Tuesday, January 19, 2010
Thursday, January 14, 2010
MANUFACTURING INDUSTRIES-SHORT NOTE
MANUFACTURING
INDUSTRIES
Industries of strategic and national importance are usually in the public sector.
Manufacturing industries: Manufacturing industry is a machine based, power driven production unit where processing of raw material takes place in converting it into a more valuable commodity.
Industrial Location
Many industries come together to make use of the advantages offered by the urban centers known as agglomeration economies. Locating an industry depends upon the least cost factor.
The location of the industries is largely governed by two sets of factors and they are:
1. Geographical Factors
2. Non-Geographical Factors
Geographical Factors : The main geographical factors include raw material, power, labour, transport, market, cheap land and labour.
i. Raw Materials:
a. To minimize costs the industries using heavy or weight-losing raw materials are located in the regions where raw materials are located.
b. For example
i. Sugar mills in India are located in sugarcane growing areas,
ii. Pulp industry, copper smelting and pig iron industries are located near their raw materials,
iii. Iron and steel industries are located near iron ore and coal.
ii. Power:
a. Some manufacturing industries are located near sources of power because they require huge amount of electricity,
b. For example
i. Aluminium and synthetic nitrogen manufacturing industries.
iii. Market:
a. Nearness to markets provides easy outlets for manufactured products.
b. For example -i. Heavy machine, tools, chemicals industries are located near the high demand areas.
ii. Cotton textile industry is generally located in large urban centre;
iii. Petroleum refineries are also located near the markets.
iv. Transport:
a. All major industries are located on the trunk rail routes due to easy accessibility from these nodal points.
b. For example: i. Industries are concentrated in Mumbai, Chennai, Delhi and Kolkata.
v. Labour:
a. Industries require skilled labour. Quantity and quality of labour decides the location of industries.
vi. Historical Factors:
a. Older industrial areas are now the main industrial nodes of India.
b. For example
i. Mumbai, Kolkata and Chennai have large concentration of industries due to colonial past.
vii. Industrial Policy:
NON-GEOGRAPHICAL FACTORS
The non-geographical factors include capital, industrial policy, industrial inertia, banking facilities, insurance and political stability.
1. Capital: The capital intensive industries require huge capital, these industries are mostly located near the cities.
2. Industrial Policy: The ultimate decision on location of industries depend on the industrial policy of the government.
b. For example - i. Iron and steel industry in Bhilai and Rourkela were located to develop backward tribal areas of the country.
3. Industrial Inertia: The industries are most likely to develop at the place of their original establishment.
4. Banking Facilities: The areas having better banking facilities are better suited to establishment of industries.
5. Insurance: Insurance of the industries and the labour are the also important factors affecting the location of industries.
6. Political Stability: Industries are set up in the areas of political stability.
TYPES OF INDUSTIRES:-
1. LABOUR: On the basis of strength of labour industries can be classified in to:
a. Large-Scale Industries
b. Medium-Scale Industries
c. Small-Scale Industries
d. Cottage Industries
2. RAW MATERIAL : On the basis of Raw material used industries can be classified into:
a. Heavy Industries
b. Light Industries
3. SOURCE OF RAW MATERIAL : On the basis of source of raw material industries can be classified into:
1. Agro-Based Industries
2. Mineral-Based Industries
3. Pastoral-Based Industries
4. Forest-Based Industries
4. OWNERSHIP : On the basis of ownership or entrepreneurship industries can be classified into:
1. Public Sector Industries
2. Private Sector Industries
3. Joint Sector Industries
4. Cooperative Sector Industries
5. MANUFACTURED PRODUCTS: On the basis of nature of manufactured products industries can be classified:
1. Metallurgical
2. Mechanical Engineering
3. Chemical and Allied
4. Textile
5. Food Processing
6. Electricity Generation
7. Electronic
8. Communication
6. On the basis of the use of their products industries are classified as
o Basic goods industries,
o Capital goods industries,
o Intermediate goods industries,
o Consumer goods industries.
MAJOR INDUSTRIES
Mineral-based Industry : Industries, which require metals and minerals as their raw material are called mineral, based industries.
a. IRON AND STEEL INDUSTRIES: Industries are the base of the industrial development and develop in those areas where its raw material is available. It provides the basic support for economic growth.
India is the ninth largest steel producing country in the world.
It is a basic industry. Country’s economic development can be judged from the production and consumption of steel.
* Iron ore, coking coal, limestone, dolomite, manganese and fire clay are the raw material needed in iron and steel industry. ( Iron ore, coking coal and limestone are needed in the ratio of 4:2:1.required.)
- India ranks ninth in the world crude steel production.
- India ranks first in the production of sponge iron.
- Steel Authority of India (SAIL) handles marketing strategies for Public sector and TISCO markets its products through Tata Steel.
- China is the largest producer and consumer of Steel.
- The major iron and steel plants are:
- 1.TATA IRON AND STEEL COMPANY (TISCO)
- 2. INDIAN IRON AND STEEL COMPANY (IISCO)3. VISVESVARAYYA IRON AND STEEL LTD.4. HINDUSTAN STEEL LIMITED(i) BHILAI(ii) ROURKELA(iii) DURGAPUR(iv) BOKAROThe Rourkela Steel plant was set up in collaboration with Germany.The Bhilai Steel Plant was established with Russian collaboration.Durgapur Steel Plant was set up in collaboration with the United Kingdom.Bokaro Steel Plant steel plant was set up with Russian collaboration.SAIL (Steel Authority of India limited) was created to manage steel plants.
- Most of the Iron and Steel industries are located in Chottanagpur plateau region of India because of:
- Low cost iron ore
- High grade raw material in proximity
- Cheap labour
- Growth in demand in home market
- Problems faced by India:
- High cost of raw material
- Limited availability of coking coal
- Lower productivity of labour
- Irregular power supply
- Poor infrastructur
- Aluminium Smelting:
- Aluminium is used in the manufacture of aircrafts, wires, utensils, surgical instruments and electrical appliances. Aluminium has become important because:
- It is light
- It is resistant to corrosion
- It is a good conductor of heat and light
- It is malleable
- It becomes strong when mixed with other metals
There are 8 Aluminium Smelting plants in the country. Regular supply of electricity and raw material are the basis for location of this industry.
Q. Name the raw material essential for iron and steel industry.
Ans. Iron and steel industry needs iron ore, coking coal, limestone, dolomite, manganeseand fire clay. All these raw materials are gross (weight losing); therefore, the iron and steel plants are located near the source of raw materials.
Why most of the iron and steel plants of India are located in the peninsular plateau?
Ans. Iron and steel industry’s location is influenced by:
1. Gross Raw material: It requires iron ore, coal, limestone and manganese as a raw material. These are weight-losing (Gross) raw material therefore these industries are located near the source of raw material.
2. Assembly Cost: Iron and steel plants are located at place where assembly cost of the raw material is lowest. Some steel plants are located near coal fields or near iron ore producing areas.
3. Transport: All the plants are located on trunk rail routes which connects them to large urban markets. These conditions are favourably found in the peninsular plateaus.
(b) Chemical Industry:
- It is a combination of organic substances like petrochemicals and inorganic substances like sulphuric acid, nitric acid, alkalies, soda ash etc.
- Contributes 3% of GDP.
- India ranks third in Asia and twelfth in the world in terms of size.
(c) Fertilizer Industry:
- Agricultural economy tends to use more of fertilizers.
- This industry is centered on the production of nitrogenous fertilizers, phosphatic fertilizers and ammonium phosphate etc which are used in agriculture.
- There are 10 public sector undertakings and 1 in cooperative sector.
(d) Cement Industry:
- Commercial activities like construction of roads, bridges, dams, airports, housing colonies etc. have boosted this industry.
- This industry requires bulky and heavy raw material like limestone, silica, alumina, gypsum, coal, electric power and transportation.
- The industry is mostly located in Gujarat because of easy accessibility to the markets of Gulf countries.
- There are 128 large plants and 332 mini cement plants in the country.
(e) Automobile Industry:
- Automobiles provide quick transport of goods, services and passengers.
- Foreign direct investment has brought new technology.
- The industry is located around Delhi, Gurgaon, Mumbai, Pune, Chennai, Kolkata, Lucknow, Indore, Hyderabad, Jamshedpur and Bangalore.
f. PETROCHEMICALS
Petrochemicals are those chemicals and compounds, which are derived from petroleum resources. It is one of the fastest growing industries in the Indian economy.
Mumbai is the main center of Petrochemical industries. Cracker units are also located in Auraiya (Uttar Pradesh), Jamnagar, Gandhinagar and Hajira, Nagothane, Ratnagiri (Maharashtra), Haldia (West Bengal) and Vishakapatnam (Andhra Pradesh).
Q What are petrochemical industries? Name four sub groups of products of these industries.
Ans. Many items are obtained from the crude petroleum, which provide raw materials for many new industries; these are collectively known as petrochemical industries. This group of industries is divided into four sub-groups of products:
(i) Polymers: Polymers are used as raw materials in the plastic industry.
(ii) Synthetic fibres: They are used in the manufacturing of fabrics - nylon and polyester.
(iii) Elastomers,
(iv) Surfactant intermediate. They are used to manufacture detergents.
Q. Name the important petrochemical centres of India.
Ans. Mumbai is the hub of the petrochemical industries. Cracker units are also located in Auraiya (Uttar Pradesh), Jamnagar, Gandhinagar and Hajira (Gujarat), Nagothane, Ratnagiri (Maharashtra), Haldia (West Bengal) and Vishakhapatnam (Andhra Pradesh).
Agro-based Industry:
Industries which get their raw material from agricultural sector such as cotton, jute, sugar, oil, silk etc come under the category of agro-based industries.
1. Textile Industry: It generates employment, earns foreign exchange and contributes to industrial production.
a.COTTON TEXTILE :
o It is one of the largest industries in terms of employment and industrial production. About 16% of industrial capital and 20% of industrial labour of India is engaged in this industry alone.
Maharashtra, Gujarat and Tamil Nadu are the leading cotton textile producing states. West Bengal, Uttar Pradesh, Andhra Pradesh, Rajasthan and Punjab are the other important cotton textile producing states.
Mumbai and Ahmedabad are the most known areas for cotton textile industries.
Mumbai is known as Cottonpolis of India. Ahmedabad is second largest center of cotton textile industry after Mumbai.
Hand operated machines were replaced by power driven machine power looms.
o 80% are under private sector and 20% under public sector.
o Location of cotton textile factory depends upon-
§ Availability of raw cotton
§ Traditional labour
§ Moist climate
§ Market
§ Accessibility of port facilities
§ New trends in designs
o Industries such as chemicals and dyes, engineering works, packaging materials and mill store come up around cotton textile mills.
o The handspun khadi provides large scale employment to weavers in their homes as a cottage industry.
o India exports to Japan, USA, UK, Russia, France, Singapore, East European countries, African countries, Nepal and Srilanka.
Q. State any three reasons for the development of cotton industry during ancient and medieval times in India.
Ans. The development of cotton textile industry in India was due to
i. India is a tropical country and cotton is the most comfortable fabric for a hot and humid climate.
ii. Large quantity of cotton was grown in India.
iii. Abundant skilled labour required for this industry was available in this country.
iv. The people of India produced cotton textiles for generations and transferred the skill from one generation to the other and in the process perfected their skills.
Q. Why the first modern cotton mill was established in Mumbai? Mention any three advantages of its location.
Ans. The first modern cotton mill in Mumbai had several advantages as a cotton textile manufacturing centre.
i. It was very close to the cotton producing areas of Gujarat and Maharashtra.
ii. Raw cotton was brought to Mumbai port for transporting to England.
iii. Mumbai was the financial centre and the capital needed to start an industry was available there.
iv. As a large town, cheap and abundant labour was available locally and it attracted labour in large numbers.
v. The machinery required for a cotton textile mill could be directly imported from England.
Q. Explain the factors which influence the location of cotton textile industries in India.
Ans. The location of cotton textile industries in India is governed by
i. Cotton textile industries are now located close to the market.
ii. With the development of the railway network cotton textile industries expanded towards the south India at Coimbatore, Madurai and Bangalore.
iii. Cotton textile mills were set up at Kanpur based on local investment.
iv. Mills were also set up at Kolkata due to its port facilities.
v. With the development of hydro-electricity cotton textile mills were located in
Tamil Nadu.
vi. Low labour costs at Ujjain, Agra, caused industries to be located away from cotton producing areas.
Q. Why cotton textile industries are now located close to the market?
Ans. Cotton textile industries are located close to the market because of
i. Cotton is a “pure” raw material which does not lose weight in the manufacturing process.
ii. It is the market that decides what kind of cloth is to be produced.
iii. Also the market for the finished products is extremely variable.
Q. Why the cotton industry suffered a major recession soon after the independence of India.
Ans. The cotton industry suffered a major recession after independence.
i. This was due to the fact that the most of the good quality cotton growing areas had gone to West Pakistan and India was left with 409 mills and only 29 per cent of the cotton producing area.
Q. Name the two sectors of cotton textile industry of India.
Ans. The cotton textile industry in India can be broadly divided into two sectors,
i. The organised sector: includes cotton produced in mills.
ii. The decentralised sector: includes cloth produced in handlooms (including Khadi) and powerlooms.
Cotton cloth is produced maximum in the decentralized sector (78%) and the production of the organised sector has drastically fallen from 81 per cent in the midtwentieth century to only about 6 per cent in 2000.
Q. Why cotton textile industries are located close to the market?
Ans. Cotton textile industries are located close to the market because of
i. Cotton is a “pure” raw material which does not lose weight in the manufacturing process.
ii. It is the market that decides what kind of cloth is to be produced.
iii. Also the market for the finished products is extremely variable; therefore, it becomes important to locate the mills close to the market.
Q. Explain the other factors which influenced the location of cotton textile industries away from the cotton producing areas in India.
Ans. The location of cotton textile industries in India is governed by a few factors such as
i. With the development of the railway network cotton textile centres expanded towards the southern India and mills were set up at Coimbatore, Madurai and Bangalore.
ii. Cotton textile mills were set up at Kanpur based on local investment.
iii. Mills were also set up at Kolkata due to its port facilities.
iv. With the development of hydro-electricity cotton textile mills were located in Tamil Nadu.
v. Lower labour costs at centres like Ujjain, Bharuch, Agra, Hathras, Coimbatore
and Tirunelveli also caused industries to be located away from cotton producing areas.
Q. Name the leading cotton textile producing states of India.
Ans. Maharashtra, Gujarat and Tamil Nadu are the leading cotton producing states. West Bengal, Uttar Pradesh, Karnataka, and Punjab are the other important cotton textile producers.
b. Jute textiles:
o India stands second in the production of raw jute and jute products.
o There are about 70 jute mills in India, mostly in West Bengal.
o Factors responsible for their location are:
§ proximity to jute producing areas
§ cheap water transport
§ good network of railways and roadways
§ abundant water supply
§ cheap labour
§ Nearby market
§ Proximity to urban areas
o Indian jute market faces competition with synthetic substitutes.
o Internal demand is increasing.
o National Jute Policy, 2005 was formulated to improve quality, increasing productivity, ensuring good prices to the farmers and increasing the yield per hectare.
o India exports to USA, Canada, Russia, United Arab Republic, UK and Australia.
c.SUGAR INDUSTRY
- India accounts for about one-fourth of the world sugarcane. India is the world largest producer of sugarcane and sugar.LocationUttar Pradesh and Bihar in north India and in south India Maharashtra and Tamil Nadu are the chief producers. Sugar industries are mainly located near the sugar cane producing areas because:
1. Sugar Industry is based on sugarcane, which is a weight-losing raw material.
Sugarcane cannot be stored for long as the loss of sucrose content is inevitable. - India stands first in the production of Gur and Khandsari.
- India stands second in the production of Sugar.
- There are 460 sugar mills in the country.
- This industry is seasonal in nature.
- Problems faced by this industry are:
- Seasonal nature
- Old and inefficient methods of production
- Transport delays
- Less demand for baggase.
- Q. Why sugar industries in India are located within the cane producing regions?
- Ans. Sugar industries are located in cane producing regions because i.
- Sugarcane is a bulky crop therefore it is difficult to transport.
- ii. Sugarcane is a weight-losing crop.
- iii. The sucrose content in sugarcane begins to dry during its transport after its harvest.
- iv. Better recovery of sugar is dependent upon its being crushed within 24 hours of its harvesting.
- v. The ratio of sugar to sugarcane varies between 9 to 12 per cent depending on its variety.
Q. State the importance of sugar industry in India.
Ans. The sugar industry is the second most important agro-based industry in the country.
i. India is the largest producer of both sugarcane and cane-sugar and contributes about 8 per cent of the total sugar production in the world.
ii. Besides, khandasari and gur or jaggery are also prepared from sugarcane.
iii. This industry provides employment for more than 4 lakh persons directly and a large number of farmers indirectly.
Q. Name the leading sugar producing states of India.
Ans. The leading producers of sugar in India are:
i. Maharashtra is a leading sugar producer in the country and produces more than one-third of the total production of the sugar in the country.
ii. Uttar Pradesh is the second largest producer of sugar. The sugar factories are concentrated in two belts – the Ganga-Yamuna doab and the tarai region.
iii. Tamil Nadu,
iv. Karnataka.
v. The other States which produce sugar are Bihar, Punjab, Haryana, Madhya Pradesh and Gujarat.
Knowledge based Industry:
Knowledge based industries are mainly concerned with information technology. The software industry of India is one of the fastest growing sectors of economy, which has recorded over 50% compound annual growth rate during the last decade.
This industry provides large employment. Women constitute 30% of the work force in this industry.
- This electronic industry produces many equipment required by the telecommunication industry.
- Bangalore has emerged as the electronic hub of the country.
- Q. What is the major impact of Information Technology (IT) in India’s economy?
Ans. IT revolution has a deep influence on the country’s economy.
i. The Information Technology (IT) revolution has opened up new possibilities of economic and social development.
ii. The IT and IT enabled BPO services continue to provide employment to educated youth.
iii. Indian software industry has emerged as one of the fastest growing sectors in the economy.
iv. Exports of the Indian software and services sector increased 30-32 per cent from the previous year.
v. The software industry has surpassed electronic hardware production.
vi. The IT software and services industry account for almost 2 per cent of India’s GDP.
vii. India’s software industry provides international quality products.
viii. A majority of the IT multinational companies have software development centres or research development centres in India.
ix. A major impact of this growth has been on employment creation, which is almost doubled every year.
INDUSTRIAL DEVELOPMENT
It can be studied under two sub headings:
1. Pre-Independence Industrial Development
2. Post-Independence Industrial Development
Pre-Independence : First modern cotton industry was established in Mumbai in 1854 and first jute mill was started in 1855 at Rishra. Bengal Iron and Steel Company was setup in Kulti in 1875 and Tata Iron and Steel Company at Jamshedpur in 1907.
Post-Independence : Industries that led to industrial development are cotton textile, sugar, salt, soap, and leather goods industries. The industries manufacturing intermediate goods like steel, cement, chemicals show slow growth. The 1948 Industrial Policy Resolution indicated the direction of industrial development in India.
Major Industrial Regions : The regions or areas where the industries cluster due to favorable conditions are known as industrial regions.
Manufacturing: Simply refers to the processing of primary products into secondary or finished goods.
Importance of Manufacturing Manufacturing industries are the backbone of development in general and economic development in particular. Efficiency and competitiveness are the two factors that should be taken care of in manufacturing sector. Agriculture and industry go hand in hand and are supplementary to each other.
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Major Industrial Regions : The regions or areas where the industries cluster due to favorable conditions are known as industrial regions Mumbai-Pune : The main factors that lead to the development of Mumbai are: Hugli : This region extends as a narrow belt along the river Hugli for a distance of about 100km from Bansbaria and Naihati in the north to Birlanagar in the south. Bangalore-tamil Nadu : This region basically spreads over Karnataka and Tamil Nadu. This region has developed most rapidly in post-independence era. Gujarat : This region lies between Ahmedabad and Vadodara and thus also known as Ahmedabad-Vadodara region. This region extends up to Valsad and Surat in the south and Jamnagar in the west. Chotanagpur : This region is located on the Chotanagpur plateau and extends over Jharkhand, Northern Orissa and western part of West Bengal. This region is also known as ‘Ruhr of India’. Vishakhapatnam-Guntur : This region extends from Vishakapatnam district in the northeastern part of Andhra Pradesh to Kurnool and Prakasham districts in the south-eats and covers most of the coastal Andhra Pradesh. Gurgaon-Delhi-Meerut : This region consist of two industrial belts and they are: Kollam Thiruvananthapuram : This region spreads over Thru-vananthapuram, Kollam, Alwaye, Ernakulam and Allapuzha districts of south Kerala. |
Q. Name the major industrial regions of India.
Ans. There are 8 major industrial regions of India. They are:
1. Mumabi-Pune Region,
2. Hugli Region,
3. Bangalore-Tamil Nadu Region,
4. Gujarat Region,
5. Chotanagpur Region,
6. Vishakhapatnam-Guntur Region,
7. Gurgaon-Delhi-Meerut Region,
8. Kollam-Tiruvantapuram Region.
Q. State any three indices used to identify the clustering of industries in India.
Ans. Several indices are used to identify the clustering of industries, important among them are:
(i) The number of industrial units,
(ii) Number of industrial workers,
(iii) Quantum of power used for industrial purposes,
(iv) Total industrial output,
(v) Value added by manufacturing,
Q. Mention important industries and factors which helped in the development of Mumbai -- Pune industrial region.
Ans. Factors which helped in its development:
(i) The development of this region started with the location of cotton textile industry in Mumbai.
(ii) With the development of cotton textile industry, chemical industry also developed.
(iii) By the opening of the Suez Canal, Mumbai port developed and import of machinery became easy.
(iv) Mineral oil for Mumbai high developed petrochemical industries. Nuclear energy plants provided power to the industries.
(v) Hydro-electricity was developed in the Western Ghat region to meet the requirements of this industry.
Major industries in this region are: engineering goods, petroleum refining, petrochemical, leather, synthetic and plastic goods, and chemical drugs, fertilizer, and electronics industries.
Important industrial centres are Mumbai, Colaba, Nasik, Solapur, and Ahmednagar.
Q. Mention important industries and factors which helped the development of Hugli industrial region.
Ans. Factors which helped the development of Hugli industrial region are:
(i) Kolkata-Haora forms the nucleus of this region.
(ii) It developed with the opening of river port on Hugli River in seventeenth century
(iii) Kolkata is connected with interior parts by railway lines and the road routes.
(iv) Development of tea plantations in Assam and West Bengal, opening of coal fields in Damodar valley opening of jute processing units in this region boosted its development.
(v) Supply of cheap labour from nearby thickly populated areas contributed to its development.
(vi) Location of petroleum refinery at Haldia has facilitated the development of petrochemical industry in this region.
Important industries are: jute industries, cotton textile industries, paper, pharmaceuticals, and petrochemical industries.
Q. Write important industries and factors which helped the development of Chotanagpur industrial region.
Ans. This region is known for Iron and Steel industry. Five steel plants are: Jamshedpur, Durgapur, Bokaro, and Rourkela. Other industries are: Heavy engineering, machine tools, cement, locomotives. The factors which led to its development are: proximity to the coal and iron fields, power from Damodar valley plants, densely populated regions, nearness to Hugli market.
Q. Write important industries and factors which helped the development of Delhi-Merrut-Gurgaon industrial region. Why light and market oriented industries are located in Delhi-Merrut-Gurgaon industrial region?
Ans. The industries in this region are light and market oriented because this region is located far from the mineral and power resources. Electronics, light engineering, electrical goods, software industry, vanaspati industry are some of the important industries of this region.
Q. Write important industries and factors which helped the development of Gujarat industrial region.
Ans. Ahmedabad and Vadodra is the nucleus of this region. Important industries are: cotton textile, petrochemical, heavy chemicals, motor, dairy products. Decline of cotton textile industry in Mumbai industrial region led to the development of this region. It is located in the cotton growing region. Proximity to the markets in Ganga plain, oil fields and location of port at Kandla led to the development of this region.
Q.Write important industries and factors which helped the development of Bangalore-Tamil Nadu industrial region.
Ans. The important industries are: cotton textile industry, heavy engineering, aircraft, watch, machine tools, and electronics. Presence of cotton, electricity from Pykara hydroelectric plant, mineral from nearby region led to the development of this region.
Q. Write important industries and factors which helped the development of Kollam-Thriuvananthapuram industrial region.
Ans. Agricultural products processing and market oriented industries are important industries in this region because it is located far away from the mineral belt of the country. Cotton textile, matchbox, chemical, fish-based industries are important industries of this region. Plantation agriculture and hydropower led to the development of this region. Location of petroleum refinery at Kochi has added an advantage to new industries
INDUSTRIAL POLICY
The new industrial policy was announced in 1991. The main objectives were:
1. To build on the gains already made
2. Correct the weakness or distortion to maintain a sustained growth in productivity and gainful employment
3. Attain international competitiveness
Measures initiated under this policy are:
1. Abolition of industrial licensing
2. Free entry to foreign technology
3. Foreign investment policy
4. Access to capital market
5. Open trade
6. Abolition of phased manufacturing programme
7. Liberalised industrial location programme
The three main dimensions of this industrial policy are:
1. Liberalisation
2. Privatisation
3. Globalisation
Q. Explain any three objectives of new Industrial Policy of India announced in 1991.
Ans. The objectives of new Industrial Policy announced in 1991 are:
i. To build and consolidate the industrial growth,
ii. Correct the weaknesses in our industries,
iii. Maintain a sustained growth in productivity and gainful employment
iv. Attain international competitiveness.
Q. Mention measures initiated under new Industrial Policy of India announced in 1991.
Ans. Important measures initiated under NEP of 1991 were:
(1) Abolition of industrial licensing,
(2) Free entry to foreign technology,
(3) Foreign investment policy,
(4) Access to capital market,
(5) Open trade,
(6) Abolition of phased manufacturing programme,
(7) Liberalized industrial location programme.
Q. Explain the three main dimensions of new Industrial Policy of India.
Ans. The policy has three main dimensions: liberalization, privatization and globalization.
i. Liberalization: The industrial policy has been liberalized by
a. abolishing licensing system,
b. allowing free entry of foreign technology and investment,
c. Attract private investor both domestic and multi-nationals.
ii. Privatization: private sector has been given important role in industrial
development. Important steps were
a. to bring down government shares in all non-strategic public sector
industries,
b. to de-reserve the industries listed as public sector;
c. Many sectors have been opened to private investment such as mining,
banking, telecommunication, defence, etc.,
d. To give complete autonomy to the public sector undertakings for working as private sector.
iii. Globalization: means integrating the economy of the country with the world
economy. Under this step following measures were taken:
a. opening of the economy to foreign direct investment by providing facilities to foreign companies to invest in different fields of economies activity in India;
b. removing restrictions and obstacles to the entry of multinational companies in India;
c. allowing Indian companies to enter into foreign collaboration in India and also encouraging them to set up joint ventures abroad;
d. carrying out massive import liberalization programmes by switching over
from quantitative restrictions to tariffs in the first place, and then bringing
down the level of import duties considerably; and
e. Instead of a set of export incentives, opting for exchange rate adjustments for promoting export.
Q. Mention any three problems related to Foreign Direct investment in India.
Ans. The foreign investment in India has not been up-to the our expectations:
i. In spite of many concessions foreign direct investment has been limited.
ii. There is a wide gap between approved and actual investment.
iii. Most of the investment has been limited to consumer goods industries while infrastructural sector was untouched.
iv. Major share of both domestic investment as well as foreign direct investment went to already developed states.
Industrial Pollution
1. Air Pollution
2. Water Pollution
3. Thermal Pollution
4. Noise Pollution
Industries are responsible for four types of pollution.
1. Air Pollution : Smoke and smell of chemicals released by industry are the main causes of air pollution. Air pollution adversely affects human health, animals, plants, buildings and the atmosphere.
2. Water Pollution : It is caused by organic and inorganic wastes and affluent released into water bodies.
3. Thermal Pollution: It occurs when hot water from factories and thermal plants is drained into rivers and ponds before cooling.
4. Noise Pollution : It is caused because of industrial construction activities, machinery, factory equipment, generators etc.
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