NCERT Textbook - Manufacturing Industries Humanities/Arts Notes | EduRev

 Page 1


Unit III Unit III Unit III Unit III Unit III
Chapter 8
MANUFACTURING
INDUSTRIES
We use various items to satisfy our needs.
Agricultural products like wheat, rice, etc. are
to be processed into flour, husked rice before
we consume these. But besides bread and rice,
we also require clothes, books, fans, cars,
medicines, etc. and these are manufactured in
various industries. In modern times industries
have become very important part of an
economy. They provide employment to large
labour force and contribute significantly in the
total national wealth/income.
T T T T Types of ypes of ypes of ypes of ypes of Industries Industries Industries Industries Industries
Industries are classified in a number of ways.
On the basis of size, capital investment and
labour force employed, industries are
classified as large, medium, small scale, and
cottage industries. On the basis of ownership,
industries are categorised as :
(i) public sector, (ii) private sector, and (iii) joint
and cooperative sector, Public sector
enterprises are government/state controlled
companies or corporations funded by
governments. Industries of strategic and
national importance are usually in the public
sector. Industries are also classified on the
basis of the use of their products such as :
(i) basic goods industries, (ii) capital goods
industries (iii) intermediate goods industries,
and (iv) consumer goods industries.
Another method of classifying industries
is on the basis of raw materials used by them.
Accordingly, these can be : (i) agriculture-
based industries, (ii) forest-based industries,
(iii) mineral-based industries, and
(iv) industrially processed raw material-
based industries.
Another common classification of
industries is based on the nature of the
manufactured products. Eight classes of
industries, thus identified are : (1) Metallurgical
Industries, (2) Mechanical Engineering
Industries, (3) Chemical and Allied Industries,
(4) Textile Industries, (5) Food Processing
Industries, (6) Electricity Generation,
(7) Electronics and (8) Communication Industries.
Sometimes, you also read about foot loose
industries. What are these? Have they any
relationship with raw material location or not?
2020-21
Page 2


Unit III Unit III Unit III Unit III Unit III
Chapter 8
MANUFACTURING
INDUSTRIES
We use various items to satisfy our needs.
Agricultural products like wheat, rice, etc. are
to be processed into flour, husked rice before
we consume these. But besides bread and rice,
we also require clothes, books, fans, cars,
medicines, etc. and these are manufactured in
various industries. In modern times industries
have become very important part of an
economy. They provide employment to large
labour force and contribute significantly in the
total national wealth/income.
T T T T Types of ypes of ypes of ypes of ypes of Industries Industries Industries Industries Industries
Industries are classified in a number of ways.
On the basis of size, capital investment and
labour force employed, industries are
classified as large, medium, small scale, and
cottage industries. On the basis of ownership,
industries are categorised as :
(i) public sector, (ii) private sector, and (iii) joint
and cooperative sector, Public sector
enterprises are government/state controlled
companies or corporations funded by
governments. Industries of strategic and
national importance are usually in the public
sector. Industries are also classified on the
basis of the use of their products such as :
(i) basic goods industries, (ii) capital goods
industries (iii) intermediate goods industries,
and (iv) consumer goods industries.
Another method of classifying industries
is on the basis of raw materials used by them.
Accordingly, these can be : (i) agriculture-
based industries, (ii) forest-based industries,
(iii) mineral-based industries, and
(iv) industrially processed raw material-
based industries.
Another common classification of
industries is based on the nature of the
manufactured products. Eight classes of
industries, thus identified are : (1) Metallurgical
Industries, (2) Mechanical Engineering
Industries, (3) Chemical and Allied Industries,
(4) Textile Industries, (5) Food Processing
Industries, (6) Electricity Generation,
(7) Electronics and (8) Communication Industries.
Sometimes, you also read about foot loose
industries. What are these? Have they any
relationship with raw material location or not?
2020-21
86 India : People and Economy
Market
Markets provide the outlets for manufactured
products. Heavy machine, machine tools, heavy
chemicals are located near the high demand areas
as these are market orientated. Cotton textile
industry uses a non-weight-losing raw material
and is generally located in large urban centre,
e.g. Mumbai, Ahmedabad, Surat, etc. Petroleum
refineries are also located near the markets as the
transport of crude oil is easier and several
products derived from them are used as raw
material in other industries. Koyali, Mathura and
Barauni refineries are typical examples. Ports also
play a crucial role in the location of oil refineries.
Transport
Have you ever tried to find out the reasons
for the concentration of industries in Mumbai,
Chennai, Delhi and in and around Kolkata?
It was due to the fact that they initially
became the nodal point having transport
links. The industries shifted to interior
locations, only when railway lines were laid.
All major industrial plants are located on the
trunk rail routes.
Labour
Can we think of an industry without labour?
Industries require skilled labour. In India,
labour is quite mobile and is available in large
numbers due to our large population.
Historical Factors
Have you ever thought of the reasons for
emerging Mumbai, Kolkata and Chennai as
industrial nodes? These locations were greatly
influenced by our colonial past. During the
initial phase of colonisation, manufacturing
activities received new impetus provided by the
European traders. Places like Murshidabad,
Dhaka, Bhadohi, Surat, Vadodara, Kozhikode,
Coimbatore, Mysuru etc., emerged as important
manufacturing centres. In the subsequent
industrial phase of colonialism, these
manufacturing centres experienced rapid
growth due to competition from the goods
manufactured in Britain and the discriminatory
policies of colonial power.
Location of Industries
Can you guess the reasons for the location of
iron and steel industry in eastern and southern
India? Why is there no iron and steel industry
in U.P., Haryana, Punjab, Rajasthan and
Gujarat?
Location of industries is influenced by
several factors like access to raw materials,
power, market, capital, transport and labour,
etc. Relative significance of these factors varies
with time and place. There is strong relationship
between raw material and type of industry. It
is economical to locate the manufacturing
industries at a place where cost of production
and delivery cost of manufactured goods to
consumers are the least. Transport costs, to a
great extent, depend on the nature of raw
materials and manufactured products. A brief
description of factors influencing the location
of industries are given below:
Raw Materials
Industries using weight-losing raw materials are
located in the regions where raw materials are
located. Why are the sugar mills in India located
in sugarcane growing areas? Similarly, the
locations of pulp industry, copper smelting and
pig iron industries are located near their raw
materials. In iron and steel industries, iron ore
and coal both are weight-losing raw materials.
Therefore, an optimum location for iron and steel
industries should be near raw material sources.
This is why most of the iron and steel industries
are located either near coalfields (Bokaro,
Durgapur, etc.) or near sources of iron ore
(Bhadravati, Bhilai, and Rourkela). Similarly,
industries based on perishable raw materials are
also located close to raw material sources.
Power
Power provides the motive force for machines,
and therefore, its supply has to be ensured
before the location of any industry. However,
certain industries, like aluminium and
synthetic nitrogen manufacturing industries
tend to be located near sources of power
because they are power intensive and require
huge quantum of electricity.
2020-21
Page 3


Unit III Unit III Unit III Unit III Unit III
Chapter 8
MANUFACTURING
INDUSTRIES
We use various items to satisfy our needs.
Agricultural products like wheat, rice, etc. are
to be processed into flour, husked rice before
we consume these. But besides bread and rice,
we also require clothes, books, fans, cars,
medicines, etc. and these are manufactured in
various industries. In modern times industries
have become very important part of an
economy. They provide employment to large
labour force and contribute significantly in the
total national wealth/income.
T T T T Types of ypes of ypes of ypes of ypes of Industries Industries Industries Industries Industries
Industries are classified in a number of ways.
On the basis of size, capital investment and
labour force employed, industries are
classified as large, medium, small scale, and
cottage industries. On the basis of ownership,
industries are categorised as :
(i) public sector, (ii) private sector, and (iii) joint
and cooperative sector, Public sector
enterprises are government/state controlled
companies or corporations funded by
governments. Industries of strategic and
national importance are usually in the public
sector. Industries are also classified on the
basis of the use of their products such as :
(i) basic goods industries, (ii) capital goods
industries (iii) intermediate goods industries,
and (iv) consumer goods industries.
Another method of classifying industries
is on the basis of raw materials used by them.
Accordingly, these can be : (i) agriculture-
based industries, (ii) forest-based industries,
(iii) mineral-based industries, and
(iv) industrially processed raw material-
based industries.
Another common classification of
industries is based on the nature of the
manufactured products. Eight classes of
industries, thus identified are : (1) Metallurgical
Industries, (2) Mechanical Engineering
Industries, (3) Chemical and Allied Industries,
(4) Textile Industries, (5) Food Processing
Industries, (6) Electricity Generation,
(7) Electronics and (8) Communication Industries.
Sometimes, you also read about foot loose
industries. What are these? Have they any
relationship with raw material location or not?
2020-21
86 India : People and Economy
Market
Markets provide the outlets for manufactured
products. Heavy machine, machine tools, heavy
chemicals are located near the high demand areas
as these are market orientated. Cotton textile
industry uses a non-weight-losing raw material
and is generally located in large urban centre,
e.g. Mumbai, Ahmedabad, Surat, etc. Petroleum
refineries are also located near the markets as the
transport of crude oil is easier and several
products derived from them are used as raw
material in other industries. Koyali, Mathura and
Barauni refineries are typical examples. Ports also
play a crucial role in the location of oil refineries.
Transport
Have you ever tried to find out the reasons
for the concentration of industries in Mumbai,
Chennai, Delhi and in and around Kolkata?
It was due to the fact that they initially
became the nodal point having transport
links. The industries shifted to interior
locations, only when railway lines were laid.
All major industrial plants are located on the
trunk rail routes.
Labour
Can we think of an industry without labour?
Industries require skilled labour. In India,
labour is quite mobile and is available in large
numbers due to our large population.
Historical Factors
Have you ever thought of the reasons for
emerging Mumbai, Kolkata and Chennai as
industrial nodes? These locations were greatly
influenced by our colonial past. During the
initial phase of colonisation, manufacturing
activities received new impetus provided by the
European traders. Places like Murshidabad,
Dhaka, Bhadohi, Surat, Vadodara, Kozhikode,
Coimbatore, Mysuru etc., emerged as important
manufacturing centres. In the subsequent
industrial phase of colonialism, these
manufacturing centres experienced rapid
growth due to competition from the goods
manufactured in Britain and the discriminatory
policies of colonial power.
Location of Industries
Can you guess the reasons for the location of
iron and steel industry in eastern and southern
India? Why is there no iron and steel industry
in U.P., Haryana, Punjab, Rajasthan and
Gujarat?
Location of industries is influenced by
several factors like access to raw materials,
power, market, capital, transport and labour,
etc. Relative significance of these factors varies
with time and place. There is strong relationship
between raw material and type of industry. It
is economical to locate the manufacturing
industries at a place where cost of production
and delivery cost of manufactured goods to
consumers are the least. Transport costs, to a
great extent, depend on the nature of raw
materials and manufactured products. A brief
description of factors influencing the location
of industries are given below:
Raw Materials
Industries using weight-losing raw materials are
located in the regions where raw materials are
located. Why are the sugar mills in India located
in sugarcane growing areas? Similarly, the
locations of pulp industry, copper smelting and
pig iron industries are located near their raw
materials. In iron and steel industries, iron ore
and coal both are weight-losing raw materials.
Therefore, an optimum location for iron and steel
industries should be near raw material sources.
This is why most of the iron and steel industries
are located either near coalfields (Bokaro,
Durgapur, etc.) or near sources of iron ore
(Bhadravati, Bhilai, and Rourkela). Similarly,
industries based on perishable raw materials are
also located close to raw material sources.
Power
Power provides the motive force for machines,
and therefore, its supply has to be ensured
before the location of any industry. However,
certain industries, like aluminium and
synthetic nitrogen manufacturing industries
tend to be located near sources of power
because they are power intensive and require
huge quantum of electricity.
2020-21
Manufacturing Industries     87
In the last phase of colonialism, the British
promoted few industries in selected areas. This
led to larger spatial coverage by different types
of industries in the country.
Industrial Policy
India, being a democratic country aims at
bringing about economic growth with balanced
regional development.
Establishment of iron and steel industry
in Bhilai and Rourkela were based on decision
to develop backward tribal areas of the
country. At present, government of India
provides lots of incentives to industries locating
in backward areas.
Major Industries
The iron and steel industry is basic to the
industrial development of any country. The
cotton textile Industry is one of our traditional
industries. The sugar Industry is based on local
raw materials which prospered even in the
British period. Besides the more recent
petrochemical Industry and the IT industry will
be discussed in this chapter.
The Iron and Steel Industry
The development of the iron and steel industry
opened the doors to rapid industrial
development in India. Almost all sectors of the
Indian industry depend heavily on the iron
and steel industry for their basic
infrastructure. Can we make tools to be used
in agriculture without iron?
The other raw materials besides iron ore
and coking coal, essential for iron and steel
industry are limestone, dolomite, manganese
and fire clay. All these raw materials are gross
(weight losing), therefore, the best location for
the iron and steel plants is near the source of
raw materials. In India, there is a crescent
shaped region comprising parts of
Chhattisgarh, Northern Odisha, Jharkhand and
western West Bengal, which is extremely rich
in high grade iron ore, good quality coking coal
and other supplementing raw materials.
The Indian iron and steel industry
consists of large integrated steel plants as
well as mini steel mills. It also includes
secondary producers, rolling mills and
ancillary industries.
Integrated Steel Plants
TISCO
The Tata Iron and Steel plant lies very close to
the Mumbai-Kolkata railway line and about
240 km away from Kolkata, which is the nearest
port for the export of steel. The rivers
Subarnarekha and Kharkai provide water to
the plant. The iron ore for the plant is obtained
from Noamundi and Badam Pahar and coal is
brought from Joda mines in Odisha. Coking coal
comes from Jharia and west Bokaro coalfields.
IISCO
The Indian Iron and Steel Company (IISCO) set
up its first factory at Hirapur and later on
another at Kulti. In 1937, the Steel corporation
of Bengal was constituted in association with
IISCO and set up another iron and steel producing
unit at Burnpur (West Bengal). All the three
plants under IISCO are located very close to
Damodar valley coal fields (Raniganj, Jharia, and
Ramgarh). Iron ore comes from Singhbhum in
Jharkhand. Water is obtained from the Barakar
River, a tributary of the Damodar. All the plants
are located along the Kolkata-Asansol railway
line. Unfortunately, steel production from IISCO
fell considerably in 1972-73 and the plants were
taken over by the government.
Visvesvaraiya Iron and Steel Works Ltd. (VISL)
The third integrated steel plant, the Visvesvaraiya
Iron and Steel Works, initially called the Mysore
Iron and Steel Works, is located close to an iron
ore producing area of Kemangundi in the
Bababudan hills. Limestone and manganese are
also locally available. But this region has no coal.
At the beginning, charcoal obtained by burning
wood from nearby forests was used as fuel till
1951. Afterwards, electric furnaces were installed
which use hydroelectricity from the Jog Falls
hydel power project. The Bhadravati river
supplies water to the plant. This plant produces
specialised steels and alloys.
2020-21
Page 4


Unit III Unit III Unit III Unit III Unit III
Chapter 8
MANUFACTURING
INDUSTRIES
We use various items to satisfy our needs.
Agricultural products like wheat, rice, etc. are
to be processed into flour, husked rice before
we consume these. But besides bread and rice,
we also require clothes, books, fans, cars,
medicines, etc. and these are manufactured in
various industries. In modern times industries
have become very important part of an
economy. They provide employment to large
labour force and contribute significantly in the
total national wealth/income.
T T T T Types of ypes of ypes of ypes of ypes of Industries Industries Industries Industries Industries
Industries are classified in a number of ways.
On the basis of size, capital investment and
labour force employed, industries are
classified as large, medium, small scale, and
cottage industries. On the basis of ownership,
industries are categorised as :
(i) public sector, (ii) private sector, and (iii) joint
and cooperative sector, Public sector
enterprises are government/state controlled
companies or corporations funded by
governments. Industries of strategic and
national importance are usually in the public
sector. Industries are also classified on the
basis of the use of their products such as :
(i) basic goods industries, (ii) capital goods
industries (iii) intermediate goods industries,
and (iv) consumer goods industries.
Another method of classifying industries
is on the basis of raw materials used by them.
Accordingly, these can be : (i) agriculture-
based industries, (ii) forest-based industries,
(iii) mineral-based industries, and
(iv) industrially processed raw material-
based industries.
Another common classification of
industries is based on the nature of the
manufactured products. Eight classes of
industries, thus identified are : (1) Metallurgical
Industries, (2) Mechanical Engineering
Industries, (3) Chemical and Allied Industries,
(4) Textile Industries, (5) Food Processing
Industries, (6) Electricity Generation,
(7) Electronics and (8) Communication Industries.
Sometimes, you also read about foot loose
industries. What are these? Have they any
relationship with raw material location or not?
2020-21
86 India : People and Economy
Market
Markets provide the outlets for manufactured
products. Heavy machine, machine tools, heavy
chemicals are located near the high demand areas
as these are market orientated. Cotton textile
industry uses a non-weight-losing raw material
and is generally located in large urban centre,
e.g. Mumbai, Ahmedabad, Surat, etc. Petroleum
refineries are also located near the markets as the
transport of crude oil is easier and several
products derived from them are used as raw
material in other industries. Koyali, Mathura and
Barauni refineries are typical examples. Ports also
play a crucial role in the location of oil refineries.
Transport
Have you ever tried to find out the reasons
for the concentration of industries in Mumbai,
Chennai, Delhi and in and around Kolkata?
It was due to the fact that they initially
became the nodal point having transport
links. The industries shifted to interior
locations, only when railway lines were laid.
All major industrial plants are located on the
trunk rail routes.
Labour
Can we think of an industry without labour?
Industries require skilled labour. In India,
labour is quite mobile and is available in large
numbers due to our large population.
Historical Factors
Have you ever thought of the reasons for
emerging Mumbai, Kolkata and Chennai as
industrial nodes? These locations were greatly
influenced by our colonial past. During the
initial phase of colonisation, manufacturing
activities received new impetus provided by the
European traders. Places like Murshidabad,
Dhaka, Bhadohi, Surat, Vadodara, Kozhikode,
Coimbatore, Mysuru etc., emerged as important
manufacturing centres. In the subsequent
industrial phase of colonialism, these
manufacturing centres experienced rapid
growth due to competition from the goods
manufactured in Britain and the discriminatory
policies of colonial power.
Location of Industries
Can you guess the reasons for the location of
iron and steel industry in eastern and southern
India? Why is there no iron and steel industry
in U.P., Haryana, Punjab, Rajasthan and
Gujarat?
Location of industries is influenced by
several factors like access to raw materials,
power, market, capital, transport and labour,
etc. Relative significance of these factors varies
with time and place. There is strong relationship
between raw material and type of industry. It
is economical to locate the manufacturing
industries at a place where cost of production
and delivery cost of manufactured goods to
consumers are the least. Transport costs, to a
great extent, depend on the nature of raw
materials and manufactured products. A brief
description of factors influencing the location
of industries are given below:
Raw Materials
Industries using weight-losing raw materials are
located in the regions where raw materials are
located. Why are the sugar mills in India located
in sugarcane growing areas? Similarly, the
locations of pulp industry, copper smelting and
pig iron industries are located near their raw
materials. In iron and steel industries, iron ore
and coal both are weight-losing raw materials.
Therefore, an optimum location for iron and steel
industries should be near raw material sources.
This is why most of the iron and steel industries
are located either near coalfields (Bokaro,
Durgapur, etc.) or near sources of iron ore
(Bhadravati, Bhilai, and Rourkela). Similarly,
industries based on perishable raw materials are
also located close to raw material sources.
Power
Power provides the motive force for machines,
and therefore, its supply has to be ensured
before the location of any industry. However,
certain industries, like aluminium and
synthetic nitrogen manufacturing industries
tend to be located near sources of power
because they are power intensive and require
huge quantum of electricity.
2020-21
Manufacturing Industries     87
In the last phase of colonialism, the British
promoted few industries in selected areas. This
led to larger spatial coverage by different types
of industries in the country.
Industrial Policy
India, being a democratic country aims at
bringing about economic growth with balanced
regional development.
Establishment of iron and steel industry
in Bhilai and Rourkela were based on decision
to develop backward tribal areas of the
country. At present, government of India
provides lots of incentives to industries locating
in backward areas.
Major Industries
The iron and steel industry is basic to the
industrial development of any country. The
cotton textile Industry is one of our traditional
industries. The sugar Industry is based on local
raw materials which prospered even in the
British period. Besides the more recent
petrochemical Industry and the IT industry will
be discussed in this chapter.
The Iron and Steel Industry
The development of the iron and steel industry
opened the doors to rapid industrial
development in India. Almost all sectors of the
Indian industry depend heavily on the iron
and steel industry for their basic
infrastructure. Can we make tools to be used
in agriculture without iron?
The other raw materials besides iron ore
and coking coal, essential for iron and steel
industry are limestone, dolomite, manganese
and fire clay. All these raw materials are gross
(weight losing), therefore, the best location for
the iron and steel plants is near the source of
raw materials. In India, there is a crescent
shaped region comprising parts of
Chhattisgarh, Northern Odisha, Jharkhand and
western West Bengal, which is extremely rich
in high grade iron ore, good quality coking coal
and other supplementing raw materials.
The Indian iron and steel industry
consists of large integrated steel plants as
well as mini steel mills. It also includes
secondary producers, rolling mills and
ancillary industries.
Integrated Steel Plants
TISCO
The Tata Iron and Steel plant lies very close to
the Mumbai-Kolkata railway line and about
240 km away from Kolkata, which is the nearest
port for the export of steel. The rivers
Subarnarekha and Kharkai provide water to
the plant. The iron ore for the plant is obtained
from Noamundi and Badam Pahar and coal is
brought from Joda mines in Odisha. Coking coal
comes from Jharia and west Bokaro coalfields.
IISCO
The Indian Iron and Steel Company (IISCO) set
up its first factory at Hirapur and later on
another at Kulti. In 1937, the Steel corporation
of Bengal was constituted in association with
IISCO and set up another iron and steel producing
unit at Burnpur (West Bengal). All the three
plants under IISCO are located very close to
Damodar valley coal fields (Raniganj, Jharia, and
Ramgarh). Iron ore comes from Singhbhum in
Jharkhand. Water is obtained from the Barakar
River, a tributary of the Damodar. All the plants
are located along the Kolkata-Asansol railway
line. Unfortunately, steel production from IISCO
fell considerably in 1972-73 and the plants were
taken over by the government.
Visvesvaraiya Iron and Steel Works Ltd. (VISL)
The third integrated steel plant, the Visvesvaraiya
Iron and Steel Works, initially called the Mysore
Iron and Steel Works, is located close to an iron
ore producing area of Kemangundi in the
Bababudan hills. Limestone and manganese are
also locally available. But this region has no coal.
At the beginning, charcoal obtained by burning
wood from nearby forests was used as fuel till
1951. Afterwards, electric furnaces were installed
which use hydroelectricity from the Jog Falls
hydel power project. The Bhadravati river
supplies water to the plant. This plant produces
specialised steels and alloys.
2020-21
88 India : People and Economy
Fig. 8.1 : India – Iron and Steel Plants
2020-21
Page 5


Unit III Unit III Unit III Unit III Unit III
Chapter 8
MANUFACTURING
INDUSTRIES
We use various items to satisfy our needs.
Agricultural products like wheat, rice, etc. are
to be processed into flour, husked rice before
we consume these. But besides bread and rice,
we also require clothes, books, fans, cars,
medicines, etc. and these are manufactured in
various industries. In modern times industries
have become very important part of an
economy. They provide employment to large
labour force and contribute significantly in the
total national wealth/income.
T T T T Types of ypes of ypes of ypes of ypes of Industries Industries Industries Industries Industries
Industries are classified in a number of ways.
On the basis of size, capital investment and
labour force employed, industries are
classified as large, medium, small scale, and
cottage industries. On the basis of ownership,
industries are categorised as :
(i) public sector, (ii) private sector, and (iii) joint
and cooperative sector, Public sector
enterprises are government/state controlled
companies or corporations funded by
governments. Industries of strategic and
national importance are usually in the public
sector. Industries are also classified on the
basis of the use of their products such as :
(i) basic goods industries, (ii) capital goods
industries (iii) intermediate goods industries,
and (iv) consumer goods industries.
Another method of classifying industries
is on the basis of raw materials used by them.
Accordingly, these can be : (i) agriculture-
based industries, (ii) forest-based industries,
(iii) mineral-based industries, and
(iv) industrially processed raw material-
based industries.
Another common classification of
industries is based on the nature of the
manufactured products. Eight classes of
industries, thus identified are : (1) Metallurgical
Industries, (2) Mechanical Engineering
Industries, (3) Chemical and Allied Industries,
(4) Textile Industries, (5) Food Processing
Industries, (6) Electricity Generation,
(7) Electronics and (8) Communication Industries.
Sometimes, you also read about foot loose
industries. What are these? Have they any
relationship with raw material location or not?
2020-21
86 India : People and Economy
Market
Markets provide the outlets for manufactured
products. Heavy machine, machine tools, heavy
chemicals are located near the high demand areas
as these are market orientated. Cotton textile
industry uses a non-weight-losing raw material
and is generally located in large urban centre,
e.g. Mumbai, Ahmedabad, Surat, etc. Petroleum
refineries are also located near the markets as the
transport of crude oil is easier and several
products derived from them are used as raw
material in other industries. Koyali, Mathura and
Barauni refineries are typical examples. Ports also
play a crucial role in the location of oil refineries.
Transport
Have you ever tried to find out the reasons
for the concentration of industries in Mumbai,
Chennai, Delhi and in and around Kolkata?
It was due to the fact that they initially
became the nodal point having transport
links. The industries shifted to interior
locations, only when railway lines were laid.
All major industrial plants are located on the
trunk rail routes.
Labour
Can we think of an industry without labour?
Industries require skilled labour. In India,
labour is quite mobile and is available in large
numbers due to our large population.
Historical Factors
Have you ever thought of the reasons for
emerging Mumbai, Kolkata and Chennai as
industrial nodes? These locations were greatly
influenced by our colonial past. During the
initial phase of colonisation, manufacturing
activities received new impetus provided by the
European traders. Places like Murshidabad,
Dhaka, Bhadohi, Surat, Vadodara, Kozhikode,
Coimbatore, Mysuru etc., emerged as important
manufacturing centres. In the subsequent
industrial phase of colonialism, these
manufacturing centres experienced rapid
growth due to competition from the goods
manufactured in Britain and the discriminatory
policies of colonial power.
Location of Industries
Can you guess the reasons for the location of
iron and steel industry in eastern and southern
India? Why is there no iron and steel industry
in U.P., Haryana, Punjab, Rajasthan and
Gujarat?
Location of industries is influenced by
several factors like access to raw materials,
power, market, capital, transport and labour,
etc. Relative significance of these factors varies
with time and place. There is strong relationship
between raw material and type of industry. It
is economical to locate the manufacturing
industries at a place where cost of production
and delivery cost of manufactured goods to
consumers are the least. Transport costs, to a
great extent, depend on the nature of raw
materials and manufactured products. A brief
description of factors influencing the location
of industries are given below:
Raw Materials
Industries using weight-losing raw materials are
located in the regions where raw materials are
located. Why are the sugar mills in India located
in sugarcane growing areas? Similarly, the
locations of pulp industry, copper smelting and
pig iron industries are located near their raw
materials. In iron and steel industries, iron ore
and coal both are weight-losing raw materials.
Therefore, an optimum location for iron and steel
industries should be near raw material sources.
This is why most of the iron and steel industries
are located either near coalfields (Bokaro,
Durgapur, etc.) or near sources of iron ore
(Bhadravati, Bhilai, and Rourkela). Similarly,
industries based on perishable raw materials are
also located close to raw material sources.
Power
Power provides the motive force for machines,
and therefore, its supply has to be ensured
before the location of any industry. However,
certain industries, like aluminium and
synthetic nitrogen manufacturing industries
tend to be located near sources of power
because they are power intensive and require
huge quantum of electricity.
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In the last phase of colonialism, the British
promoted few industries in selected areas. This
led to larger spatial coverage by different types
of industries in the country.
Industrial Policy
India, being a democratic country aims at
bringing about economic growth with balanced
regional development.
Establishment of iron and steel industry
in Bhilai and Rourkela were based on decision
to develop backward tribal areas of the
country. At present, government of India
provides lots of incentives to industries locating
in backward areas.
Major Industries
The iron and steel industry is basic to the
industrial development of any country. The
cotton textile Industry is one of our traditional
industries. The sugar Industry is based on local
raw materials which prospered even in the
British period. Besides the more recent
petrochemical Industry and the IT industry will
be discussed in this chapter.
The Iron and Steel Industry
The development of the iron and steel industry
opened the doors to rapid industrial
development in India. Almost all sectors of the
Indian industry depend heavily on the iron
and steel industry for their basic
infrastructure. Can we make tools to be used
in agriculture without iron?
The other raw materials besides iron ore
and coking coal, essential for iron and steel
industry are limestone, dolomite, manganese
and fire clay. All these raw materials are gross
(weight losing), therefore, the best location for
the iron and steel plants is near the source of
raw materials. In India, there is a crescent
shaped region comprising parts of
Chhattisgarh, Northern Odisha, Jharkhand and
western West Bengal, which is extremely rich
in high grade iron ore, good quality coking coal
and other supplementing raw materials.
The Indian iron and steel industry
consists of large integrated steel plants as
well as mini steel mills. It also includes
secondary producers, rolling mills and
ancillary industries.
Integrated Steel Plants
TISCO
The Tata Iron and Steel plant lies very close to
the Mumbai-Kolkata railway line and about
240 km away from Kolkata, which is the nearest
port for the export of steel. The rivers
Subarnarekha and Kharkai provide water to
the plant. The iron ore for the plant is obtained
from Noamundi and Badam Pahar and coal is
brought from Joda mines in Odisha. Coking coal
comes from Jharia and west Bokaro coalfields.
IISCO
The Indian Iron and Steel Company (IISCO) set
up its first factory at Hirapur and later on
another at Kulti. In 1937, the Steel corporation
of Bengal was constituted in association with
IISCO and set up another iron and steel producing
unit at Burnpur (West Bengal). All the three
plants under IISCO are located very close to
Damodar valley coal fields (Raniganj, Jharia, and
Ramgarh). Iron ore comes from Singhbhum in
Jharkhand. Water is obtained from the Barakar
River, a tributary of the Damodar. All the plants
are located along the Kolkata-Asansol railway
line. Unfortunately, steel production from IISCO
fell considerably in 1972-73 and the plants were
taken over by the government.
Visvesvaraiya Iron and Steel Works Ltd. (VISL)
The third integrated steel plant, the Visvesvaraiya
Iron and Steel Works, initially called the Mysore
Iron and Steel Works, is located close to an iron
ore producing area of Kemangundi in the
Bababudan hills. Limestone and manganese are
also locally available. But this region has no coal.
At the beginning, charcoal obtained by burning
wood from nearby forests was used as fuel till
1951. Afterwards, electric furnaces were installed
which use hydroelectricity from the Jog Falls
hydel power project. The Bhadravati river
supplies water to the plant. This plant produces
specialised steels and alloys.
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88 India : People and Economy
Fig. 8.1 : India – Iron and Steel Plants
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Manufacturing Industries     89
Fig. 8.2
Fig. 8.3
Fig. 8.4
Fig. 8.5
Fig. 8.6
Fig. 8.7
Fig. 8.8
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