Intro:

AYAN : Manufacturing refers to the production of items from raw materials

on a large scale. While production itself is the primary activity, the workers
involved in the process of manufacturing are secondary activities in this regard.
From bakeries to steel plants, everything falls under manufacturing industries.

Importance of manufacturing
Manufacturing sector is considered the backbone of development
 Manufacturing industries help in modernizing agriculture; which forms
the backbone of our economy. Not only help in modernizing agriculture.
 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. Here eradication means
to remove poverty from our country. It was also aimed at bringing down
regional disparities by establishing industries in tribal and backward
areas.
 Manufactured goods are used within the country and also exported to
other countries. Export of manufactured goods expands trade,
commerce, and brings in foreign exchange. Manufacturing brings much
more foreign exchange.
 A country with a high level of manufacturing activities becomes
prosperous or more successful.
 It increases the GDP/ National Income of the country, lets again go
through definition of manufacturing… here we go….. So, here the word
production comes, which is the main factor in country’s GDP. Thus we
can conclude from this that Manufacturing increases GDP of the country.

ABDULLAH:
Contribution of Industry to National Economy
 Over the last two decades, the share of manufacturing sector has stagnated to 17 per cent of
the GDP, which is required to be increased.
 The trend of growth rate in manufacturing over the last decade is around 7 per cent per
annum, whereas the desired growth rate is 12 per cent.
 Since 2003, manufacturing is once again growing at the rate of 9 to 10 per cent per annum.
 With proper policies of the government and efforts by the industry to improve productivity,
economists predict that manufacturing can achieve its target over the next decade.

Some of the factors which affect the industrial location are as follows :

(1) Availability of raw materials : Large quantities of raw materials are needed for industries.
Therefore industries are located near the source of raw materials. It saves the cost of transportation.
(2) Availability of labour : This factor also adds to the cost effectiveness aspect of an industry.
(3) Availability of capital : Industry can be in need of financial resources at any time. Therefore, it is
necessary that an industry has these facilities available easily.
(4) Availability of power : It is important that basic facilities like electricity etc. are available.
(5) Availability of market : An industry needs to have a sound market for the goods produced.
(6) Availability of adequate and swift means of transport: Modern industries need cheap, developed
and quick means of transportation.

A manufacturing industry promotes the urbanisation of its neighbourhood. Already urbanised areas
also attract industries, since they provide ready facilities for transport, banking, labour, consultancy,
etc.

If an urban centre offers sufficient facilities and advantages, several industries come up there
together to form an industrial agglomeration. These industries together form an agglomeration
economy. Before Independence, most industries in India were located in port cities to enable easy
overseas trade.

Now, How Agriculture gives boost to the industrial sector :

(i) Agriculture provides raw material to industries.

(ii) Agriculture provides market for industrial products.
(iii) Agriculture helps boost new industrial products.
(iv) The industries such as cotton, jute, silk, woollen textiles, sugar and edible oil, etc., are based on
agricultural raw materials.

AYAN :
Industry – Market Linkage

Industry market linkage forms a chain that shows in what way

industries systemize the process of production.
Here is the picture of Market Linkage,
This market linkage process combines all the factors of production
i.e. land, labour, entrepreneur and infrastructure together, putting
them in the same process of production.
The raw material produced transported to the factory with the help
of a transport.
Now the factory produce the new final product from the raw
material and again with the help of the transport these finished or
final products, transported to the markets.
These finished or final products are then sell to the consumers in the
exchange of money.

Classification of industries on the basis of raw materials

1st one is Agro – Based Industries:These industries are based on
agricultural raw material.
Example: Cotton, woollen, jute, silk textile, rubber, sugar, tea, coffee,
etc.

2nd one is Mineral-Based Industries: Industries that use minerals and

metals as raw materials are called mineral-based industries.
Example: Iron and steel, cement, aluminium, petrochemicals, etc.

Classification of industries according to their main role

(a) Basic or Key Industries: These industries supply their products or raw
materials to manufacture other goods, e.g., iron and steel, copper smelting,
aluminium smelting.

(b) Consumer Industries: These industries produce goods which are directly
used by consumers, e.g., sugar, paper, electronics, soap, etc.

ABDULLAH :
Classification of industries on the basis of capital investment

(a) Small Scale Industry : If the invested capital is upto one crore, then the
industry is called a small scale industry. Manufacture small goods. No huge
quantity of raw material as well as capital is required.

Example: Garment industry, soap making industry.

(b) Large Scale Industry : If the invested capital is more than one crore, then
the industry is called a large scale industry. Manufacture large quantities of
finished goods. The quantity of raw material and capital investment are large.

Example: Iron and steel industry, cotton textile industry.

Classification of industries on the basis of ownership

(a) Public Sector: These industries are owned and operated by government
agencies, e.g., SAIL, BHEL, ONGC, etc.
(b) Private Sector: These industries are owned and operated by individuals or a
group of individuals, e.g., TISCO, Reliance, Mahindra, etc.
(c) Joint Sector: These industries are jointly owned by the government and
individuals or a group of individuals, e.g., Oil India Limited.
(d) Cooperative Sector: These industries are owned and operated by the
producers or suppliers of raw materials, workers or both.

Classification of industries on the basis of bulk and weight of raw materials

and finished goods:
(a) Heavy Industries: Iron and steel.
(b) Light Industries: Electronic industry

AYAN :
Agro - based industries: Industries based on agricultural raw materials.
For example: cotton textiles, jute textiles, woollen textiles, silk textiles,
synthetic textiles, sugar industry.

Textile industry: It is the only industry in India, which is self-reliant and

complete in the value chain i.e., from raw material to the highest value added
products. It occupies a unique position in the Indian economy, contributes 14%
of industrial production. Provides employment to 35 million persons directly.

Cotton textiles: 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. It
supports many other industries, such as, chemicals and dyes, packaging
materials and engineering works.
Earlier the cotton textile industries were located in Maharashtra and Gujarat
because :
(i) Availability of raw cotton.
(iii) Well-developed means of transportation.
(iv) Abundant skilled and unskilled labour at cheap rate.
(v) Moist climate which is suitable for the cotton industry

Here is the Distribution of cotton, woollen and silk industries on India map.
The black dot shows the location of cotton textile industries , the red dot
shows the location of woollen textile industries and the black square mark
shows the location of silk textile industries.

Jute textiles: There are about 80 jute mills in India and most of these are
located in West Bengal, mainly in the Hugli basin. India is the second largest
exporter of jute goods after Bangladesh.

Location of Jute industries in Hugli Basin is due to:

(i) Proximity of jute producing areas.

(iii) Good network of roadways, railways and waterways.
(iv) Abundant water for processing raw jute.
(v) Cheap labour from West Bengal and adjoining states.
ABDULLAH :

Sugar Industry : There are over 662 sugar mills in the

country. 50% of them are found in Uttar Pradesh and
Maharashtra. Karnataka, Tamil Nadu, Andhra Pradesh and
Gujarat are also important producers of sugar in the country.

Major challenges of sugar industry are:

(i) Seasonal nature of the industry.
(ii) Old and inefficient methods of production.
(iii) Transport delay in reaching sugar factories and the need
to maximise the use of bagasse.

Shifting of sugar industries to Southern states is because :

(i) Sugarcane that grows there has higher sucrose content.
(ii) Favourable climate provides longer crushing period and
growing season.
(iii) Cooperatives are successful in these states.
(iv) Modern mills have more crushing capacity.

Outro :