Manufacturing Industries
We use various items to satisfy our needs. Agricultural products like wheat, rice, etc. are 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
Industries are classified in a number of ways. On the basis of size, capital investment and 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?
Location of Industries
Can you guess the reasons for the location of iron and steel industry in eastern and southern India? Why is there no iron and steel industry in U.P., Haryana, Punjab, Rajasthan and Gujarat?
Location of industries is influenced by several factors like access to raw materials, power, market, capital, transport and labour, etc. Relative significance of these factors varies with time and place. There is strong relationship between raw material and type of industry. It is economical to locate the manufacturing industries at a place where cost of production and delivery cost of manufactured goods to consumers are the least. Transport costs, to a great extent, depend on the nature of raw materials and manufactured products. A brief description of factors influencing the location of industries are given below:
Raw Materials
Industries using weight-losing raw materials are located in the regions where raw materials are located. Why are the sugar mills in India located in sugarcane growing areas? Similarly, the locations of pulp industry, copper smelting and pig iron industries are located near their raw materials. In iron and steel industries, iron ore and coal both are weight-losing raw
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