Industries

WHAT IS AN INDUSTRY?

  • Definition: An industry is any economic or productive activity involving a group of people that produces a particular thing or provides a particular service.

    • Examples:

    • Tea Industry: Produces tea through collective labor.

    • Film and Television Industry: Engages individuals to create films and shows.

    • Tourism Industry, Advertising Industry, Car Industry, Hotel Industry

  • Role: Industry is chiefly an economic activity that produces goods and services, essential for the development and progress of any country.

  • Etymology: The word industry derives from the Latin term Industria, meaning hard work.

  • Importance: Without industries, a country cannot effectively develop.

  • Notable Industries in India:

    • Iron and Steel

    • Tea

    • Textiles

    • Petrochemicals

    • Cement

    • Paper

    • Jute

    • Information Technology

    • Banking and Insurance

HISTORICAL CONTEXT OF INDUSTRY

  • The Industrial Revolution began in Great Britain over 200 years ago, leading to significant technological and architectural innovations.

  • Industrialization in India: Received a major boost post-independence through initiatives like the Five-Year Plans.

NEED FOR INDUSTRIES IN THE WORLD

Industries are paramount for multiple reasons:

  • Modernizing Agriculture: Manufacturing industries provide advanced farming equipment such as combine harvesters and automated milking machines.

  • Employment: Industries create numerous jobs, aiding in the eradication of unemployment and poverty.

QUICK FACTS

  • The Industrial Revolution began in Great Britain in the 18th century, subsequently spreading to Europe, North America, Japan, and then globally.

  • India's industrialization accelerated post-independence with significant contributions from governmental five-year plans.

CLASSIFICATION OF INDUSTRIES

On the Basis of Size

  • Cottage Industry

    • Definition: A household unit run by families, producing handicrafts and traditional products. Examples include pottery, jewellery, and handloom products.

    • Importance: These industries generate employment and improve living conditions, especially in rural areas. Government support encourages their growth.

  • Small Scale Industry

    • Larger than cottage industries but smaller than large-scale industries; characterized by the number of employees, capital invested, and area occupied.

    • Production involves machinery and labor, with goods such as electronic items, sports equipment, and toys sold locally or exported. The government provides incentives to these industries.

  • Large Scale Industry

    • Involves massive investments, professional management, and a considerable workforce. Examples include automobile, iron and steel, petrochemical, and textile industries.

    • Locations are chosen based on availability of resources, including raw materials, power, and labor. Example industries: Tata Steel in Jamshedpur, Chittaranjan Locomotive Works.

On the Basis of Ownership

  • Public Sector Industry: Owned by government or state agencies, focusing on heavy industries like coal and steel; examples include Bharat Heavy Electricals and Indian Oil Corporation.

  • Private Sector Industry: Owned by individuals or groups that fund and manage the industry, examples include Reliance Industries and Tata Steel.

  • Joint Sector Industry: Companies jointly owned by government and private entities, e.g., Maruti Udyog Limited, in collaboration with Suzuki.

  • Cooperative Sector Industry: Owned by groups who share profits; common in dairy and handloom sectors.

On the Basis of Raw Material

  • Agro-based Industry: Processes agricultural goods like cotton and sugar. Example products: jams, textiles, and oils.

  • Pastoral Industry: Uses animal products for goods; includes dairy and wool textiles. Countries like Denmark and New Zealand excel in this sector.

  • Forest-based Industry: Utilizes forest products; includes furniture and paper industries, with Scandinavian countries being significant producers.

  • Mineral-based Industry: Relies on mined minerals, producing goods like iron, steel, and cement. Notable centers include Pittsburgh and Jamshedpur.

FACTORS THAT DETERMINE INDUSTRY ESTABLISHMENT

  1. Availability of Capital: Essential for establishing industries, with funds often sourced from banks and investors. Major cities like Mumbai offer capital due to business concentrations.

  2. Availability of Raw Material: Industries need to be near raw material sources to minimize transport costs, such as steel plants near iron ore mines.

  3. Availability of Power: Industries require reliable power sources; advancements are now diversifying to include renewable sources.

  4. Availability of Transport: Efficient transportation is vital for raw material and product distribution. Regions with robust transport have more industrial growth, such as the Ganga Plain.

  5. Availability of Labor: Local labor supply is beneficial for industries; densely populated areas supply unskilled labor, while skilled workers might be sourced externally.

  6. Market: Industries need easy access to markets for selling goods. Specific climates suit different types of industries, e.g., woollen goods in colder regions.

SUSTAINABLE DEVELOPMENT GOALS (SDGs)

  • Goal 9: Industry, Innovation and Infrastructure: Emphasizes upgrading industries to meet 21st-century demands through innovative technologies.

  • Promotes equal access to resources to create employment opportunities and contribute to a sustainable future.

IMPORTANT TERMS

  • Industry: Group of people or companies engaged in a specific type of business.

  • Cottage Industry: Very small-scale manufacturing typically done by family members.

  • Pastoral Industry: Industries deriving raw materials from animal products.

  • Forest-based Industry: Industries utilizing forest products for manufacturing.

VALUES AND LIFE SKILLS

  • Consideration of child labor in industries; discussions around ethics and socio-economic implications.