INDIA INDUSTRY
Introduction
- In industrial geography locational aspects of an industry is very important.
- Any type of industry requires some inputs and using them a range different output are generated.
- All consumer product outputs go to the market while all intermediary product output goes to other industry.
- Transportation of various inputs and outputs entails transportation costs and normally an industry is likely to be located where such costs are low.
- So, various consideration influences industrial location.
- On the basis of size, capital investment, and labor force employed, industries are classified as large, medium, small scale, and cottage industries.
- On the basis of ownership, industries come under public sector, private sector, joint, and cooperative sector.
- Industries of strategic and national importance are usually in the public sector.
- On the basis of raw materials used by the industries – industries are categorized as agriculture-based industries, forest-based industries, mineral-based industries, and industrially processed raw material-based industries.
- Location of industries is influenced by several factors like access to raw materials, power, market, capital, transport, and labor, etc.
Traditionally raw materials, fuel and power, human resources, transport, market, capital, government policies, industrial inertia, etc., are regarded as important locational factors of industries.
Raw Materials
- Raw material is one of the most basic inputs to an industry without which no industry can breathe or survive.
- An industry can require various kinds of raw materials like crude mineral, semi-processed mineral, semi-finished product or even finished product of an industry.
- Some raw materials required in bulk while others in relatively small fractions; some raw materials are perishable while others are long lasting and some raw materials lose weight in industrial processing while others not.
- Usually bulky, difficult and costly to transport, perishable, lose weight on processing and linked to small scale and technologically poor industrial operations exerts greater pull in their favour.
Fuel and Power
- Keeping other conditions constant, normally as the scale of operation increases power requirements of an industry also increases.
- There are various ways by which power can be supplied like human power, wood, charcoal, coal, electricity, petroleum, solar energy, etc.
- Use of human power, wood and charcoal are limited these days but was very significant before industrial revolution in running small and cottage industries. They are still significant for such industry of smaller scale.
Human Resources
- Usually an industrial set up is influenced by highly skilled inventing labour, highly skilled managerial labour, highly skilled technical experts, semi-skilled labour and unskilled labour.
- Highly skilled inventing labours are usually few in numbers residing in well-developed regions where different kinds of technical and financial support are there to run an invention project.
- Highly skilled managerial staff and technical experts coordinate among different factors of production for maximum profitability and different machines for efficient and maximum output respectively. Usually they work in individual capacity and so they are highly mobile to any place with better employment opportunity.
- Semi-skilled labours are required relatively in large numbers in contrast to aforesaid labour groups but they have less skill to offer. So, they have limited migration opportunities for better employment.
- Unskilled work forces usually required in large numbers and they are least mobile due to lack of any significant skill to offer.
Transport
- Various mode of transport are used to assemble at a place different factors of productions as well as to distribute the produce to desired locations.
- Among different modes of transport, water transport (sea, river, canal, lake, etc.), land transport (road and rail) and air transport are important from industrial location point of view.
- In general as one moves from water and land to air transport the speed and transportation cost both increases.
- Transportation cost usually increases with bulk, perishability, special care required and as the objects technologically mature (transportation charges for unfinished, semifinished and finished product are becoming progressively higher).
- Per unit transportation cost for long haul journey are usually less than short haul journey and transportation costs for back haul journey are lesser than onward journey.
- Purer the raw material lesser be the transportation cost.
Markets
- Capital is also a very basic input in any industrial establishment since it facilitates the arrangement of all factors of production.
- Capital has probably least influence on industrial location as it is the most mobile factor, if opportunities of profit are present.
Government Policies
- Government is the ruler of an area whether it is communist or capitalist or any other form of government.
- It has certain ruling goals viz. balance regional development, adequate employment generation, proper utilisation of different physical resources, maintaining healthy living environment, national security concerns, etc.
- Thus, through different policy initiatives like, tax concession/higher tax rates, cheap land/putting ceiling on industrial land use, transport concession/green belt policy, facilitating easy concessional loans/restricting disbursement of any loan, licensing policies, etc., it tries to achieve them.
Distribution of Major Industries
The world’s major industries are the iron and steel industry, the textile industry and the information technology industry. The iron and steel and textile industry are the older industries while information technology is an emerging industry.
Iron and Steel Industry
The major raw materials for the iron and steel industries are iron ore, coking coal, limestone, dolomite, manganese, and fire clay.
Major iron and steel industries in India are:
- The Tata Iron and Steel plant (TISCO);
- The Indian Iron and Steel Company (IISCO);
- Visvesvaraiya Iron and Steel Works Ltd. (VISL);
- Rourkela Steel Plant;
- Bhilai Steel Plant;
- Durgapur Steel Plant; and
- Bokaro Steel Plant.
Some other major iron and steel industries are:
- Vizag Steel Plant, in Vishakhapatnam in Andhra Pradesh is the first port based plant which started operating in 1992.
- The Vijaynagar Steel Plant at Hosapete in Karnataka was developed by using indigenous technology.
- The Salem Steel Plant in Tamil Nadu was commissioned in 1982.
- The Rourkela Steel plant was set up in the year 1959 in the Sundargarh district of Odisha in collaboration with Germany.
- The Bhilai Steel Plant was established in 1959 with Russian collaboration in Durg District of Chhattisgarh.
- Durgapur Steel Plant was established in 1962 in West Bengal, in collaboration with the government of the United Kingdom.
- Bokaro steel plant was set up in 1964 at Bokaro with Russian collaboration.
Cotton 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.
- In 1854, the first modern cotton mill was established in Mumbai.
- At present, the major centers of the cotton textile industry are Ahmedabad, Bhiwandi, Solapur, Kolhapur, Nagpur, Indore, and Ujjain.
- Tamil Nadu has the largest number of mills; however, most of them produce yarn rather than cloth.
- Davangere, Hubballi, Ballari, Mysuru, and Bengaluru are important cotton growing regions in Karnataka.
Sugar Industry
- With more than one-third of the total production, Maharashtra has emerged as a leading sugar producer in the country.
- Uttar Pradesh is the second largest producer of sugar.
Petrochemical Industry
- Many items are derived from crude petroleum, which provide raw materials for many new industries; hence, these are collectively known as petrochemical industries.
- Petrochemical industries are categorized as polymers, synthetic fibers, elastomers, and surfactant intermediate industries.
- Mumbai is the hub of petrochemical industries.
- Three organizations, which are working in the petrochemical sector under the administrative control of the Department of Chemicals and Petrochemicals, are:
- The Indian Petrochemical Corporation Limited (IPCL);
- The Petrofils Cooperative Limited (PCL);
- The Central Institute of Plastic Engineering and Technology (CIPET).
- The National Organic Chemicals Industries Limited (NOCIL), established as private sector in 1961.
Information Technology
- The Information Technology (IT) revolution opened up new possibilities of economic and social transformation.
- The IT software and services industry account for almost 2% of India’s GDP.
Industrial Policy
- The new Industrial Policy was implemented in 1991.
- The new industrial policy has three main dimensions: liberalization, privatization, and globalization.
- Within this new industrial policy, measures initiated are: abolition of industrial licensing; free entry to foreign technology; foreign investment policy; access to capital market; open trade; abolition of phased manufacturing program; and liberalized industrial location program.
- Globalization means integrating the economy of the country with the world economy.
Industrial Regions
- India has eight major industrial regions namely (as shown on the map given below):
Mumbai-Pune Region,
- Mumbai-Pune Industrial Region extends from Mumbai-Thane to Pune and in adjoining districts of Nashik and Solapur. Besides, industrial development has been rapid in Kolaba, Ahmednagar, Satara, Sangli and Jalgaon districts. The development of this region started with the location of the cotton textile industry in Mumbai. :
Hugli Region,
- The Hugli Industrial Region: Located in West Bengal, this region extends as a narrow belt running along the river Hugli for a distance of about 100 km from Bansbaria and Naihati in the north to Birlanagar in the south. Industries have
also developed in Midnapur district in the west. :
Bengaluru-Tamil Nadu Region
- Bangalore-Tamil Nadu Industrial Region: Spread in two states of Karnataka and Tamil Nadu, this region experienced the fastest industrial growth in the postindependence era. Till 1960, industries were confined to Bangalore district of Karnataka and Salem and Madurai districts of Tamil Nadu.
Gujarat Region
The nucleus of this region lies between Ahmedabad and Vadodara as a result of which it is also known as Ahmedabad-Vadodara industrial region. However, this region extends upto Valsad and Surat in the south and Jamnagar in the west. The region corresponds to the cotton growing tracts of the Gujarat plains and the development of this region is associated with the location of textile industry since 1860s.
This region became important textile region with the decline of cotton textile industry in Mumbai. Mumbai has the disadvantage of paying double freight charges for first bringing the raw cotton from the peninsular hinterland and then despatching the finished products to inland consuming points in India. But Ahmedabad is nearer the sources of raw material as well as the marketing centres of the Ganga and Satlui plains. Availability of cheap land, cheap skilled labour and other advantages helped the cotton textile industry to develop. This major industrial region of the country, mainly consisting of cotton textile industry, is expanding at a much faster rate in providing a greater factory employment.
Chhotanagpur Region
Chotanagpur Industrial Region: This region is located on the Chotanagpur plateau and extends over Jharkhand, Northern Orissa and Western part of West Bengal. The growth of the region is linked with the discovery of coal in Damodar Valley and iron ore in the Jharkhand-Orissa mineral belt.
Vishakhapatnam-Guntur Region
This industrial zone stretches from Visakhapatnam to Kurnool and Prakasam in the south. This region’s industrial growth is dependent on the ports of Visakhapatnam and Machilipatnam, as well as the developed agriculture and mineral deposits in their hinterlands.
Gurgaon-Delhi-Meerut Region
This region developed after independence, but is one of the fastest growing regions of India. It consists of two industrial belts adjoining Delhi. One belt extends over Agra-Mathura-Meerut and Saharanpur in U.P. and the other between Faridabad-Gurgaon- Ambala in Haryana.
The region is located far away from the mineral and power resources, and therefore, the industries are light and market oriented. The region owes its development and growth to hydro-electricity from Bhakra-Nangal complex and thermal power from Harduaganj, Faridabad and Panipat.
Sugar, agricultural implements, vanaspati, textile, glass, chemicals, engineering, paper, electronics and cycle are some of the important industries of this region. Software industry is a recent addition, Agra and its environs have glass industry. Mathura has an oil refinery with its petro-chemical complex. One oil refinery has been set up at Panipat also.
This will go a long way to boost the industrial growth of this region. Gurgaon has Maruti car factory as well as one unit of the IDPL. Faridabad has a number of engineering and electronic industries. Ghaziabad is a large-centre of agroindustries. Saharanpur and Yamunanagar have paper mills. Modinagar, Sonipat, Panipat and Ballabhgarh are other important industrial nodes of this region.
Kollam-Thiruvananthapuram Region
This is comparatively small industrial region and spreads over Thiruvananthapuram, Kollam, Alwaye, Emakulam and Allapuzha districts of south Kerala. The region is located far away from the mineral belt of the country as a result of which the industrial scene here is dominated by agricultural products processing and market oriented light industries. Plantation agriculture and hydroelectricity provide the industrial base to this region. The main industries are textiles, sugar, rubber, match box, glass, chemical fertilizers, food and fish processing, paper, coconut coir products, aluminium and cement. Oil refinery set up in 1966 at Kochi provides solid base to petrochemical industries. Important industrial centres are Kollam, Thiruvananthapuram, Alluva, Kochi, Alappuzha and Punalur.
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