Industries Summary Class 8 NCERT Summary Chapter 4

Introduction

• Secondary activities or manufacturing change raw materials into products of more value to people.
  • Example: Pulp changed into paper and paper into a note book.
• Industry refers to an economic activity that is concerned with production of goods, extraction of minerals or the provision of services.
  • Example: Iron and steel industry (production of goods), coal mining industry (extraction of coal) and tourism industry (service provider).

Classification of Industries

• Industries can be classified on the basis:
  (i) Raw materials
  (ii) Size
  (iii) Ownership

1. On the Basis of Raw Materials

• Agro based industries: Use plant and animal based products as their raw materials. Examples: Food processing, vegetable oil, cotton textile, dairy products and leather industries.
• Mineral based industries: Use mineral ores as their raw materials. The products of these industries feed other industries. Example: Iron made from iron ore.
• Marine based industries: Use products from the sea and oceans as raw materials. Examples: Industries processing sea food or manufacturing fish oil.
• Forest based industries: Use forest produce as raw materials. Examples: pulp and paper, pharmaceuticals, furniture and buildings.
• On the Basis of Size (refers to the amount of capital invested, number of people employed and the volume of production):
  • Small Scale industries: Use lesser amount of capital and technology. Example: Cottage or household industries where the products are manufactured by hand, by the artisans. Basket weaving, pottery and other handicrafts are products of cottage industry.
  • Large Scale industries: Use higher capital is higher and superior technology. Examples: Silk weaving and food processing industries.

2. On the basis of Ownership

• Private Sector industries: Owned and operated by individuals or a group of individuals. Examples: Reliance Industries Limited and ITC Limited.
• Public sector industries: Owned and operated by the government. Examples: Hindustan Aeronautics Limited and Steel Authority of India Limited.
• Joint sector industries: Owned and operated by the state and individuals or a group of individuals. Example: Maruti Udyog Limited.
• Co-operative sector industries: Owned and operated by the producers or suppliers of raw materials, workers or both. Examples: Anand Milk Union Limited and Sudha Dairy.

Factors affecting location of Industries

• The factors affecting the location of industries are availability of:
  • Raw material
  • Land
  • Water
  • Labour
  • Power
  • Capital
  • Transport
  • Market
• Sometimes, the government provides incentives like subsidised power, lower transport cost and other infrastructure so that industries may be located in backward  areas.

Industrial System

• An industrial system consists of inputs, processes and outputs.
  • Inputs include raw materials, labour and costs of land, transport, power and other infrastructure.
  • The processes include a wide range of activities that convert the raw material into finished products.
  • The outputs are the end product and the income earned from it.

Industrial Regions

• When a number of industries locate close to each other and share the benefits of their closeness, they make a Industrial regions.
• Industrial regions of the world: eastern North America, western and central Europe, eastern Europe and eastern Asia.
• Industrial regions in India: Mumbai- Pune cluster, Bangalore-Tamil Nadu region, Hugli region, Ahmedabad-Baroda region, Chotta nagpur industrial belt, Vishakhapatnam-Guntur belt, Gurgaon-Delhi-Meerut region and the Kollam-Thiruvanathapuram industrial cluster.

Distribution of Major Industries

• The world’s major industries are the iron and steel industry, the textile industry and the information technology industry.
• The iron and steel and textile industry are the older industries while information technology is an emerging industry.

Iron and Steel Industry

• This is a feeder industry whose products are used as raw material for other industries.
• The inputs for this industry include raw materials such as iron ore, coal and limestone, along with labour, capital, site and other infrastructure.
• The process of converting iron ore into steel involves many stages.
  • The raw material is put in the blast furnace where it undergoes smelting.
  • It is then refined.
• The output obtained is steel which may be used by other industries as raw material.

Iron and Steel

• Steel is often called the backbone of modern industry.
  • Daily use tools, Ships, trains, trucks, and autos are made largely of iron or steel.
• Features of Steel:
  • Steel is tough and it can easily be shaped, cut, or made into wire.
  • Special alloys of steel can be made by adding small amounts of other metals such as aluminium, nickel, and copper.
  • Alloys give steel unusual hardness, toughness, or ability to resist rust.

Timeline of Iron and Steel industry's location

• Before 1800 A.D. iron and steel industry was located where raw materials, power supply and running water were easily available.
• Between 1850 to 1900 A.D., the  ideal location for the industry was near coal fields and close to canals and railways.
• After 1950, iron and steel industry began to be located on large areas of flat land near sea ports because by this time steel works had become very large and iron ore had to be imported from overseas.
• Location of iron and steel industry in the world: Germany, USA, China, Japan and Russia.
• Location of iron and steel industry in India: Bhilai (Chhattisgarh), Durgapur, Burnpur (West Bengal),  Rourkela (Odisha), Bokaro, Jamshedpur (Jharkhand).
• Other important steel centres: Bhadravati and Vijay Nagar in Karnataka, Vishakhapatnam in Andhra Pradesh, Salem in Tamil Nadu.

Jamshedpur

• Before independence, Tata Iron and Steel Company Limited (TISCO) was only one iron and steel plant in the country which was privately owned.
• After Independence, the government set up several iron and steel plants.
  • TISCO was started in 1907 at Sakchi, near the confluence of the rivers Subarnarekha and Kharkai in Jharkhand. Later on, Sakchi was renamed as Jamshedpur.

Why Sakchi was chosen to set up the steel plant

• This place was only 32 km away from Kalimati station on the Bengal-Nagpur railway line.
• It was close to the iron ore, coal and manganese deposits as well as to Kolkata, which provided a large market.
• TISCO, gets coal from Jharia coalfields, and iron ore, limestone, dolomite and manganese from Odisha and Chhattisgarh.
• The Kharkai and Subarnarekha rivers ensured sufficient water supply. Government initiatives provided adequate capital for its later development.

Pittsburgh

• It is an important steel city of the United States of America. 

Why iron and steel industry developed in Pittsburgh

• The raw material such as coal is available locally, while the iron ore comes from the iron mines at Minnesota, about 1500 km from Pittsburgh. 
  • Between these mines and Pittsburgh, Great Lakes waterway is present which is one of the world’s best routes for shipping ore cheaply. 
  • Trains carry the ore from the Great Lakes to the Pittsburgh area. 
  • The Ohio, the Monogahela and Allegheny rivers provide adequate water supply.
• Today,, Large steel mills are located in the valleys of the Monogahela and Allegheny rivers above Pittsburgh and along the Ohio River below it. 
• Finished steel is transported to the market by both land and water routes.
• Other factories present in Pittsburgh area use steel as their raw material to make many different products such as railroad equipment, heavy machinery and rails.

Information Technology (IT)

• The information technology industry deals in the storage, processing and distribution of information.
• This industry has become global due to a series of technological, political, and socio-economic events.
• Major hubs of the IT industry of the world: Silicon Valley, California and Bangalore, India.
• There are other emerging information technology hubs in metropolitan centres of India such as Mumbai, New Delhi, Hyderabad and Chennai. 
  • Other cities such as Gurgaon, Pune, Thiruvanthapuram, Kochi and Chandigarh re also important centres of the IT industry.

Locational advantages Silicon plateau - Bangalore

• Bangalore has the largest number of educational institutions and IT colleges in India.
• The city was considered dust free with low rents and low cost of living.
• The state government of Karnataka was the first to announce an IT Policy in 1992.
• The city has the largest and widest availability of skilled managers with work experience.

Locational advantages of Silicon valley - California

• Close to some of the most advanced scientific and technological centres in the world
• Pleasant climate with an attractive and a clean environment. 
• Plenty of space for development and future expansion.
• Located close to major roads and airports.
• Good access to markets and skilled work force.