We use various items to satisfy our needs.

Unit III Agricultural products like wheat, rice, etc. are

Chapter 8 to be processed into flour, husked rice before
we consume these. But besides bread and rice,
we also require clothes, books, fans, cars,
medicines, etc. and these are manufactured in
various industries. In modern times industries
have become very important part of an
economy. They provide employment to large
labour force and contribute significantly in the
total national wealth/income.

Types of Industries

MANUFACTURING Industries are classified in a number of ways.

On the basis of size, capital investment and
INDUSTRIES labour force employed, industries are
classified as large, medium, small scale, and
cottage industries. On the basis of ownership,
industries are categorised as :
(i) public sector, (ii) private sector, and (iii) joint
and cooperative sector, Public sector
enterprises are government/state controlled
companies or corporations funded by
governments. Industries of strategic and
national importance are usually in the public
sector. Industries are also classified on the
basis of the use of their products such as :
(i) basic goods industries, (ii) capital goods
industries (iii) intermediate goods industries,
and (iv) consumer goods industries.
Another method of classifying industries
is on the basis of raw materials used by them.
Accordingly, these can be : (i) agriculture-
based industries, (ii) forest-based industries,
(iii) mineral-based industries, and
(iv) industrially processed raw material-
based industries.
Another common classification of
industries is based on the nature of the
manufactured products. Eight classes of
industries, thus identified are : (1) Metallurgical
Industries, (2) Mechanical Engineering
Industries, (3) Chemical and Allied Industries,
(4) Textile Industries, (5) Food Processing
Industries, (6) Electricity Generation,
(7) Electronics and (8) Communication Industries.
Sometimes, you also read about foot loose
industries. What are these? Have they any
relationship with raw material location or not?

2019-20
Location of Industries Market
Can you guess the reasons for the location of Markets provide the outlets for manufactured
iron and steel industry in eastern and southern products. Heavy machine, machine tools, heavy
India? Why is there no iron and steel industry chemicals are located near the high demand areas
in U.P., Haryana, Punjab, Rajasthan and as these are market orientated. Cotton textile
Gujarat? industry uses a non-weight-losing raw material
Location of industries is influenced by and is generally located in large urban centre,
several factors like access to raw materials, e.g. Mumbai, Ahmedabad, Surat, etc. Petroleum
power, market, capital, transport and labour, refineries are also located near the markets as the
etc. Relative significance of these factors varies transport of crude oil is easier and several
with time and place. There is strong relationship products derived from them are used as raw
between raw material and type of industry. It material in other industries. Koyali, Mathura and
is economical to locate the manufacturing Barauni refineries are typical examples. Ports also
industries at a place where cost of production play a crucial role in the location of oil refineries.
and delivery cost of manufactured goods to
consumers are the least. Transport costs, to a Transport
great extent, depend on the nature of raw Have you ever tried to find out the reasons
materials and manufactured products. A brief for the concentration of industries in Mumbai,
description of factors influencing the location Chennai, Delhi and in and around Kolkata?
of industries are given below: It was due to the fact that they initially
became the nodal point having transport
Raw Materials links. The industries shifted to interior
Industries using weight-losing raw materials are locations, only when railway lines were laid.
located in the regions where raw materials are All major industrial plants are located on the
located. Why are the sugar mills in India located trunk rail routes.
in sugarcane growing areas? Similarly, the
locations of pulp industry, copper smelting and Labour
pig iron industries are located near their raw Can we think of an industry without labour?
materials. In iron and steel industries, iron ore Industries require skilled labour. In India,
and coal both are weight-losing raw materials. labour is quite mobile and is available in large
Therefore, an optimum location for iron and steel numbers due to our large population.
industries should be near raw material sources.
This is why most of the iron and steel industries Historical Factors
are located either near coalfields (Bokaro,
Durgapur, etc.) or near sources of iron ore Have you ever thought of the reasons for
(Bhadravati, Bhilai, and Rourkela). Similarly, emerging Mumbai, Kolkata and Chennai as
industries based on perishable raw materials are industrial nodes? These locations were greatly
also located close to raw material sources. influenced by our colonial past. During the
initial phase of colonisation, manufacturing
activities received new impetus provided by the
Power
European traders. Places like Murshidabad,
Power provides the motive force for machines, Dhaka, Bhadohi, Surat, Vadodara, Kozhikode,
and therefore, its supply has to be ensured Coimbatore, Mysuru etc., emerged as important
before the location of any industry. However, manufacturing centres. In the subsequent
certain industries, like aluminium and industrial phase of colonialism, these
synthetic nitrogen manufacturing industries manufacturing centres experienced rapid
tend to be located near sources of power growth due to competition from the goods
because they are power intensive and require manufactured in Britain and the discriminatory
huge quantum of electricity. policies of colonial power.

86 India : People and Economy

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 In the last phase of colonialism, the British well as mini steel mills. It also includes
promoted few industries in selected areas. This secondary producers, rolling mills and
led to larger spatial coverage by different types ancillary industries.
of industries in the country.
Integrated Steel Plants
Industrial Policy
India, being a democratic country aims at TISCO
bringing about economic growth with balanced The Tata Iron and Steel plant lies very close to
regional development. the Mumbai-Kolkata railway line and about
Establishment of iron and steel industry 240 km away from Kolkata, which is the nearest
in Bhilai and Rourkela were based on decision port for the export of steel. The rivers
to develop backward tribal areas of the Subarnarekha and Kharkai provide water to
country. At present, government of India the plant. The iron ore for the plant is obtained
provides lots of incentives to industries locating from Noamundi and Badam Pahar and coal is
in backward areas. brought from Joda mines in Odisha. Coking coal
comes from Jharia and west Bokaro coalfields.
Major Industries
The iron and steel industry is basic to the IISCO
industrial development of any country. The The Indian Iron and Steel Company (IISCO) set
cotton textile Industry is one of our traditional up its first factory at Hirapur and later on
industries. The sugar Industry is based on local another at Kulti. In 1937, the Steel corporation
raw materials which prospered even in the of Bengal was constituted in association with
British period. Besides the more recent IISCO and set up another iron and steel producing
petrochemical Industry and the IT industry will unit at Burnpur (West Bengal). All the three
be discussed in this chapter. plants under IISCO are located very close to
Damodar valley coal fields (Raniganj, Jharia, and
The Iron and Steel Industry Ramgarh). Iron ore comes from Singhbhum in
Jharkhand. Water is obtained from the Barakar
The development of the iron and steel industry
River, a tributary of the Damodar. All the plants
opened the doors to rapid industrial
are located along the Kolkata-Asansol railway
development in India. Almost all sectors of the
line. Unfortunately, steel production from IISCO
Indian industry depend heavily on the iron
fell considerably in 1972-73 and the plants were
and steel industry for their basic
taken over by the government.
infrastructure. Can we make tools to be used
in agriculture without iron?
Visvesvaraiya Iron and Steel Works Ltd. (VISL)
The other raw materials besides iron ore
and coking coal, essential for iron and steel The third integrated steel plant, the Visvesvaraiya
industry are limestone, dolomite, manganese Iron and Steel Works, initially called the Mysore
and fire clay. All these raw materials are gross Iron and Steel Works, is located close to an iron
(weight losing), therefore, the best location for ore producing area of Kemangundi in the
the iron and steel plants is near the source of Bababudan hills. Limestone and manganese are
raw materials. In India, there is a crescent also locally available. But this region has no coal.
shaped region comprising parts of At the beginning, charcoal obtained by burning
Chhattisgarh, Northern Odisha, Jharkhand and wood from nearby forests was used as fuel till
western West Bengal, which is extremely rich 1951. Afterwards, electric furnaces were installed
in high grade iron ore, good quality coking coal which use hydroelectricity from the Jog Falls
and other supplementing raw materials. hydel power project. The Bhadravati river
The Indian iron and steel industry supplies water to the plant. This plant produces
consists of large integrated steel plants as specialised steels and alloys.

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 Fig. 8.1 : India – Iron and Steel Plants

88 India : People and Economy

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 Fig. 8.2

Fig. 8.3

Fig. 8.4

Fig. 8.5

Fig. 8.6

Fig. 8.7

Fig. 8.8

Manufacturing Industries 89

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 After independence, during the Second obtained from the Damodar Valley Corporation
Five Year Plan (1956-61), three new integrated (DVC).
steel plants were set up with foreign
collaboration: Rourkela in Odisha, Bhilai in Bokaro Steel Plant
Chhattisgarh and Durgapur in West Bengal. This steel plant was set up in 1964 at Bokaro
These were public sector plants under with Russian collaboration. This plant was set
Hindustan Steel Limited (HSL). In 1973, the up on the principle of transportation cost
Steel Authority of India Limited (SAIL) was minimisation by creating Bokaro-Rourkela
created to manage these plants. combine. It receives iron ore from the Rourkela
region and the wagons on return take coal to
Rourkela Steel Plant Rourkela. Other raw materials come to Bokaro
from within a radius of about 350 km. Water
The Rourkela Steel plant was set up in 1959 in
and hydel power is supplied by the Damodar
the Sundargarh district of Odisha in
Valley Corporation.
collaboration with Germany. The plant was
located on the basis of proximity to raw
Other Steel Plants
materials, thus, minimising the cost of
transporting weight losing raw material. This New steel plants which were set up in the
plant has a unique locational advantage, as it Fourth Plan period are away from the main
receives coal from Jharia (Jharkhand) and iron raw material sources. All three plants are
ore from Sundargarh and Kendujhar. The located in South India. The Vizag Steel Plant,
Hirakud project supplies power for the electric in Vishakhapatnam in Andhra Pradesh is the
furnaces and water is obtained from the Koel first port-based plant which started operating
and Sankh rivers. in 1992. Its port location is of advantage.
The Vijaynagar Steel Plant at Hosapete in
Karnataka was developed using indigenous
Bhilai Steel Plant
technology. This uses local iron ore and
The Bhilai Steel Plant was established with limestone. The Salem Steel Plant in Tamil Nadu
Russian collaboration in Durg district of was commissioned in 1982.
Chhattisgarh and started production in 1959.
Iron ore comes from Dalli-Rajhara mine
(Fig. 8.6) and coal from Korba and Kargali coal
fields. Water comes from the Tanduladam and
the power from the Korba Themal Power
Station. This plant also lies on the Kolkata-
Mumbai railway route. The bulk of the steel
produced goes to the Hindustan Shipyard at
Vishakhapatnam.

Durgapur Steel Plant

Source : Ministry of Steel, Government of India
Durgapur Steel Plant in West Bengal was set Fig 8.9 : Production of Finished Steel
up in collaboration with the government of the
United Kingdom and started production in Apart from these major steel plants, there
1962. This plant lies in Raniganj and Jharia are more than 206 units located in different
coal belt and gets iron ore from Noamundi (Fig. parts of the country. Most of these use scrap
8.7). Durgapur lies on the main Kolkata-Delhi iron as their main raw material, and process it
railway route. Hydel power and water is in electric furnaces.

90 India : People and Economy

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The Cotton Textile Industry
The cotton textile industry is one of the
Cotton Fabric
traditional industries of India. In the ancient
and the medieval times, it used to be only a
cottage industry. India was famous worldwide
for the production of muslin, a very fine variety
of cotton cloth, calicos, chintz and other
different varieties of fine cotton cloth. The
development of this industry in India was due
to several factors. One, it is a tropical country
and cotton is the most comfortable fabric for a
hot and humid climate. Second, large quantity
of cotton was grown in India. Abundant skilled
labour required for this industry was available
in this country. In fact, in some areas the
people were producing cotton textiles for
Source : Annual Report 2013-14, (CITI)
generations and transferred the skill from one
Fig 8.10 : Production of Cotton Fabric
generation to the other and in the process
perfected their skills. centre. It was very close to the cotton producing
Initially, the British did not encourage the areas of Gujarat and Maharashtra. Raw cotton
development of the indigenous cotton textile used to be brought to Mumbai port to be
industry. They exported raw cotton to their mills transported to England. Therefore, cotton was
in Manchester and Liverpool and brought back available in Mumbai city itself. Moreover,
the finished products to be sold in India. This Mumbai even then was the financial centre and
cloth was cheaper because it was produced at the capital needed to start an industry was
mass scale in factories in U.K. as compared to available there. As a large town, providing
the cottage based industries of India. employment opportunities attracted labour in
In 1854, the first modern cotton mill was large numbers. Hence, cheap and abundant
established in Mumbai. This city had several labour too was available locally. The machinery
advantages as a cotton textile manufacturing required for a cotton textile mill could be directly

Spinning yarn in powerloom Handloom Cotton Textile Industry

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 Fig. 8.11 : Cotton Textile Industries

92 India : People and Economy

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imported from England. Subsequently, two local investment. Mills were also set up at
more mills, the Shahpur Mill and the Calico Mill Kolkata due to its port facilities. The
were established in Ahmedabad. By 1947, the development of hydro-electricity also favoured
number of mills in India went up to 423 but the location of the cotton textile mills away from
the scenario changed after partition, and this the cotton producing areas. The rapid
industry suffered a major recession. This was development of this industry in Tamil Nadu is
due to the fact that the most of the good quality the result of the abundant availability of hydel
cotton growing areas had gone to West Pakistan power for the mills. Lower labour costs at
and India was left with 409 mills and only 29 centres like Ujjain, Bharuch, Agra, Hathras,
per cent of the cotton producing area. Coimbatore and Tirunelveli also caused
After Independence, this industry industries to be located away from cotton
gradually recovered and eventually flourished. producing areas.
The cotton textile industry in India can be Thus, the cotton textile industry is located
broadly divided into two sectors, the organised in almost every state in India, where one or more
sector and the unorganised sector. The of the locational factors have been favourable.
decentralised sector includes cloth produced The importance of raw materials has given way
in handlooms (including Khadi) and to market or to a cheaper local labour force or
powerlooms. The production of the organised
it may be the availability of power.
sector has drastically fallen from 81 per cent in
Presently, the major centres of the cotton
the mid-twentieth century to only about 6 per
textile industry are Ahmedabad, Bhiwandi,
cent in 2000. At present, the powerlooms on
Solapur, Kolhapur, Nagpur, Indore and Ujjain.
the decentralised sector produce more than the
All these centres are the traditional centres and
handloom sector.
are located close to the cotton producing
Cotton is a “pure” raw material which does
regions. Maharashtra, Gujarat and Tamil Nadu
not lose weight in the manufacturing process.
so other factors, like, power to drive the looms, are the leading cotton producing states. West
labour, capital or market may determine the Bengal, Uttar Pradesh, Karnataka, and Punjab
location of the industry. At present the trend is are the other important cotton textile producers.
to locate the industry at or close to markets, as (Fig. 8.11)
it is the market that decides what kind of cloth Tamil Nadu has the largest number of
is to be produced. Also the market for the mills and most of them produce yarn rather
finished products is extremely variable, than cloth. Coimbatore has emerged as the
therefore, it becomes important to locate the most important centre with nearly half the mills
mills close to the market. located there. Chennai, Madurai, Tirunelveli,
After the first mills were set up in Mumbai Tuticorin, Thanjavur, Ramanathapuram and
and Ahmedabad in the second half of the Salem are the other important centres. In
nineteenth century, the cotton textile industry Karnataka, the cotton textile industry has
expanded very rapidly. The number of units
developed in the cotton producing areas in the
increased dramatically. The Swadeshi
north-eastern part of the state. Davangere,
movement gave a major impetus to the industry
Hubballi, Ballari, Mysuru and Bengaluru are
as there was a call for boycotting all British
made goods in favour of Indian goods. After important centres. The cotton textile industry
1921, with the development of the railway is located in the cotton producing Telengana
network other cotton textile centres expanded region, where most of the mills are spinning
rapidly. In southern India, mills were set up mills producing yarn. The important centres
at Coimbatore, Madurai and Bengaluru. In are Hyderabad, Secunderabad and Warangal
central India, Nagpur, Indore, Solapur and in Telangana and Guntur in Andhra Pradesh.
Vadodara became cotton textile centres. Cotton In Uttar Pradesh, Kanpur is the largest
textile mills were set up at Kanpur based on centre. Some of the other important centres are

Manufacturing Industries 93

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Modinagar, Hathras, Saharanpur, Agra and Uttar Pradesh is the second largest
Lucknow. In West Bengal, the cotton mills are producer of sugar. The sugar factories are
located in the Hugli region. Howrah, concentrated in two belts – the Ganga-Yamuna
Serampur, Kolkata and Shyamnagar are the doab and the tarai region. The major sugar
important centres. producing centres in the Ganga -Yamuna doab
Production of cotton cloth increased almost are Saharanpur, Muzaffarnagar, Meerut,
five times since independence. Cotton textile has Ghaziabad, Baghpat and Bulandshahr
been facing tough competition from synthetic districts; while Kheri Lakhimpur, Basti, Gonda,
cloth. What are the other problems of cotton Gorakhpur, Bahraich are important sugar
textile industry in India? producing districts in the Tarai region.
In Tamil Nadu, sugar factories are located
Sugar Industry in Coimbatore, Vellore, Tiruvanamalai,
Villupuram and Tiruchchirappalli districts.
The sugar industry is the second most important
Belagavi, Ballari, Mandya, Shivamogga,
agro-based industry in the country. India is the
Vijayapura and Chitradurg districts are the
largest producer of both sugarcane and cane
major producers in Karnataka. The industry is
sugar and contributes about 8 per cent of the
distributed in the coastal regions i.e. East
total sugar production in the world. Besides,
Godavari, West Godavari, Vishakhapatnam
khandasari and gur or jaggery are also prepared
districts of Andhra Pradesh and Nizamabad and
from sugarcane. This industry provides
Medak districts of Telangana.
employment for more than 4 lakh persons
The other States which produce sugar are
directly and a large number of farmers indirectly. Bihar, Punjab, Haryana, Madhya Pradesh and
Sugar industry is a seasonal industry because Gujarat. Saran, Champaran, Muzaffarnagar,
of the seasonality of raw materials. Siwan, Darbhanga, and Gaya are the important
Development of the industry on modern sugarcane producing districts in Bihar. The
lines dates back to 1903, when a sugar mill relative significance of Punjab has declined,
was started in Bihar. Subsequently, sugar mills although Gurdaspur, Jalandhar, Sangarur,
were started in other parts of Bihar and Uttar Patiala and Amritsar are major sugar
Pradesh. In 1950-51, 139 factories were in producers. In Haryana, sugar factories are
operation. The number of sugar factories rose located in Yamuna Nagar, Rohtak, Hissar and
to 662 in 2010-11. Faridabad districts. Sugar industry is
comparatively new in Gujarat. Sugar mills are
Location of the Sugar Industry
located in the cane growing tracts of Surat,
Sugarcane is a weight-losing crop. The ratio of Junagarh, Rajkot, Amreli, Valsad and
sugar to sugarcane varies between 9 to 12 per Bhavnagar districts.
cent depending on its variety. Its sucrose
content begins to dry during haulage after it Petrochemical Industries
has been harvested from the field. Better
recovery of sugar is dependent upon its being This group of industries has been growing very
fast in India. A variety of products come under
crushed within 24 hours of its harvesting.
this category of industries. In 1960s, demand
Sugar factories hence, are located within the
for organic chemicals increased so fast that it
cane producing regions. became difficult to meet this demand. At that
Maharashtra has emerged as a leading time, petroleum refining industry expanded
sugar producer in the country and produces rapidly. Many items are derived from crude
more than one-third of the total production of petroleum, which provide raw materials for
the sugar in the country. many new industries, these are collectively

94 India : People and Economy

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known as petrochemical industries. This group as raw materials in the plastic industry. Among
of industries is divided into four sub-groups: polymers, polyethylene is a widely used
(i) polymers, (ii) synthetic fibres, (iii) elastomers, thermoplastic. Plastic is first converted into
and (iv) surfactant intermediate. Mumbai is the sheets, powder, resin and pellets, and then used
hub of the petrochemical industries. Cracker in manufacturing plastic products. Plastic
units are also located in Auraiya (Uttar products are preferred because of their strength,
Pradesh), Jamnagar, Gandhinagar and Hajira flexibility, water and chemical resistance and low
(Gujarat), Nagothane, Ratnagiri (Maharashtra), prices. Production of plastic polymers started in
Haldia (West Bengal) and Vishakhapatnam India in the late fifties and the early sixties using
(Andhra Pradesh). other organic chemicals. The National Organic
Three organisations are working in the Chemicals Industries Limited (NOCIL),
petrochemical sector under the administrative established in private sector in 1961, started the
control of the Department of Chemicals and first naphtha based chemical industry in
Petrochemicals. First is the Indian Petrochemical Mumbai. Later, several other companies were
Corporation Limited (IPCL), a public sector formed. The plants located at Mumbai, Barauni,
undertaking. It is responsible for the manufacture Mettur, Pimpri and Rishra are the major
and distribution of the various petrochemicals like producers of plastic materials.
polymers, chemicals, fibres and fibre About 75 per cent of these units are in
intermediates. Second is the Petrofils Cooperative small scale sector. The industry also uses
Limited (PCL), a joint venture of the Government recycled plastics, which constitutes about 30
of India and Weaver’s Cooperative Societies. It per cent of the total production.
produces polyester filament yarn and nylon chips Synthetic fibres are widely used in the
at its two plants located at Vadodara and Naldhari manufacturing of fabrics because of their
in Gujarat. Third is the Central Institute of Plastic inherent strength, durability, washability, and
Engineering and Technology (CIPET), involved in resistance to shrinkage. Industries
imparting training in petro-chemical industry. manufacturing nylon and polyester yarns are
Polymers are made from ethylene and located at Kota, Pimpri, Mumbai, Modinagar,
propylene. These materials are obtained in the Pune, Ujjain, Nagpur and Udhna. Acrylic staple
process of refining crude oil. Polymers are used fibre is manufactured at Kota and Vadodara.

Manufacturing Industries 95

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 Though plastics have become inseparable Within this policy, measures initiated are :
items in our daily use and they have affected (1) abolition of industrial licensing, (2) free entry
our life style. But due to its non-biodegradable to foreign technology, (3) foreign investment
quality it has emerged as the greatest threat to policy, (4) access to capital market, (5) open
our environment. Hence, use of plastic is being trade, (6) abolition of phased manufacturing
discouraged in different states of India. Do you programme, and (7) liberalised industrial
know how does plastic adversely affect our location programme. The policy has three main
environment? dimensions: liberalisation, privatisation and
globalisation.
Knowledge based Industries The industrial licensing system has been
abolished for all except six industries related to
The advancement in information technology has
security, strategic or environmental concerns. At
had a profound influence on the country’s
the same time, the number of industries reserved
economy. The Information Technology (IT)
for public sector since 1956 have been reduced
revolution opened up new possibilities of
from 17 to 4. Industries related to atomic energy,
economic and social transformation. The IT and
substances specified in the Schedule of the
IT enabled business process outsourcing (ITES-
Department of Atomic Energy as well as Railways
BPO) services continue to be on a robust growth have remained under the public sector. The
path. Indian software industry has emerged as government also has decided to offer a part of
one of the fastest growing sectors in the economy. the shareholdings in the public enterprises to
The software industry has surpassed electronic financial institutions, general public and
hardware production. The Indian government workers. The threshold limits of assets have been
has created a number of software parks in the scrapped and no industry requires prior
country. approval for investing in the delicensed sector.
India’s software industry has achieved a They only need to submit a memorandum in
remarkable distinction for providing quality the prescribed format.
products. A large number of Indian software In the new industrial policy, Foreign Direct
companies have acquired international quality Investment (FDI) has been seen as a supplement
certification. A majority of the multinational to the domestic investment for achieving a
companies operating in the area of information higher level of economic development. FDI
technology have either software development benefits the domestic industry as well as the
centres or research development centres in consumers by providing technological
India. upgradation, access to global managerial skills
A major impact of this growth has been on and practices, optimum use of natural and
employment creation, which is almost doubled human resources, etc. Keeping all this in mind,
every year. foreign investment has been liberalised and the
government has permitted access to an
Liberalisation, Privatisation, automatic route for Foreign Direct Investment.
Globalisation (LPG) and Industrial The government has also announced changes
Development in India in the industrial location policies. Industries are
discouraged in or very close to large cities due
The new Industrial Policy was announced in to environmental reasons.
1991. The major objectives of this policy were The industrial policy has been liberalised
to build on the gains already made, correct the to attract private investor both domestic and
distortions or weaknesses that have crept in, multi-nationals. New sectors like, mining,
maintain a sustained growth in productivity telecommunications, highway construction and
and gainful employment and attain management have been thrown open to private
international competitiveness. companies. In spite of all these concessions,

96 India : People and Economy

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Fig. 8.12 India: Some Software Technology Parks

Manufacturing Industries 97

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Foreign Direct Investment has not been up to companies to enter into foreign collaboration
the expectation. There has been a big gap in India and also encouraging them to set up
between approved and actual foreign direct joint-ventures abroad; (4) carrying out massive
investment, even though the number of foreign import liberalisation programmes by switching
collaborations is increasing. Larger parts of this over from quantitative restrictions to tariffs in
investment have gone to domestic appliances, the first place, and then bringing down the level
finance, services, electronics and electrical of import duties considerably; and (5) instead
equipment, and food and dairy products. of a set of export incentives, opting for exchange
Globalisation means integrating the rate adjustments for promoting export.
economy of the country with the world
economy. Under this process, goods and Industrial Regions in India
services along with capital, labour and
resources can move freely from one nation to Industries are not evenly distributed in the
another. The thrust of globalisation has been country. They tend to concentrate on certain
to increase the domestic and external locations because of the favourable locational
competition through extensive application of factors.
market mechanism and facilitating dynamic Several indices are used to identify the
relationship with the foreign investors and clustering of industries, important among them
suppliers of technology. In the Indian context, are : (i) the number of industrial units, (ii)
this implies: (1) opening of the economy to number of industrial workers, (iii) quantum of
foreign direct investment by providing facilities power used for industrial purposes, (iv) total
to foreign companies to invest in different fields industrial output, and (v) value added by
of economies activity in India; (2) removing manufacturing, etc.
restrictions and obstacles to the entry of multi- Major industrial regions of the country are
national companies in India; (3) allowing Indian given below in some details (Fig. 8.13).

Industrial Regions and Districts

Major Industrial Regions (8)

1. Mumabi-Pune Region, 2. Hugli Region, 3. Bengaluru-Tamil Nadu Region, 4. Gujarat Region,
5. Chotanagpur Region, 6. Vishakhapatnam-Guntur Region, 7. Gurugram-Delhi-Meerut Region, and
8. Kollam-Thiruvananthapuram Region.

Minor Industrial Regions (13)

1. Ambala-Amritsar, 2. Saharanpur-Muzaffarnagar-Bijnor, 3. Indore-Dewas-Uijjain, 4. Jaipur-Ajmer,
5. Kolhapur-South Kannada, 6. Northern Malabar, 7. Middle Malabar, 8. Adilabad-Nizamabad,
9. Allahabad-Varanasi-Mirzapur, 10. Bhojpur-Munger, 11. Durg-Raipur, 12. Bilaspur-Korba, and
13. Brahmaputra Valley.

Industrial Districts (15)

1. Kanpur, 2. Hyderabad, 3. Agra, 4. Nagpur, 5. Gwalior, 6. Bhopal, 7. Lucknow, 8. Jalpaiguri,
9. Cuttack, 10. Gorakhpur, 11. Aligarh, 12. Kota, 13. Purnia, 14. Jabalpur, and 15. Bareilly.

98 India : People and Economy

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Fig. 8.13 : India – Major Industrial Regions

Manufacturing Industries 99

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Mumbai-Pune Industrial Region coupled with the opening of coalfields of the
Damodar Valley and iron ore deposits of the
It extends from Mumbai-Thane to Pune and Chotanagpur plateau, contributed to the
in adjoining districts of Nashik and Solapur. industrial development of the region. Cheap
Besides, industrial development has been labour available from thickly populated
rapid in Kolaba, Ahmednagar, Satara, Sangli part of Bihar, eastern Uttar Pradesh and
and Jalgaon districts. Development of this Odisha also contributed to its development.
region started with the location of cotton Kolkata, being the capital city of British India
textile industry in Mumbai. Mumbai, with (1773-1911), attracted the British capital.
cotton hinterland and moist climate favoured The establishment of first jute mill at Rishra
the location of cotton textile industry. in 1855 ushered in the era of modern
Opening of the Suez Canal in 1869 provided industrial clustering in this region.
impetus to the growth of Mumbai port. The major concentration of jute industry
Machineries were imported through this port. is at Haora and Bhatapara. The partition of the
Hydro-electricity was developed in the country in 1947 adversely affected this
Western Ghat region to meet the requirements industrial region. Cotton textile industry also
of this industry. grew along with jute industry, paper,
With the development of cotton textile engineering, textile machinery, electrical,
industry, chemical industry also developed. chemical, pharmaceuticals, fertiliser and
Opening of the Mumbai High petroleum field petrochemical industries have also developed
and erection of nuclear energy plants added within this region. Factory of the Hindustan
additional pull to this region. Motors Limited at Konnagar and diesel engine
Besides, engineering goods, petroleum factory at Chittaranjan are landmarks of this
refining, petrochemicals, leather, synthetic and region. Location of petroleum refinery at Haldia
plastic goods, drugs, fertilisers, electrical, has facilitated the development of a variety of
shipbuilding, electronics, software, transport industries. Important industrial centres of this
equipment and food industries also developed. region are Kolkata, Haora, Haldia, Serampur,
Important industrial centres are Mumbai, Rishra, Shibpur, Naihati, Kakinara,
Kolaba, Kalyan, Thane, T rombay, Pune, Shamnagar, Titagarh, Sodepur, Budge Budge,
Pimpri, Nashik, Manmad, Solapur, Kolhapur, Birlanagar, Bansberia, Belgurriah, Triveni,
Ahmednagar, Satara and Sangli. Hugli, Belur, etc. However, industrial growth of
this region has slowed down in comparison to
Hugli Industrial Region other regions. Decline of the jute industry is one
of the reasons.
Located along the Hugli river, this region
extends from Bansberia in the north to Bengaluru-Chennai Industrial Region
Birlanagar in the south for a distance of about
This region witnessed most rapid industrial
100 km. Industries also have developed in
growth in post-Independence period. Till 1960,
Mednipur in the west. Kolkata-Haora from the
industries were confined to Bengaluru, Salem
nucleus of this industrial region. Historical,
and Madurai districts but now they have spread
geographical, economic and political factors
have contributed much to its development. It over all the districts of Tamil Nadu except
developed with the opening of river port on Viluppuram. Since, this region is away from the
Hugli. Kolkata emerged as a leading centre of coalfields, its development is dependent on the
the country. Later, Kolkata was connected Pykara hydroelectric plant, which was built in
with interior parts by railway lines and road 1932. Cotton textile industry was the first to
routes. Development of tea plantations in take roots due to the presence of cotton growing
Assam and northern hills of West Bengal, the areas. Along with cotton mills, loom industry
processing of indigo earlier and jute later spread very rapidly. Several heavy engineering

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industries converged at Bengaluru. Aircraft and is known for the heavy metallurgical
(HAL), machine tools, telephone (HTL) and industries. This region owes its development
Bharat Electronics are industrial landmarks of to the discovery of coal in the Damodar Valley
this region. Important industries are textiles, and metallic and non-metallic minerals in
rail wagons, diesel engines, radio, light Jharkhand and northern Odisha. Proximity
engineering goods, rubber goods, medicines, of coal, iron ore and other minerals facilitated
aluminium, sugar, cement, glass, paper, the location of heavy industries in this region.
chemicals, film, cigarette, match box, leather Six large integrated iron and steel plants at
goods, etc. Petroleum refinery at Chennai, iron Jamshedpur, Burnpur -Kulti, Durgapur,
and steel plant at Salem and fertiliser plants Bokaro and Rourkela are located within this
are recent developments. region. To meet the power requirement,
thermal and hydroelectric plants have been
Gujarat Industrial Region constructed in the Damodar Valley. Densely
The nucleus of this region lies between populated surrounding regions provide
Ahmedabad and Vadodara but this region cheap labour and Hugli region provides vast
extends upto Valsad and Surat in the south and market for its industries. Heavy engineering,
to Jamnagar in the west. Development of this machine tools, fertilisers, cement, paper,
region is also associated with the location of the locomotives and heavy electricals are some of
cotton textile industry since 1860s. This region the important industries in this region.
became an important textile region with the Important centres are Ranchi, Dhanbad,
decline of the cotton textile industry at Mumbai. Chaibasa, Sindri, Hazaribag, Jamshedpur,
Located in cotton growing area, this region has Bokaro, Rourkela, Durgapur, Asansol and
double advantage of the proximity of raw Dalmianagar.
materials as well as of market. The discovery of Vishakhapatnam-Guntur Region
oilfields led to the establishment of petrochemical
industries around Ankleshwar, Vadodara and This industrial region extends from
Jamnagar. The port at Kandla helped in the rapid Vishakhapatnam district to Kurnool and
growth of this region. Petroleum refinery at Prakasam districts in the south. Industrial
Koyali provided raw materials to a host of development of this region hinges upon
petrochemical industries. The industrial Vishakhapatnam and Machilipatnam ports
structure is now diversified. Besides, textiles and developed agriculture and rich reserves
(cotton, silk and synthetic fabrics) and of minerals in their hinterlands. Coalfields of
petrochemical industries, other industries are the Godavari basin provide energy. Ship
heavy and basic chemicals, motor, tractor, diesel building industry was started at
engines, textile machinery, engineering, Vishakhapatnam in 1941. Petroleum refinery
pharmaceuticals, dyes, pesticides, sugar, dairy based on imported petroleum facilitated the
products and food processing. Recently, largest growth of several petrochemical industries.
petroleum refinery has been set up at Jamnagar. Sugar, textile, jute, paper, fertiliser, cement,
Important industrial centres of this region are aluminium and light engineering are
Ahmedabad, Vadodara, Bharuch, Koyali, principal industries of this region. One lead-
Anand, Khera, Surendranagar, Rajkot, Surat, zinc smelter is functioning in Guntur district.
Valsad and Jamnagar. Iron and steel plant at Vishakhapatnam uses
the Bailadila iron ore. Vishakhapatnam,
Chotanagpur Region
Vijayawada, Vijaynagar, Rajahmundry,
This region extends over Jharkhand, Guntur, Eluru and Kurnool are important
northern Odisha and western West Bengal industrial centres.

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Gurugram-Delhi-Meerut Region Kollam-Thiruvananthapuram Region
Industries located in this region have shown This industrial region is spread over
very fast growth in the recent past. This region Thiruvananthapuram, Kollam, Alwaye,
is located far away from the mineral and power Ernakulam and Alappuzha districts.
resources, and therefore, the industries are Plantation, agriculture and hydropower
light and market-oriented. Electronics, light provide industrial base to this region. Located
engineering and electrical goods are major far from the mineral belt of the country,
industries of this region. Besides, there are agricultural products processing and
cotton, woollen and synthetic fabrics, hosiery,
market-oriented light industries predominate
sugar, cement, machine tools, tractor, cycle,
the region. Among them, cotton textile, sugar,
agricultural implements, chemical and
rubber, matchbox, glass, chemical fertiliser and
vanaspati industries which have developed on
fish-based industries are important. Food
large scale. Software industry is a recent
addition. To the south lies the Agra-Mathura processing, paper, coconut coir products,
industrial area, which specialises in glass and aluminium and cement industries are also
leather goods. Mathura with an oil refinery is significant. Location of petroleum refinery at
a petrochemical complex. Among industrial Kochchi has added a vista of new industries to
centres, mention be made of Gurugram, Delhi, this region. Important industrial centres are
Faridabad, Meerut, Modinagar, Ghaziabad, Kollam, Thiruvananthapuram, Alluva, Kochchi,
Ambala, Agra and Mathura. Alappuzha and Punalur.

EXERCISES
1. Choose the right answers of the following from the given options.
(i) Which is not a factor of industrial location?
(a) Market (c) Population Density
(b) Capital (d) Power
(ii) The earliest Iron and Steel Company to be established in India was:
(a) IISCO
(b) TISCO
(c) Visvesvaraiya Iron and Steel Works
(d) Mysore Iron and Steel Works.
(iii) The first modern cotton mill was established in Mumbai because:
(a) Mumbai is a port
(b) It is located near cotton growing area
(c) Mumbai was the financial centre
(d) All of the above.
(iv) The nucleus of the Hugli Industrial Region is:
(a) Kolkata-Haora (c) Kolkata-Medinipur
(b) Kolkata-Rishra (d) Kolkata-Konnagar

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 (v) Which one of the following is the second largest producer of sugar:
(a) Maharashtra (c) Punjab
(b) Uttar Pradesh (d) Tamil Nadu
2. Answer the following questions in about 30 words.
(i) Why do you think that the iron and steel industry is basic to the industrial
development of any country?
(ii) Name the two sectors of the cottage textile industries. How are they
different?
(iii) Why is the sugar industry a seasonal industry?
(iv) What is the raw material base for the petrochemical industry? Name some
of the products of this industry.
(v) What is the major impact of Information Technology (IT) revolution in India?
3. Answer the following questions in about 150 words.
(i) How did the Swadeshi movement give a major impetus to the cotton textiles
industry?
(ii) What do you understand by liberalisation, privatisation and globalisation?
How have they helped industrial development in India?

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