NCERT Textbook: Manufacturing Industries - UPSC PDF Download

 Page 1


58 CONTEMPORARY INDIA – II
Production of goods in large quantities after
processing from raw materials to more
valuable products is called manufacturing. Do
you know that paper is manufactured from
wood, sugar from sugarcane, iron and steel
from iron ore and aluminium from bauxite?
Do you also know that some types of clothes
are manufactured from yarn which itself is an
industrial product?
People employed in the secondary activities
manufacture the primary materials into
finished goods. The workers employed in steel
factories, car, breweries, textile industries,
bakeries etc. fall into this category. Some people
are employed in providing services. In this
chapter, we are mainly concerned with
manufacturing industries which fall in the
secondary sector.
The economic strength of a country is
measured by the development of
manufacturing industries.
IMPORTANCE OF MANUFACTURING
Manufacturing sector is considered the backbone
of development in general and economic
development in particular mainly because–
• Manufacturing industries not only help in
modernising agriculture, which forms the
backbone of our economy, they also reduce
the heavy dependence of people on
agricultural income by providing them jobs
in secondary and tertiary sectors.
• Industrial development is a precondition for
eradication of unemployment and poverty
from our country. This was the main
philosophy behind public sector industries
and joint sector ventures in India. It was also
aimed at bringing down regional disparities
by establishing industries in tribal and
backward areas.
• Export of manufactured goods expands
trade and commerce, and brings in much
needed foreign exchange.
• Countries that transform their raw
materials into a wide variety of finished
goods of higher value are prosperous.
India’s prosperity lies in increasing and
diversifying its manufacturing industries as
quickly as possible.
Agriculture and industry are not exclusive
of each other. They move hand in hand.  For
instance, the agro-industries in India have
given a major boost to agriculture by raising
its productivity. They depend on the latter for
raw materials and sell their products such as
irrigation pumps, fertilisers, insecticides,
pesticides, plastic and PVC pipes, machines
and tools, etc. to the farmers. Thus,
development and competitiveness of
On the occassion of Diwali, Harish went to
a market with his parents. They purchased
shoes and clothes for him. His mother
purchased utensils, sugar, tea and diyas
(earthen lamps). Harish observed that the
shops in the market were flooded with
items for sale. He wondered how so many
items could be made in such large
quantities. His father explained that shoes,
clothes, sugar etc. are manufactured by
machines in large industries, some utensils
are manufactured in small industries, while
items like diyas are made by individual
artisans in household industry.
Do you have some ideas about these
industries?
Rationalised-2023-24
Page 2


58 CONTEMPORARY INDIA – II
Production of goods in large quantities after
processing from raw materials to more
valuable products is called manufacturing. Do
you know that paper is manufactured from
wood, sugar from sugarcane, iron and steel
from iron ore and aluminium from bauxite?
Do you also know that some types of clothes
are manufactured from yarn which itself is an
industrial product?
People employed in the secondary activities
manufacture the primary materials into
finished goods. The workers employed in steel
factories, car, breweries, textile industries,
bakeries etc. fall into this category. Some people
are employed in providing services. In this
chapter, we are mainly concerned with
manufacturing industries which fall in the
secondary sector.
The economic strength of a country is
measured by the development of
manufacturing industries.
IMPORTANCE OF MANUFACTURING
Manufacturing sector is considered the backbone
of development in general and economic
development in particular mainly because–
• Manufacturing industries not only help in
modernising agriculture, which forms the
backbone of our economy, they also reduce
the heavy dependence of people on
agricultural income by providing them jobs
in secondary and tertiary sectors.
• Industrial development is a precondition for
eradication of unemployment and poverty
from our country. This was the main
philosophy behind public sector industries
and joint sector ventures in India. It was also
aimed at bringing down regional disparities
by establishing industries in tribal and
backward areas.
• Export of manufactured goods expands
trade and commerce, and brings in much
needed foreign exchange.
• Countries that transform their raw
materials into a wide variety of finished
goods of higher value are prosperous.
India’s prosperity lies in increasing and
diversifying its manufacturing industries as
quickly as possible.
Agriculture and industry are not exclusive
of each other. They move hand in hand.  For
instance, the agro-industries in India have
given a major boost to agriculture by raising
its productivity. They depend on the latter for
raw materials and sell their products such as
irrigation pumps, fertilisers, insecticides,
pesticides, plastic and PVC pipes, machines
and tools, etc. to the farmers. Thus,
development and competitiveness of
On the occassion of Diwali, Harish went to
a market with his parents. They purchased
shoes and clothes for him. His mother
purchased utensils, sugar, tea and diyas
(earthen lamps). Harish observed that the
shops in the market were flooded with
items for sale. He wondered how so many
items could be made in such large
quantities. His father explained that shoes,
clothes, sugar etc. are manufactured by
machines in large industries, some utensils
are manufactured in small industries, while
items like diyas are made by individual
artisans in household industry.
Do you have some ideas about these
industries?
Rationalised-2023-24
59 MANUFACTURING INDUSTRIES
Classification of Industries
List the various manufactured products you
use in your daily life such as – transistors,
electric bulbs, vegetable oil, cement,
glassware, petrol, matches, scooters,
automobiles, medicines and so on. If we
classify the various industries based on a
particular criterion then we would be
able to understand their manufacturing
better.  Industries may be classified as
follows:
On the basis of source of raw materials
used:
• Agro based: cotton, woollen, jute, silk
textile, rubber and sugar, tea, coffee,
edible oil.
• Mineral based: iron and steel, cement,
aluminium, machine tools,
petrochemicals.
According to their main role:
• Basic or key industries are those which
supply their products as raw materials to
manufacture other goods e.g. iron and
steel and copper smelting, aluminum
smelting.
• Consumer industries that produce goods
for direct use by consumers – sugar,
toothpaste, paper, sewing machines,
fans etc.
On the basis of capital investment:
• A small scale industry is defined with
reference to the maximum investment
allowed on the assets of a unit. This limit
has changed over a period of time. At
present the maximum investment allowed
is rupees one crore.
On the basis of ownership:
• Public sector, owned and operated by
government agencies – BHEL, SAIL etc.
• Private sector industries owned and
operated by individuals or a group of
individuals –TISCO, Bajaj Auto Ltd.,
Dabur Industries.
• Joint sector industries which are jointly run
by the state and individuals or a group of
individuals. Oil India Ltd. (OIL) is jointly
owned by public and private sector.
• Cooperative sector industries are owned
and operated by the producers or
suppliers of raw materials, workers or
both.  They pool in the resources and share
the profits or losses proportionately. Such
examples are the sugar industry in
Maharashtra, the coir industry in Kerala.
Based on the bulk and weight of raw material
and finished goods:
• Heavy industries such as iron and steel
• Light industries that use light raw
materials and produce light goods such
as electrical goods industries.
Classify the following into two groups on the
basis of bulk and weight of raw material and
finished goods.
(i) Oil (vi) Sewing Machines
(ii) Knitting needles (vii) Shipbuilding
(iii) Brassware (viii) Electric Bulbs
(iv) Fuse wires (ix) Paint brushes
(v) Watches (x) Automobiles
Agro-based Industries
Cotton, jute, silk, woollen textiles, sugar and
edible oil, etc. industries are  based on
agricultural raw materials.
manufacturing industry has not only
assisted agriculturists in increasing their
production but also made the production
processes very efficient.
In the present day world of globalisation,
our industry needs to be more efficient and
competitive. Self-sufficiency alone is not
enough. Our manufactured goods must be
at par in quality with those in the
international market. Only then, will we be
able to compete in the international market.
Rationalised-2023-24
Page 3


58 CONTEMPORARY INDIA – II
Production of goods in large quantities after
processing from raw materials to more
valuable products is called manufacturing. Do
you know that paper is manufactured from
wood, sugar from sugarcane, iron and steel
from iron ore and aluminium from bauxite?
Do you also know that some types of clothes
are manufactured from yarn which itself is an
industrial product?
People employed in the secondary activities
manufacture the primary materials into
finished goods. The workers employed in steel
factories, car, breweries, textile industries,
bakeries etc. fall into this category. Some people
are employed in providing services. In this
chapter, we are mainly concerned with
manufacturing industries which fall in the
secondary sector.
The economic strength of a country is
measured by the development of
manufacturing industries.
IMPORTANCE OF MANUFACTURING
Manufacturing sector is considered the backbone
of development in general and economic
development in particular mainly because–
• Manufacturing industries not only help in
modernising agriculture, which forms the
backbone of our economy, they also reduce
the heavy dependence of people on
agricultural income by providing them jobs
in secondary and tertiary sectors.
• Industrial development is a precondition for
eradication of unemployment and poverty
from our country. This was the main
philosophy behind public sector industries
and joint sector ventures in India. It was also
aimed at bringing down regional disparities
by establishing industries in tribal and
backward areas.
• Export of manufactured goods expands
trade and commerce, and brings in much
needed foreign exchange.
• Countries that transform their raw
materials into a wide variety of finished
goods of higher value are prosperous.
India’s prosperity lies in increasing and
diversifying its manufacturing industries as
quickly as possible.
Agriculture and industry are not exclusive
of each other. They move hand in hand.  For
instance, the agro-industries in India have
given a major boost to agriculture by raising
its productivity. They depend on the latter for
raw materials and sell their products such as
irrigation pumps, fertilisers, insecticides,
pesticides, plastic and PVC pipes, machines
and tools, etc. to the farmers. Thus,
development and competitiveness of
On the occassion of Diwali, Harish went to
a market with his parents. They purchased
shoes and clothes for him. His mother
purchased utensils, sugar, tea and diyas
(earthen lamps). Harish observed that the
shops in the market were flooded with
items for sale. He wondered how so many
items could be made in such large
quantities. His father explained that shoes,
clothes, sugar etc. are manufactured by
machines in large industries, some utensils
are manufactured in small industries, while
items like diyas are made by individual
artisans in household industry.
Do you have some ideas about these
industries?
Rationalised-2023-24
59 MANUFACTURING INDUSTRIES
Classification of Industries
List the various manufactured products you
use in your daily life such as – transistors,
electric bulbs, vegetable oil, cement,
glassware, petrol, matches, scooters,
automobiles, medicines and so on. If we
classify the various industries based on a
particular criterion then we would be
able to understand their manufacturing
better.  Industries may be classified as
follows:
On the basis of source of raw materials
used:
• Agro based: cotton, woollen, jute, silk
textile, rubber and sugar, tea, coffee,
edible oil.
• Mineral based: iron and steel, cement,
aluminium, machine tools,
petrochemicals.
According to their main role:
• Basic or key industries are those which
supply their products as raw materials to
manufacture other goods e.g. iron and
steel and copper smelting, aluminum
smelting.
• Consumer industries that produce goods
for direct use by consumers – sugar,
toothpaste, paper, sewing machines,
fans etc.
On the basis of capital investment:
• A small scale industry is defined with
reference to the maximum investment
allowed on the assets of a unit. This limit
has changed over a period of time. At
present the maximum investment allowed
is rupees one crore.
On the basis of ownership:
• Public sector, owned and operated by
government agencies – BHEL, SAIL etc.
• Private sector industries owned and
operated by individuals or a group of
individuals –TISCO, Bajaj Auto Ltd.,
Dabur Industries.
• Joint sector industries which are jointly run
by the state and individuals or a group of
individuals. Oil India Ltd. (OIL) is jointly
owned by public and private sector.
• Cooperative sector industries are owned
and operated by the producers or
suppliers of raw materials, workers or
both.  They pool in the resources and share
the profits or losses proportionately. Such
examples are the sugar industry in
Maharashtra, the coir industry in Kerala.
Based on the bulk and weight of raw material
and finished goods:
• Heavy industries such as iron and steel
• Light industries that use light raw
materials and produce light goods such
as electrical goods industries.
Classify the following into two groups on the
basis of bulk and weight of raw material and
finished goods.
(i) Oil (vi) Sewing Machines
(ii) Knitting needles (vii) Shipbuilding
(iii) Brassware (viii) Electric Bulbs
(iv) Fuse wires (ix) Paint brushes
(v) Watches (x) Automobiles
Agro-based Industries
Cotton, jute, silk, woollen textiles, sugar and
edible oil, etc. industries are  based on
agricultural raw materials.
manufacturing industry has not only
assisted agriculturists in increasing their
production but also made the production
processes very efficient.
In the present day world of globalisation,
our industry needs to be more efficient and
competitive. Self-sufficiency alone is not
enough. Our manufactured goods must be
at par in quality with those in the
international market. Only then, will we be
able to compete in the international market.
Rationalised-2023-24
60 CONTEMPORARY INDIA – II
Textile Industry: The textile industry
occupies unique position in the Indian
economy, because it contributes significantly
to industrial production, employment
generation and foreign exchange earnings. It
is the only industry in the country, which is
self-reliant and complete in the value chain
i.e., from raw material to the highest value
added products.
Cotton Textiles: In ancient India, cotton
textiles were produced with hand spinning
and handloom weaving techniques. After
the 18
th
 century, power-looms came into
use.  Our traditional industries suffered a
setback during the colonial period because
they could not compete with the mill-made
cloth from England.
Fig. 6.1:  Value addition in the textile industry
In the early years, the cotton textile
industry was concentrated in the cotton
growing belt of Maharashtra and Gujarat.
Availability of raw cotton, market, transport
including accessible port facilities, labour,
moist climate, etc. contributed towards its
localisation.  This industry has close links
with agriculture and provides a living to
farmers, cotton boll pluckers and workers
engaged in ginning, spinning, weaving,
dyeing, designing, packaging, tailoring and
sewing. The industry by creating demands
supports many other industries, such as,
chemicals and dyes, packaging materials
and engineering works.
While spinning continues to be centralised
in Maharashtra, Gujarat and Tamil Nadu,
weaving is highly decentralised to provide
scope for incorporating traditional skills and
designs of weaving in cotton, silk, zari,
embroidery, etc. India has world class
production in spinning, but weaving supplies
low quality of fabric as it cannot use much of
the high quality yarn produced in the country.
Weaving is done by handloom, powerloom and
in mills.
The handspun khadi provides large scale
employment to weavers in their homes as a
cottage industry.
Why did Mahatma Gandhi lay emphasis on
spinning yarn and weaving khadi?
Why is it important for our country to
keep the mill sector loomage lower than
power loom and handloom?
Jute Textiles
India is the largest producer of raw jute and
jute goods and stands at second place as an
exporter after Bangladesh. Most of the mills are
located in West Bengal, mainly along the banks
of the Hugli river, in a narrow belt.
• The first successful textile mill was
established in Mumbai in 1854.
• The two world wars were fought in Europe,
India was a British colony. There was a
demand for cloth in U.K. hence, they gave
a boost to the development of the cotton
textile industry.
The first jute mill was set up near Kolkata in
1855 at Rishra.  After Partition in 1947, the
jute mills remained in India but three-fourth
of the jute producing area went to
Bangladesh (erstwhile East Pakistan).
Rationalised-2023-24
Page 4


58 CONTEMPORARY INDIA – II
Production of goods in large quantities after
processing from raw materials to more
valuable products is called manufacturing. Do
you know that paper is manufactured from
wood, sugar from sugarcane, iron and steel
from iron ore and aluminium from bauxite?
Do you also know that some types of clothes
are manufactured from yarn which itself is an
industrial product?
People employed in the secondary activities
manufacture the primary materials into
finished goods. The workers employed in steel
factories, car, breweries, textile industries,
bakeries etc. fall into this category. Some people
are employed in providing services. In this
chapter, we are mainly concerned with
manufacturing industries which fall in the
secondary sector.
The economic strength of a country is
measured by the development of
manufacturing industries.
IMPORTANCE OF MANUFACTURING
Manufacturing sector is considered the backbone
of development in general and economic
development in particular mainly because–
• Manufacturing industries not only help in
modernising agriculture, which forms the
backbone of our economy, they also reduce
the heavy dependence of people on
agricultural income by providing them jobs
in secondary and tertiary sectors.
• Industrial development is a precondition for
eradication of unemployment and poverty
from our country. This was the main
philosophy behind public sector industries
and joint sector ventures in India. It was also
aimed at bringing down regional disparities
by establishing industries in tribal and
backward areas.
• Export of manufactured goods expands
trade and commerce, and brings in much
needed foreign exchange.
• Countries that transform their raw
materials into a wide variety of finished
goods of higher value are prosperous.
India’s prosperity lies in increasing and
diversifying its manufacturing industries as
quickly as possible.
Agriculture and industry are not exclusive
of each other. They move hand in hand.  For
instance, the agro-industries in India have
given a major boost to agriculture by raising
its productivity. They depend on the latter for
raw materials and sell their products such as
irrigation pumps, fertilisers, insecticides,
pesticides, plastic and PVC pipes, machines
and tools, etc. to the farmers. Thus,
development and competitiveness of
On the occassion of Diwali, Harish went to
a market with his parents. They purchased
shoes and clothes for him. His mother
purchased utensils, sugar, tea and diyas
(earthen lamps). Harish observed that the
shops in the market were flooded with
items for sale. He wondered how so many
items could be made in such large
quantities. His father explained that shoes,
clothes, sugar etc. are manufactured by
machines in large industries, some utensils
are manufactured in small industries, while
items like diyas are made by individual
artisans in household industry.
Do you have some ideas about these
industries?
Rationalised-2023-24
59 MANUFACTURING INDUSTRIES
Classification of Industries
List the various manufactured products you
use in your daily life such as – transistors,
electric bulbs, vegetable oil, cement,
glassware, petrol, matches, scooters,
automobiles, medicines and so on. If we
classify the various industries based on a
particular criterion then we would be
able to understand their manufacturing
better.  Industries may be classified as
follows:
On the basis of source of raw materials
used:
• Agro based: cotton, woollen, jute, silk
textile, rubber and sugar, tea, coffee,
edible oil.
• Mineral based: iron and steel, cement,
aluminium, machine tools,
petrochemicals.
According to their main role:
• Basic or key industries are those which
supply their products as raw materials to
manufacture other goods e.g. iron and
steel and copper smelting, aluminum
smelting.
• Consumer industries that produce goods
for direct use by consumers – sugar,
toothpaste, paper, sewing machines,
fans etc.
On the basis of capital investment:
• A small scale industry is defined with
reference to the maximum investment
allowed on the assets of a unit. This limit
has changed over a period of time. At
present the maximum investment allowed
is rupees one crore.
On the basis of ownership:
• Public sector, owned and operated by
government agencies – BHEL, SAIL etc.
• Private sector industries owned and
operated by individuals or a group of
individuals –TISCO, Bajaj Auto Ltd.,
Dabur Industries.
• Joint sector industries which are jointly run
by the state and individuals or a group of
individuals. Oil India Ltd. (OIL) is jointly
owned by public and private sector.
• Cooperative sector industries are owned
and operated by the producers or
suppliers of raw materials, workers or
both.  They pool in the resources and share
the profits or losses proportionately. Such
examples are the sugar industry in
Maharashtra, the coir industry in Kerala.
Based on the bulk and weight of raw material
and finished goods:
• Heavy industries such as iron and steel
• Light industries that use light raw
materials and produce light goods such
as electrical goods industries.
Classify the following into two groups on the
basis of bulk and weight of raw material and
finished goods.
(i) Oil (vi) Sewing Machines
(ii) Knitting needles (vii) Shipbuilding
(iii) Brassware (viii) Electric Bulbs
(iv) Fuse wires (ix) Paint brushes
(v) Watches (x) Automobiles
Agro-based Industries
Cotton, jute, silk, woollen textiles, sugar and
edible oil, etc. industries are  based on
agricultural raw materials.
manufacturing industry has not only
assisted agriculturists in increasing their
production but also made the production
processes very efficient.
In the present day world of globalisation,
our industry needs to be more efficient and
competitive. Self-sufficiency alone is not
enough. Our manufactured goods must be
at par in quality with those in the
international market. Only then, will we be
able to compete in the international market.
Rationalised-2023-24
60 CONTEMPORARY INDIA – II
Textile Industry: The textile industry
occupies unique position in the Indian
economy, because it contributes significantly
to industrial production, employment
generation and foreign exchange earnings. It
is the only industry in the country, which is
self-reliant and complete in the value chain
i.e., from raw material to the highest value
added products.
Cotton Textiles: In ancient India, cotton
textiles were produced with hand spinning
and handloom weaving techniques. After
the 18
th
 century, power-looms came into
use.  Our traditional industries suffered a
setback during the colonial period because
they could not compete with the mill-made
cloth from England.
Fig. 6.1:  Value addition in the textile industry
In the early years, the cotton textile
industry was concentrated in the cotton
growing belt of Maharashtra and Gujarat.
Availability of raw cotton, market, transport
including accessible port facilities, labour,
moist climate, etc. contributed towards its
localisation.  This industry has close links
with agriculture and provides a living to
farmers, cotton boll pluckers and workers
engaged in ginning, spinning, weaving,
dyeing, designing, packaging, tailoring and
sewing. The industry by creating demands
supports many other industries, such as,
chemicals and dyes, packaging materials
and engineering works.
While spinning continues to be centralised
in Maharashtra, Gujarat and Tamil Nadu,
weaving is highly decentralised to provide
scope for incorporating traditional skills and
designs of weaving in cotton, silk, zari,
embroidery, etc. India has world class
production in spinning, but weaving supplies
low quality of fabric as it cannot use much of
the high quality yarn produced in the country.
Weaving is done by handloom, powerloom and
in mills.
The handspun khadi provides large scale
employment to weavers in their homes as a
cottage industry.
Why did Mahatma Gandhi lay emphasis on
spinning yarn and weaving khadi?
Why is it important for our country to
keep the mill sector loomage lower than
power loom and handloom?
Jute Textiles
India is the largest producer of raw jute and
jute goods and stands at second place as an
exporter after Bangladesh. Most of the mills are
located in West Bengal, mainly along the banks
of the Hugli river, in a narrow belt.
• The first successful textile mill was
established in Mumbai in 1854.
• The two world wars were fought in Europe,
India was a British colony. There was a
demand for cloth in U.K. hence, they gave
a boost to the development of the cotton
textile industry.
The first jute mill was set up near Kolkata in
1855 at Rishra.  After Partition in 1947, the
jute mills remained in India but three-fourth
of the jute producing area went to
Bangladesh (erstwhile East Pakistan).
Rationalised-2023-24
61 MANUFACTURING INDUSTRIES
India:  Distribution of cotton, woollen and silk industries
Rationalised-2023-24
Page 5


58 CONTEMPORARY INDIA – II
Production of goods in large quantities after
processing from raw materials to more
valuable products is called manufacturing. Do
you know that paper is manufactured from
wood, sugar from sugarcane, iron and steel
from iron ore and aluminium from bauxite?
Do you also know that some types of clothes
are manufactured from yarn which itself is an
industrial product?
People employed in the secondary activities
manufacture the primary materials into
finished goods. The workers employed in steel
factories, car, breweries, textile industries,
bakeries etc. fall into this category. Some people
are employed in providing services. In this
chapter, we are mainly concerned with
manufacturing industries which fall in the
secondary sector.
The economic strength of a country is
measured by the development of
manufacturing industries.
IMPORTANCE OF MANUFACTURING
Manufacturing sector is considered the backbone
of development in general and economic
development in particular mainly because–
• Manufacturing industries not only help in
modernising agriculture, which forms the
backbone of our economy, they also reduce
the heavy dependence of people on
agricultural income by providing them jobs
in secondary and tertiary sectors.
• Industrial development is a precondition for
eradication of unemployment and poverty
from our country. This was the main
philosophy behind public sector industries
and joint sector ventures in India. It was also
aimed at bringing down regional disparities
by establishing industries in tribal and
backward areas.
• Export of manufactured goods expands
trade and commerce, and brings in much
needed foreign exchange.
• Countries that transform their raw
materials into a wide variety of finished
goods of higher value are prosperous.
India’s prosperity lies in increasing and
diversifying its manufacturing industries as
quickly as possible.
Agriculture and industry are not exclusive
of each other. They move hand in hand.  For
instance, the agro-industries in India have
given a major boost to agriculture by raising
its productivity. They depend on the latter for
raw materials and sell their products such as
irrigation pumps, fertilisers, insecticides,
pesticides, plastic and PVC pipes, machines
and tools, etc. to the farmers. Thus,
development and competitiveness of
On the occassion of Diwali, Harish went to
a market with his parents. They purchased
shoes and clothes for him. His mother
purchased utensils, sugar, tea and diyas
(earthen lamps). Harish observed that the
shops in the market were flooded with
items for sale. He wondered how so many
items could be made in such large
quantities. His father explained that shoes,
clothes, sugar etc. are manufactured by
machines in large industries, some utensils
are manufactured in small industries, while
items like diyas are made by individual
artisans in household industry.
Do you have some ideas about these
industries?
Rationalised-2023-24
59 MANUFACTURING INDUSTRIES
Classification of Industries
List the various manufactured products you
use in your daily life such as – transistors,
electric bulbs, vegetable oil, cement,
glassware, petrol, matches, scooters,
automobiles, medicines and so on. If we
classify the various industries based on a
particular criterion then we would be
able to understand their manufacturing
better.  Industries may be classified as
follows:
On the basis of source of raw materials
used:
• Agro based: cotton, woollen, jute, silk
textile, rubber and sugar, tea, coffee,
edible oil.
• Mineral based: iron and steel, cement,
aluminium, machine tools,
petrochemicals.
According to their main role:
• Basic or key industries are those which
supply their products as raw materials to
manufacture other goods e.g. iron and
steel and copper smelting, aluminum
smelting.
• Consumer industries that produce goods
for direct use by consumers – sugar,
toothpaste, paper, sewing machines,
fans etc.
On the basis of capital investment:
• A small scale industry is defined with
reference to the maximum investment
allowed on the assets of a unit. This limit
has changed over a period of time. At
present the maximum investment allowed
is rupees one crore.
On the basis of ownership:
• Public sector, owned and operated by
government agencies – BHEL, SAIL etc.
• Private sector industries owned and
operated by individuals or a group of
individuals –TISCO, Bajaj Auto Ltd.,
Dabur Industries.
• Joint sector industries which are jointly run
by the state and individuals or a group of
individuals. Oil India Ltd. (OIL) is jointly
owned by public and private sector.
• Cooperative sector industries are owned
and operated by the producers or
suppliers of raw materials, workers or
both.  They pool in the resources and share
the profits or losses proportionately. Such
examples are the sugar industry in
Maharashtra, the coir industry in Kerala.
Based on the bulk and weight of raw material
and finished goods:
• Heavy industries such as iron and steel
• Light industries that use light raw
materials and produce light goods such
as electrical goods industries.
Classify the following into two groups on the
basis of bulk and weight of raw material and
finished goods.
(i) Oil (vi) Sewing Machines
(ii) Knitting needles (vii) Shipbuilding
(iii) Brassware (viii) Electric Bulbs
(iv) Fuse wires (ix) Paint brushes
(v) Watches (x) Automobiles
Agro-based Industries
Cotton, jute, silk, woollen textiles, sugar and
edible oil, etc. industries are  based on
agricultural raw materials.
manufacturing industry has not only
assisted agriculturists in increasing their
production but also made the production
processes very efficient.
In the present day world of globalisation,
our industry needs to be more efficient and
competitive. Self-sufficiency alone is not
enough. Our manufactured goods must be
at par in quality with those in the
international market. Only then, will we be
able to compete in the international market.
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60 CONTEMPORARY INDIA – II
Textile Industry: The textile industry
occupies unique position in the Indian
economy, because it contributes significantly
to industrial production, employment
generation and foreign exchange earnings. It
is the only industry in the country, which is
self-reliant and complete in the value chain
i.e., from raw material to the highest value
added products.
Cotton Textiles: In ancient India, cotton
textiles were produced with hand spinning
and handloom weaving techniques. After
the 18
th
 century, power-looms came into
use.  Our traditional industries suffered a
setback during the colonial period because
they could not compete with the mill-made
cloth from England.
Fig. 6.1:  Value addition in the textile industry
In the early years, the cotton textile
industry was concentrated in the cotton
growing belt of Maharashtra and Gujarat.
Availability of raw cotton, market, transport
including accessible port facilities, labour,
moist climate, etc. contributed towards its
localisation.  This industry has close links
with agriculture and provides a living to
farmers, cotton boll pluckers and workers
engaged in ginning, spinning, weaving,
dyeing, designing, packaging, tailoring and
sewing. The industry by creating demands
supports many other industries, such as,
chemicals and dyes, packaging materials
and engineering works.
While spinning continues to be centralised
in Maharashtra, Gujarat and Tamil Nadu,
weaving is highly decentralised to provide
scope for incorporating traditional skills and
designs of weaving in cotton, silk, zari,
embroidery, etc. India has world class
production in spinning, but weaving supplies
low quality of fabric as it cannot use much of
the high quality yarn produced in the country.
Weaving is done by handloom, powerloom and
in mills.
The handspun khadi provides large scale
employment to weavers in their homes as a
cottage industry.
Why did Mahatma Gandhi lay emphasis on
spinning yarn and weaving khadi?
Why is it important for our country to
keep the mill sector loomage lower than
power loom and handloom?
Jute Textiles
India is the largest producer of raw jute and
jute goods and stands at second place as an
exporter after Bangladesh. Most of the mills are
located in West Bengal, mainly along the banks
of the Hugli river, in a narrow belt.
• The first successful textile mill was
established in Mumbai in 1854.
• The two world wars were fought in Europe,
India was a British colony. There was a
demand for cloth in U.K. hence, they gave
a boost to the development of the cotton
textile industry.
The first jute mill was set up near Kolkata in
1855 at Rishra.  After Partition in 1947, the
jute mills remained in India but three-fourth
of the jute producing area went to
Bangladesh (erstwhile East Pakistan).
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61 MANUFACTURING INDUSTRIES
India:  Distribution of cotton, woollen and silk industries
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62 CONTEMPORARY INDIA – II
Mineral-based Industries
Industries that use minerals and metals as raw
materials are called mineral-based industries.
Can you name some industries that would fall
in this category?
Iron and Steel Industry
The iron and steel industry is the basic industry
since all the other industries — heavy, medium
and light, depend on it for their machinery.
Steel is needed to manufacture a variety of
engineering goods, construction material,
defence, medical, telephonic, scientific
equipment and a variety of  consumer goods.
Factors responsible for their location in the
Hugli basin are: proximity of the jute producing
areas, inexpensive water transport, supported
by a good network of railways, roadways and
waterways to facilitate movement of raw
material to the mills, abundant water for
processing raw jute, cheap labour from West
Bengal and adjoining states of Bihar, Odisha
and Uttar Pradesh. Kolkata as a large urban
centre provides banking, insurance and port
facilities for export of jute goods.
Sugar Industry
India stands second as a world producer of
sugar but occupies the first place in the
production of gur and khandsari. The raw
material used in this industry is bulky, and in
haulage its sucrose content reduces. The mills
are located in Uttar Pradesh, Bihar,
Maharashtra, Karnataka, Tamil Nadu, Andhra
Pradesh, Gujarat, Punjab, Haryana and
Madhya Pradesh. Sixty per cent mills are in
Uttar Pradesh and Bihar. This industry is
seasonal in nature so, it is ideally suited to the
cooperative sector. Can you explain why this
is so?
In recent years, there is a tendency for the
mills to shift and concentrate in the southern
and western states, especially in Maharashtra,
This is because the cane produced here has a
higher sucrose content. The cooler climate also
ensures a longer crushing season. Moreover,
the cooperatives are more successful in these
states.
Make a list of all such goods made of steel
that you can think of.
Fig. 6.2
Processes of Manufacture of Steel
Production and consumption of steel is
often regarded as the index of a country’s
development. Iron and steel is a heavy industry
because all the raw materials as well as
finished goods are heavy and bulky entailing
heavy transportation costs. Iron ore, coking
coal and lime stone are required in the ratio of
approximately 4 : 2 : 1. Some quantities of
manganese, are also required to harden the
steel. Where should the steel plants be ideally
located?  Remember that the finished products
also need an efficient transport network for
their distribution to the markets and
consumers.
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