Manufacturing Industries (India)

Types Of Industries

Manufacturing industries in India are diverse and can be classified based on various criteria such as size, nature of raw materials used, ownership, and the type of product manufactured. This classification helps in understanding the structure and distribution of India's industrial landscape.

• Based on Size:
• Cottage Industries: Production carried out at home by artisans using simple tools and local raw materials.
• Small-Scale Industries: Higher investment than cottage industries, employ more people, often use machinery.
• Large-Scale Industries: High capital investment, mass production, advanced technology, large workforce.
• Based on Raw Materials:
• Agro-Based Industries: Use plant and animal products (cotton, jute, sugar, tea, coffee, rubber, leather).
• Mineral-Based Industries: Use minerals as raw materials (iron & steel, aluminium, cement, petrochemicals, chemicals).
• Forest-Based Industries: Use forest products (paper, plywood, pharmaceuticals).
• Based on Ownership:
• Public Sector: Owned and managed by the government (e.g., SAIL, BHEL).
• Private Sector: Owned and managed by individuals or private companies (e.g., TISCO, Reliance).
• Joint Sector: Owned and operated jointly by government and private individuals (e.g., Maruti Udyog).
• Cooperative Sector: Owned and operated by producers or suppliers (e.g., Sugar cooperatives, dairy cooperatives like Amul).
• Based on Product:
• Basic Industries: Produce raw materials for other industries (e.g., iron & steel, aluminium).
• Consumer Industries: Produce goods for direct consumption (e.g., textiles, sugar, paper, electronics).

Location Of Industries

The location of industries in India is determined by a combination of factors, influencing where manufacturing units are established and thrive.

Raw Materials

Proximity to raw material sources is critical, especially for industries using heavy or bulky materials. For instance, steel plants are often located near iron ore and coal mines, while textile mills are situated in cotton-growing regions.

Power

Reliable and affordable power is essential for industries, particularly for heavy industries like steel, aluminium, and chemicals, which are energy-intensive. Locations with access to thermal, hydro, or increasingly, renewable energy sources are preferred.

Market

Industries need to be located close to their markets to minimize transportation costs of finished goods and to cater to consumer demand efficiently. Proximity to consumption centres, especially urban areas, is important.

Transport

Efficient transportation networks (roads, railways, ports) are crucial for the movement of raw materials to the factory and finished goods to the market. Industrial locations are often chosen near major transport arteries.

Labour

The availability of skilled, semi-skilled, and unskilled labour at competitive wages is a significant factor. Industries requiring specialized skills often locate near educational and training institutions.

Historical Factors

Some industries are located in areas where they were first established due to historical reasons, such as the early development of textile mills in Mumbai or jute mills in the Hugli basin, owing to colonial-era infrastructure and market access.

Industrial Policy

Government policies play a vital role in influencing industrial location. Policies such as establishing Industrial Development Corporations, providing tax incentives, developing industrial estates, and promoting industries in backward or tribal areas guide industrial dispersal and development.

Major Industries

India has a diversified industrial base, with several key manufacturing sectors contributing significantly to its economy. The major industries include iron and steel, cotton textiles, sugar, petrochemicals, chemicals, fertilizers, cement, automobiles, and knowledge-based industries.

The Iron And Steel Industry

The iron and steel industry is a fundamental industry providing essential raw materials for many other sectors, including construction, machinery, automobiles, railways, and defence.

• Raw Materials: Iron ore, coking coal, limestone, manganese, dolomite.
• Process: Involves smelting iron ore in blast furnaces with coke to produce pig iron, which is then refined into steel.
• Location Factors: Proximity to raw material sources (iron ore, coal), power, water, labour, transport, and markets.
• Distribution in India: Major centres are often located in the mineral-rich belts of the Chota Nagpur plateau and the Eastern Ghats, as well as in peninsular India.

Integrated Steel Plants

Integrated steel plants are facilities that handle all stages of steel production, from raw material processing to finished steel products.

TISCO

Tata Iron and Steel Company (TISCO), now Tata Steel, established in 1907 at Sakchi (later Jamshedpur), Jharkhand. It is India's first and one of the oldest integrated steel plants.

• Location: Jamshedpur, Jharkhand.
• Location Factors: Proximity to raw materials from Mayurbhanj and Singhbhum (iron ore), coal from Jharia, limestone, and water from the Subarnarekha river. Good transport links facilitated by its location on the Kolkata-Mumbai railway line.
• Significance: Pioneer of the Indian steel industry, significant producer of steel and related products.

IISCO

The Indian Iron and Steel Company (IISCO), established in 1918, was one of the early integrated steel plants in India.

• Location: Burnpur, West Bengal.
• Location Factors: Situated in the Hugli Industrial Region, close to coalfields and markets.
• Status: Later acquired by SAIL.

Visvesvaraiya Iron And Steel Works Ltd. (VISL)

VISL is known for producing high-quality alloy steel.

• Location: Bhadravati, Karnataka.
• Location Factors: Proximity to iron ore deposits in the Kudremukh and Kaladgi ranges and coal from the West Coast.
• Specialty: Known for producing special alloy steels.

Rourkela Steel Plant

A public sector steel plant established with collaboration from Germany.

• Location: Rourkela, Odisha.
• Location Factors: Proximity to iron ore from Barsua mines, coal from Jharia, and limestone and dolomite from Birmitrapur. Leverages water from the Brahmani river.
• Collaboration: Technical assistance from Germany.
• Production: Known for producing flat steel products.

Bhilai Steel Plant

A public sector steel plant established with collaboration from the former Soviet Union.

• Location: Bhilai, Chhattisgarh.
• Location Factors: Strategic location near iron ore mines of Bailadila and Dalli-Rajhara, coal from Korba, limestone from Nandini, and water from the Tandula reservoir.
• Collaboration: Technical assistance from the former Soviet Union.
• Production: Known for producing high-quality steel, especially rails.

Durgapur Steel Plant

A public sector steel plant established with British collaboration.

• Location: Durgapur, West Bengal.
• Location Factors: Situated in the Raniganj coalfield region, with access to iron ore from Singhbhum and limestone from Birmitrapur.
• Collaboration: Technical assistance from the United Kingdom.

Bokaro Steel Plant

A public sector steel plant, also established with technical assistance from the former Soviet Union.

• Location: Bokaro, Jharkhand.
• Location Factors: Situated in the Damodar Valley coalfield, it receives iron ore from the Kiriburu iron ore mines and coal from the Bokaro coalfields.
• Collaboration: Technical assistance from the former Soviet Union.
• Significance: One of the largest steel plants in India.

Other Steel Plants

In addition to integrated steel plants, India has several other steel plants, including mini steel plants and special steel plants, catering to specific market needs.

• Mini Steel Plants: These plants use electric furnaces to produce alloy steel and finished steel, often using scrap iron and steel as raw material. They are generally smaller in scale but more flexible.
• Special Steel Plants: Focus on producing specialized grades of steel with specific properties.
• Examples: Salem Steel Plant (Tamil Nadu), Visvesvaraiya Iron and Steel Works Ltd. (VISL) at Bhadravati (Karnataka), which specializes in alloy steel.

The Cotton Textile Industry

The cotton textile industry is one of India's oldest and most significant manufacturing sectors, converting raw cotton into yarn, fabric, and garments.

• Historical Significance: India has a long tradition of cotton textile production, from handloom weaving to modern mills.
• Location Factors: Proximity to cotton-growing regions, humid climate (historically important for spinning, now managed by air-conditioning), availability of skilled labour, power, and markets.
• Distribution in India:
• Major Centres: Mumbai and Ahmedabad are the major traditional centres.
• Other Centres: Coimbatore (known as the 'Manchester of South India'), Kanpur, Indore, Solapur, Nagpur, Ludhiana.
• Challenges: Competition from synthetic fibres, outdated machinery in some mills, power supply issues, and labour productivity.

Sugar Industry

The sugar industry is the second largest agro-based industry in India, playing a vital role in the rural economy.

• Raw Material: Sugarcane.
• Process: Extraction of juice from sugarcane and its processing into sugar, jaggery, khandsari, and increasingly, ethanol.
• Location Factors: Proximity to sugarcane-producing areas is crucial, as sugarcane is a perishable raw material and heavy to transport. Access to power, water, and markets is also important.
• Distribution in India:
• Uttar Pradesh: Largest producer of sugarcane and sugar, with a large number of sugar mills, often smaller and spread across the state.
• Maharashtra: Second largest producer, known for its modern, efficient sugar cooperatives and higher sugar recovery rates due to better sugarcane varieties.
• Other States: Bihar, Punjab, Haryana, Gujarat, Madhya Pradesh, Rajasthan, Andhra Pradesh, Tamil Nadu.
• Challenges: Fluctuations in sugarcane production due to weather, price volatility of sugar, and issues related to timely payment to farmers.

Petrochemical Industries

Petrochemical industries use petroleum and natural gas as raw materials to produce a wide range of products, including synthetic fibres, synthetic rubber, plastics, and various chemicals.

• Raw Materials: Crude oil and natural gas.
• Products: Polymers (plastics), synthetic fibres (polyester, nylon, acrylic), synthetic rubber, detergents, paints, pharmaceuticals, fertilizers.
• Location Factors: Proximity to oil refineries, sources of natural gas, and major industrial/urban markets.
• Distribution in India: Major petrochemical complexes are located near refineries or coastal areas due to the import of crude oil. Key centres include:
• Gujarat: Jamnagar (Reliance), Vadodara, Ankleshwar.
• Maharashtra: Mumbai, Thane, Patalganga.
• Tamil Nadu: Manali.
• West Bengal: Haldia.
• Uttar Pradesh: Auraiya, Jagdishpur.

Knowledge Based Industries

Knowledge-based industries are sectors that rely heavily on intellectual capital, research and development (R&D), and specialized skills rather than physical raw materials or heavy machinery. These are often referred to as the quaternary sector.

• Characteristics:
• High Skill Requirement: Employ highly educated and skilled professionals (scientists, engineers, researchers, analysts, consultants).
• Innovation Driven: Continuous innovation and R&D are central to their success.
• Low Physical Footprint: Typically require less space and generate less pollution than heavy industries.
• Footloose Nature: Location is less dependent on raw materials or heavy infrastructure; often clustered in areas with good amenities, talent pools, and communication links.
• Examples: Information Technology (IT) and IT-enabled Services (ITES), software development, biotechnology, pharmaceuticals, telecommunications, R&D centres, financial services, design and consulting.
• Growth in India: India has emerged as a major global hub for IT and ITES, with significant contributions from cities like Bengaluru, Hyderabad, Pune, Chennai, Delhi-NCR, and Mumbai.

Liberalisation, Privatisation, Globalisation (LPG) And Industrial Development In India

The introduction of LPG reforms in 1991 marked a significant turning point in India's industrial and economic policy, moving away from a protectionist, state-controlled model towards a more open, market-oriented economy.

• Liberalisation: Reduction of government controls and regulations, dismantling of the 'License Raj' (licensing system), and opening up sectors previously reserved for the public sector. This allowed greater private sector participation and foreign investment.
• Privatisation: Transfer of ownership and management of public sector undertakings (PSUs) to the private sector. This aimed to improve efficiency, competitiveness, and financial discipline.
• Globalisation: Opening up the Indian economy to foreign trade and investment, reducing trade barriers, and integrating with the global economy. This led to increased competition, technology transfer, and access to global markets.
• Impact on Industrial Development:
• Increased Competition: Indian industries faced increased competition from foreign players, forcing them to improve efficiency, quality, and adopt new technologies.
• Foreign Investment: Significant inflow of Foreign Direct Investment (FDI) into various sectors, bringing capital, technology, and management expertise.
• Growth of Service Sector: Particularly the IT and ITES sectors, which benefited immensely from liberalisation and globalisation.
• Automobile and Consumer Goods: Saw rapid growth and expansion due to increased competition and rising disposable incomes.
• Challenges: Some traditional industries struggled to compete, leading to closures or restructuring. Concerns about the widening gap between large industries and SMEs, and the impact on employment in certain sectors.

Industrial Regions In India

Industrial regions in India have developed over time, often concentrated around sources of raw materials, power, markets, transport links, and historical factors. These regions exhibit a clustering of industries.

Mumbai-Pune Industrial Region

This is one of the most important and well-developed industrial regions in India.

• Location: Maharashtra, extending from Mumbai to Pune and surrounding areas.
• Factors: Access to raw materials (cotton, petrochemicals), proximity to ports (Mumbai), availability of skilled labour, capital, and historical establishment of textile mills and engineering industries. Growth of IT and automotive sectors in recent decades.
• Major Industries: Cotton textiles, petrochemicals, chemicals, pharmaceuticals, automobiles, engineering goods, IT and electronics.

Hugli Industrial Region

Located in the Hugli river basin in West Bengal, this is another major traditional industrial belt.

• Location: Kolkata, Haora, Rishra, Shrirampur, Kakinada, etc., along the Hugli river.
• Factors: Historical development of jute mills due to proximity to jute-growing areas, access to water transport via the Hugli river, availability of labour, and historical colonial trade links. Also hosts cotton textiles, engineering, and chemical industries.
• Major Industries: Jute textiles, cotton textiles, engineering, chemicals, paper, tea processing.

Bengaluru-Chennai Industrial Region

This southern industrial corridor is a major hub for industries, especially automotive, IT, and electronics.

• Location: Spans across Bengaluru (Karnataka), Chennai (Tamil Nadu), and surrounding areas like Coimbatore, Madurai, and Mysore.
• Factors: Availability of skilled labour, historical establishment of cotton textiles and engineering, growth of IT sector in Bengaluru, automotive industry hub near Chennai, good transport links.
• Major Industries: Cotton textiles, automobiles, heavy engineering, electronics, IT services, petrochemicals, pharmaceuticals.

Gujarat Industrial Region

Known for its focus on textiles, petrochemicals, and chemicals.

• Location: Ahmedabad, Vadodara, Surat, Jamnagar, Ankleshwar.
• Factors: Proximity to cotton-growing areas, availability of petroleum and natural gas, development of ports (like Kandla), entrepreneurial spirit, government support for chemical and petrochemical industries.
• Major Industries: Cotton textiles, petrochemicals, chemicals, fertilizers, dyes, pharmaceuticals, cement, refining.

Chotanagpur Region

This region is rich in minerals and is a hub for heavy industries, particularly iron and steel.

• Location: Jharkhand, parts of Chhattisgarh, West Bengal, and Odisha. Includes centres like Jamshedpur, Ranchi, Bokaro, Dhanbad, Rourkela, and Durgapur.
• Factors: Abundance of iron ore, coal, limestone, copper, bauxite, and other minerals. Good transport links.
• Major Industries: Iron and steel, heavy engineering, coal mining, copper smelting, cement, automobiles.

Vishakhapatnam-Guntur Region

Located in Andhra Pradesh, this region has developed around ports and mineral resources.

• Location: Vishakhapatnam, Guntur, Tirupati, Kurnool.
• Factors: Proximity to the coast (Vishakhapatnam port), iron ore deposits, coal, limestone, and agricultural hinterlands.
• Major Industries: Ship building (Hindustan Shipyard), petroleum refining, thermal power, heavy chemicals, cement, cotton textiles, sugar, fruit processing.

Gurugram-Delhi-Meerut Region

This rapidly growing industrial corridor in North India benefits from its strategic location and market access.

• Location: Spans Delhi, Gurugram (Haryana), Ghaziabad, Noida, Faridabad (UP & Haryana), and Meerut.
• Factors: Proximity to a large consumer market, availability of skilled labour, good transport and communication networks, and government promotion of industrial development.
• Major Industries: Automobiles, electronics, heavy engineering, hosiery, food processing, IT and ITES.

Kollam-Thiruvananthapuram Region

Located in Kerala, this region has specialized industries.

• Location: Southern Kerala, including Kollam, Thiruvananthapuram, and Alleppey.
• Factors: Availability of coconut husk for coir industry, mineral sands, forest resources, and tourism.
• Major Industries: Coir industry, cashew processing, fish processing, tourism, electronics, and some defence-related industries.