Manufacturing Industries

A collection of 50 flashcards covering key concepts in Indian manufacturing industries.

Why are agro-based and mineral-based industries crucial for structural transformation in India?

They connect agriculture and mining to industrial output, enabling employment diversification and regional growth.

How does ownership pattern influence industrial strategy and resilience?

Public sector ensures strategic control and infrastructure development; private sector drives efficiency and innovation.

Why is basic industry considered the backbone of industrial development?

Its outputs like steel and chemicals serve as inputs for downstream industries, shaping industrial ecosystems.

How do heavy industries affect location decisions differently from light industries?

Heavy industries demand proximity to raw materials to reduce transport cost; light industries prefer urban or market locations.

Why is the cottage industry still relevant despite industrialization?

It supports rural employment, preserves cultural skills, and meets niche demands often neglected by mass production.

Why is industrial location theory insufficient to explain Indian industrial geography?

Non-economic factors like politics, colonial legacy, and state policy override classical cost-based models.

How did colonial rail and port development skew India’s industrial spread?

It concentrated industries near port towns like Mumbai and Kolkata while neglecting interiors.

Why does proximity to raw material still dominate industry location in India despite globalization?

Bulk-reducing industries (iron, cement) still rely on heavy raw materials with high transport cost.

How does market access determine the location of consumer goods industries?

They prioritize dense urban markets to reduce distribution costs and respond to demand quickly.

What role does labor availability play in siting textile and garment industries?

Labor-intensive industries gravitate to regions with abundant, low-cost, semi-skilled workers.

Why is the cotton textile industry shifting from Mumbai to Gujarat and Tamil Nadu?

Costlier urban land, labor issues, and availability of cheap power and cotton in Gujarat and TN drive relocation.

Why is the jute industry in Bengal facing long-term decline?

Global competition, synthetic substitutes, and labor unrest have reduced competitiveness.

Why does Chhota Nagpur remain India’s industrial heartland?

Abundant coal, iron, manganese, and water resources support power and heavy industries.

How has the Visakhapatnam-Vijayawada industrial belt gained prominence?

Port access, road-rail connectivity, SEZs, and petrochemical clusters boost growth.

Why are public sector steel plants located in mineral-rich hinterlands?

Proximity to raw materials like iron ore, coal, and limestone reduces input costs.

What was the impact of liberalization on India’s industrial structure?

Reduced license raj, encouraged FDI, and shifted focus to private and export-oriented manufacturing.

How did the New Industrial Policy of 1991 alter the role of public sector?

It reduced monopoly, opened sectors to private players, and focused PSUs on strategic areas.

Why is SEZ policy often criticized despite promoting exports?

Land acquisition, tax incentives, and limited employment benefits raise questions on equity.

How does Make in India differ from earlier industrialization drives?

It emphasizes global competitiveness, FDI, and MSME support in a liberalized framework.

Why is the ease of doing business index important for manufacturing growth?

It reflects regulatory simplification, attracting investment and enabling faster operations.

Why are industrial clusters vulnerable to pollution and health hazards?

Concentration of emissions, water discharge, and poor waste management raise local ecological risks.

How does informalization affect labor conditions in Indian industries?

Contractual jobs lack security, benefits, and unionization, increasing exploitation.

Why are chemical and leather industries often located in ecologically sensitive areas?

Cheap land and lax regulation attract hazardous industries to peri-urban and semi-rural zones.

How does the NIMZ model aim to address spatial imbalance in industrial growth?

It promotes large-scale integrated zones with infrastructure to decongest existing hubs.

Why is circular economy gaining attention in industrial sustainability?

It reduces raw material use, recycles waste, and aligns with environmental norms and SDGs.

Why is eastern India industrially underdeveloped despite mineral wealth?

Weak infrastructure, insurgency, and policy neglect limit industrialization.

How does industrialization differ between northern and southern India?

South has better connectivity, skilled labor, and service-industry synergy; north depends on agro-processing.

Why has MSME growth not translated into large-scale industrial transformation?

Credit constraints, informality, tech gaps, and regulatory burdens restrict scaling.

Why do backward regions face difficulty in attracting industries?

Poor logistics, law & order, market disconnect, and human capital deficit discourage investment.

Why is infrastructure bottleneck a key barrier to manufacturing competitiveness?

Power cuts, port delays, and logistics inefficiencies raise cost and reduce reliability.

Why is sunrise sector development critical to industrial diversification?

Sectors like electronics, pharma, and EVs drive value addition, innovation, and export potential.

How does Industry 4.0 reshape India’s manufacturing future?

Automation, AI, and IoT promise efficiency but challenge traditional employment models.

What explains the relocation of global supply chains towards India?

Geopolitical shifts, China+1 strategy, and digital logistics infrastructure support diversification.

Why is electronics manufacturing critical to strategic autonomy?

India imports key electronics; local production reduces dependency and builds tech resilience.

Why is cluster-based development favored in industrial policy?

It enables economies of scale, skill concentration, and efficient resource sharing.

How do energy costs influence competitiveness of Indian manufacturing?

High tariffs and unreliable supply raise production costs and deter FDI.

Why is the cement industry a major contributor to India’s emissions?

Limestone calcination and energy-intensive kilns emit large quantities of CO₂.

Why are brownfield industrial expansions often preferred over greenfield?

They reduce capital cost, leverage existing infrastructure, and face fewer clearances.

How does industrial water use pose a conflict with agriculture?

Competing demands during droughts create policy tension, especially in water-stressed states.

Why is location near multimodal transport hubs becoming a key industrial trend?

It reduces time-to-market, optimizes inventory, and integrates domestic and global supply chains.

Why is India’s dependence on imported critical components a bottleneck for indigenous manufacturing?

Lack of domestic ecosystems for semiconductors, defense electronics, and precision tools limits self-reliance.

How does the informalization of industrial labor threaten long-term productivity?

It limits worker rights, skilling, and loyalty—reducing efficiency and creating socio-economic volatility.

Why are export-oriented units vulnerable to global demand fluctuations?

They depend on foreign orders, and geopolitical or recessionary shocks directly impact output and employment.

How do logistics parks aid in modernizing Indian manufacturing supply chains?

They consolidate warehousing, reduce lead times, and connect road, rail, and ports efficiently.

Why is industrial symbiosis gaining importance in sustainable manufacturing?

It reuses waste from one industry as input for another, improving resource efficiency and reducing pollution.

What are the risks of regional industrial monocultures?

Over-dependence on one sector makes regions vulnerable to sector-specific shocks and stagnation.

How does skill mismatch affect advanced manufacturing sectors?

Lack of trained labor in robotics, AI, or precision tech impedes sectoral growth despite capital investment.

Why has India’s share in global manufacturing remained stagnant despite reforms?

Structural issues like land acquisition, power costs, labor laws, and logistics continue to pose barriers.

Why do many Indian industrial zones lack backward-forward linkages?

They are often developed without holistic ecosystem planning, isolating firms from supply and demand chains.

How does land acquisition policy affect industrialization speed?

Delays in acquisition, legal disputes, and community resistance slow down project execution.