- 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.
Definitions [2]
Define secondary activity.
Secondary activities involve transforming the raw material (primary products) into finished goods of higher value. They are converted with manufacturing, processing, and construction (infrastructure industries).
Definition: Industrial Regions
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.
Key Points
Key Points: Classification of Industries
Key Points: Concept of Secondary 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.
Key Points: Economic Factors Affecting Secondary Economic Activities
- 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
Key Points: Physical Factors Affecting Secondary Economic Activities
- 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.
Key Points: Other Factors Affecting Secondary Economic Activities
- 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.
Key Points: Footloose Industries
- 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.
Key Points: Classification of Industries> Based on Ownership
- 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.
Key Points: Political Factors Affecting Secondary Economic Activities
- 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.
Key Points: Classification of Industries> Based on Source of Raw Materials
- 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).
Key Points: Classification of Industries> Based on Capital Investment
- 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).
Key Points: Classification of Industries> Based on Nature of Output
- 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).
Key Points: Industrial Regions
- 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.
Important Questions [16]
- Differentiate between primary and secondary activities.
- Economic motivation is universally and easily available nowadays. It can be given in all sectors. In production sectors more than one such stimulators are used to increase production.
- Short note: Role of transportation in industries.
- Answer the following: Explain the physical factors affecting location of industries.
- Explain the factors affecting the location of sugar industries.
- Give geographical reasons: Fruit-processing industries are found in Ratnagiri and Sindhudurg districts of Konkan region.
- Assertion (A): In India, diversity is found in industrial production. Reason (R): India is predominantly agrarian country.
- Give geographical reason What are the major factors which have hindered the growth of industries in South America?
- Assertion: Humid climate in Mumbai is suitable for cotton textile industry. Reason: Mumbai is situated near Arabian Sea.
- Identify the incorrect factor: Factors favourable to cotton textile industry in Mumbai:
- Short note: Footloose industries.
- Identify incorrect factor: Mineral based industries:
- Classify and explain the industries based on the source of raw materials.
- The iron and steel industry depends on minerals.
- Identify the agro-based industries:
- Give geographical reasons: Distribution of industries is uneven.
Concepts [10]
- Introduction to Secondary Activities
- Physical Factors Affecting Secondary Economic Activities
- Economic Factors Affecting Secondary Economic Activities
- Political Factors Affecting Secondary Economic Activities
- Other Factors Affecting Secondary Economic Activities
- Footloose Industries
- Major Industrial Regions
- Major Industrial Regions
- Classification of Industries
- Overview of Secondary Economic Activities
