Chapter 5: Industries

By / August 30, 2025

🌍 Chapter 5: Industries

1. Introduction

  • Human beings use resources (natural + human) to produce goods and services.
  • When raw materials are processed and turned into more valuable products, it is called industry.
  • Example:
    • Cotton β†’ spun into yarn β†’ woven into cloth β†’ stitched into garments.
    • Iron ore β†’ processed into steel β†’ used for construction/machinery.

πŸ“Œ Definition: Industry refers to economic activities concerned with the production of goods, extraction of minerals, or the provision of services.

2. Types of Industries

Industries can be classified on several bases:

(A) On the Basis of Raw Materials

  1. Agro-based Industries
    • Use raw materials from agriculture.
    • Examples: Cotton textiles, jute industry, sugar industry, edible oil.
    • Found near raw material sources (farms).
  2. Mineral-based Industries
    • Use minerals as raw material.
    • Examples: Iron and steel, aluminium smelting, cement.
    • Basis of heavy industries.
  3. Forest-based Industries
    • Raw material from forests.
    • Examples: Paper, furniture, plywood, pharmaceuticals.
  4. Animal-based Industries
    • Raw material from animals.
    • Examples: Dairy, leather, woollen textiles.

(B) On the Basis of Size

  1. Small-scale Industries (SSI)
    • Use less capital and technology.
    • Labour-intensive.
    • Examples: Handicrafts, weaving, food processing.
  2. Large-scale Industries
    • Require huge capital, advanced technology, large workforce.
    • Produce on a mass scale.
    • Examples: Iron and steel plants, automobile manufacturing, petrochemicals.

(C) On the Basis of Ownership

  1. Private Sector Industries
    • Owned and managed by individuals/companies.
    • Example: TISCO (Tata Iron & Steel), Reliance, Infosys.
  2. Public Sector Industries
    • Owned and managed by government.
    • Example: SAIL (Steel Authority of India Ltd.), HAL.
  3. Joint Sector Industries
    • Owned jointly by government and private companies.
    • Example: Oil India Limited.
  4. Co-operative Sector Industries
    • Owned and run by producers or suppliers themselves.
    • Example: Amul (dairy), sugar cooperatives in Maharashtra.

(D) On the Basis of Product

  1. Basic Industries β†’ Supply raw material to other industries (Iron & Steel).
  2. Consumer Industries β†’ Produce goods for direct use (Textiles, food).
  3. Capital Goods Industries β†’ Produce machines/tools (Machine tools industry).

3. Factors Affecting the Location of Industries

Industries are not set up randomly. Many factors influence location:

  1. Raw Materials
    • Availability of raw material reduces transport cost.
    • Example: Iron & steel near iron ore mines.
  2. Power Supply
    • Industries require energy (coal, electricity, oil, natural gas).
    • Example: Aluminium industry near hydroelectric plants.
  3. Labour
    • Both skilled and unskilled labour are essential.
    • Example: IT hubs near skilled manpower (Bengaluru, Silicon Valley).
  4. Capital
    • Money is needed for machines, infrastructure, wages.
    • Example: Mumbai, Ahmedabad – attracted industries due to banking/finance.
  5. Transport
    • Good transport helps bring raw materials and deliver goods.
    • Railways, ports, highways important.
  6. Market
    • Industries need customers.
    • Example: Textile industries near big cities.
  7. Government Policies
    • Subsidies, tax benefits, SEZs (Special Economic Zones).
  8. Climate
    • Some industries need specific climates.
    • Example: Cotton textile industry in humid climate (Mumbai, Ahmedabad).

πŸ“Œ Conclusion: Industrial location is a result of multi-factor decision making.

4. Industrial System

An industry is like a system with 3 main inputs, processes, and outputs.

  1. Inputs:
    • Raw material, labour, capital, power, infrastructure.
  2. Processes:
    • Activities to convert raw material to finished product.
    • Example: Smelting, weaving, assembling.
  3. Outputs:
    • Final product + by-products + waste.

5. Industrial Regions

Industries are often concentrated in specific areas.

(A) World Industrial Regions

  1. Eastern North America
  2. Western & Central Europe
  3. Eastern Europe & Russia
  4. Eastern Asia (Japan, China, Korea)

πŸ“Œ These regions are well-connected, have skilled labour, transport facilities, and markets.

(B) Major Industrial Regions of India

  1. Mumbai-Pune Region β†’ Cotton textiles, chemicals, IT.
  2. Hugli Region (Kolkata) β†’ Jute, engineering, chemicals.
  3. Bangalore-Tamil Nadu Region β†’ IT, silk, automobiles.
  4. Chhotanagpur Plateau Region β†’ Iron & steel, coal-based industries.
  5. Delhi-Meerut Region β†’ Electronics, engineering, consumer goods.

6. Case Studies of Major Industries

NCERT provides three major examples:

(A) Iron and Steel Industry

  • Backbone of modern industry (called basic industry).
  • Provides raw material for construction, machinery, transport.

Inputs Required:

  • Iron ore, coal, limestone.
  • Labour, capital, power, transport.

World Distribution:

  • Germany, USA, Russia, China, Japan, South Korea.

In India:

  • First plant: TISCO (Jamshedpur, 1907).
  • Other centres: Bhilai, Durgapur, Bokaro, Rourkela, Salem, Vishakhapatnam.
  • India is one of the largest producers of crude steel.

(B) Cotton Textile Industry

  • Oldest industry in India.
  • Uses cotton as raw material (agro-based).

Centres:

  • India β†’ Mumbai, Ahmedabad, Coimbatore, Surat, Kanpur.
  • World β†’ Osaka (Japan), Shanghai (China), Manchester (UK).

Reason for Location:

  • Humid climate, cheap labour, large market, raw cotton.

Problem: Competition with synthetic fibres (nylon, polyester).

(C) Information Technology (IT) Industry

  • Knowledge-based, uses technology + skilled labour.
  • Provides services (software, networking, IT solutions).

World Centres: Silicon Valley (USA), Bangalore (India).

Why Bangalore is called β€œSilicon Valley of India”?

  • Availability of skilled engineers, research centres, pleasant climate, government support, IT parks.

Contribution:

  • Provides employment, boosts exports, rapid economic growth.

7. Industrial Pollution and Environmental Degradation

Industries provide prosperity but also cause harm.

(A) Types of Industrial Pollution

  1. Air Pollution β†’ From smoke, toxic gases.
  2. Water Pollution β†’ Chemicals, dyes, oils discharged into rivers.
  3. Land Pollution β†’ Dumping of solid wastes.
  4. Noise Pollution β†’ Machines, transport, construction.

(B) Consequences

  • Global warming.
  • Health hazards.
  • Acid rain.
  • Reduced soil fertility.
  • Waterborne diseases.

8. Control of Industrial Pollution

  1. Treating wastes before release.
  2. Recycling & reusing industrial effluents.
  3. Use of cleaner fuels (CNG, LPG).
  4. Afforestation and green belts.
  5. Strict laws against polluting industries.
  6. Shift to renewable energy (solar, wind, hydro).

πŸ“Œ Sustainable development is the key: Industries must grow without harming environment.

9. Key Takeaways

  • Industry is transformation of raw materials into valuable products.
  • Classified by raw material, size, ownership, product.
  • Location depends on raw materials, power, labour, transport, capital, market.
  • Iron & Steel β†’ Basic industry;
  • Cotton textiles β†’ Oldest industry;
  • IT β†’ Emerging knowledge-based industry.
  • Industries also cause pollution, need eco-friendly methods.

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