Overview of Secondary Economic Activities

• Secondary activities use raw materials from primary activities to make finished goods.
• These activities include manufacturing, processing, and construction.
• The place where goods are produced is called a factory.
• Location of industries depends on raw materials, transport, and the market.
• Weight-losing industries (e.g., sugar) are located near raw materials.
• Weight-gaining industries (e.g., bakery) are located near markets.

• Climate: Moderate climate supports industries, while extreme hot, cold, or dry climates discourage industrial development.
• Raw Materials: Industries using bulky or perishable raw materials are located near their source.
• Water and Power Supply: Industries need plenty of water and energy sources like coal, oil, and electricity.
• Labour: Availability of skilled and semi-skilled labour influences industrial location.
• Transportation: Low transport cost and good connectivity are important for industrial growth.
• Site (Land): Industries require large, flat land with good transport facilities; high land prices push industries towards rural areas.

• Proximity to Market: Industries are located near markets to reduce transport cost and sell goods quickly.
• Perishable, heavy, or bulky products require industries to be close to cities or markets.
• Capital: Large investment is needed to set up industries.
• Industries develop in areas with good banking and financial facilities, which further attract more industries

• Government Policies: The government promotes industries by giving incentives like finance, land, tax concessions, and subsidies.
• It encourages industries in economically backward regions for balanced regional development.
• Government may restrict industries in coastal or eco-sensitive areas.
• Special Economic Zones (SEZs): These are specially developed areas to promote industrial growth and exports.

• Split Location: Different stages of production are carried out at different places to reduce transport cost.
• In industries like automobiles, parts are made in different areas and assembled at one place.
• Economies of Scale: When many industries develop in one area, they benefit from shared facilities and lower costs.
• Agglomeration: Industries producing related goods cluster together, increasing profit and industrial growth.

• Footloose industries do not depend on a specific location for raw materials or markets.
• They can be set up anywhere because inputs and outputs are lightweight and easy to transport.
• These industries usually produce low-volume but high-value products.
• Examples include watch-making, diamond cutting, and honey processing.

An industrial region is an area where a large number of industries are concentrated due to favourable factors such as availability of raw materials, labour, transport, power, and market facilities.

• Industrial regions are areas where many industries are concentrated due to favourable conditions.
• Industries are unevenly distributed because location factors are not the same everywhere.
• Industrial regions have agglomeration of industries and large working population.
• They have good transportation, communication, banking, and credit facilities.
• Industrial regions provide large-scale employment and support economic development.

• Agro-based industries use agricultural products (e.g., sugar, cotton, food processing).
• Marine-based industries use sea products (e.g., fish oil, sea-shell items).
• Forest-based industries use forest resources (e.g., paper, timber, resins).
• Mineral-based industries use minerals from mining (e.g., iron, steel, aluminium).
• Pastoral-based industries use animal products (e.g., leather, milk, silk, wool).

• Large-scale industries require huge capital, modern machinery, and infrastructure. In India, industries with investment above ₹10 crore are large-scale (e.g., iron and steel, power, cotton textiles).
• MSME industries are classified based on investment in plant, machinery, and equipment.
• Micro industries have very small investment (up to ₹25 lakh in plant/machinery). Examples: pens, dairy products.
• Small industries invest more than ₹25 lakh but up to ₹5 crore. Examples: bottles, toys, paper products.
• Medium industries invest between ₹5 crore and ₹10 crore. Examples: cycles, TVs, radios.
• Cottage or household industries operate on a very small scale, mostly at home, using manual labour and local raw materials.
• Cottage industries need little capital and transport, produce goods for local markets, and sometimes for export (e.g., Paithani sarees, Indian quilts).

• Industries are classified by the type of goods they produce.
• Basic (Heavy) industries make raw materials for other industries (e.g., iron and steel).
• Consumer (Light) industries make goods for direct use (e.g., textiles, electronics, medicines).
• Ancillary industries make parts for other industries (e.g., tyres, nails, iron sheets).

• Industries are classified by ownership, that is, who owns and controls them.
• Public sector industries are owned and managed by the government (e.g., BHEL).
• Private sector industries are owned by individuals or private companies, and profits go to the owners (e.g., TISCO).
• Joint sector industries are jointly owned by the government and private individuals or by two governments (e.g., MNGL).
• Cooperative sector industries are owned and managed by a group of people who share profits and losses (e.g., AMUL).
  MNCs operate in more than one country and have headquarters in one main country.