Manufacturing IndustryManufacturing: Production of goods in large quantities after processing the raw materials into more valuable products is called manufacturing.

Importance of Manufacturing

  • Manufacturing industries help in modernizing agriculture; which forms the backbone of our economy. Apart from this, manufacturing industries also reduce the heavy dependence of people on agricultural income. This becomes possible because of creation of new jobs in secondary and tertiary sectors.
  • Industrial development helps in eradication of unemployment and poverty.
  • Export of manufactured goods expands trade and commerce and brings in much needed foreign exchange.
  • A country with high level of manufacturing activities becomes prosperous.

The National Manufacturing Competitiveness Council (NMCC) has been set with the objectives of improving productivity through proper policy interventions by the government and renewed efforts by the industry.

Industrial Location-Some of the factors which affect the industrial location are as follows:
  1. Availability of raw materials
  2. Availability of labour
  3. Availability of capital
  4. Availability of power
  5. Availability of market
  6. Infrastructure

Sometimes, industries are located in or near cities. Cities provide markets and also provide services like banking, insurance, transport, labour, consultants, etc.

Agglomeration Economy-Many industries tend to come together to make use of the advantages of an urban centre. Such centre is then called as agglomeration economy.

Classification Of Industries:

On the basis of raw materials:
  1. Agro Based Industries:Cotton, woolen, jute, silk textile, rubber, sugar, tea, coffee, etc.
  2. Mineral Based Industries:Iron and steel, cement, aluminium, petrochemicals, etc.
According to their main role:
  1. Basic or Key Industries:These industries supply their products or raw materials to manufacture other goods, e.g. iron and steel, copper smelting, aluminium smelting.
  2. Consumer Industries:These industries produce goods which are directly used by consumers, e.g. sugar, paper, electronics, soap, etc.
On the basis of capital investment:
  1. Small Scale Industry:If the invested capital is upto Rs. one crore, then the industry is called a small scale industry.
  2. Large Scale Industry:If the invested capital is more than Rs. one crore, then the industry is called a large scale industry.
On the basis of ownership:
  1. Public Sector:These industries are owned and operated by government agencies, e.g. SAIL, BHEL, ONGC, etc.
  2. Private Sector:These industries are owned and operated by individuals or a group of individuals, e.g. TISCO, Reliance, Mahindra, etc.
  3. Joint Sector:These industries are jointly owned by the government and individuals or a group of individuals, e.g. Oil India Limited.
  4. Cooperative Sector:These industries are owned and operated by the producers or suppliers of raw materials, workers or both. The resources are pooled by each stakeholder and profits or losses are shared proportionately. AMUL which is milk cooperative is a good example. The sugar industry in Maharashtra is another example.
Based on the bulk and weight of raw materials and finished goods:

Heavy Industries:Iron and steel.

Light Industries:Electronics

Textile Industry

The textile industry contributes 14% to industrial production in India. In terms of employment generation, this industry is the second largest after agriculture. 35 million persons are directly employed in the textiles industry in India. The contribution of textiles industry to GDP is 4%. This is the only industry in the country which is self-reliant and complete in the value chain.

Cotton Textiles:Cotton textiles were traditionally produced with hand spinning and handloom weaving techniques.

At present, there are 1600 cotton and synthetic textile mills in India. Almost 80% of them are in the private sector. The rest are in the public sector and cooperative sector. Additionally, there are several thousand small factories with four to ten looms.

Location of Cotton Textile Industry:

This industry was earlier concentrated in the cotton belt of Maharashtra and Gujarat.

- Availability of raw materials

- port facilities

-transport-

-labour

-moist climate, etc. were in favour of these locations.

Importance of cotton textile industry- 1.The industry provides a source of livelihood to farmers, cotton boll pluckers and workers engaged in ginning, spinning, weaving, dyeing, designing, packaging, tailoring and sewing.

2.This industry supports many other industries; like chemical and dyes, mill stores, packaging materials and engineering works.

At around 34 million, India has the second largest installed capacity of spindles in the world; after China. India accounts for one fourth of the world trade in cotton yarn. However, India’s share in garment trade in the world is only 4%. Our spinning mills are globally competitive and can use all the fibres we produce. But the weaving, knitting and processing units cannot use much of the high quality yarn produced in the country.

Problems in cotton textile industry:

1.Erratic power supply

2.obsolete machinery are the major problems.

3.Low output of labour

4.stiff competition with the synthetic fibres.

Jute Textiles

India is the largest producer of raw jute and jute goods in the world. It is the second largest exporter of jute; after Bangladesh. Most of the 70 jute mills in India are located in West Bengal; mainly along the bank of Hooghly. The jute industry is in a narrow belt which is 98 km long and 3 km wide.

Location advantages of Hooghly basin:

1.Proximity of the jute producing areas.

2. Inexpensive water transport.

3.Good rail and road network.

4.Abundant water for processing raw jute.

5.Cheap labour from West Bengal, Bihar, Orissa and Uttar Pradesh.

The jute industry directly supports 2.61 lakh workers. It also supports 40 lakh small and marginal farmers

Challenges faced by Jute industry-

1.Jute industry is facing challenge from synthetic fibre

2. Facing tough comptetion from competitors like Bangladesh, Brazil, Philippines, Egypt and Thailand.

Steps taken by govt to promote jute -

1)Government initiated apolicy of mandatory use of jute packaging. 2)The National Jute Policy was formulated in 2005 with an objective to increase productivity, improve quality and ensure good prices for the jute farmers.

Importance of Jute-

1)The jute industry directly supports 2.61 lakh workers. It also supports 40 lakh small and marginal farmers

2) Jute is environment friendly and biodegradable material.

Sugar Industry-India is the second largest producer of sugar in the world. It is the largest producer of gur and khandsari.

Sugar industry is more suited to co operative sector because -This industry is seasonal in nature.

In recent years, there has been a growing tendency to shift and concentrate in the southern and western states;

1.The cane produced in this region has higher sucrose content.

2.The cooler climate of this region ensures a longer crushing season.

3. Co operatives are more successful in southern states.

Challenges for Sugar industry:

1.Seasonal nature of industry

2.old and inefficient methods of production

3.transport delays

4.the need to maximize the use of baggase are the major challenges for this industry.