Chapter 4: Industries
What is an Industry?
Industry refers to an economic activity that is concerned with production of goods, extraction of minerals or the provision of services. This is a secondary activity. For example, extraction of coal from mines is a primary activity, but converting that coal into steel is a secondary activity (industry).
Classification of Industries
Industries can be classified on the basis of raw materials, size and ownership.
- Raw Materials: Agro-based, mineral-based, marine-based, and forest-based.
- Size: Small-scale and large-scale industries.
- Ownership: Private sector, state-owned or public sector, joint sector, and cooperative sector.
Factors Affecting Location of Industries
The factors affecting the location of industries are the availability of raw material, land, water, labour, power, capital, transport and market. Sometimes, the government provides incentives like subsidised power, lower transport cost and other infrastructure so that industries may be located in backward areas.
Industrial System and Industrial Regions
An industrial system consists of inputs, processes and outputs. The inputs are the raw materials, labour, costs of land, transport, power and other infrastructure. The processes include a wide range of activities that convert the raw material into finished products. The outputs are the end product and the income earned from it. Industrial regions emerge when a number of industries locate close to each other and share the benefits of their closeness.
Exercise Questions and Answers
1. Answer the following questions.
(i) What is meant by the term ‘industry’?
(ii) Which are the main factors which influence the location of an industry?
(iii) Which industry is often referred to as the backbone of modern industry and why?
(iv) Why has the cotton textile industry rapidly expanded in Mumbai?
(v) What are the similarities between the information technology industry in Bangalore and California?
(i) What is meant by the term ‘industry’?
Industry refers to an economic activity that is concerned with the production of goods (like the iron and steel industry), extraction of minerals (like the coal mining industry), or the provision of services (like the tourism industry).
(ii) Which are the main factors which influence the location of an industry?
The main factors are the availability of raw materials, land, water, labour, power, capital, transport, and market.
(iii) Which industry is often referred to as the backbone of modern industry and why?
The iron and steel industry is often referred to as the backbone of modern industry. This is because almost everything we use is either made of iron or steel or has been made with tools and machinery made of these metals. It provides the basic raw material for many other industries.
(iv) Why has the cotton textile industry rapidly expanded in Mumbai?
The cotton textile industry expanded rapidly in Mumbai initially because of the presence of a warm, moist climate suitable for spinning, a port for importing machinery and exporting textiles, availability of raw cotton from nearby regions, and skilled labour.
(v) What are the similarities between the information technology industry in Bangalore and California?
Both Bangalore and Silicon Valley in California have a high concentration of educational and IT firms, a pleasant climate, skilled and experienced managers, and access to a large talent pool. Both also have the support of government policies that promote the IT sector.
2. Distinguish between the following.
(i) Agro-based and mineral-based industry
(ii) Public sector and joint sector industry
(i) Agro-based and mineral-based industry:
• Agro-based industries use plant and animal-based products as their raw materials. Examples include food processing, cotton textiles, and dairy products.
• Mineral-based industries are primary industries that use mineral ores as their raw materials. The iron and steel industry is a key example.
(ii) Public sector and joint sector industry:
• Public sector industries are owned and operated by the government. Examples include Hindustan Aeronautics Limited (HAL) and Steel Authority of India Limited (SAIL).
• Joint sector industries are owned and operated by the state and individuals or a group of individuals. An example is Maruti Udyog Limited.
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