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Chapter 6 Manufacturing Industries
Manufacturing is defined as the production of goods in large quantities after processing raw materials into more valuable products. For instance, paper is manufactured from wood, sugar from sugarcane, iron and steel from iron ore, and aluminium from bauxite. Even certain types of clothing are manufactured from yarn, which is itself a product of industry.
People involved in secondary activities are those who manufacture primary materials into finished goods. This category includes workers in various factories such as steel plants, automobile assembly lines, textile mills, and bakeries. Some individuals are engaged in the tertiary sector, providing services.
This chapter primarily focuses on manufacturing industries, which are a significant part of the secondary sector. The economic strength of a country is often assessed based on the level of development of its manufacturing industries.
Importance Of Manufacturing
The manufacturing sector is widely considered the backbone of development, both general and economic, for several key reasons:
Modernising Agriculture
Manufacturing industries play a crucial role in modernising agriculture, which is the foundation of India's economy. Agro-industries produce and supply essential inputs like irrigation pumps, fertilisers, insecticides, pesticides, plastic/PVC pipes, machines, and tools to farmers. These products help farmers increase productivity and make agricultural processes more efficient, thus boosting agricultural development.
Eradication Of Unemployment And Poverty
Industrial development is seen as a prerequisite for alleviating unemployment and poverty in a country. By providing jobs in the secondary and tertiary sectors, manufacturing industries help reduce the heavy dependence of the population on agricultural income, offering alternative livelihood opportunities. This philosophy underpinned the establishment of public sector industries and joint sector ventures in India, aiming to create employment and reduce poverty.
Export Of Manufactured Goods
The export of manufactured goods is vital for trade and commerce. It expands a country's reach in international markets and, importantly, brings in valuable foreign exchange, which is crucial for international transactions and economic stability.
Transforming Raw Materials
Countries that excel in transforming their raw materials into a wide range of finished goods with higher value tend to be more prosperous. This process adds significant economic value to basic resources. India's path to prosperity lies in rapidly expanding and diversifying its manufacturing industries.
Agriculture And Industry Are Not Exclusive
Agriculture and industry are mutually dependent and complementary; they move "hand in hand." Agro-industries rely on agriculture for raw materials, while simultaneously boosting agricultural productivity by providing modern inputs. This interconnectedness means the development and competitiveness of manufacturing industries directly assist and are assisted by agricultural progress.
In the context of global competition, India's manufacturing industry needs to enhance its efficiency and competitiveness. Self-sufficiency is not enough; manufactured goods must meet international quality standards to be competitive in global markets.
Classification Of Industries
Industries can be classified based on various criteria to understand their manufacturing processes and roles better. Here are some common classifications:
Basis Of Source Of Raw Materials
Based on the raw materials used:
- Agro-based: Industries that process agricultural products. Examples: cotton, woollen, jute, silk textile industries; rubber and sugar industries; tea, coffee, edible oil processing.
- Mineral-based: Industries that use minerals and metals as raw materials. Examples: iron and steel, cement, aluminium, machine tools, petrochemicals.
According To Their Main Role
Based on their function in the economy:
- Basic or Key Industries: Industries that supply their products as raw materials or components to other industries for manufacturing other goods. Examples: iron and steel industry, copper smelting, aluminium smelting.
- Consumer Industries: Industries that produce goods directly for use by consumers. Examples: sugar, toothpaste, paper, sewing machines, fans.
Basis Of Capital Investment
Based on the maximum investment allowed on the assets of a manufacturing unit:
- Small Scale Industry: Defined by a maximum investment limit on assets. This limit changes over time; currently, it is $\textsf{₹}\,1$ crore.
Basis Of Ownership
Based on who owns and operates the industry:
- Public Sector: Owned and operated by government agencies. Examples: Bharat Heavy Electricals Limited (BHEL), Steel Authority of India Limited (SAIL).
- Private Sector: Owned and operated by individuals or a group of individuals. Examples: Tata Iron and Steel Company (TISCO), Bajaj Auto Ltd., Dabur Industries.
- Joint Sector: Jointly run by the state (government) and individuals or a group of individuals. Example: Oil India Ltd. (OIL) is jointly owned by public and private sectors.
- Cooperative Sector: Owned and operated by the producers or suppliers of raw materials, the workers, or both. Resources are pooled, and profits/losses are shared proportionally. Examples: Sugar industry in Maharashtra, Coir industry in Kerala.
Based On The Bulk And Weight
Based on the weight and bulk of raw materials and finished goods:
- Heavy Industries: Use heavy raw materials and produce heavy finished goods. Example: iron and steel industry.
- Light Industries: Use light raw materials and produce light goods. Example: electrical goods industries.
*(Classification of items based on bulk and weight example: Heavy: Shipbuilding, Automobiles. Light: Oil, Knitting needles, Brassware, Fuse wires, Watches, Sewing Machines, Electric Bulbs, Paint brushes.)*
Agro-based Industries
Agro-based industries utilise agricultural produce as their primary raw material. Key examples in India include the textile industry, sugar industry, and edible oil processing.
Textile Industry
The textile industry holds a unique and important position in the Indian economy. It makes significant contributions to industrial production, employment generation, and foreign exchange earnings. It is the only industry in India that is considered self-reliant and complete across the entire value chain, from processing raw materials to producing the highest value-added products.
Cotton Textiles
Historically, cotton textiles in ancient India were produced using traditional hand spinning and handloom weaving methods. Power looms were introduced in the 18th century. During the colonial period, India's traditional textile industry faced severe competition from mill-made cloth imported from England, leading to a setback.
In its early years, the modern cotton textile industry was concentrated in the cotton-growing regions of Maharashtra and Gujarat. Its location was influenced by factors such as the availability of raw cotton, access to markets, efficient transport networks (including ports for exports), labour supply, and a moist climate suitable for spinning.
The industry is closely linked to agriculture, providing livelihoods to various groups involved in cotton cultivation, harvesting (boll pluckers), ginning (separating fibre from seeds), spinning (making yarn), weaving (making fabric), dyeing, designing, packaging, tailoring, and sewing. By creating demand for goods from industries like chemicals, dyes, packaging, and engineering, the cotton textile industry supports other sectors.
While spinning units are largely centralised in Maharashtra, Gujarat, and Tamil Nadu, weaving is highly decentralised. This decentralisation allows for the incorporation of traditional skills and designs in weaving different types of textiles (cotton, silk, zari, embroidery). India has world-class spinning production capabilities, but the weaving sector sometimes produces lower quality fabric, partly because it struggles to fully utilise the high-quality yarn produced domestically. Weaving is carried out using handlooms, power looms, and in mills.
Handspun Khadi production provides large-scale employment to weavers working from their homes as a cottage industry, a practice emphasised by Mahatma Gandhi.
*(The first successful modern textile mill was established in Mumbai in 1854. The two World Wars increased demand for cloth in the UK, boosting the development of the cotton textile industry in India.)*
Jute Textiles
India is the largest producer of raw jute and jute goods globally and ranks as the second largest exporter (after Bangladesh). Most of India's jute mills are located in West Bengal, predominantly along the banks of the Hugli river within a narrow belt.
Factors favouring the location of jute mills in the Hugli basin include proximity to jute-producing areas, inexpensive water transport via the Hugli river, a well-developed network of railways, roadways, and waterways for moving raw materials and finished goods, abundant water supply for processing, availability of cheap labour from West Bengal and neighbouring states, and access to banking, insurance, and port facilities (Kolkata) for exporting jute goods.
*(The first jute mill in India was set up near Kolkata in 1855. Following the Partition of India in 1947, while the mills remained in India, a significant portion of the jute-producing land went to Bangladesh, then East Pakistan, impacting the industry.)*
Sugar Industry
India is the second largest producer of sugar globally but holds the first position in the production of gur (jaggery) and khandsari. Sugarcane, the raw material for this industry, is bulky and its sucrose content decreases during transportation.
Sugar mills are located in various states across India, with a significant concentration (60%) in Uttar Pradesh and Bihar, as well as in Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Gujarat, Punjab, Haryana, and Madhya Pradesh.
The sugar industry is seasonal, operating only during the sugarcane harvesting period. Due to its seasonal nature, it is well-suited to the cooperative sector, where producers can pool resources and share profits/losses. In recent years, there's been a noticeable trend of sugar mills shifting and concentrating in the southern and western states, particularly Maharashtra. This is attributed to the higher sucrose content in the sugarcane grown in these regions and a longer crushing season due to cooler climates. Moreover, cooperative societies in these states have been more successful in managing sugar mills.
Mineral-based Industries
Mineral-based industries are those that use minerals and metals as their raw materials. These industries form a crucial part of the industrial sector.
Iron And Steel Industry
The iron and steel industry is considered the basic or foundational industry for all other industries (heavy, medium, and light) because they rely on it for machinery and infrastructure. Steel is an essential material used in manufacturing a wide array of products, including engineering goods, construction materials, defence equipment, medical devices, telephonic equipment, scientific instruments, and various consumer goods.
Production and consumption of steel are often used as an indicator of a country's level of development. The iron and steel industry is classified as a heavy industry because both its raw materials (iron ore, coking coal, limestone) and finished products (steel) are heavy and bulky, leading to significant transportation costs. Raw materials are needed in a specific ratio: approximately 4 parts iron ore, 2 parts coking coal, and 1 part limestone, along with some manganese to harden the steel.
Ideally, steel plants should be located near sources of raw materials to minimise transportation costs. An efficient transport network is also required to distribute the finished products to markets and consumers. The Chhotanagpur plateau region has the highest concentration of iron and steel industries due to its advantages:
- Low cost of iron ore.
- Proximity to high-grade raw materials.
- Availability of cheap labour.
- Vast potential in the home market for consuming steel.
Aluminium Smelting
Aluminium smelting is the second most important metallurgical industry in India. Aluminium is extracted from bauxite. It's a valuable metal because it is light, resistant to corrosion, a good conductor of heat, malleable, and gains strength when alloyed with other metals. It is widely used in manufacturing aircraft, utensils, and wires and has become a popular substitute for metals like steel, copper, zinc, and lead in various industries.
The key factors influencing the location of aluminium smelting plants are a regular supply of electricity and assured access to raw material (bauxite) at minimal cost, as bauxite is bulky and dark reddish in colour. Aluminium smelting plants in India are located in Odisha, West Bengal, Kerala, Uttar Pradesh, Chhattisgarh, Maharashtra, and Tamil Nadu.
Chemical Industries
The Chemical industry in India is experiencing rapid growth and diversification, comprising both large and small manufacturing units. It has shown fast growth in both inorganic and organic chemical sectors.
Inorganic Chemicals
Inorganic chemicals include substances like sulphuric acid (used in fertilizers, synthetic fibres, plastics, adhesives, paints, dyes), nitric acid, alkalies, soda ash (used in glass, soaps, detergents, paper), and caustic soda. These industries are widely distributed across the country, likely due to factors such as the availability of raw materials and widespread demand.
Organic Chemicals
Organic chemicals primarily include petrochemicals, which are essential for manufacturing synthetic fibres, synthetic rubber, plastics, dye-stuffs, drugs, and pharmaceuticals. Organic chemical plants are typically located near oil refineries or petrochemical plants, as these provide the necessary raw materials.
The chemical industry is its own largest consumer, as basic chemicals undergo further processing to produce other chemicals used in various applications, from industrial processes and agriculture to consumer markets.
Fertilizer Industry
The fertilizer industry in India focuses on producing nitrogenous fertilizers (mainly urea), phosphatic fertilizers, ammonium phosphate (DAP), and complex fertilizers (combinations of nitrogen, phosphate, and potash). Potash is entirely imported by India, as it lacks commercial reserves of potash or potassium compounds.
The industry expanded significantly after the Green Revolution. Gujarat, Tamil Nadu, Uttar Pradesh, Punjab, and Kerala account for half of the fertilizer production. Other notable producers include Andhra Pradesh, Odisha, Rajasthan, Bihar, Maharashtra, Assam, West Bengal, Goa, Delhi, Madhya Pradesh, and Karnataka.
Cement Industry
Cement is a vital component for construction activities, including buildings, factories, bridges, roads, airports, dams, and commercial structures. The cement industry requires bulky and heavy raw materials such as limestone, silica, and gypsum. In addition to raw materials, it needs coal and electric power, and relies heavily on rail transportation.
Cement manufacturing units are typically located economically near raw material sources and markets. The first cement plant was established in Chennai in 1904, and the industry expanded significantly after Independence. Plants in Gujarat are strategically located to access markets in the Gulf countries. Locations are influenced by access to raw materials and transport networks.
Automobile Industry
The Automobile industry manufactures vehicles for rapid transport of goods, services, and passengers, including trucks, buses, cars, motorcycles, scooters, three-wheelers, and multi-utility vehicles. After the liberalisation of the Indian economy, the influx of new and modern vehicle models stimulated demand, driving healthy growth in the industry, particularly for passenger cars, two-wheelers, and three-wheelers. The industry has manufacturing centers located around major cities like Delhi, Gurugram, Mumbai, Pune, Chennai, Kolkata, Lucknow, Indore, Hyderabad, Jamshedpur, and Bengaluru.
Information Technology And Electronics Industry
The electronics industry encompasses a broad range of products, from transistor sets and televisions to telephones, cellular telecom equipment, telephone exchanges, radars, computers, and various telecommunication industry equipment. Bengaluru is recognised as the electronic capital of India, hosting a major concentration of the industry, along with other important centers like Mumbai, Delhi, Hyderabad, Pune, Chennai, Kolkata, Lucknow, and Coimbatore. The key to the success of the IT industry in India is the continuous growth in both hardware and software sectors. This industry has significantly contributed to employment generation.
Industrial Pollution And Environmental Degradation
While industries are crucial for economic growth, their activities have caused significant pollution of land, water, air, and noise, leading to environmental degradation. Industries are responsible for four main types of pollution:
Types Of Pollution
The four types of industrial pollution are:
- Air pollution
- Water pollution
- Land pollution
- Noise pollution
Thermal power plants are also considered among the polluting industries.
Air Pollution
Air pollution from industries is caused by high concentrations of undesirable gases like sulphur dioxide and carbon monoxide, as well as airborne particulate matter (dust, sprays, mist, smoke). Smoke is emitted by various factories (chemical, paper), brick kilns, refineries, smelting plants, and the burning of fossil fuels in factories that disregard pollution standards. Leaks of toxic gases can be extremely hazardous, causing long-term health and environmental damage (e.g., Bhopal Gas tragedy). Air pollution negatively impacts human health, animals, plants, buildings, and the atmosphere.
Water Pollution
Water pollution results from industries discharging organic and inorganic wastes and effluents into rivers and other water bodies. Key polluting industries include paper, pulp, chemical, textile, dyeing, petroleum refineries, tanneries, and electroplating industries. These release harmful substances such as dyes, detergents, acids, salts, heavy metals (like lead and mercury), pesticides, fertilizers, synthetic chemicals, plastics, and rubber. Major solid wastes like fly ash, phosphogypsum, and iron/steel slags also contribute to water pollution.
Thermal Pollution
Thermal pollution of water occurs when hot water from factories and thermal power plants is released into rivers and ponds without cooling. This rapid change in temperature can have detrimental effects on aquatic life.
Waste From Nuclear Plants
Waste generated by nuclear power plants and facilities involved in nuclear weapons production is highly hazardous, causing severe health problems like cancers, birth defects, and miscarriages.
Soil And Water Pollution
Soil and water pollution are often linked. Dumping industrial wastes, harmful chemicals, packaging materials, salts, and garbage renders the soil unusable. When rainwater percolates through this contaminated soil, it carries pollutants into the ground, leading to the contamination of groundwater reserves.
Noise Pollution
Noise pollution, caused by industrial and construction activities, machinery, generators, drills, etc., is an unwanted sound that acts as an irritant and stress source. It can lead to negative physiological effects such as irritation, anger, hearing impairment, increased heart rate, and elevated blood pressure.
Control Of Environmental Degradation
Addressing the environmental degradation caused by industries is crucial for sustainable development. Every litre of industrial wastewater can pollute eight times the quantity of freshwater, highlighting the scale of the problem. Measures are needed to reduce industrial pollution:
Minimising Water Use
Industries can reduce their water consumption for processing by reusing and recycling water in multiple successive stages.
Harvesting Rainwater
Industries can implement rainwater harvesting systems to meet a portion of their water requirements, reducing reliance on freshwater sources.
Treating Hot Water And Effluents
Before releasing hot water and liquid wastes (effluents) into rivers and ponds, industries should treat them to reduce their harmful content and temperature.
Treatment Of Industrial Effluents (Primary, Secondary, Tertiary)
Industrial effluents can be treated in three phases:
- Primary treatment: Involves mechanical processes like screening, grinding, flocculation, and sedimentation to remove solid matter.
- Secondary treatment: Utilises biological processes to break down organic matter.
- Tertiary treatment: Employs biological, chemical, and physical processes, and includes recycling of wastewater.
Regulating Groundwater Overdrawing
To address the threat to groundwater resources, especially in areas where industries heavily rely on groundwater extraction, legal regulations are needed to control overdrawing.
Reducing Particulate Matter
Particulate matter in the air emitted from factories can be reduced by fitting smoke stacks with various devices like electrostatic precipitators, fabric filters, scrubbers, and inertial separators.
Reducing Smoke
Smoke emissions can be reduced by using cleaner fuels such as oil or gas instead of coal in factories.
Reducing Noise
Industrial noise can be reduced by fitting silencers on generators, redesigning machinery for energy efficiency and reduced noise, using noise-absorbing materials, and promoting the use of personal earplugs/earphones.
Sustainable Development Challenge
The challenge of achieving sustainable development requires integrating economic development goals with environmental protection concerns. This means pursuing development in a way that minimises harm to the environment and ensures resources are available for future generations.
NTPC Shows The Way
NTPC, a major power generation corporation in India, demonstrates a proactive approach to environmental management. It holds ISO 14001 certification for its Environment Management System (EMS). NTPC focuses on preserving the natural environment and resources like water, oil, gas, and fuels at its power plant locations through various practices:
- Optimising equipment use and adopting/upgrading techniques.
- Minimising waste generation, particularly by maximising ash utilisation.
- Developing green belts to support ecological balance and using special vehicles for afforestation.
- Reducing environmental pollution through ash pond management, ash water recycling, and liquid waste management systems.
- Conducting ecological monitoring, reviews, and maintaining online database management for all its power stations.