MANUFACTURING INDUSTRIES CLASS X

MANUFACTURING INDUSTRIES

TOPIC-1

(MANUFACTURING INDUSTRIES- INTRODUCTION, LOCATION AND CLASSIFICATION)

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Ø  Manufacturing is production of goods in large quantities after processing raw materials to more valuable products. Industries that manufacture finished products from primary materials are called manufacturing industries in the secondary sector.

Ø  Importance of Manufacturing

·         Manufacturing industries help in modernizing agriculture, which forms the backbone of our country.

·         Manufacturing industries also reduce the heavy dependence of people on agricultural income because of creation of new jobs secondary and tertiary sectors.

·         Industrial development helps in eradication of unemployment and poverty.

·         Export of manufactured goods expands trade and commerce and brings in much needed foreign exchange.

·         A country with high level of manufacturing activities becomes prosperous.

Ø  Contribution of Industry to National Economy.

·         The share of manufacturing sector in the GDP (Gross Domestic Product) has been stagnant at 17% over the last two decades.

·         The total contribution of industry to the GDP is 27% out of which 10% comes from mining, quarrying, electricity and gas.

·         The growth of the manufacturing sector had been 7% in the last decade. Since 2003, the growth rate has been 9 to 10% per annum. The desired growth rate over the next decade is 12%.

·         The National Manufacturing Competitiveness Council (NMCC) has been set with the objectives of improving productivity through proper policy interventions by the government and renewed efforts by the industry.

Ø  Location and Classification

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

·         Availability of raw materials.

·         Availability of labour.

·         Availability of capital.

·         Availability of power.

·         Availability of market.

·         Infrastructure.

Ø  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 agglomeration. These industries together form an agglomeration economy.

Ø  Before independence, most industries in India were located in port cities to enable easy overseas trade.

Ø  Classification of industries on the basis of raw materials:

·         Agro Based Industries: Cotton, Woolen, jute, silk textile, rubber, sugar, tea, coffee, etc.

·         Mineral Based Industries: Iron and steel, cement, aluminium, petrochemical, etc.

·         Classification of Industries According to their main role:

·         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.

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

Ø  Classification of industries on the basis of capital investment:

·         Small Scale Industry: If the invested capital is upto Rs. One crore, then the industry is called a small scale industry.

·         Large Scale Industry: If the invested capital is more than Rs. One crore, then the industry is called large scale industry.

Ø  Classification of industries on the basis of ownership:

·         Public Sector: These industries are owned and operated by government agencies, e.g. SAIL, BHEL, ONGC, etc.

·         Private Sector: These industries are owned and operated by individuals or a group of individuals, e.g. TISCO, Reliance, Mahindra, etc.

·         Joint sector: These industries are jointly owned by the government and individuals or a group of individuals, e.g. Oil India Limited.

·         Cooperative Sector: These industries are owned and operated by the producers or suppliers of raw materials, workers or both. The resources are pooled by each stakeholder and profits or losses are shared proportionally. AMUL which is milk cooperative is a good example. The sugar industry in Maharashtra is another example.

Ø  Classification of Industries on the basis of bulk and weight of raw materials and finished goods:

·         Heavy Industries: Iron and Steel.

·         Light Industries: Electronics.