Geo (5)

Page 1: Introduction to Economic Activities

Overview of Primary and Secondary Activities

• Primary Activities: Products are directly obtained from nature. Examples include agriculture and fishing.

• Uses of Primary Products:

  • Some products are utilized directly.

  • Others are processed into more durable products.

• Role of Secondary Activities:

  • Convert raw materials from primary activities into finished products.

  • Include manufacturing, processing, and construction industries.

  • Factories are where this transformation occurs.

• Key Regions and Industries in Solapur:

  • Map shows distribution of sugar industries, which are crucial for local agriculture.

Example Case: Farmer Shamrao

• Scenario: Shamrao must decide where to send his harvested sugarcane based on quality and proximity to markets.

• Factors to Consider: Cost of transportation, proximity to sugar mills, geographical locations.

Page 2: Factors Affecting Industrial Location

Proximity to Raw Materials

• Industries such as jute and sugar mills are located near raw material sources to reduce transportation costs and time.

• Examples include local fruit processing industries near Mahabaleshwar.

Supply of Water and Power

• Industries require significant water for various processes like cooling and cleaning.

• Power sources can be coal (bulky and local) or electricity (which can be transported over distances).

Labor Requirements

• Different industries require varied types of labor: semi-skilled vs. skilled.

• Labor colonies often develop near large industrial sites to support workforce needs.

Transportation Considerations

• Economic distance affects cost; heavy, bulky materials like coal have higher transportation costs.

• Light, perishable goods may be transported more easily, allowing for innovative locations like near waterways or ports.

Site and Land Requirements

• Industries require large, flat areas with good transport links.

• There’s a trend toward rural locations due to urban land scarcity and high costs.

Economic Factors

1. Market Proximity: Essential for quick sale and disposal of goods, particularly for perishables.

2. Capital Requirements: The availability of banking and financial resources boosts industrial establishment in certain regions.

Page 3: Government and Political Influences

Role of Government Policies

• Government support can incentivize industries through subsidies, tax breaks, and infrastructure development.

• Restrictions may also apply in ecologically fragile areas.

Special Economic Zones (SEZs)

• SEZs promote export-oriented industrialization, attracting various companies due to favorable conditions.

• Example: SEEPZ near Santa Cruz.

Other Influential Factors

1. Split Production Locations: Different production stages may be spread across locations to reduce costs.

2. Economies of Scale: Concentration of industries leads to enhanced efficiencies and profit potentials through agglomeration.

3. Footloose Industries: Industries that do not require proximity to resources (e.g., diamond cutting) can be relocated easily.

Page 4: Industrial Regions and Distribution

Definition of Industrial Regions

• Areas with high concentrations of industries due to favorable conditions, employing significant labor.

• Characterized by:

  • Agglomeration of industries, population density, and extensive infrastructure.

Global Industrial Distribution

North America

• Key regions: USA, Canada - rich in resources, skilled labor, and strong market connections.

Europe

• Regions like the Ruhr in Germany benefit from natural resources, skilled labor, and port facilities.

Asia

• China and Japan are major players with resources, infrastructure, and a large labor market.

  • Industries include textiles, electronics, and petrochemicals.

Page 5: Industrial Regions by Continent

North America

• Rich in minerals, possesses vast agricultural resources and strong transport networks.

• Major Industries: Food and beverages, automobiles, steel, and electronics.

Europe

• Diverse industrial landscape in Western Europe (e.g., Germany, Italy) driven by transport infrastructure.

• Key Industries: Manufacturing of metals, chemicals, and textiles.

Asia

• China: Rich in coal and iron resources, diverse production including textiles and machinery.

• Japan: Focus on electrical engineering and automobiles utilizing advanced tech and resources.

Other Regions and Their Characteristics

• India: Rich in minerals and labor, growing tech industries.

• Africa and South America: Feature certain minerals with potential for industrial growth.

Page 6: Industrial Development Challenges and Opportunities

Economic Corridors in India

• Industrial corridors are intended for integrated development along transport routes.

• Projects aim to boost exports and create jobs. Examples include the Delhi-Mumbai Industrial Corridor.

Classification of Industries

By Source of Raw Materials

1. Agro-based: Sugar mills, textile industries.

2. Forest-based: Timber products, paper manufacturing.

3. Marine-based: Fish processing units.

4. Mineral-based: Iron and steel industries.

5. Pastoral-based: Dairy and leather industries.

By Investment Size

• Large-scale: Industries needing significant capital (over ₹10 crores).

• Micro, Small, Medium Enterprises (MSMEs): Defined by limits on investment size in machinery.

Page 7: Classifying Industries by Output and Ownership

Nature of Output and Industry Type

• Basic/Heavy Industries: Provide materials for further production (e.g., iron, steel).

• Consumer Goods/Light Industries: Produce goods for direct consumption (e.g., electronics, textiles).

• Ancillary Industries: Produce components for other industries.

Ownership Classification

1. Public Sector: State-owned enterprises.

2. Private Sector: Individually-owned businesses.

3. Joint Sector: Collaboration between government and private.

4. Cooperative Sector: Managed by a group of individuals.

5. MNCs: Multinational corporations affecting global production.

Conclusion

• Understanding industrial factors and classifications aids in the strategic planning of future industries, choosing the right geographical region based on various influencing factors.