Chapter Notes

MANUFACTURING INDUSTRIES

Manufacturing is the process of producing goods in large quantities by processing raw materials into more valuable products. This process is a key part of the secondary sector of the economy, where primary materials are transformed into finished goods. For example, paper is manufactured from wood, sugar from sugarcane, and iron and steel from iron ore. The economic strength of a nation is often measured by the development of its manufacturing industries.

Importance of Manufacturing

The manufacturing sector is considered the backbone of economic development for several key reasons:

• Modernising Agriculture: Manufacturing industries produce essential goods for agriculture, such as irrigation pumps, fertilisers, and machinery, which help modernise farming and increase productivity.
• Job Creation: By providing jobs in the secondary and tertiary sectors, manufacturing reduces the heavy dependence of the population on agricultural income.
• Poverty and Unemployment Eradication: Industrial development is a crucial step in eliminating unemployment and poverty. This was the philosophy behind establishing public sector and joint sector industries in India, especially in tribal and backward areas to reduce regional disparities.
• Foreign Exchange Earnings: The export of manufactured goods expands trade and commerce, bringing in essential foreign exchange.
• Value Addition and Prosperity: Countries that transform raw materials into a wide variety of high-value finished goods are generally more prosperous. India's prosperity depends on increasing and diversifying its manufacturing industries.

Agriculture and Industry: A Symbiotic Relationship Agriculture and industry are not separate; they move hand in hand. Agro-industries rely on agriculture for raw materials, while farmers depend on industries for products like fertilisers, pesticides, PVC pipes, and tools. The development of the manufacturing industry not only helps farmers increase production but also makes their production processes more efficient.

In today's globalised world, it's not enough for Indian industries to be self-sufficient. Our manufactured goods must be of a quality that is on par with international standards to compete effectively in the global market.

Classification of Industries

Industries can be classified based on different criteria to better understand their nature.

On the basis of source of raw materials used:

• Agro-based: These industries use agricultural products as raw materials. Examples include cotton, woollen, jute, silk textiles, rubber, sugar, tea, coffee, and edible oil industries.
• Mineral-based: These industries use minerals and metals as raw materials. Examples include iron and steel, cement, aluminium, machine tools, and petrochemicals.

According to their main role:

• Basic or key industries: These industries supply their products as raw materials for other industries to manufacture goods. Examples are the iron and steel industry, and copper and aluminium smelting.
• Consumer industries: These industries produce goods for direct use by consumers. Examples include sugar, toothpaste, paper, sewing machines, and fans.

On the basis of capital investment:

• A small scale industry is defined by the maximum investment allowed on the assets of a unit. Currently, this limit is rupees one crore.

On the basis of ownership:

• Public sector: Owned and operated by government agencies. Examples: BHEL, SAIL.
• Private sector: Owned and operated by individuals or a group of individuals. Examples: TISCO, Bajaj Auto Ltd., Dabur Industries.
• Joint sector: Jointly run by the state and private individuals. Example: Oil India Ltd. (OIL).
• Cooperative sector: Owned and operated by the producers or suppliers of raw materials, workers, or both. They pool resources and share profits or losses. Examples include the sugar industry in Maharashtra and the coir industry in Kerala.

Based on the bulk and weight of raw material and finished goods:

• Heavy industries: Use heavy raw materials and produce heavy goods. Example: iron and steel.
• Light industries: Use light raw materials and produce light goods. Example: electrical goods industries.

Agro-based Industries

Industries that derive their raw materials from agriculture are known as agro-based industries. This includes textiles (cotton, jute, silk, woollen), sugar, and edible oil industries.

Textile Industry

The textile industry holds a unique position in the Indian economy. It contributes significantly to industrial production, employment, and foreign exchange earnings. It is the only industry in India that is self-reliant and complete in the value chain, from raw material to the highest value-added products.

Cotton Textiles

• History: In ancient India, cotton textiles were made using hand spinning and handloom weaving. After the 18th century, power-looms were introduced. During the colonial period, traditional industries declined as they could not compete with mill-made cloth from England. The first successful textile mill in India was established in Mumbai in 1854.
• Location: Initially, the industry was concentrated in the cotton-growing belt of Maharashtra and Gujarat. This was due to the availability of raw cotton, markets, transport (including ports), labour, and a moist climate.
• Interdependence: The cotton industry has close links with agriculture, providing a livelihood to farmers and cotton boll pluckers. It also supports other industries like chemicals, dyes, packaging materials, and engineering.
• Spinning and Weaving: While spinning is centralized in Maharashtra, Gujarat, and Tamil Nadu, weaving is highly decentralized. This decentralization allows for the incorporation of traditional skills and designs in cotton, silk, and zari. India has world-class spinning capabilities, but our weaving sector often produces lower quality fabric because it cannot use much of the high-quality yarn.
• Handspun Khadi: Khadi provides large-scale employment to weavers in their homes as a cottage industry.

Jute Textiles

India is the largest producer of raw jute and jute goods and the second-largest exporter after Bangladesh.

• Location: Most jute mills are located in West Bengal, in a narrow belt along the banks of the Hugli river. The first jute mill was set up near Kolkata at Rishra in 1855.
• Impact of Partition: After the 1947 partition, the jute mills remained in India, but about three-fourths of the jute-producing areas went to Bangladesh.
• Factors for Location in Hugli Basin:
  • Proximity to jute-producing areas.
  • Inexpensive water transport and a good network of railways and roadways.
  • Abundant water for processing raw jute.
  • Cheap labour from West Bengal and neighbouring states.
  • Kolkata provides banking, insurance, and port facilities for export.

Sugar Industry

India is the second-largest world producer of sugar and the largest producer of gur and khandsari.

• Raw Material: Sugarcane is a bulky raw material, and its sucrose content reduces during transportation. This is why mills are located close to sugarcane-producing areas.
• Location: Mills are located in Uttar Pradesh, Bihar, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Gujarat, Punjab, Haryana, and Madhya Pradesh. About 60% of the mills are in Uttar Pradesh and Bihar.
• Seasonal Nature: The industry is seasonal, making it ideally suited for the cooperative sector.
• Shift to Southern and Western States: Recently, mills have been shifting to southern and western states, especially Maharashtra. The reasons for this shift are:
  • The sugarcane produced here has a higher sucrose content.
  • The cooler climate ensures a longer crushing season.
  • Cooperative societies are more successful in these states.

Mineral-based Industries

Industries that use minerals and metals as raw materials are called mineral-based industries.

Iron and Steel Industry

The iron and steel industry is a basic industry because all other industries (heavy, medium, and light) depend on it for their machinery. Steel is essential for manufacturing a vast range of products, from engineering goods and construction material to medical equipment and consumer goods.

• Index of Development: The production and consumption of steel are often considered an index of a country's development.
• Heavy Industry: It is a heavy industry because both raw materials and finished goods are heavy and bulky, leading to high transportation costs.
• Raw Materials: The key raw materials are iron ore, coking coal, and limestone, required in an approximate ratio of $4:2:1$. Manganese is also needed to harden the steel.
• Location: The Chhotanagpur plateau region has the maximum concentration of iron and steel industries due to low-cost iron ore, high-grade raw materials in proximity, cheap labour, and a large home market.

Aluminium Smelting

This is the second most important metallurgical industry in India.

• Properties: Aluminium is light, resistant to corrosion, a good conductor of heat, malleable, and becomes strong when mixed with other metals.
• Uses: It is used to manufacture aircraft, utensils, and wires. It has become a popular substitute for steel, copper, zinc, and lead in many industries.
• Location Factors: The two primary factors for the location of the industry are a regular supply of electricity and an assured source of raw material (bauxite) at a minimum cost.
• Raw Material and Process: The raw material, bauxite, is a bulky, dark reddish rock. The manufacturing process follows this general ratio: $4 \text{ to } 6 \text{ tonnes of bauxite } \Rightarrow 2 \text{ tonnes of alumina } \Rightarrow 1 \text{ tonne of aluminium }$
• Locations: Smelting plants are located in Odisha, West Bengal, Kerala, Uttar Pradesh, Chhattisgarh, Maharashtra, and Tamil Nadu.

Chemical Industries

The chemical industry in India is fast-growing and diverse, comprising both large and small-scale units.

• Inorganic Chemicals: Include sulphuric acid, nitric acid, soda ash (used to make glass, soaps, detergents, paper), and caustic soda. These industries are widely spread across the country.
• Organic Chemicals: Include petrochemicals, which are used to manufacture synthetic fibers, synthetic rubber, plastics, dyes, drugs, and pharmaceuticals. Organic chemical plants are typically located near oil refineries or petrochemical plants.
• Self-Consumption: The chemical industry is its own largest consumer, as basic chemicals are processed further to produce other chemicals for various applications.

Fertilizer Industry

This industry is centered around the production of nitrogenous fertilizers (like urea), phosphatic fertilizers, and complex fertilizers (a combination of nitrogen (N), phosphate (P), and potash (K)).

• Potash: Potash is entirely imported as India does not have commercially usable reserves.
• Expansion: After the Green Revolution, the industry expanded to many parts of the country. Gujarat, Tamil Nadu, Uttar Pradesh, Punjab, and Kerala contribute to about half of the total fertilizer production.

Cement Industry

Cement is essential for all construction activities, including building houses, factories, bridges, roads, and dams.

• Raw Materials: This industry requires bulky and heavy raw materials like limestone, silica, and gypsum.
• Other Requirements: It also needs coal, electric power, and rail transportation.
• History: The first cement plant was set up in Chennai in 1904. The industry expanded significantly after Independence. Plants in Gujarat have strategic access to markets in the Gulf countries.

Automobile Industry

This industry provides vehicles for the quick transport of goods and passengers, including trucks, buses, cars, motorcycles, and scooters.

• Growth: After the liberalization of the economy, the introduction of new and contemporary models stimulated demand, leading to healthy growth in the industry.
• Locations: The industry is located around major centers like Delhi, Gurugram, Mumbai, Pune, Chennai, Kolkata, Lucknow, and Bengaluru.

Information Technology and Electronics Industry

This industry covers a wide range of products, from transistors and televisions to computers and telecommunication equipment.

• Electronic Capital: Bengaluru has emerged as the electronic capital of India.
• Major Centers: Other important centers include Mumbai, Delhi, Hyderabad, Pune, Chennai, and Kolkata.
• Employment: A major impact of this industry has been on employment generation. The continued growth in hardware and software is key to the success of India's IT industry.

Industrial Pollution and Environmental Degradation

While industries are vital for economic growth, they are also responsible for significant environmental degradation through four main types of pollution: air, water, land, and noise.

• Air Pollution: Caused by a high proportion of undesirable gases like sulphur dioxide and carbon monoxide, as well as airborne particulate matter (dust, smoke). Sources include chemical plants, paper factories, refineries, and the burning of fossil fuels. Toxic gas leaks can be extremely hazardous. Air pollution negatively affects human health, animals, plants, and buildings.

• Water Pollution: Caused by organic and inorganic industrial wastes discharged into rivers. Major polluting industries include paper, chemical, textile, petroleum refineries, and tanneries. They release harmful substances like dyes, detergents, acids, heavy metals (lead, mercury), pesticides, and plastics into water bodies.

  • Thermal Pollution occurs when hot water from factories and thermal plants is drained into rivers and ponds before cooling, harming aquatic life.

• Land Pollution: Closely related to water pollution. The dumping of wastes like glass, harmful chemicals, and industrial effluents renders the soil useless. Rainwater can carry these pollutants into the ground, contaminating groundwater.

• Noise Pollution: Unwanted sound from industrial and construction activities, machinery, and generators can cause irritation, anger, hearing impairment, increased heart rate, and blood pressure.

Control of Environmental Degradation

It is possible to reduce the environmental damage caused by industries through various measures.

For Water Pollution:

1. Minimising water use by reusing and recycling it in successive stages.
2. Harvesting rainwater to meet water requirements.
3. Treating hot water and effluents before releasing them. This treatment can be done in three phases:
   • Primary treatment by mechanical means (screening, grinding, sedimentation).
   • Secondary treatment by biological processes.
   • Tertiary treatment by biological, chemical, and physical processes, which includes recycling wastewater.

For Air Pollution:

• Fitting factory smoke stacks with electrostatic precipitators, fabric filters, scrubbers, and inertial separators to reduce particulate matter.
• Reducing smoke by using oil or gas instead of coal in factories.

For Noise Pollution:

• Using machinery and equipment fitted with silencers.
• Redesigning machinery to be more energy-efficient and produce less noise.
• Using noise-absorbing materials and personal protective equipment like earplugs.

The overall challenge is to achieve sustainable development, which requires integrating economic development with environmental concerns.

• Optimum equipment utilization and adopting the latest techniques.
• Minimizing waste by maximizing ash utilization.
• Providing green belts for ecological balance.
• Reducing pollution through ash pond management and liquid waste management.
• Ecological monitoring and online database management for all its power stations.