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.
