Learning Objectives
- Understand the meaning and classification of industries
- Learn the factors influencing the location of industries
- Study major industries and their global distribution
- Understand the concept of industrial regions and industrial disasters
Key Concepts
What are Industries?
The secondary sector of the economy transforms raw materials into finished goods. This process of manufacturing is carried out in industries. The economic strength of a country is measured by the development of its manufacturing industries.
Classification of Industries
Based on Raw Materials:
Agro-based industries: Use agricultural products as raw materials. Examples: food processing, cotton textile, jute, sugar, vegetable oil.
Mineral-based industries: Use mineral ores as raw materials. Examples: iron and steel, cement, aluminium, machine tools, petrochemicals.
Based on Size:
Small-scale industries: Use less capital and technology, more labour. Example: cottage industries, handicrafts, bangle-making.
Large-scale industries: Use heavy capital, technology, and large labour force. Produce goods in large quantities. Example: iron and steel, automobiles, heavy machinery.
Based on Ownership: Private sector (owned by individuals or companies), public sector (owned by the government), joint sector (owned jointly by government and private), and cooperative sector (owned by producers or suppliers of raw materials).
Factors Affecting Industrial Location
Industries are located where the conditions for their establishment are favourable. Key factors include: availability of raw materials, power/energy, water supply, labour, transport, market, and government policies. An ideal location is where the cost of manufacturing is minimum.
Iron and Steel Industry
Called the backbone of modern industry. Raw materials: iron ore, coking coal, limestone. The industry is heavy and bulky, so it is located near raw material sources. Major producers: China (largest), Japan, USA, Russia, Germany, India. In India: Tata Iron and Steel Company (TISCO) at Jamshedpur was the first, established in 1907. Other centres: Bhilai, Durgapur, Bokaro, Rourkela, Visakhapatnam.
Cotton Textile Industry
One of the oldest industries in the world. Requires cotton as raw material and large workforce. Major centres: India (Mumbai, Ahmedabad, Coimbatore), China, Japan, USA, UK. Mumbai is called the "Cotton Textile Capital of India" due to its humid climate, port access, and availability of skilled labour.
Information Technology (IT) Industry
The sunrise industry of the modern world. Deals with storage, processing, and distribution of information. Requires skilled workforce, good connectivity, and institutional support. Major IT hubs: Silicon Valley (USA), Bengaluru (India), Dublin (Ireland). Bengaluru is called the "Silicon Valley of India".
Summary
Industries transform raw materials into finished products and form the secondary sector of the economy. They are classified by raw material (agro-based, mineral-based), size (small, large), and ownership (private, public, joint, cooperative). Location depends on raw materials, power, labour, transport, and market. Iron and steel is the backbone of modern industry. IT is the fastest-growing industry worldwide.
Important Terms
- Industry
- Economic activity that transforms raw materials into finished goods
- Agro-based Industry
- Industry using agricultural products as raw material
- Mineral-based Industry
- Industry using mineral ores as raw material
- Cottage Industry
- Small-scale manufacturing done at home with simple tools
- Industrial Region
- A cluster of industries located in a particular area due to favourable conditions
- Silicon Valley
- World's leading IT hub located in California, USA
Quick Revision
- Industries belong to the secondary sector of the economy
- Agro-based = agriculture raw materials; Mineral-based = mineral ores
- Iron and steel industry = backbone of modern industry
- TISCO at Jamshedpur (1907) = India's first iron and steel plant
- Mumbai = Cotton Textile Capital of India
- Bengaluru = Silicon Valley of India
- China is the world's largest producer of iron and steel
Practice Tips
- Learn to classify given industries by all three criteria (raw material, size, ownership)
- Mark major iron and steel plants and IT hubs on a map of India
- Prepare a flowchart showing factors affecting industrial location