Q.1 “The economic strength of a country is measured by the development of manufacturing industries”. Justify this statement with four examples.
Ans i. Manufacturing industries help in modernizing agriculture;
ii. They also reduce the heavy dependence of people on agricultural income by providing them jobs.
iii. Industrial development reduces unemployment and poverty:
iv. It also brings down regional disparities.
v. Export of manufactured goods expands trade and commerce, and brings foreign exchange.
vi. Prosperity of our country depends on transforming raw materials into furnished goods of higher value and diversifying our industries.
vii. Industrial sector contributes 27 % of GDP and manufacturing contributes 17 % of GDP.
Q.2 “Agriculture and industry are not exclusive of each other. They move hand in hand.” Justify this statement with 4 examples.
Ans. The agro-industries in India have given a major boost to agriculture -
i. Agro-based industries have given a boost to agriculture by raising its productivity.
ii. Agro-based industries depend on the agriculture for their raw materials such as cotton, sugarcane, jute etc.
iii. Agriculture depends on industries for products such as irrigation pumps, fertilizers, insecticides, pesticides, machines and tools, etc.
iv. Industrial development helps agriculture in increasing their production and make production processes very efficient.
Q.3 Which factor plays the most dominant role in the ideal location of an industry? Explain any three reasons in support of this factor.
Ans. The most dominant factor of industrial location is the least cost.
i. Cost of obtaining raw materials at site: Manufacturing activity tends to locate at the most appropriate place where all the raw materials of production are either
available or can be arranged at lower cost.
ii. Cost of production at site: These are influenced by availability of labour, capital, power, etc. Thus industrial location is influenced by the costs of availability of these factors of production.
iii. Cost of distribution of production: The distance of industry from market influence the transportation costs. Transportation costs influence the cost of
distribution of production.
Q.4 Explain the any 4 factors which influences the location of an industry.
Ans. Industries maximize profits by reducing costs therefore industries are located where the costs are minimum. The factors influencing are:
i. Access to Market: Areas/regions having high purchasing power provide large market therefore such as luxury items producing industries are located in these regions.
ii. Access to Raw Material: Raw material used by industries should be cheap and easy to transport. a. E.g. Industries based on cheap, bulky and weight-losing material (ores) are located close to the sources of raw material such as steel, sugar, and cement industries.
b. E.g. Industries using perishable raw material are located closer to the source of the raw material such as Agro-processing and dairy industries.
iii. Access to Labour Supply: Some types of manufacturing require skilled labour therefore IT industries are located near urban-educational centres where skilled
labours are easily available.
iv. Access to Sources of Energy: Industries which use more power are located close to the source of the energy supply such as the aluminium industry.
v. Access to Transportation and Communication Facilities: Speedy and efficient transport facilities reduce the cost of transport. Therefore industries are attracted in regions having good transport facilities.
vi. Government Policy: Governments adopt ‘regional policies’ to promote ‘balanced’ economic development and hence set up industries in backward and tribal areas.
vii. Access to Agglomeration Economies: Many industries takes benefit from nearness to a leader-industry and other industries.
Q.5 Why do industries tend to locate themselves near cities or urban centres?
Ans. Some industries tend to locate near urban centres because of:
i. Some cities provide markets to the industrial products,
ii. Cities also provide services such as banking, insurance, consultants and financial advice, transport, labour, etc. to the industry.
iii. Cities or urban centres provide benefits of agglomeration economies.
iv. Coastal Urban places help in overseas trade.
Classification of industries:
On the basis of source of raw materials used:
i. Agro based: cotton, woollen, jute, silk textile, rubber and sugar, tea, coffee, edible oil.
ii. Mineral based: iron and steel, cement, aluminium, machine tools, petrochemicals.
On the basis of their main role:
i. Basic or key industries which supply their products as raw materials to manufacture other goods e.g. iron and steel and copper smelting, aluminum
ii. Consumer industries that produce goods for direct use by consumers – sugar, toothpaste, paper, sewing machines, fans etc.
On the basis of capital investment:
i. Small scale industry: having rupees one crore as the maximum investment on the assets of a unit.
ii. Large scale industry: If investment is more than one crore on any industry.
On the basis of ownership:
i. Public sector: owned and operated by government agencies – BHEL, SAIL etc.
ii. Private sector industries owned and operated by individuals or a group of individuals –TISCO, Bajaj Auto Ltd., Dabur Industries.
iii. 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
iv. 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 as the sugar industry in Maharashtra, the coir industry in Kerala.
Based on the bulk and weight of raw material and finished goods:
i. Heavy industries such as iron and steel
ii. Light industries that use light raw materials and produce light goods such as electrical industries.
Q.6 Why the textile industry occupies unique position in the Indian economy?
Ans. The significance of textile industry in India can be judged by
i. It contributes 14 percent to industrial production.
ii. It provides and generates employment for 35 million persons directly.
iii. It earns 25 per cent of foreign exchange.
iv. It contributes 4 per cent towards GDP.
v. 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.
Q.7 Why in early years the cotton textile industry was concentrated in the states of Gujarat and Maharashtra?
Ans. In the early years, the cotton textile industry was concentrated in the Gujarat and Maharashtra because of:
a. Maharashtra and Gujarat are traditional cotton growing belt of India. Raw cotton is available from nearby areas thus reducing the cost of obtaining raw material
b. Urban cetres of these states offer large market to cotton products,
c. Transport including accessible port facilities help in reducing costs,
d. Abundant labour from nearby densely populated region,
e. Moist climate due to nearness to Arabian sea help in industrial production.
Q.8 State the importance of cotton textile industry in India.
i. Cotton textile industry has close links with agriculture.
ii. It provides a living to farmers, cotton boll pluckers.
iii. It provides income to workers engaged in ginning, spinning, weaving, dyeing, designing, packaging, tailoring and sewing.
iv. This industry creates demands and supports many other industries, such as, chemicals and dyes, mill stores, packaging materials and engineering works.
v. India exports yarn to Japan and other cotton goods to U.S.A., U.K., and Russia.
Q.9 Differentiate between spinning and weaving sectors of cotton textiles industries in India.
Ans. Spinning and weaving are the two important component of cotton textile industry:
i. While spinning continues to be centralized in Maharashtra, Gujarat and Tamil Nadu, weaving is highly decentralized in other states.
ii. India has world class production and quality in spinning, but weaving supplies low quality of fabric because they are fragmented small units.
iii. Our spinning mills are competitive at the global level but the weaving, knitting units produce textile for local market.
iv. Yarn produced in spinning sector is exported to Japan while weaving sector can not use this high quality yarn produced therefore they import fabric.
v. The share international trade of yarn produced in spinning sector (25%) is much larger than the trade of cotton garments (4%).
Q.10 Mention the major drawbacks and problems of cotton textile industry in India.
Ans. Cotton textile industry in India suffers from some problems:
i. India has world class production and quality in spinning, but weaving supplies low quality of fabric because they are fragmented small units. This mismatch is major drawback.
ii. Many of our spinners export cotton yarn while apparel/garment manufactures have to import fabric.
iii. Although we the production of staple cotton has increased but we still need to import good quality staple cotton.
iv. Cotton textile industries face the problem of erratic Power supply which decreases the labour productivity.
v. Machinery needs to be upgraded in the weaving and processing sectors in particular.
vi. Output of labour is low due to poor machines and power supply.
vii. There is a Stiff competition with the synthetic fibre industry. Jute Textiles
Q.11 Why most of our jute mills are located along the banks of the Hugli River in West Bengal?
Ans. Factors responsible for their location in the Hugli basin are:
i. Proximity of the jute producing areas,
ii. Inexpensive water transport,
iii. Support of a good network of railways, roadways and waterways to facilitate movement of raw material to the mills,
iv. Abundant water for processing raw jute,
v. Cheap labour from West Bengal and adjoining states of Bihar, Orissa and Uttar Pradesh.
vi. Kolkata as a large urban centre provides banking, insurance and port facilities for export of jute goods.
Q.12 State the importance of jute textile industry in India.
Ans. The Jute industry
i. The jute industry supports 2.61 lakh workers directly.
ii. It also supports another 40 lakhs small and marginal farmers who are engaged in cultivation of jute and mesta.
iii. India is the largest producer of raw jute and jute goods and stands at second place as an exporter after Bangladesh.
Q.13 What are the challenges faced by the jute industry in India?
Ans. Challenges faced by the industry are:
i. Stiff competition in the international market from synthetic substitutes.
ii. Stiff competition from other competitors like Bangladesh, Brazil, Philippines, Egypt and Thailand.
iii. The internal demand needs to be increased; however it has increased recently due to the Government policy of mandatory use of jute packaging.
iv. There is urgent need to increase the jute productivity and the quality.
v. The jute farmer needs to get good prices for their jute crops.
vi. The yield per hectare needs to be improved.
vii. To stimulate demand the jute products needs to be diversified.
Q.14 What are the objectives of the National Jute Policy formulated in 2005?
Ans. The National jute policy was formulated in 2005 for:
i. Increasing jute productivity,
ii. Improving its quality,
iii. Ensuring good prices for crops to the jute farmers
iv. Enhancing the yield per hectare of jute crops.
Q.15 Name any four countries to which we export Jute products.
Ans. The main markets are U.S.A., Canada, Russia, United Arab Republic, U.K. and Australia.
Q.16 Explain why 60% of sugar mills are located in Uttar Pradesh and Bihar.
Ans. Sugar industry is located in the sugarcane growing regions because:
i. The raw material (sugarcane) used in this industry is bulky and difficult to transport at low costs.
ii. The sucrose content in the sugarcane reduces during its transportation.
iii. Cooler climates allows the longer crushing season.
iv. Sugar industry is ideally suited for cooperative sector because it’s a seasonal industry.
v. Sugarcane grows well during hot and humid climates only.
Q.17 Why in recent years the sugar mills have shifted to southern and western states?
Ans. The sugar mills in recent years have shifted and concentrated in the southern and western states, especially in Maharashtra, This is because -
i. The cane produced here has higher sucrose content.
ii. The cooler climate also ensures a longer crushing season.
iii. The cooperatives are more successful in these states.
Q.18 What are the major challenges faced by the sugar industry in India?
Ans. The major challenges include:
i. The seasonal nature of the industry,
ii. Old and inefficient methods of production,
iii. Transport delay in reaching cane to factories
iv. The need to maximize the use of baggase.
Q.19 Explain why most the iron and steel industry are concentrated in Chotanagpur plateau region.
Ans. Chotanagpur region has relative advantages such as:
i. This region is rich in the raw material needed to produce the steel such as iron ore, coal, limestone, etc.
ii. These raw material are heavy and bulky therefore difficult and costly to transport to the plant.
iii. This region has well connected railway lines which offer easy transportation of the finished products for their distribution to the markets and consumers.
iv. This region gets its power supply from Damodar valley.
v. Availability of cheap labour from surrounding regions.
Q.20 Explain why India is not able to produce steel as per its full potential.
Ans. Though, India is an important iron and steel producing country in the world yet, we are not able to perform to our full potential largely due to:
(a) High costs and limited availability of coking coal
(b) Lower productivity of labour
(c) Irregular supply of energy and
(d) Poor infrastructure.