Top Careers & You Industry

General Studies
Industry

Industrialisation is the period of social and economic change that transforms a human group from an agrarian society into an industrial one. It is a part of a wider modernisation process, where social change and economic development are closely related with technological innovation, particularly with the development of large-scale energy and metallurgy production. It is the extensive organisation of an economy for the purpose of manufacturing. Industrialisation also introduces a form of philosophical change where people obtain a different attitude towards their perception of nature, and a sociological process of ubiquitous rationalisation. There is considerable literature on the factors facilitating industrial modernisation and enterprise development. Key positive factors identified by researchers have ranged from favourable political-legal environments for industry and commerce, through abundant natural resources of various kinds, to plentiful supplies of relatively low-cost, skilled and adaptable labour. Development of Modern Industries in India under the British Rule An important development in the second half of the nineteenth century was the establishment of large-scale machine-based industries in India. The machine age in India began when cotton textile, jute and coal-mining industries were started in the 1850s. The first textile mill was started in Bombay by Cowasjee Nanabhoy in 1853, and the first jute mill in Rishra (Bengal) in 1855. These industries expanded slowly but continuously. The coal-mining industry employed nearly one lakh of persons in 1906. Other mechanical industries which developed during the second half of the nineteenth and the beginning of the twentieth century's were cotton gins and presses, rice, flour and timber mills, leather tanneries, woolen textiles, sugar mills, iron and steel works, and such mineral industries as salt, mica and saltpeter. Cement, paper, matches, sugar and glass industries developed during the 1930s. But all these industries had a very stunted growth. Most of the modern Indian industries were owned or controlled by British capital. Foreign capitalists were attracted to Indian industry by the prospect of high profit. Labour was extremely cheap; raw materials were readily and cheaply available; and for many goods, India and its neighbours provided a ready market. For many Indian Products, such as tea, jute and manganese, there was a ready demand the world over. On the other hand, profitable investment opportunities at home were getting fewer. Foreign capital easily overwhelmed Indian capital in many of the industries. Only in the cotton textile industry did Indians have a large share from the beginning, and in the 1930s, the sugar industry was developed by Indians. Indian capitalist also had to struggle from the beginning against the power of British managing agencies and British banks. On the whole, industrial progress in India was exceedingly slow and painful. It was mostly confined to cotton and jute industries and tea plantations in the nineteenth century, and to sugar and cement in the 1930s. In terms of production as well as employment, the modern industrial development of India was paltry compared with the economic development of other countries or those with India's economic needs. The government made no effort to protect, rehabilitate reorganise and modernise these old indigenous industries. Moreover, even the modern industries had to develop without government help and often in opposition to British policy. British manufacturers looked upon Indian textile and other industries as their rivals and put pressure on the Government of India not to encourage but rather to actively discourage industrial development in India. Thus British policy artificially restricted and slowed down the growth of Indian industries.

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General Studies
Industry

Furthermore, Indian industries, still in a period of infancy, needed protection. They developed at a time when Britain, France, Germany and the United States had already established powerful industries and could not therefore compete with them. In fact, all other countries, including Britain, had protected their infant industries by imposing heavy customs duties on the import of foreign manufacturers. But India was not a free country. Its policies were determined in Britain and in the interests of British industrialists who forced a policy of Free Trade upon their colony. For the same reason the Government of India refused to give any financial or other help to the newly founded Indian industries as was being done at the time by the governments of Europe and Japan for their own infant industries. It would not even make adequate arrangements for technical education which remained extremely backward until 1951 and further contributed to industrial backwardness. The Indian-owned industries such as cement, iron and steel, and glass were denied protection or given inadequate protection. On the other hand, foreign dominated industries, such as the match industry, were given the protection they desired. Moreover, British imports were given special privileges under the system of 'imperial preferences' even though Indians protested vehemently. Another feature of Indian industrial development was that it was extremely lopsided regionally. Indian industries were concentrated only in a few regions and cities of the country. Large parts of the country remained totally underdeveloped. This unequal regional economic development not only led to wide regional disparities in income but also affected the level of national integration. It made the task of creating a unified Indian nation more difficult. An important social consequence of even the limited industrial development of the country was the birth and growth of two new social classes in Indian society the industrial capitalist class and the modern working class. Industrial Development during Five Year Plans in India The First Plan had a modest beginning and proposed an outlay of only Rs. 74 crores for industry and minerals and Rs. 43 crores for village and small industries. It had two important dimensions: (a) thrust on the growth of agriculture, and (b) industrial growth. The latter was based on the Harrod-Domar model. The plan laid down the following priorities in the industrial sector: (i) Completion of the industrial units already in hand, (ii) Fuller utilization of the existing capacity of the industries, (iii) Expansion of capacity in those industries which were basic to the growth of other industries such as aluminum, cement, heavy chemicals, machine tools, etc., and (iv) Remedying the existing imbalances in the industrial structure. As a result of it the general index of industrial production was 39 per cent during the plan, or a compound annual growth rate of 7 percent. This was no mean achievement. The progress in cotton textile and iron and steel was 28 per cent and 22 per cent respectively. The First Plan saw the establishment of the Sindri Fertiliser Factory, Chittaranjan Locomotive Factory, Indian Telephone Industries, the Integral Coach Factory, the Cable Factory and the Penicillin Factory. Besides, it also saw the start of work on the planning for major infrastructural inputs and the establishment of many basic industries like steel, drugs, pharmaceuticals, fertilisers, machine-building, machine tools, etc.

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Industrial policy of 1956 1. Classification of Industries:

General Studies
Industry

The government of India has classified industries into three categories. These categories are as under: (a) Government Enterprises: These industries are reserved for public sector. The industries that have been put under this category are of basic and strategic importance. They need enormous capital for development. The government has the exclusive control over these industries. These industries are: (i) Arms, ammunitions and allied items of defense equipment; (ii) Atomic energy; (iii) Heavy casting and forging of iron and steel; (iv) Iron and Steel; (v) Heavy plants and machinery required for basic industries; (vi) Heavy electrical plants including large hydraulic and steam turbines; (vii) Coal and Lignite; (viii) Mineral Oils; (ix) Mining of iron ore, manganese ore, gypsum, sulphur, gold and diamond; (x) Minerals for atomic energy; (xi) Mining and processing of copper; (xii) Aircraft; (xiii) Air transport; (xiv) Railway transport; (xv) Shipbuilding; (xvi) Telephones and telephone cables; (xvii) Generation and distribution of electricity. (b) Mixed Enterprises: In the second category, there are twelve industries which will be progressively state- owned. At the same time, private enterprise will also have the opportunity to develop in these fields. These industries are: (i) All minerals except minor minerals as defined in Section 3 of the Minerals Concession Rules, 1949; (ii) Aluminum and other non-ferrous metals not included in Schedule 'A'; (iii) Machine tools ; (iv) Ferro alloys and tool steels; (v) Basic and intermediate products required by chemical industries like drugs, dye-stuffs and plastics; (vi) Antibiotics and other essential drugs; (vii) Fertilizers; (viii) Synthetic rubber; (ix) Carbonization of coal; (x) Chemical pulp; (xi) Road transport and (xii) Sea transport. (c) Private Enterprises: All the remaining industries come under the third category and their development, in general, has been left open though it will be up to the state government to start any industry in this category. The state has proposed to facilitate and encourage the development of these industries in accordance with the programmes formulated in successive five year plans. They also ensured the facilities of transport, power and other services and all other appropriate fiscal measures. 2. Role of Cottage and Small Scale Industries: The Industrial Policy has laid special emphasis on giving every encouragement to cottage and small scale industries. The role of such industries has been approved by the resolution in the development of the national economy since they provide immediate large-scale employment, equitable distribution of the national income and facilitate an effective mobilization of resources and skill which might otherwise remain unutilized. The new policy supports the idea of establishing the industrial estates and the rural community workshops to eliminate their deficiencies. The state has been endeavoring to foster by restricting the value of production in large scale industries by giving incentives, facilities of raw material, marketing facilities, cheap electricity and finance etc. 3. Private Sector Assistance and Control: The policy of 1956 will facilitate and encourage the private enterprise in the development of industries according to the programmes and policies of the successive five-year plans. The policy further added that the state would continue to provide fair and non-discriminatory treatment to both public and private enterprises when both exist side by side in a particular industry.

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4. Reduction of Regional Disparities:

General Studies
Industry

The industrial policy resolution stresses the reduction of disparities in levels of development between different regions and supports the idea of a balanced and coordinated development of the industrial and the agricultural sectors. It aims at industrialization which may benefit the economy of the country as a whole. To achieve this aim, transport, power supply and other facilities will be made available to the backward sector. 5. No Water-tight Compartments: The division of industries into different categories does not imply that they are placed in water-tight compartments. Towards this end, the private sector might produce an item for meeting the requirements of the industry. Similarly, heavy industries in the public sector may obtain some of their requirements of lighter components from the private sector. Therefore, the public and private enterprises are expected to operate closely together in spite of the fact that the major partner is the public sector. 6. Technical and Managerial Personnel: The industrial policy of 1956 emphasizes on the provision of managerial and technical personnel in public services to meet the rapidly growing needs of the public sector and for the development of the cottage and small scale industries. This includes setting up of technical staff cells in the public sector and to organize apprenticeship schemes on a large scale. They also laid down the stress on the training in business management. 7. Decentralization of Powers: The industrial policy recognizes that with the growing participation of the state in industry and trade, the management of these activities will assume considerable importance. Thus, government recommends that there should be decentralization of authority and the management of the state undertakings. 8. Labour Participation in Management: The resolution accepted that in a socialist democracy, labour participation is very essential. Thus, they must be provided a share in management i.e. the facility of joint consultation of workers with management. 9. Attitude towards Foreign Capital: The attitude regarding foreign capital remained unchanged. The government suggested following the directions of Industrial Policy of 1948. Industrial Policy, 1991 A major shift in the industrial policy was made by the Congress (I) Government led by Mr. P.B. Narasimha Rao on July 24, 1991. The main aim of this policy was to unshackle the country's industrial economy from the cobwebs of unnecessary bureaucratic control, introduce liberalisation with a view to integrate the Indian economy with the world economy, to remove restrictions on direct foreign investment and also to free the domestic entrepreneur from the restrictions of MRTP Act. Besides, the policy aims to shed the load of the public enterprises which have shown a very low rate of return or are incurring losses over the years. The salient features of this policy are as follows: 1. 2. 3. Except some specified industries (security and strategic concerns, social reasons, environmental issues, hazardous projects and articles of elitist consumption) industrial licensing would be abolished. Foreign investment would be encouraged in high priority areas up to a limit of 51 per cent equity. Government will encourage foreign trading companies to assist Indian exporters in export activities.

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4. 5. 6. 7. 8.

General Studies
Industry

With a view to injecting the desired level of technological dynamism in Indian industry, the government will provide automatic approval for technology agreements related to high priority industries. Relaxation of MRTP Act (Monopolies and Restrictive Practices Act) which has almost been rendered non-functional. Dilution of foreign exchange regulation act (FERA) making rupee fully convertible on trade account. Disinvestment of Public Sector Units' shares. Closing of such public sector units which are incurring heavy losses.

Factors influencing industrial location Many factors influence the location of industry. Location factors are easily divided into two sections: Physical factors and socio-economic (human) factors. A general rule is that the physical factors have the primary influence over the location of the old industries, whilst the economic ones are increasingly important in industrial location now. Physical factors Accessibility: The site of the new factor needs to be accessible, so that importing of raw materials and exporting of finished products is easy. Early industry had to have good access to raw materials, usually though natural routes like rivers. Nowadays access is needed to transport routes. Climate: The climate could affect where an industry locates, as it needs to attract workers to the area. This is not a particularly important factor. Land: The site of an industry is very important. Usually, flat land is the most essential thing to find. Most industries also try to find areas where there is room to expand once production has become successful. Today cars have allowed industry to move to out-of-town locations as the workers can drive to the factory. Power: Initially, industry had to locate right beside its power source. Water power was used at first, and then the burning of coal produced steam power. Both sources of energy restricted where industries could locate, as they had to be beside a suitable river or near the coal field. Now, industries can gain their power from the National Grid and so power does not really influence location a great deal. Raw Materials: Old, heavy industry required large amounts of bulky raw materials, which were very costly to transport, and so the industry located close to them. Newer industries are described as being footloose, as they are not tied by being near raw materials, which are smaller and easier to transport. Socio-economic factors Capital: Very important to any industry. Companies cannot set up their chosen industry without investment of money. This may come from private sources or from the government. Communications: Probably the most important factor for new industries nowadays. Most need communications links not only to the rest of the country, but to the rest of the World. Transport routes such as the motorways, airports, railways and the ports are all things that will attract industrial location. Communications increasingly also includes access to the internet, fax and phones. All these allow industries to have a greater freedom of choice over their location. Government policy: Governments can greatly influence the location of industry, by giving tax incentives, cheap rent and other benefits to companies locating in certain areas of the country. Often these are places, which the government wants to develop economically. Government policy also lead to the closure of many of the heavy industries, such as numerous coal mines and ship building yards.

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General Studies
Industry

Labour Supply: Very important to old, labour-intensive industries. This is why many of them located in the inner cities, so that there was a huge pool of potential workers close by. With the growth in car ownership, and industries becoming more mechanised labour supply is not such an important factor for most industries. However, some industries rely on it. Markets: Access to markets is vital, and this ties in with the section on communications. In the last 19th Century the market for most industries would be fairly local. Into the 20 century the market widened with improved transport technology. Now, the market for many companies is a global one. Classification of Industries: Industries can be classified on the basis of raw materials, size and ownership. Raw Materials: Industries may be agriculture based, Marine based, Mineral based, Forest based. Size: It refers to the amount of capital invested, number of people employed and the volume of production. Ownership: Industries can be classified into private sector, state owned or public sector, joint sector and co-operative sector
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Sectoral Classification: Industry is divided into four sectors. They are: Sector Primary Secondary Tertiary Definition This involves the extraction of resources directly from the Earth, this includes farming, mining and logging. They do not process the products at all. They send it off to factories to make a profit. This group is involved in the processing products from primary industries. This includes all factoriesthose that refine metals, produce furniture, or pack farm products such as meat. This group is involved in the provision of services. They include teachers, managers and other service providers.

Quaternary This group is involved in the research of science and technology. They include scientists. Some consider there to be a branch of the quaternary sector called the quinary sector, which Quinary Sector includes the highest levels of decision making in a society or economy. This sector would include the top executives or officials in such fields as government, science, universities, nonprofit, healthcare, culture, and the media.

Indian Textile Industry Since ancient times, Indian Textile industry has been well known for her textile goods. During the colonial regime the traditional textile industry of India was virtually decayed. However, in the early nineteenth century the modern textile industry took birth in India when the first textile mill was established at Fort Gloster near Calcutta in 1818. Next to Agriculture India mainly is into the Textile Sector. Indian Textile Industry is one of Indias oldest industries and has a formidable presence in the national economy as it contributes to about 14% of manufacturing value-addition, accounts for around one-third of our gross export earnings and provides gainful employment to millions of people.

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Cotton Textile Industry in India

General Studies
Industry

The cotton textile industry is one of the principal manufacturing industries of India employing about 18% of the total industrial labour force of the country. The origin of cotton textile industry dates back to 1818. The first cotton mill was set up at Fortglaster near Kolkata. The art of weaving cloth had been known to the people of India since long. The first mill could not survive. Thus, the real beginning of the industry came up in 1851, when the Bombay Spinning and Weaving Mills were set up at Bombay (Mumbai). The cotton textile industry in India made rapid progress on account of the following reasons: 1. With the start of Swadeshi Movement during the freedom struggle, most of the Indians boycotted British made clothes with the result that home industry got an impetus. 2. 3. 4. On account of the First World War, supplies from abroad were suspended as such there was no other alternative but to develop cotton textiles in the country. The grant of protection to the industry further boosted textile manufacturing in the country. Growth of population and improvement in the standard of living of the people caused a great demand for different types of textile manufacturing in India.

In India, the location of this industry depends upon certain geographic and economic factors. These are: 1. Raw material 3. Capital 7. Climate 2. Source of power 5. Labour 8. Market 3. Machinery 6. Water 9. Means of transportation

The location of the mills is spread over 80 different centres of the country. These are grouped into four distinct regions where cotton textile manufacturing is highly concentrated. These regions are: (i) Black Soil Cotton Zone. This zone includes states of Gujarat, Maharashtra, Karnataka and Andhra Pradesh. Maharashtra and Gujarat are outstanding producers of cotton textiles. These two states have 65% of India's total textile manufacturings. The state of Maharashtra leads in respect of this industry. In fact, the industry was born in the state at Bombay (Mumbai) in 1851. Cotton textile manufacturing in the state of Maharashtra and particularly at Bombay (Mumbai) is attributed to a variety of factors. These are: 1. 2. 3. 4. 5. 6. 7. 8. 9. Availability of capital from the local Parsi people. Port facilities. Maharashtra grows short staple cotton, being used by the industry. Humid climate of the region helps in spinning and weaving processes. Abundance of cheap labour in the state as well as from adjoining states. A network of efficient means of transportation. In the state of Maharashtra particularly at Bombay (Mumbai), a number of chemical industries have come up which supply different types of chemicals required by the industry. Bombay (Mumbai) is one of the most important textile marketing centres of the country. Presence of financial institutions.

The most important textile centres of the state are: Bombay (Mumbai), Pune, Nasik, Sholapur, Aurangabad, Akola, Satara, Sangli, Jalgaon and Nagpur. Gujarat is the second important textile manufacturing state of the country. Here cotton textile industry has been developed in the centres like: Ahmedabad, Surat, Vadodra, Porbandar, Bharuch, Rajkot, Bhavnagar and Kalol. Ahmedabad is the leading centre.

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General Studies
Industry

It is known as the "Boston of East; Cotton industry in Gujarat has responded to the availability of cotton, skilled labour, port facilities, market, means of transport and capital with the Gujaratis. Karnataka is the third important state of black soil zone. In this state cotton is available in abundance. Developed means of transportation, availability of labour and market are some of the contributory factors for the development of the industry. The most important manufacturing centres are: Bangalore, Davanagere, Hubli, Mysore, Gulbarga, Gokak, Bellary, Belgaon and Chitradurga. In the state of Andhra Pradesh, Industry has developed in the districts of Hyderabad, East Godavri, Guntur, Secundrabad, Vijaywada and Warangal. (ii) Alluvial Soil Cotton Zone of the Sutlej-Ganga Plain. This zone comprises of states of Punjab, Haryana, Delhi, Uttar Pradesh, Bihar and West Bengal. The most important factors which have worked for the development of cotton textile manufacturing's in these states are: 1. 2. 3. 4. 5. These states have rich fertile alluvial soils which are ideal for the cultivation of cotton as such plenty of raw materials is available in the zone. This region has dense population; therefore, plenty of cheap labour is readily available to work in the mills. On account of dense population in these states, a wide market for the textiles exists. Means of transportation are highly developed on account of flat topography of these states. Availability of thermal and hydro-electricity has played an important role in the development of cotton textile industry. The most important textile centres in different states of this zone are as under: Punjab Amritsar, Ludhiana, Phagwara and Hoshiarpur. Haryana Hisar, Rohtak, Bhiwani, Panipat and Nilokheri. Uttar Pradesh Saharanpur, Meerut, Agra, Lucknow, Kanpur, Allahabad, Aligarh, Hathras, Gorakhpur and Varanasi. Kanpur has 14 mills and is known as Manchester of north India. Jharkhand Ranchi. Bihar Bhagalpur, Gaya, Patna, Muzzafarpur, Champaran. West Bengal Hoogly region (Kolkata, Howrah, Shyamnagar and Serampur) and 24 Parganas. (iii) Light Black Soil Zone of Aravalies. In this zone are included the eastern parts of Rajasthan and western parts of Madhya Pradesh. In this zone, there are a number of important textile centres. Textile manufacturings have come up on account of availability of cotton, labour, capital and market.

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General Studies
Industry

In Rajasthan, the most important centres are Udaipur, Bhilwara, Ajmer, Kota, Jaipur, Pilani and Ganganagar. In Madhya Pradesh, the industry has developed at Gwalior, Ratlam, Indore, Ujjain, Jabalpur and Bhopal. (iv) Coastal Alluvial Soil Zone of Tamil Nadu, Andhra Pradesh and Kerala. Inthis zone, cotton textile industry is highly developed. The mills are located at Chennai, Salem, Madurai, Tirunveli, Tuticorin, Tanjuvr and Coimbatore. The industry has come up on account of certain locational factors like availability of raw material, skilled labour, nearness to sea, efficient means of transportation and availability of hydro- electricity. In the state of Kerala, cotton industries are at Alwaye, Cochin, Allepy and Quilon. The Indian textile industry is mainly related to manufacturing of coarse cloth which is demanded in the country. However, super fine cloth is also made from the long staple cotton grown in the country or imported from Egypt, Sudan, Peru and the U.S.A. A variety of cotton fabrics are manufactured. Hosiery and manufacturing of readymade garments have become popular. The cotton textile industry of India faces certain problems. 1. For die manufacturing of fine variety cloth, the industry depends upon imported cotton because the supply of home cotton is meager. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. A large number of mills are uneconomical and sick. In most of the cases the machinery is old and obsolete. The number of automatic looms is less, where as the number of ordinary looms is large. This results in poor production. Inadequate facilities for transporting raw material to the mill sites. Low production per worker. Shortage of power. Strikes and lockouts. Lack of research and modernization. Competition with Korea, Japan, Formosa and China. Paucity of finances for renovation and replacement of old machinery. Exorbitant excise duty Synthetic cloth is becoming popular with the people.

Despite all these above mentioned problems being faced by the industry, it has a bright future because of growing market inside as well as outside the country. India is the second largest exporter of cotton fabrics in the world. It is only surpassed by Japan. A large number of countries import cotton fabrics from India. These are U.K., West Asia, African countries, Australia, Malaysia, Singapore, Indonesia, Nepal, CIS, South Africa, and Bangladesh etc. India exports coarse as well as fine cloth, readymade garments, hosiery goods and yarn. Textile foreign exchange earnings have crossed Rs. 7000 crores. The government is doing its utmost to help and boost the industry by way of: (i) A central advisory council was set up in 1983 for advising government on matters relating to problems, programmes and export promotion of cotton textile manufacturings. (ii) (iii) Textile Modernization Fund was set up in 1986 for the purpose of providing finances for the modernization work of the industry. National Textile Corporation Ltd. was formulated. NTC undertook modernizing mills under its charge.

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(iv)

General Studies
Industry

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Textile research centres were set up at number of places like Mumbai, New Delhi, Vadodra and Coimbatore. Thus as a result of government efforts, efficient working, skilful management, it is hoped that the industry shall develop by leaps and bounds and occupy an important place in the world export market.

The Jute industry The Jute industry occupies significant place in the Indian economy. The Indian Jute Industry is a very old & predominant in the eastern part of India. The Government of India has included the Jute Industry for special attention in its National Common Minimum Programme. It forms an integral part of the Indian Textile Industry. Further, the Jute industry contributes to the national exchequer from exports & taxes. British East India Company was the first jute trader. During 20th century, Margaret Donnelly I a mill landowner in Dundee first set up the jute mill in India. In the year 1793 the first consignment of Jute was exported by East India Company. In the beginning of year 1830, Dundee spinners have determined spinning of Jute yarn by transfiguring their power driven flax machinery. This lead to increase in the export and production of raw jute from Indian sub-continent, which was the single supplier of jute. The major jute growing areas were mainly in Bengal at the Kolkata side. In 1869, five mills were established with around 950 looms, the growth was very much fast that by the year 1910, 38 companies were operating around 30,685 looms, rendering more than a billion yards of cloth and over 450 million bags. In the year 1880, jute industry has acquired almost the whole of Dundee and Calcutta. Then later in 19th century, the manufacturing of jute has started in other countries also like in France, America, Italy, Austria, Russia, Belgium and Germany. Most of the Jute barons had started to quit India, leaving the set up of jute mills after Independence. Most of them were taken up by Marwaris businessmen. Jute is also known as the 'Golden Fiber' a plant that produces a fiber mainly used for sacking and cordage. This raw material is used for sacks globally which is a most versatile fiber of nature. Jute is cheap and important among all textile fibers next to cotton. Iron and Steel Industries The first unit, which was able to produce pig iron successfully, in India came up at Kulti in 1874 and was named Bengal Iron Work Company. Another plant came up at Sakchi (now Jamshedpur) in 1907, set up by the Tatas and called the Tata Iron and Steel Company (TISCO). In 1919, the Indian Iron and Steel Company (IISCO) plant was set up at Burnpur. In 1923, another plant came up, called the Mysore Steel Works (later named the Visveshwaraiya Iron and steel Limited VISL) Located near the sources of raw materials and fuel (coal). In Jamshedpur (Jharkhand), Durgapur, Burnpur (W.B.), Bhadravati (Karnataka), Bokaro (Jharkhand), Rourkela (Orissa), Bhilai (Chhattisgarh), Salem (T.N.), Vishakhapatnam (A.P.). In Khetri, Alwar, Jhunjhunu (Rajasthan), Singhbhum (Jharkhand), Agnigundala (A.P.).

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Iron And Steel Industries In India Tata Iron And steel Co.( first Iron n Steel Plant, oldest in country,) Location: Jamshedpur( Jharkhand), on the Subarnarekha river

General Studies
Industry

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Raw Materials 1. Iron-ore : Singhbhum (Noamandi mines- Jharkhand), Mayurbhanj (Gurumahisani mines-Orissa) 2. Coal: Jharia (Jharkhand) 3. Limestone: Singhbhum (Jharkhand) 4. Manganese: Noamundi 5. Water; River of Subarnarekha Bhilai Steel Plant ( with Russian Collaboration), also known as Pulsating Giant Location: Durg (Chhattisgarh) Raw Materials 1. Iron-ore : Durg, Chandrapur, Bastar 2. Coal: Korba, Jharia, Raniganj 3. Limestone: Nandini quarries 4. Manganese: Balaghat 5. Water: Tendula Track tank Durgapur Steel Plant (with British Collaboration) Location: Burdwan ( West Bengal ) Raw Materials 1. Iron-ore : Singhbhum ( Jharkhand), Keonjhar (Orissa) 2. Coal: Raniganj, Jharia 3. Limestone: Birmitrapur 4. Manganese: Barbil (Orissa), Balaghat ( M.P) 5. Water: River Damodar Rourkela Steel Plant (with German Collaboration) Location: Sundargarh( Orissa) Raw Materials 1. Iron-ore :Bonaigarh , Mayurbhanj, Keonjhar 2. Coal: Raniganj, Jharia, Talcher and Korba 3. Limestone: Birmitrapur, Hirri 4. Manganese: Noamundi 5. Water:river Brahmadi Bokaro Steel Plant ( with Russian Collaboration) Location: on the right bank of River Damodar, near the confluence of rivers Damodar & Bokaro (Jharkhand) Raw Materials 1. Iron-ore :Bonaigarh, Noamundi 2. Coal: Bokaro, Jharia 3. Limestone: Palamau 4. Manganese: Noamundi 5. Water: River Damodar Visveshwaraiya Iron and Steel Plant Location: on left bank of River Bhadra at Bhadravati ( Karnataka )

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Raw Materials 1. Iron-ore : Babubudan Hills 2. Limestone: Bandigudda No coal used. Uses hydro-electric power Indian iron and steel Company Location: Burnpur , near Asansol ( West Bengal ) Raw Materials 1. Iron-ore : Singhbhum ( Jharkhand), Mayurbhanj 2. Coal: Raniganj, Jharia 3. Limestone: Gangapur (Orissa) 4. Manganese: Balaghat ( M.P) 5. Water: River Damodar Copper Smelting Industry

General Studies
Industry

12

In Khetri, Alwar, Jhunjhunu (Rajasthan), Singhbhum (Jharkhand), Agnigundala (A.P.). Indian copper Corporation (ICC) was set up with concentration plant and smelter erected which produced copper at Ghatshila in Bihar. In 1972, the ICC was taken by Hindustan Copper Limited ( HCL) and now HCL is the sole producer of primary copper in the country. Aluminium Smelting in India Located mainly near the sources of raw materials, means of transport and cheap electricity. In Hirakud, Koraput (Orissa), Renukoot (UP), Korba (MP), Ratnagiri (Maharashtra), Mettur (TN), Alwaye Indian Aluminium Company Limited (INDAL) is an integrated plant having three units at different places for the production of aluminium, reduction of alumina into aluminium and fabrication of aluminium ingots into sheets. o Aluminium is excreted from bauxite at Muri in Bihar. o The reduction plant of Alumina is located at Alupuram in Kerala. o The fabrication plant at Belur manufactures aluminium sheets Hindustan Aluminium Corporation Limited (HINDALCO): located at Renukoot near Mirzapur in Uttar Pradesh. Bharat Aluminium Company ( BALCO) : has set up two units at Korba and Ratnagiri to utilize bauxite ores of Amarkantak( M.P.) & Udaigiri- Dhangarvadi region(Maharashtra) National Aluminium Company(NALCO) : A huge public sector aluminium company, the NALCO was set up with assistance from French Company At Damnjodi near Jeypore (Koraput district in Orissa) Madras Aluminium Company ( MALCO) of Mettur and Aluminium Corporation of India at Jayakanagar( near Asansol, West Bengal) Lead & Zinc Smelting Industry (India) In India the main source of lead and zinc ores is the Zawar deposits of Rajasthan. The mines under production other than Zawar Mines are Agnigundla Lead mines (A.P), Rajpura- Dariba Mines ( Udaipur), Rajasthan and Sargipalli mines lead in Orissa. two smelters are under production : Debari Zinc smelters (Udaipur) & Vizag lead Smelters plant ( Visakhapatnam) . The Debari plant was erected by Hindustan Zinc Ltd. (HZL) with technical assistance from Krebspenarroya of France and Lurgi of Germany.

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Steel Industry

General Studies
Industry

13

India is the fifth largest producer of steel in the world. India Steel Industry has grown by leaps and bounds, especially in recent times with Indian firms buying steel companies overseas. The scope for steel industry is huge and industry estimates indicate that the industry will continue will to grow reasonably in the coming years with huge demands for stainless steel in the construction of new airports and metro rail projects. The government is planning a massive enhancement of the steel production capacity of India with the modernization of the existing steel plants. Automobile Industry in India Automobile industry in India flourished properly after independence. Before the independence of the country, automobiles were not manufactured in India. They were just assembled from the imported parts. In the year, 1949, manufacture of some parts of passenger cars was undertaken by the Hindustan Motors in Kolkata. It was from the same year that India started manufacturing passenger cars using some indigenously made parts. Since that time, India has made considerable growth in the sector of automobile industry. Tremendous progress has been made in the manufacture of passenger cars, motor cycle, scooters and much more. Automobile industry basically prefers its location near steel and iron producing centres as steel is basic to the manufacture of automobiles. Another factor that is taken into consideration before the set-up of automobile industry is the availability of ready market factor. Initially, the factories that started production of vehicles based on imported parts were situated at port towns like Mumbai, Kolkata and Chennai. At these towns, in addition to the facilities of importing automobile parts, skilled as well as semi-skilled labour, power, banking facilities, limited automobile subsidiary industry, market and machinery existed. However, the factories situated near steel producing centres have advantages of effortless access to steel and iron. Jamshedpur, Jabalpur, Mumbai, Chennai, Ahmedabad, Lucknow are some of the major automobile industry centres in India. Cars, scooters, military vehicles, trucks, buses, jeeps, etc. are manufactured in the country. Government of India has been liberal in allowing the Indian entrepreneurs to manufacture technologically superior and fuel efficient vehicles and two wheelers in collaboration with the foreign manufacturers. The major percentage of the total components of the vehicles is now manufactured in the indigenous automobile industries of India. Only some of the specialized parts are imported. Indian made vehicles get ready market in other countries. Paper Industry in India Machine-made paper was first manufactured in India in 1812. At that time, there were 15 mills with a total production of lakh tonnes. Soft wood is the principal raw material used for making paper in India especially newsprint and high class printing papers. With rising population and broadening of education, the demand for paper has been constantly escalating since. Owing to very narrow forest resources, wood pulp is in a shortage. As soft woods grow in temperate climate, India is in short supply of such woods. Thus, in such circumstances, Bamboo became the major raw materials for the manufacture of paper in the country as it grows very quickly even after cutting. Therefore, bamboo, sabai grass, cotton grass, cereal straws and sugarcane bagasses are being used more and more. Waste paper and rags are also recycled as raw materials.

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General Studies
Industry

14

Paper industry in India is mainly plantation based. Thus, it is essential that more land must be brought under plantations of eucalyptus and other trees apposite for the making of papers. Calcium bisulphate, caustic soda and sodium sulphate are the principal chemicals used for manufacturing. The paper industry also requires huge amount of soft water. The paper utilized for newspapers is called newsprint. Its requirement is bound to grow noticeably. The Nepanagar Newsprint plant in Madtiya was set up to meet these aforementioned demands. Its capacity has been raised to 75,000 tonnes a year. West Bengal and Maharashtra are the leaping states in this industry. But plants have come up in other parts of the country also. The total newsprint production has now reached well over 400,000 tonnes. However, imports of huge number of papers are still obligatory. In India, all states except for a few have paper mills. These paper mills are situated at places that have advantages of easy access to the raw materials specifically bamboo. West Bengal has a several paper mills that use bamboo from the forests of neighbouring states. Assam has huge inexhaustible reserves of bamboo and other woods also, which are suitable for the production of paper and paperboard. Demand for paper as well as paper board has increased considerably after the independence of the country. And it resulted in the set up of few paper mills across the country. Sugarcane Industry in India Sugar industry is one of the leading industries of India. This industry is entirely based on the availability of sugarcanes. That is why the sugar factories are situated only in the cane growing areas and almost within 25 kms distance from the sugarcane farms. However, proportion of area under sugar cane production is small relatively. As such, sugar factories are highly dispersed even in those areas that have an appreciable hectarage under cane. The raw ingredients are supplied to the sugar industries at the prices fixed by the Government of India. India is the largest producer of sugarcane. Placing sugar khandsari and gur or jaggery together, India stands first in the world production. The number of sugar mills in the country increased slowly and gradually over the years. Since it deals with a consumable raw material, it is extensively scattered and is fundamentally a ruralbased industry. The sugar industry still follows the dual-pricing system and compulsory levy to the public distribution sector. However, the line between the two sets of prices is now pretty low. The industry had commenced in the private sector and was mostly limited to Uttar Pradesh and Bihar. Now it is reasonably extensive. As many as 256 mills are within the cooperative sector. The pockets of sugar industry are well irrigated and have also become pockets of rural opulence to a certain degree. It is a seasonal industry and as such is befitted with the co-operative sector. The sugar content in cane is moderately higher in Maharashtra and other southern states. The industry therefore has been amplifying speedily in these parts. Plains of Uttar Pradesh and Bihar account for a huge portion of sugar of the total production of the country. In the northern region of India, sugar factories are situated mainly in the northern part of the Ganga Plain, northern and eastern regions of Punjab as well as eastern parts of Haryana. In Bihar, they are basically concentrated in the north western districts specifically in Muzaffarpur, Darbhanga, Champaran, Patna, Saran and Gopalganj. In Uttar Pradesh, there are two areas of concentration of sugar industries and these are Meerut, Muzaffarnagar and Saharanpur districts and Bijnor, Basti, Faridabad, Gonda, Muradabad, Sitapur, Deoria and Gorakhpur districts. Moreover, the river valleys in the western part of the Maharashtra Plateau have a significant concentration of sugar mills. In Andhra Pradesh sugar factories are situated mainly in the coastal districts north of Krishna Delta and the districts of Nizamabad and Medak.

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General Studies
Industry

15

The sugar industries in Tamil Nadu are mainly situated in districts of Arcot, Coimbatore and Tiruchchirappalli. The number of sugar factories in operation and overall production of sugar of India have increased appreciably.

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