- On the basis of raw materials, industries are classified as agro-based, mineral-based, forest-based and animal-based industries.
- On the basis of nature of products, industries are divided into heavy industries (capital and bulky goods) and light industries (consumer goods).
- On the basis of investment and turnover, industries are classified as micro, small, medium and large-scale industries.
- On the basis of ownership, industries are public sector, private sector, joint sector and co-operative sector industries.
- On the basis of function and market, industries include basic industries, consumer industries, ancillary industries and service (tertiary) industries.
Key Points
Key Points: Importance Of Industries
- Manufacturing industry converts raw materials into finished or semi-finished goods using the 4 M’s – Men, Money, Material and Machinery.
- Industrial development is a key indicator of a country’s economic growth, self-sufficiency and foreign exchange earnings.
- India has advantages like abundant raw materials, skilled manpower and a strategic location, which support industrial growth.
- Industrialisation generates employment, reduces pressure on agriculture, and improves the standard of living.
- Rapid industrialisation is necessary to ensure self-reliance, balanced regional development, technological progress and a favourable balance of trade.
Key Points: Factors Affecting The Location Of Industries
- Availability of raw materials strongly influences industrial location as it reduces transport cost, especially for bulky or perishable materials.
- Adequate water and uninterrupted power supply are essential for manufacturing processes, cooling, cleaning and energy needs.
- Good transport facilities help in easy movement of raw materials to factories and finished goods to markets.
- Availability of skilled and unskilled labour and access to a ready market encourage industries to locate in a region.
- Commercial factors like capital, banking facilities, government policies and organisational efficiency play a major role in industrial location decisions.
Key Points: Classification of Industries
Key Points: Agro-Based Industries > Sugar Industry
- Sugar industry is an agro-based consumer industry and the second largest organised industry in India.
- Sugarcane produces sugar, gur, khandsari and by-products like molasses, bagasse and press mud.
- Maharashtra is the largest producer, followed by Uttar Pradesh; South India has better yield.
- The industry is shifting to South India due to favourable climate, fertile soil and longer crushing season.
- Major problems are high cost, old machinery, low yield and poor use of by-products.
- The sugar industry in North India has low yield, short crushing season and old mills due to unfavourable climate.
- The sugar industry in Peninsular India has high yield, longer crushing season and modern mills due to favourable tropical climate and cooperative farming.
Key Points: Agro-Based Industries > Cotton Textile Industry
- Cotton textile industry is the oldest and largest agro-based industry in India and supports about 40% of the labour force.
- India is a major producer and exporter of cotton textiles; production is done in powerloom and handloom sectors.
- Maharashtra and Gujarat are leading states; Mumbai (Cottonopolis) and Ahmedabad (Manchester of India) are major centres.
- Other important centres include Coimbatore, Kanpur, Kolkata, Chennai, Surat and Pune.
- The industry developed due to availability of raw cotton, humid climate, good transport and port facilities, labour, capital and power.
- Benefits include foreign exchange earnings, large-scale employment, support to allied industries and meeting domestic demand.
- Problems include shortage of good cotton, old machinery, power shortage, sick units and foreign competition.
Key Points: Agro-Based Industries > Silk Textile Industry
- India is one of the largest producers of silk in the world and produces four varieties of silk—mulberry, tasar, eri and muga; Assam has a monopoly of golden muga silk.
- Sericulture is the rearing of silkworms for silk; silk production has a long tradition in India and expanded after independence.
- Mulberry silk is the most important variety, contributing about 70–90% of total silk production; Karnataka is the leading producer, followed by Andhra Pradesh, Tamil Nadu, West Bengal and Jammu & Kashmir.
- Major silk weaving centres include Bengaluru, Mysore, Kanchipuram, Murshidabad, Varanasi, Srinagar, Bhagalpur and Goalpara; Assam, Bihar and Jharkhand are famous for non-mulberry silk.
- Problems of the silk industry include competition from artificial silk, cheap imports from China, price fluctuations, lack of grading and need for modern powerlooms.
