Industries and factors affecting their location
Wheat is cheap, but a packet of biscuits made from it sells for much more. The factory changed the grain into something more useful. That change is industry.
An industry (उद्योग) converts raw material (कच्चा माल) into finished products (पक्का माल) that are more useful and have added value (मूल्यवर्धन).
Rule 1: What industries do — Factories turn raw material into finished products that are more durable and more useful. Industries give secondary occupation (दुय्यम व्यवसाय) and help the economic development of people and of the country.
In the figure : In the figure industries convert raw material into finished products, which are more useful and have an added value (sample values); they provide secondary occupation.
- Easy : Easy: Cotton → cloth.
- Medium : Medium: Cotton worth Rs 60 becomes cloth worth Rs 200; added value = 200 − 60 = Rs 140.
- Exam-type : Exam: What is added value?
Rule 2: Factors of location — Industry depends on raw material, water, labour, transport, capital, market and energy. These are unequally spread, so industries do not develop at the same pace everywhere. Dense forests and deserts are not suitable.
In the figure : In the figure the development of industries depends on raw material, water, labour, transport, capital, market and energy.
- Easy : Easy: Water and labour are factors.
- Medium : Medium: 7 factors are listed.
- Exam-type : Exam: Why are deserts unsuitable?
Rule 3: Why Jamshedpur — Iron and steel at Jamshedpur: the key factors are raw material and energy (coal). The raw material is heavy and bulky, so carrying it far is uneconomical; the industry is set up near the raw material.
In the figure : In the figure heavy and bulky raw material is uneconomical to carry far, so such an industry, like iron and steel at Jamshedpur, is set up near the raw material (site A).
- Easy : Easy: Steel plants stand near iron ore and coal.
- Medium : Medium: Carrying 100 t ore for 500 km at Rs 2 per t per km costs 100 × 500 × 2 = Rs 100000.
- Exam-type : Exam: Why near raw material?
Industry = raw material → finished product + added value. Heavy raw material → site near it.
Thinking industry only needs a factory building. It needs 7 factors.
Memory clue: "क-पा-का-वा-भां-बा-ऊ" = कच्चा माल, पाणी, कामगार, वाहतूक, भांडवल, बाजार, ऊर्जा.
Spot the difference
| Term | Example |
|---|---|
| Raw material | Iron ore, cotton |
| Finished product | Steel, cloth |
| Secondary occupation | Factory work |
Practice questions
- 1What is an industry?
- 2What is added value?
- 3Industries give which kind of occupation?
- 4Name four factors of location.
- 5Which factors matter most for Jamshedpur?
- 6Which areas are unsuitable for industry?
- 7Sugar cane worth Rs 300 becomes sugar worth Rs 450. Find the added value.
- 8Why is a cotton cloth mill not built far from cotton fields?
Show answers (try them yourself first)
- 1Converting raw material into finished products.
- 2The extra worth the finished product gets.
- 3Secondary.
- 4Raw material, water, labour, transport.
- 5Raw material and energy (coal).
- 6Dense forests and deserts.
- 7450 − 300 = Rs 150.
- 8Carrying raw material far costs more.
Types of industries and agro-based industries
The potter, the bakery and the cement plant are all industries, but of different sizes. And the sugar from one factory becomes the sweet in another.
Industries are small, medium or heavy; those using farm produce are agro-based industries (कृषी-आधारित उद्योग).
Rule 1: By size — Small: earthen pots, bakery products. Medium: fruit processing, jaggery making. Heavy: cement, sugar, iron and steel.
In the figure : In the figure small industries (earthen pots, bakery products), medium industries (fruit processing, jaggery making) and heavy industries (cement, sugar, iron and steel).
- Easy : Easy: Bakery is a small industry.
- Medium : Medium: Cement is heavy; jaggery is medium.
- Exam-type : Exam: Give one example of each size.
Rule 2: Linked industries — The finished product of one industry is often the raw material of another. Sugar is a product of the sugar factory and raw material for biscuits, jams and jellies; iron rods go to engineering industries and steel furniture.
In the figure : In the figure the finished product of one industry is often the raw material of another: sugar is the finished product of the sugar factory and the raw material for biscuits.
- Easy : Easy: Sugar is raw material for biscuits.
- Medium : Medium: Cane → sugar → biscuits is a chain of 2 industries.
- Exam-type : Exam: Explain with iron as example.
Rule 3: Agro-based industries — India is mainly agrarian, so dairy, fruit and food processing, jaggery, oil press and dal mills have grown everywhere. Heavy ones like textiles and sugar are also agro-based. They bring agricultural and economic development and raise the standard of living.
In the figure : In the figure agro-based industries use agricultural products as raw material; India is predominantly agrarian, so they have developed everywhere.
- Easy : Easy: Dal mills are agro-based.
- Medium : Medium: Both sugar and textiles are heavy and agro-based.
- Exam-type : Exam: Why are agro industries common in India?
Small, medium, heavy. One industry's product is another's raw material.
Thinking sugar is always a finished product. For biscuits it is raw material.
Memory clue: "आज पक्का, उद्या कच्चा".
Spot the difference
| Size | Examples |
|---|---|
| Small | Earthen pots, bakery |
| Medium | Fruit processing, jaggery |
| Heavy | Cement, sugar, iron and steel |
Practice questions
- 1Name a small industry.
- 2Name a medium industry.
- 3Name a heavy industry.
- 4What is an agro-based industry?
- 5Why is India rich in agro industries?
- 6Give two heavy agro-based industries.
- 7Write the chain: sugarcane → ? → jam.
- 8How do agro industries help villages?
Show answers (try them yourself first)
- 1Bakery.
- 2Jaggery making.
- 3Cement.
- 4One using agricultural products as raw material.
- 5India is agrarian.
- 6Textiles and sugar.
- 7Sugar.
- 8They give jobs, a market for crops and a higher standard of living.
Industrial development, industrial estates and MIDC
A new factory in a district means jobs for the local youth, shops around the gate and a bus route. One industry lifts a whole area.
An industrial estate (औद्योगिक वसाहत) is a planned area with ready facilities; MIDC set them up in Maharashtra for decentralised industrial growth.
Rule 1: Benefits — Industrial development raises the standard of living and per capita income, creates employment, and increases exports and the foreign exchange reserves (परकीय चलन साठा).
In the figure : In the figure industrial development creates employment, raises the per capita income and the standard of living and increases exports and foreign exchange reserves.
- Easy : Easy: Industry creates jobs.
- Medium : Medium: Income Rs 80000 rising to Rs 100000 is a rise of 20000, which is 25%.
- Exam-type : Exam: What is foreign exchange?
Rule 2: Industrial estates — The government sets up industrial estates to boost industry and employment. A main factory and auxiliary industries work together with ready facilities and concessional rates for electricity, water and taxes.
In the figure : In the figure an industrial estate has a main factory and auxiliary industries with ready facilities; the government gives concessional rates for electricity, water and taxes.
- Easy : Easy: Estates have concessions.
- Medium : Medium: A car plant needs auxiliary units for seats, tyres and glass.
- Exam-type : Exam: Why does the government set up estates?
Rule 3: MIDC and the two sides — The Maharashtra Industrial Development Corporation was set up on 1 August 1962 to place industries in every district: decentralisation (विकेंद्रीकरण). Advantages: employment, farm development, power, transport, markets, literacy. Disadvantages: pollution, slums, loss of forest land, rising land prices, poverty and migrants' pressure on cities.
In the figure : In the figure the MIDC (established on 1 August 1962) aims at decentralisation: industries in every district instead of in a few places (sample picture).
- Easy : Easy: MIDC began in 1962.
- Medium : Medium: 2026 − 1962 = 64 years old.
- Exam-type : Exam: List two advantages and two disadvantages.
Estates: ready facilities and concessions. MIDC: 1 Aug 1962, decentralisation.
Thinking industries have only advantages. Pollution and slums are costs.
Memory clue: "MIDC = प्रत्येक जिल्ह्यात उद्योग".
Spot the difference
| Side | Examples |
|---|---|
| Advantages | Jobs, power, transport, literacy |
| Disadvantages | Pollution, slums, costly land |
Practice questions
- 1What do industries raise?
- 2What is an industrial estate?
- 3What concessions does it give?
- 4Expand MIDC.
- 5When was it established?
- 6What is decentralisation?
- 7Name two disadvantages of industries.
- 8Why is a main factory surrounded by auxiliary units?
Show answers (try them yourself first)
- 1Per capita income and standard of living.
- 2A planned area with ready facilities for industries.
- 3Electricity, water and taxes.
- 4Maharashtra Industrial Development Corporation.
- 51 August 1962.
- 6Spreading industries to every district.
- 7Pollution and slums.
- 8They supply parts and services nearby, saving transport.
Information technology industry and public sector undertakings
When you search on a phone, you get answers in a second. Behind that is the IT industry, with thousands of skilled people working on computers.
Information Technology (माहिती तंत्रज्ञान, IT) is an engineering branch where work is done by computers; centres of IT are IT hubs.
Rule 1: IT industry — India has progressed rapidly in IT because of skilled manpower. The work includes searching, obtaining, analysing and compiling information, presenting it graphically and giving it as needed. Creating software is another part. IT hubs: Bengaluru, Noida, New Delhi.
In the figure : In the figure the IT industry works through computers: searching for, analysing and compiling information and presenting it graphically; creating software is another component.
- Easy : Easy: IT uses computers.
- Medium : Medium: Software is a program that runs on a device.
- Exam-type : Exam: Why has India done well in IT?
In the figure : In the figure IT centres are called IT hubs, for example Bengaluru, Noida and New Delhi (schematic map; Noida is next to Delhi).
- Easy : Easy: Bengaluru is an IT hub.
- Medium : Medium: 3 hubs are named.
- Exam-type : Exam: Name two IT hubs.
Rule 2: Public sector undertakings — BHEL Bharat Heavy Electricals Limited; BEL Bharat Electronics Limited; HAL Hindustan Aeronautics Limited; ONGC Oil and Natural Gas Corporation; NTPC National Thermal Power Corporation; SAIL Steel Authority of India Limited; GAIL Gas Authority of India Limited. Industries that can stop the flow of people to cities should be set up in rural areas.
- Easy : Easy: HAL builds aircraft.
- Medium : Medium: 7 PSUs are listed.
- Exam-type : Exam: Expand SAIL and ONGC.
IT = computers + skilled people. Hubs: Bengaluru, Noida, New Delhi. PSUs: BHEL, BEL, HAL, ONGC, NTPC, SAIL, GAIL.
Thinking IT hubs are only in big cities. Rural IT can reduce migration.
Memory clue: "BHEL-BEL-HAL-ONGC-NTPC-SAIL-GAIL" म्हणजे सात सरकारी उपक्रम.
Spot the difference
| Short form | Full form |
|---|---|
| BHEL | Bharat Heavy Electricals Limited |
| HAL | Hindustan Aeronautics Limited |
| ONGC | Oil and Natural Gas Corporation |
| SAIL | Steel Authority of India Limited |
Practice questions
- 1What is IT?
- 2Why has India progressed in IT?
- 3What is software?
- 4What is an IT hub?
- 5Name three IT hubs.
- 6Expand NTPC.
- 7Which PSU deals with oil and gas exploration?
- 8Why set up industries in rural areas?
Show answers (try them yourself first)
- 1Information Technology, work done on computers.
- 2Because of skilled manpower.
- 3Programs made for devices.
- 4A centre of IT industry.
- 5Bengaluru, Noida, New Delhi.
- 6National Thermal Power Corporation.
- 7ONGC.
- 8To stop people moving to cities.
Industry, environment, CSR and water
A factory chimney makes goods and also smoke. Good industry cleans up after itself and gives something back to the town.
Industrial pollution (औद्योगिक प्रदूषण) is the harm to air, water, noise and land by factories; CSR (Corporate Social Responsibility) is an industry's work for society and the environment.
Rule 1: Pollution and laws — Manufacturing leaves harmful residues, causing air, water, noise and land pollution. Environmental factors are now considered when choosing a location. Sewage and residues must be disposed of properly and pollutants treated. Laws: Water and Air Pollution Control Acts, Environment Protection Act. The Central Pollution Control Board looks into prevention and control; factory management is liable for punishment.
In the figure : In the figure industries cause air, water, noise and land pollution, called industrial pollution; the Central Pollution Control Board looks into its prevention and control.
- Easy : Easy: Smoke causes air pollution.
- Medium : Medium: 4 kinds of pollution are listed.
- Exam-type : Exam: Name two laws.
Rule 2: CSR and water — Industries with a profit over 5 crores are expected to spend at least 2% of profit on education, health, village development and environmental centres, with a tax rebate. Example: profit Rs 10 crore → 2% = Rs 0.2 crore = Rs 20 lakh. Water literacy: India will face acute water shortage. Water management: check dams, canals, recharging underground reservoirs, reuse of water, less pollution, treatment of industrial waste water.
In the figure : In the figure water management: small check dams, canals, recharging underground reservoirs, reuse of water and treating industrial waste water.
- Easy : Easy: CSR means work for society.
- Medium : Medium: Profit Rs 20 crore → 2% = Rs 0.4 crore.
- Exam-type : Exam: Why treat industrial waste water?
Pollution of 4 kinds, laws, CPCB. CSR = 2% of profit over 5 crore. Save and treat water.
Thinking CSR is optional charity. For large profits it is expected and gets a tax rebate.
Memory clue: "नफा 5 कोटींवर → 2% समाजाला".
Spot the difference
| Item | Meaning |
|---|---|
| Industrial pollution | Air, water, noise, land |
| CPCB | Central Pollution Control Board |
| CSR | 2% of profit over 5 crore |
Practice questions
- 1What is industrial pollution?
- 2Name one law against pollution.
- 3Which board controls pollution?
- 4What is CSR?
- 5How much profit should be spent?
- 6What is water literacy?
- 7Profit is Rs 50 crore. Find the 2% CSR amount.
- 8Give two ways industries can save water.
Show answers (try them yourself first)
- 1Air, water, noise and land pollution from industries.
- 2Environment Protection Act.
- 3Central Pollution Control Board.
- 4An industry working for society and the environment.
- 5At least 2%.
- 6Awareness of saving and managing water.
- 750 × 2 ÷ 100 = Rs 1 crore.
- 8Reuse water and treat waste water.
Quick revision
- Raw material → finished product with added value; secondary occupation. Factors: raw material, water, labour, transport, capital, market, energy. Jamshedpur: raw material and energy.
- Small, medium and heavy industries; agro-based: dairy, fruit processing, jaggery, textiles, sugar.
- Industrial estates and MIDC (1 August 1962): decentralisation, concessions. Benefits and drawbacks of industrialisation.
- IT industry: skilled manpower, IT hubs, software. PSU abbreviations: BHEL, BEL, HAL, ONGC, NTPC, SAIL, GAIL.
- Industrial pollution and laws, CPCB. CSR: 2% of profit when profit exceeds 5 crores; tax rebate. Water management.