Geography-ncert-notes / Geography NCERT Notes / Industries in India

Industries in India

  • An Industry is a group of many organizations involved in the production as well as in the manufacturing or handling of the same type of product and service

Introduction to Industrial Development:

  • The industrial sector is considered the driving force behind a nation's economic development. In India, as an emerging economy, the industry sector plays a pivotal role in contributing 27.3% to the GDP and generating 24.3% of employment post-reform.
  • Industrial development in India can be categorized into two phases.

Industrial Development Before Independence:

  • India had a significant global industrial presence before the arrival of the British. At that time, India accounted for a quarter of the world's industrial output. Exports included various manufactured goods such as cotton, silk, artistic ware, and silk and woolen cloth.
  • The impact of British policies and the Industrial Revolution led to the decline of India's handicraft industry. 
  • After the Industrial Revolution in Britain, machine-made goods inundated Indian markets.
  • The decline of traditional handicrafts did not usher in modern industrialization in India due to British policies favoring the import of British-made goods and the export of raw materials from India.

Major Industries Before Independence:

  • Cotton Textile Industry: In 1818, the first unsuccessful cotton mill was established in Fort Gloster. However, in 1854, the first successful cotton mill was set up in Mumbai by Cowasji Nanabhai Davar.
  • Jute Industry: The first jute industry was established in Rishra (near Kolkata) in 1855.
  • Woollen Textile Industry: The first woolen textile industry was set up in Kanpur in 1876 with the brand name Lal Imli.

Industrial Development After Independence:

  • The first post-independence industrial policy, known as the Industrial Policy Resolution of 1948, was announced on April 6, 1948, by Dr. Shyama Prasad Mukherjee.
  • The Industrial Policy of 1956 emphasized expanding the public sector and building a large and growing cooperative sector.
  • In December 1977, the Janata Government introduced its New Industrial Policy.
  • The Industrial Policy of 1980 aimed to promote the concept of economic federation, enhance public sector efficiency, and reverse the trend of industrial production.

The New Industrial Policy of 1991 marked a significant structural break for the Indian economy, substantially deregulating the industrial sector.

Factors Affecting Location of Industries:

  • Raw Materials: Industries using weight-losing raw materials are located where these materials are abundant.
  • Power: Availability of power is crucial for industry, determining its location.
  • Market: Proximity to markets is essential for industries, especially those oriented toward high-demand areas.
  • Transport: Key industrial hubs like Mumbai, Chennai, Delhi, and Kolkata initially became nodal points due to well-established transport links.
  • Capital: Large investments are necessary for establishing industries, especially in modern, capital-intensive sectors.
  • Water: Many industries are established near water bodies like rivers, canals, and lakes.
  • Labor: The availability of skilled labor, coupled with India's large population, makes labor accessible for industries.
  • Historical Factors: Historical influences, particularly the colonial past, played a significant role in the emergence of industrial nodes like Mumbai, Kolkata, and Chennai.

Major Industries in India

India boasts several major industries, classified into different categories:

  • Mineral-based Industries
  • Agro-based Industries
  • Chemical Industries
  • Engineering Industries
  • Other Industries, including Oil Refineries and Forest-based Industries

Mineral-based Industries

  • Mineral-based Industries play a crucial role in utilizing minerals as raw materials for production, making significant contributions to both domestic and global economies. These industries, which employ thousands of people across rural and urban sectors, rely on minerals such as iron, copper, zinc, lead, and more.

Iron and Steel Industry

  • Iron and Steel Industry The iron and steel sector holds a fundamental position as other heavy, medium, and light industries depend on it for their machinery. 
  • As of 2021, India ranks second globally in crude steel production, with China maintaining its position as the largest producer. Additionally, India leads in sponge iron production. The iron and steel industry requires resources like iron ore, coking coal, limestone, dolomite, manganese, and fire clay for its operations.
  • Raw materials for iron and steel production are heavy, leading to high transportation costs. Consequently, iron and steel plants are strategically located near the sources of these raw materials.

Major Steel Plants in India:

Tata Iron and Steel Company (TISCO):

  • Established in 1907 by Jamshedji Tata in Sakchi, Jharkhand.
  • Began producing pig iron in 1911 and steel in 1912.
  • Growth is aided by raw material availability, transportation development, labor availability, proximity to Kolkata port, and market access.

Indian Iron and Steel Company (IISCO):

  • Three plants were established in 1864, 1908, and 1937 in West Bengal.
  • Merged to form IISC; placed under government control in July 1972.
  • Iron-ore sourced from Guna mines in Singhbhum district and Mayurbhanj area of Odisha.

Visvesvaraya Iron and Steel Plant (VISL):

  • Established by the erstwhile state of Mysore as Mysore Iron and Steel Company (MISCO) in 1923.
  • Located in Karnataka's Shimoga district on the Bhadravati River.
  • Engaged in producing steel for defense purposes.

Hindustan Steel Limited (HSL), Bhilai:

  • Set up in Durg district of Chhattisgarh in 1957 with Soviet Union support.
  • Production started in 1959; located in the Mahanadi basin.

Hindustan Steel Limited (HSL), Rourkela:

  • Plant in Odisha's Sundargarh district, established during the second Five-Year Plan in 1959 with Krupps and Demang's assistance.

Hindustan Steel Limited (HSL), Durgapur:

  • Located in Bardhaman district, West Bengal, established in 1959 with UK assistance.
  • Production started in 1962; benefits from hydroelectricity and proximity to Kolkata port.

Bokaro Steel Plant:

  • Established in 1964 with Soviet Union assistance in Bokaro, Jharkhand.
  • Largest Indian steel-making center engaged in rail manufacturing.
  • Receives iron-ore from Kiriburu mine in Odisha and coal from Jharia coalfields.

Visakhapatnam Steel Plant:

  • The first shore-based steel plant in India is located on the seaport.
  • Construction was initiated in 1982 by Rashtriya Ispat Nigam Limited.

Vijaynagar Steel Plant:

  • Set up near Hospet in the Bellary district of Karnataka.
  • Known for the production of mild steel.
  • These steel plants play a pivotal role in India's industrial landscape, contributing significantly to the nation's economic development.
  • Iron ore is sourced from the Hospet region, while coal comes from Singareni in Andhra Pradesh and the Kanhan Valley in Chhattisgarh. 

The Salem Steel Plant

  • The Salem Steel Plant, located in Tamil Nadu, is a prominent producer of high-quality stainless steel. The plant benefits from the availability of rich iron ore and limestone in the vicinity, as well as hydroelectricity from the nearby Mettur dam.

National Steel Policy, 2017:

  • The policy aims to develop globally competitive steel manufacturing capabilities, targeting a crude steel capacity of 300 MT by 2030-31
  • It seeks to increase per capita steel consumption to 160 kgs by the same period.
  • The policy encourages the industry to lead in energy and raw material-efficient steel production, implementing quality standards for domestic steel products.

Aluminum Industry:

  • Aluminum smelting is a crucial metallurgical industry in India, known for its lightweight, corrosion resistance, heat conductivity, malleability, and strength when alloyed with other metals. 
  • Originating in 1938 with the Indian Aluminium Company in Kerala, there are eight aluminum smelting plants across the country in Odisha, West Bengal, Kerala, Uttar Pradesh, Chhattisgarh, Maharashtra, and Tamil Nadu.

Major Aluminium Industries in India:

  • Hindustan Aluminium Company (HINDALCO): Based in Renukoot, Uttar Pradesh, founded in 1958, it is India's largest integrated primary aluminum and semi-fabricated product manufacturer.
  • Bharat Aluminium Company Ltd. (BALCO): Located in Korba, Chhattisgarh, a public sector company founded in 1965, obtaining bauxite from Amarkantak and electricity from the Korba thermal power plant.
  • National Aluminium Company Ltd (NALCO), Koraput: The largest aluminium plant in the country, situated at Koraput, extracting bauxite from Panchpatmali mines, and with an alumina refinery at Damanjodi and alumina smelter at Angul.
  • Madras Aluminium Company Ltd (MALCO), Mettur: Established at Mettur near Salem in 1965, it sources bauxite from the Shevaroy Hills and electricity from the Mettur Hydel Project.
  • Vedanta Aluminium (VAL): A business of Vedanta Limited, it is India's largest aluminum producer based in Jharsuguda, Odisha.

Lead Industry:

  • Lead smelting commenced in 1942 at Tundoo near Dhanbad. In India, lead is obtained from the Zawar and Rajpura-Dariba areas of Rajasthan.

Zinc Industry:

  • Formally started in 1965 with the establishment of Hindustan Zinc Limited in Zawar (Udaipur) and Visakhapatnam. Prominent zinc smelting plants include Zawar (Udaipur), Kochi (Kerala), and Visakhapatnam (Andhra Pradesh).

Copper Industry:

  • Copper, the oldest metallurgical industry in India, saw the establishment of the Indian Copper Corporation in 1924 in Ghatsila, Jharkhand.
  •  Post-Independence, Hindustan Copper Limited (HCL) was established in 1967, with centers at Khetri Copper Complex, Rajasthan, and Balaghat. Ghatsila was subsumed as part of HCL in 1972.
  • Currently, India fulfills only 50% of its requirements, with the rest being imported from Zambia, Zaire, Chile, and the USA. Key private players include Sterlite Group centered at Toothuku, i, G Copper (HINDALCO) Works centered at Dahej, Gujarat, and Jhagadia (SWIL) Copper Limited centered at Bharuch.

Oil Refinery Industry:

  • The oil and gas sector rank among the major industries in India.
  • Oil refineries play a crucial role in distilling crude oil into various petroleum products like gasoline, kerosene, or jet fuel, serving the production of transportation and other fuels.
  • India boasts approximately 250 MMTPA of refining capacity, making it the second-largest in Asia, with over 60% of crude docks in the Gulf