reduces Dependence on Agriculture:
- Boosts Infrastructure and Development:
- Encourages Innovation and Technology:
Industry Location:- What is Industry Location?
- It means the place where an industry is set up.
- Industries are not set up randomly — they are located where conditions are favorable.
Factors Affecting Location of Industries:-
- Availability of Raw Materials
- Power Supply
- Labor
- Transport
- Market
- Water Supply
- Capital
- Government Policies
Agglomeration economies:- Industries often grow in groups or clusters for shared benefits.
Industry–Market Linkage:- What is it?
- It's the connection between industries and the market (buyers).
- Industries need markets to survive — without demand, production is useless.
Classification of Industries
1. On the Basis of Raw Materials
Type of Industry Description Examples
Agro-based Use plant or animal products Cotton, jute, sugar, vegetable oil
Mineral-based Use minerals (metallic or non-metallic) Iron and steel, cement, aluminum
Forest-based Use forest products Paper, furniture, plywood
Marine-based Use products from the sea Fish processing, seafood industry
2. On the Basis of Size/Capital Investment
Type of Industry Description Examples
Large-scale Big investment, advanced machines Iron & steel plants, automobile
Small-scale Small investment, often labor-intensive Handicrafts, small textile units
Cottage industry Home-based, traditional tools Weaving, pottery, embroidery
3. On the Basis of Ownership
Type of Industry Description Examples
Public sector Owned by government SAIL, BHEL
Private sector Owned by individuals or companies TATA, Reliance
Joint sector Owned by both government and private Maruti Suzuki
Cooperative sector Owned by producers/workers collectively AMUL, Sugar cooperatives in Maharashtra
4. On the Basis of Use of Products/main role
Type of Industry Description Examples
Basic/Heavy Provide raw materials to other industries Iron and steel, cement
Consumer Produce goods for direct use by people Food, soap, toothpaste, clothes
Agro-Based Industries
- These industries use agricultural products as raw materials.
- Examples: Cotton, Jute, Sugarcane, Edible oils, etc.
1. Cotton Textile Industry:- Our traditional industries suffered a setback during the colonial period because they could not compete with the mill-made cloth from England.
- First textile mill was established in Mumbai in 1854.
- During world war this industry demand increase in other country. It help to development of the cotton textile industry
- Cotton industry has close link with agriculture because it provides a living to farmers, cotton boll pluckers and workers engaged in ginning, spinning, weaving, dyeing, designing, packaging, tailoring and sweing.
Major Centers:- Mumbai, Ahmedabad, Surat, Nagpur, Coimbatore, Kanpur.
Exports:- Fabrics, garments, and cotton yarn are exported to USA, UK, Russia, Japan, etc.
Features:
- One of the oldest industries in India.
- Provides employment to a large population.
- Uses both local and imported cotton.
- Huge demand in domestic and international markets.
Challenge:-
- Tough Competition from Synthetic Substitutes.International Competition.
- Old and Obsolete Machinery
- High Production Cost
- Irregular Supply of Raw Jute
- Labor Issues
2. Jute Textile Industry:- First Jute mill was set up near Kolkata in 1855 at Rishra. After Partition in 1947 third- Fourth part of jute producing area went to Bangladesh.
Raw Material:- Jute – mainly grown in West Bengal, Bihar, Assam, Odisha.
Major Centers:- Kolkata (West Bengal) is the largest jute industry hub.
Factors responsible for their location in the Hugli basin are:-
- Inexpensive water, transport, good connectivity of Railway, roadways, Waterways etc.
- Abundant water.
- Cheap labor.
- banking insurance and port facilities etc.
Features:
- India is the largest producer of raw jute and jute goods.
- Faces competition from synthetic fibers like plastic.
- Used for making gunny bags, ropes, mats, carpets, etc.
Exports:- Jute products are exported to USA, UK, Australia, Ghana, Germany, etc.
Challenge:-
- Tough Competition from Synthetic Substitutes.
- International Competition.
- Old and Obsolete Machinery
- High Production Cost
- Irregular Supply of Raw Jute
- Labor Issues
Government & Industry Efforts
- Diversification of jute products (e.g., shopping bags, carpets, decorative items).
- Promoting eco-friendly jute as a substitute for plastic.
- Export promotion and modernization of mills.
3. Sugar Industry:- India stands second largest producer in world. but take place in first in the producction of GUR and Khandsari.
Raw Material:- Sugarcane – grown in Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, Bihar.
Area:- Uttar Pradesh, Bihar, Maharashtra, Karnataka, Tamil Nad, etc.
Features:
- India is the second largest producer of sugar in the world.
- Seasonal industry (depends on sugarcane harvesting).
- Located near growing areas to avoid spoilage of raw sugarcane.
- Southern and western states have cooler climate and longer crushing seasons.
- This leads to higher sugar recovery and better quality.
Challenge/Problems:
- Low sugar recovery rate.
- Old machinery in many mills.
- Seasonal nature affects production.
- Transport delay
Mineral-Based Industries
Mineral-based industries are those that use minerals and metals as their raw materials.
These minerals can be:
- Metallic minerals (like iron, bauxite)
- Non-metallic minerals (like limestone, gypsum)
Iron and Steel Industry
- Key raw materials: Iron ore, coal, limestone.
- Importance: Called the backbone of modern industry – supports engineering, construction, defense, and transport.
- Major centers: Jamshedpur, Bhilai, Durgapur, Rourkela, Bokaro.
- India's Rank:- In steel production Inida Rank was 2nd.
- Most of the undertaking market their steel:- Steel Authority of India Ltd.(SAIL)
- Liberalisation and foreign direct investment have given a boost to the industry with effors of private entrepreneurs.
Question :- Why India is not able to perform to our full potential largely?
- Ans:- High cost and limited availability of cooking coal
- Lower productivity of labour
- Poor infrastructure.
Aluminum Industry:- India is second most metallurgical industry
- Raw material: Bauxite.
- Use: Aircrafts, utensils, packaging, electricity cables.
- Centers: Odisha, Jharkhand, Chhattisgarh, Maharashtra.
Cement Industry:- First Cement plant was set up in Chennai in 1904.
- Raw materials: Limestone, silica, alumina, gypsum.
- Use: Construction of buildings, roads, dams, etc.
- Major centers: Madhya Pradesh, Chhattisgarh, Tamil Nadu, Andhra Pradesh.
Chemical Industry:- The chemical industry is one of the most diversified industries in India.
It produces a wide range of organic and inorganic substances used in other industries, agriculture, and daily life.
Types of Chemicals Produced
Inorganic Chemicals:- Used in manufacturing fertilizers, glass, cement, paints, acids, alkalis, etc.
Examples: Sulphuric acid, nitric acid, caustic soda, soda ash.
Organic Chemicals:- Used in petrochemicals, plastics, rubber, pharmaceuticals, dyes, cosmetics, etc.
Made from petroleum and natural gas.
Examples: Synthetic fibres, PVC, adhesives, paints, drugs.
Importance of the Chemical Industry
- Supports agriculture (through fertilizers and pesticides).
- Supplies raw materials to textiles, paper, pharmaceuticals, engineering industries.
- Helps in the growth of consumer goods (soaps, detergents, cosmetics).
Major Chemical Industry Centers in India
- Gujarat – largest producer of chemicals (Vadodara, Ahmedabad).
- Maharashtra – Mumbai, Thane.
- Tamil Nadu, Uttar Pradesh, Madhya Pradesh, West Bengal.
Exports
India exports chemicals to USA, Europe, Southeast Asia, Africa, etc.
Fertilizer Industry:- The fertilizer industry produces chemical fertilizers that are used to increase crop yield and improve soil fertility.
Types of Fertilizers Produced:
Type Example
Nitrogenous Urea, Ammonium sulphate
Phosphatic Single super phosphate
Potassic Muriate of potash (MOP)
Complex Fertilizers NPK (mix of all 3 nutrients)
Major Fertilizer Plants in India:- Jharkhand, Maharashtra, Gujarat, Assam, Odisha, Haryana.
Automobile Industry:- The automobile industry deals with the manufacture of vehicles
Major Automobile Hubs in India:- Delhi, Gurugram, Mumbai, Pune, Chennai, Kolkata, Lucknow, indore, Hyderabad, Jamshedpur, and Bengaluru.
Importance of Automobile Industry:
- Provides employment to millions.
- Boosts transport and infrastructure.
- Supports the growth of cities and trade.
- Contributes to exports and GDP.
- Key part of India’s Make in India initiative.
Information Technology (IT) Industry:- The Information Technology (IT) industry deals with the development, processing, and use of computers, software, and communication technologies.
Major IT Hubs in India:- Delhi, Gurugram, Mumbai, Pune, Chennai, Kolkata, Lucknow, indore, Hyderabad, Jamshedpur, and Bengaluru.
Why is the IT Industry Important?
- Provides employment to millions (especially youth).
- Boosts exports and brings foreign exchange.
- Supports e-governance, banking, telecom, and education.
- Makes India a global digital power.
- Drives innovation and startups (like Swiggy, Paytm, etc.).
Industrial Pollution and Environmental Degradation
What is it?
When industries release unwanted or harmful wastes (like smoke, chemicals, and garbage), it causes pollution in air, water, land, and noise — damaging the environment and human health.
This process is called environmental degradation.
Types of Industrial Pollution:
1. Air Pollution
- Caused by: Smoke from factories (burning fossil fuels – coal, oil, gas).
- Harmful gases: Carbon monoxide, sulphur dioxide, nitrogen oxides.
- Effects: Respiratory issues, global warming, acid rain.
2. Water Pollution
- Caused by: Chemical and toxic waste from factories dumped in rivers and lakes.
- Examples: Dyes, pesticides, acids, heavy metals.
- Effects: Kills aquatic life, makes water unsafe for humans and animals.
3. Land Pollution
- Caused by: Dumping of solid wastes, plastics, and toxic leftovers.
- Effects: Soil becomes unfit for farming, contamination of groundwater.
4. Noise Pollution
- Caused by: Running machines, factory sirens, generators.
- Effects: Hearing problems, stress, sleep disturbance.
Thermal Pollution:- Thermal pollution is the rise in temperature of natural water bodies (like rivers, lakes, or ponds) due to the discharge of hot water from industries or power plants.
Effects: Reduces oxygen in water, Increases bacterial growth, Kills fish and other organisms, etc.
How to Control Industrial Pollution?
Method Description
Proper Waste Treatment - Treat industrial waste before releasing into rivers
Use of Clean Technology - Switch to eco-friendly machines and fuels
Recycling and Reuse - Reuse materials instead of dumping
Plantation/Green Belts - Trees reduce noise and clean air
Strict Laws and Fines - Government action to stop illegal pollution
NTPC Shows the Way
What is NTPC?:- NTPC stands for National Thermal Power Corporation – a major government company that generates electricity in India, mostly using thermal power (coal, gas, oil).
- Installing electrostatic precipitators to reduce smoke.
- Recycling water and treating wastewater.
- Using fly ash in construction.
- Creating green belts and upgrading machinery.
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