Secondary Activities (Manufacturing) in Industries
• Secondary activities involve changing raw materials into finished or semi-finished products.
• These activities add value to raw materials.
• Example:
- Pulp → Paper → Notebook
• Each stage of manufacturing increases value and utility of the product.
• Finished goods are more useful and valuable than raw materials.
Industry: Meaning and Definition in Economic Activities
• Industry refers to economic activities related to:
- Production of goods
- Extraction of minerals
- Providing services
• Examples: - Iron and steel industry → production of goods
- Coal mining industry → extraction
- Tourism industry → services
Classification of Industries: Raw Materials, Size, and Ownership
Industries are classified on the basis of:
- Raw materials
- Size
- Ownership
1. Classification of Industries Based on Raw Materials
Agro-based Industries: Using Plant and Animal Products
• Use plant and animal products
• Examples:
- Food processing
- Vegetable oil
- Cotton textile
- Dairy products
- Leather industry
Mineral-based Industries: Using Mineral Ores as Raw Materials
• Use mineral ores as raw material
• Products are used by other industries
• Example:
- Iron from iron ore → used to make machinery, rail coaches, buildings
Marine-based Industries: Using Products from Seas and Oceans
• Use products from seas and oceans
• Examples:
- Sea food processing
- Fish oil industry
Forest-based Industries: Using Forest Produce
• Use forest produce
• Examples:
- Pulp and paper
- Pharmaceuticals
- Furniture
- Building materials
2. Classification of Industries Based on Size
Small Scale Industries: Low Capital and Simple Technology
• Use less capital and simple technology
• Employ fewer workers
• Examples:
- Silk weaving
- Food processing
Cottage / Household Industries: Traditional Artisan Production
• Type of small scale industry
• Products made by hand by artisans
• Examples:
- Basket weaving
- Pottery
- Handicrafts
Large Scale Industries: High Capital and Advanced Technology
• Use huge capital and advanced technology
• Produce goods in large quantities
• Examples:
- Automobiles
- Heavy machinery
3. Classification of Industries Based on Ownership
Private Sector Industries: Privately Owned Businesses
• Owned by individuals or groups
• Example: private companies
Public Sector Industries: Government-Owned Enterprises
• Owned and operated by the government
• Examples:
- Hindustan Aeronautics Limited (HAL)
- Steel Authority of India Limited (SAIL)
Joint Sector Industries: Public-Private Partnerships
• Owned jointly by government and private individuals
• Example:
- Maruti Udyog Limited
Cooperative Sector Industries: Producer-Owned Enterprises
• Owned by producers, workers or both
• Examples:
- Anand Milk Union Limited (AMUL)
- Sudha Dairy
Factors Affecting Location of Industries: Key Considerations
• Availability of:
- Raw materials
- Land
- Water
- Labour
- Power
- Capital
- Transport
- Market
• Government incentives such as: - Subsidised power
- Cheap transport
- Infrastructure facilities
• Industrialisation leads to growth of towns and cities
Industrial System: Inputs, Processes, and Outputs
An industrial system has three components:
Industrial Inputs: Raw Materials and Resources
• Raw materials
• Labour
• Land
• Transport
• Power
• Capital
Industrial Processes: Manufacturing Operations
• Activities that convert raw materials into finished goods
• Example (Textile industry):
- Ginning
- Spinning
- Weaving
- Dyeing
- Printing
Industrial Outputs: Finished Products and Revenue
• Finished products
• Income earned
Industrial Regions: Major Manufacturing Hubs Worldwide
• Develop when many industries locate close together
• Advantages of Industrial Clustering:
- Shared infrastructure
- Skilled labour
- Transport facilities
• Major industrial regions of the world: - Eastern North America
- Western and Central Europe
- Eastern Europe
- Eastern Asia
• Mostly located: - In temperate regions
- Near coal fields
- Near sea ports
Major Industrial Regions of India
• Mumbai–Pune
• Bangalore–Tamil Nadu
• Hugli region
• Ahmedabad–Baroda
• Chottanagpur belt
• Vishakhapatnam–Guntur
• Gurgaon–Delhi–Meerut
• Kollam–Thiruvananthapuram
Distribution of Major Industries: Global Manufacturing Centers
Major World Industries and Their Locations
• Iron and steel industry: Germany, USA, China, Japan, Russia
• Textile industry: India, Hong Kong, South Korea, Japan, Taiwan
• Information Technology (IT): Silicon Valley (USA), Bangalore (India)
Iron and Steel Industry: The Backbone of Modern Industry
• Known as a feeder industry
• Supplies raw material to other industries
• Inputs in Iron and Steel Production:
- Iron ore
- Coal
- Limestone
- Labour
- Capital
- Infrastructure
• Process of Steel Manufacturing: - Smelting in blast furnace
- Refining
• Output: - Steel
Importance of Steel in Modern Industry
• Strong, durable and flexible
• Used in:
- Buildings
- Transport
- Machines
- Tools
- Pipelines
• Known as the backbone of modern industry
• Alloys formed by mixing steel with metals like aluminium, nickel, copper
Location Changes of Iron and Steel Industry Over Time
• Before 1800: Near raw materials and water
• Later Period: Near coalfields and railways
• After 1950: Near sea ports due to imported iron ore
Iron and Steel Industry in India: Major Production Centres
• Major centres:
- Bhilai
- Durgapur
- Burnpur
- Jamshedpur
- Rourkela
- Bokaro
• Other centres: - Bhadravati
- Vijay Nagar
- Visakhapatnam
- Salem
Jamshedpur Steel Plant (TISCO): India’s Pioneer Steel Industry
• Established in 1907
• Located near:
- Iron ore
- Coal fields (Jharia)
- Rivers Subarnarekha and Kharkai
• Advantages of Jamshedpur Location: - Railway connectivity
- Water supply
- Nearby market (Kolkata)
• Helped rapid industrial growth in India
Pittsburgh (USA): America’s Leading Steel City
• Important steel city
• Coal available locally
• Iron ore transported from Minnesota via Great Lakes
• Rivers provide water supply
• Finished steel transported by land and water
Cotton Textile Industry: The Oldest Manufacturing Industry
• One of the oldest industries
• Raw material for textile industry: Fibres
- Natural: cotton, wool, silk, jute
- Man-made: nylon, polyester, rayon
• Developed rapidly after Industrial Revolution
Major Cotton Textile Producers Worldwide
• India
• China
• Japan
• USA
Cotton Textile Industry in India: Traditional and Modern Centres
• Famous traditional centres:
- Dhaka muslin
- Masulipatnam chintz
- Calicut calico
• First mechanised mill: Mumbai (1854)
• Major textile centres today: - Mumbai
- Ahmedabad
- Coimbatore
- Kanpur
- Chennai
- Kolkata
- Ludhiana
- Panipat
Ahmedabad Textile Industry: The Manchester of India
• Known as Manchester of India
• Advantages of Ahmedabad’s Textile Industry:
- Near cotton growing areas
- Suitable climate
- Cheap labour
- Transport facilities
- Mumbai port
• Challenges faced: - Old machines
- Competition from new centres
Osaka (Japan): The Manchester of Japan
• Known as Manchester of Japan
• Factors favouring Osaka’s Textile Industry:
- Flat land
- Humid climate
- River Yodo
- Port facility
• Depends on imported cotton
• Industry now replaced by: - Iron and steel
- Automobiles
- Machinery
- Shipbuilding
Natural Resources: Definition, Types, and Classification
• Resources obtained directly from nature and used with little or no modification are called natural resources.
• Examples: air, water, soil, minerals.
• Many natural resources are free gifts of nature.
• Some resources can be used directly, while others require tools and technology for proper use.
• Natural resources are broadly classified into:
- Renewable resources
- Non-renewable resources
Renewable Resources: Unlimited and Replenishable Resources
• Renewable resources are those which can be renewed or replenished quickly.
• Some renewable resources are unlimited and not affected by human activities.
• Examples of unlimited renewable resources:
- Solar energy
- Wind energy
• Some renewable resources are limited in practice due to human misuse.
• Examples of limited renewable resources: - Water
- Soil
- Forests
• Although water appears unlimited, shortage and drying up of water sources is a major global problem today.
Non-Renewable Resources: Finite Resources with Limited Stock
• Non-renewable resources have a limited stock.
• Once exhausted, they take thousands of years to be replenished.
• Their renewal period is much longer than human life span, so they are considered non-renewable.
• Examples of non-renewable resources:
- Coal
- Petroleum
- Natural gas
Distribution of Natural Resources: Uneven Global Distribution
• Natural resources are unevenly distributed over the Earth.
• Distribution depends on physical factors such as:
- Terrain
- Climate
- Altitude
• Unequal distribution occurs because these physical factors vary from place to place.
Human-Made Resources: Resources Created Through Technology
• Some natural substances become resources only after modification.
• Example:
- Iron ore became a resource after humans learned to extract iron from it.
• Human-made resources are created using natural resources.
• Examples of human-made resources: - Buildings
- Roads
- Bridges
- Machines
- Vehicles
• Technology is also a human-made resource.
Human Resources: People as the Most Valuable Resource
• People are called human resources.
• Humans can create more resources by using:
- Knowledge
- Skill
- Technology
• Education and health make people valuable human resources.
• Improving people’s skills and abilities is called human resource development.
Conserving Resources: Sustainable Development and Resource Management
• Resource conservation means using resources carefully and allowing them time to renew.
• Sustainable development means balancing present needs with future needs.
• Ways to conserve resources include:
- Reducing consumption
- Recycling
- Reusing
• Every individual’s effort matters because all lives are interconnected.
Frequently Asked Questions About Industries
Q1: What is the definition of industry in economics?
A: Industry refers to economic activities related to the production of goods, extraction of minerals, or providing services. Examples include the iron and steel industry (production of goods), coal mining industry (extraction), and tourism industry (services).
Q2: How are industries classified based on raw materials?
A: Industries are classified into four categories based on raw materials: Agro-based industries (using plant and animal products like food processing and cotton textile), Mineral-based industries (using mineral ores like iron and steel), Marine-based industries (using products from seas and oceans like seafood processing), and Forest-based industries (using forest produce like pulp and paper).
Q3: What is the difference between small scale and large scale industries?
A: Small scale industries use less capital, simple technology, and employ fewer workers. Examples include silk weaving and food processing. Large scale industries use huge capital, advanced technology, and produce goods in large quantities. Examples include automobiles and heavy machinery.
Q4: What are the different types of industry ownership?
A: Industries can be classified based on ownership as: Private sector (owned by individuals or groups), Public sector (owned and operated by the government), Joint sector (owned jointly by government and private individuals), and Cooperative sector (owned by producers, workers, or both).
Q5: What factors affect the location of industries?
A: The location of industries is affected by the availability of raw materials, land, water, labour, power, capital, transport, and market. Government incentives such as subsidised power, cheap transport, and infrastructure facilities also influence industrial location.
Q6: Why is the iron and steel industry called a feeder industry?
A: The iron and steel industry is called a feeder industry because it supplies raw material (steel) to other industries. Steel is used in buildings, transport, machines, tools, and pipelines, making it the backbone of modern industry.
Q7: What are the major iron and steel producing centres in India?
A: The major iron and steel producing centres in India include Bhilai, Durgapur, Burnpur, Jamshedpur, Rourkela, Bokaro, Bhadravati, Vijay Nagar, Visakhapatnam, and Salem.
Q8: Why is Ahmedabad called the Manchester of India?
A: Ahmedabad is called the Manchester of India because it is a major centre of the cotton textile industry. Its advantages include proximity to cotton growing areas, suitable climate, cheap labour, transport facilities, and access to Mumbai port.
Q9: What is the difference between renewable and non-renewable resources?
A: Renewable resources can be renewed or replenished quickly, such as solar energy, wind energy, water, soil, and forests. Non-renewable resources have a limited stock and take thousands of years to be replenished, such as coal, petroleum, and natural gas.
Q10: What is sustainable development in the context of resource conservation?
A: Sustainable development means balancing present needs with future needs by using resources carefully and allowing them time to renew. Ways to conserve resources include reducing consumption, recycling, and reusing materials.
Q11: What are the major industrial regions of the world?
A: The major industrial regions of the world include Eastern North America, Western and Central Europe, Eastern Europe, and Eastern Asia. These regions are mostly located in temperate areas, near coal fields, and near sea ports.
Q12: What is the importance of the cotton textile industry?
A: The cotton textile industry is one of the oldest industries and provides employment to millions of people. It uses natural fibres like cotton, wool, silk, jute and man-made fibres like nylon, polyester, and rayon. Major producers include India, China, Japan, and the USA.
Q13: What is the role of human resources in economic development?
A: Human resources are people who use their knowledge, skill, and technology to create more resources. Education and health make people valuable human resources. Human resource development means improving people’s skills and abilities to contribute to economic growth.
Q14: What are the components of an industrial system?
A: An industrial system has three components: Inputs (raw materials, labour, land, transport, power, capital), Processes (activities that convert raw materials into finished goods), and Outputs (finished products and income earned).
Q15: What is the significance of the Jamshedpur Steel Plant?
A: The Jamshedpur Steel Plant (TISCO) was established in 1907 and is located near iron ore, coal fields (Jharia), and rivers Subarnarekha and Kharkai. Its advantages include railway connectivity, water supply, and nearby market (Kolkata). It helped rapid industrial growth in India.
Conclusion: Industries as Drivers of Economic Growth and Development
Industries form the backbone of modern economic development, transforming raw materials into valuable finished goods and creating employment opportunities worldwide. The classification of industries based on raw materials, size, and ownership helps us understand the diverse nature of industrial activities. From the iron and steel industry, which serves as a feeder industry supplying essential materials for construction and manufacturing, to the textile industry, one of the oldest and most widespread manufacturing sectors, industries have shaped human civilization and economic progress.
The location of industries depends on multiple factors including availability of raw materials, labour, power, transport, and market access. Government policies and incentives also play a crucial role in industrial development. Major industrial regions have emerged in temperate zones near coal fields and sea ports, creating industrial clusters that benefit from shared infrastructure and skilled labour.
Furthermore, understanding natural resources—both renewable and non-renewable—is essential for sustainable industrial development. While renewable resources like solar and wind energy offer unlimited potential, non-renewable resources like coal and petroleum require careful conservation. Human resources, with their knowledge and skills, remain the most valuable asset in driving industrial innovation and economic growth.
As we move towards a more sustainable future, the principles of resource conservation, recycling, and sustainable development must guide industrial practices to ensure that economic progress does not come at the cost of environmental degradation. Industries will continue to evolve with technological advancements, but their foundation will always remain the efficient and responsible use of natural and human resources.