Chapter 5. Industries

Industry
• Industry refers to economic activity that is concerned with production of goods, extraction of minerals or provision of services. For example Iron and steel industry (production of goods), coal mining industry (extraction of coal) and tourism industry (service provider).

Classification of Industries Raw Materials:
Agro based industries: Use plant and animal based products as their raw materials. Food processing, vegetable oil, cotton textile, dairy products and leather industries are examples of agro-based industries.
Mineral based industries: Use mineral ores as their raw materials. The products of these industries are used by other industries. For E.g. Iron made from iron ore is product of a mineral based industry. This is used as raw material for manufacture of a number of other products, such as heavy machinery, building materials and railway coaches.
Marine based industries: Use products from sea and oceans as raw materials. Industries processing sea food or manufacturing fish oil are some examples.
Forest based industries: Utilise forest produce as raw materials. The industries associated with forests are pulp and paper, pharmaceuticals, furniture & buildings.
Size: It refers to amount of capital invested, number of people employed and volume of production.
Small scale: Cottage or household industries are a type of small scale industry where products are manufactured by hand, by artisans. For example Basket weaving, pottery & other handicrafts, Silk weaving and food processing industries. These industries use a lesser amount of capital and technology as compared to large scale industries that produce large volumes of products.
Large scale industries: Investment of capital is higher and technology used is superior in large scale industries. Production of automobiles and heavy machinery are examples large scale industries.

Ownership:
Private sector industries: These are owned and operated by individuals or a group of individuals.
Public sector industries: These are owned and operated by government, such as Hindustan Aeronautics Limited and Steel Authority of India Limited.
Joint sector industries: These are owned and operated by state and individuals or a group of individuals. Maruti Udyog Limited is an example of a joint sector industry.
Co-operative sector industries: These are owned and operated by producers or suppliers of raw materials, workers or both. Anand Milk Union Limited and Sudha Dairy are success stories of a cooperative venture.

Factors Affecting Location of Industries
• The factors affecting location of industries are availability of raw material, land, water, labour, power, capital, transport & market.

Industrial System
• An industrial system consists of inputs, processes & outputs.
1. Inputs: raw materials, labour & costs of land, transport, power & other infrastructure.
2. Processes: a wide range of activities that convert raw material into finished products.
3. Outputs: end product and income earned from it.

Industrial Regions
• Industrial regions emerge when a number of industries locate close to each other and share benefits of their closeness. Major industrial regions of world are – Eastern North America, Western & Central Europe, Eastern Europe and Eastern Asia. Major industrial regions tend to be located in temperate areas, near sea ports and especially near coal fields.
• India has several industrial regions like MumbaiPune cluster, Bangalore-Tamil Nadu region, Hugli region, Ahmedabad-Baroda region, Chottanagpur industrial belt, Vishakhapatnam-Guntur belt, Gurgaon-Delhi-Meerut region and KollamThiruvanathapuram industrial cluster.
Industrial Disaster: One of worst industrial disasters occurred in Bhopal on 3 December 1984. Highly poisonous Methyl Isocyanate (MIC) gas along with Hydrogen Cyanide and other reaction products leaked out of pesticide factory of Union Carbide.
Risk Reduction Measures: 1. Densely populated residential areas should be separated far away from industrial areas.
2. People staying in vicinity of industries should be aware of storage of toxins or hazardous substances and their possible effects in case if an accident occurs.
3. Fire warning and preventing system should be improved.
4. Storage capacity of toxic substances should be limited.
5. Pollution dispersion qualities in industries should be improved.
6. Distribution of Major Industries.
Iron and Steel Industry: This is a feeder industry whose products are used as raw materials for other industries. The inputs for industry include raw materials such as iron ore, coal & limestone, along with labour, capital, site & other infrastructure.
Smelting: It is process in which metals are extracted from their ores by heating them beyond melting point.
• Special alloys of steel can be made by adding small amounts of other metals such as aluminium, nickel, & copper. Alloys give steel unusual hardness, toughness, or ability to resist rust. Steel is often known as backbone of modern industry.
• The countries in which iron and steel industry is located are Germany, USA, China, Japan & Russia.
• All important steel producing centres such as Bhilai, Durgapur, Burnpur, Jamshedpur, Rourkela, & Bokaro are situated in a region that spreads over four states – West Bengal, Jharkhand, Odisha & Chhattisgarh. Bhadravati and Vijay Nagar in Karnataka, Vishakhapatnam in Andhra Pradesh, and Salem in Tamil Nadu are other important steel centres utilising local resources.
Jamshedpur: Before 1947, there was only one iron and steel plant in country – Tata Iron and Steel Company Limited (TISCO) and was privately owned. After Independence, government set up several iron and steel plants.
• TISCO was started in 1907 at Sakchi, near confluence of rivers Subarnarekha and Kharkai in Jharkhand. Later on Sakchi was renamed Jamshedpur. TISCO, gets coal from Jharia coalfields, and iron ore, limestone, dolomite & manganese from Odisha and Chhattisgarh.

Jamshedpur
Pittsburgh: It is an important steel city in United States of America. The steel industry in Pittsburgh enjoys locational advantages. Some of raw material such as coal is available locally, while iron ore comes from iron mines in Minnesota, about 1500 km from Pittsburgh.
• Pittsburgh is one of world’s best routes for shipping ore cheaply – famous Great Lakes waterway.
• The names of Great Lakes are Superior, Huron, Ontario, Michigan & Erie. Lake Superior is largest of these five lakes. It lies higher upstream than others.
Cotton Textile Industry: Cotton, wool, silk, jute, & flax are used for making cloth. Fibres are raw material of textile industry. Natural fibres are obtained from wool, silk, cotton, linen & jute. Man made fibres include nylon, polyester, acrylic & rayon.
• In 18th century, power looms facilitated development of cotton textile industry, first in Britain and later in other parts of world.
• The first textile mill in country was established at Fort Gloster near Kolkata in 1818 but it closed down after some time.
• Textile industry is concentrated in India, Hong Kong, South Korea, Japan & Taiwan. The major hubs of Information technology industry are Silicon valley of Central California and Bengaluru region of India.
• India has a glorious tradition of producing excellent quality cotton textiles. The Muslin of Dhaka, Chintzes of Masulipatnam, Calicos of Calicut and Goldwrought cotton of Burhanpur, Surat & Vadodara are known worldwide for their quality and design.
• The first successful mechanized textile mill was established in Mumbai in 1854.
• The warm, moist climate, a port for importing machinery, and availability of raw material and skilled labour resulted in rapid expansion of industry in region. Initially, this industry flourished in Maharashtra and Gujarat because of favourable humid climate. But today, humidity can be created artificially, and raw cotton is a pure and not weight losing raw material, so this industry has spread to other parts of India.
• Coimbatore, Kanpur, Chennai, Ahmedabad, Mumbai, Kolkata, Ludhiana, Puducherry and Panipat are some of other important centres.
Ahmedabad: It is located in Gujarat on banks of Sabarmati river. The first mill was established in 1859. Ahmedabad was often referred to as ‘Manchester of India’.
• Ahmedabad is situated very close to cotton growing area. This ensures easy availability of raw materials. The climate is ideal for spinning and weaving. The flat terrain and easy availability of land is suitable for establishment of mills.
• The densely populated states of Gujarat and Maharashtra provide both skilled and semi-skilled labour. Well developed road and railway network permits easy transportation of textiles to different parts of country, thus providing easy access to market. Mumbai port nearby facilitates import of machinery and export of cotton textiles.
Osaka: It is an important textile centre of Japan, called ‘Manchester of Japan’. The extensive plain around Osaka ensured that land was easily available for growth of cotton mills. Warm humid climate is well suited to spinning and weaving.
• The river Yodo provides sufficient water for mills. Labour is easily available. Location of port facilitates import of raw cotton and for exporting textiles. The textile industry in Osaka depends completely upon imported raw materials. Cotton is imported from Egypt, India, China & USA. The finished product is mostly exported and has a good market due to good quality and low price.
Information Technology (IT): The information technology industry deals in storage, processing and distribution of information. The main factors guiding location of these industries are resource availability, cost & infrastructure. The major hubs of IT industry are Silicon Valley, California and Bengaluru, India.
• Emerging industries are called ‘Sunrise Industries’. These include Information technology, Wellness, Hospitality and Knowledge.
Bengaluru: It is located on Deccan Plateau from where it gets name ‘Silicon Plateau’. The city is known for its mild climate throughout year. Silicon Valley, is a part of Santa Clara Valley, located next to Rocky Mountains of North America.
• The area has a temperate climate with temperatures rarely dropping below 0°C. There are other emerging information technology hubs in metropolitan centres of India such as Mumbai, New Delhi, Hyderabad & Chennai. Other important centres are Gurgaon, Pune, Thiruvanthapuram, Kochi & Chandigarh.

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