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MS - 1 Flashcards

1
Q

Define Manufacturing

A

Production of goods in large quantity after processing from raw materials to more valuable products is called manufacturing

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2
Q

Job of secondary sectors

A

O Manufactures the primary materials into finished goods

O Eg: Workers employed in steel, car, textile industries

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3
Q 
### 
THE ECONOMIC STRENGTH OF THE COUNTRY IS MEASURED BY THE DEVELOPEMENT OF MANUFACTURING INDUSTRIES
###
MANUFACTURING SECTOR IS CONSIDERD AS THE BACKBONE OF DEVELOPMENT IN GENERAL AND ECONOMIC DEVELOPMENT IN PARTICULAR
A 
### 
THE ECONOMIC STRENGTH OF THE COUNTRY IS MEASURED BY THE DEVELOPEMENT OF MANUFACTURING INDUSTRIES
###
MANUFACTURING SECTOR IS CONSIDERD AS THE BACKBONE OF DEVELOPMENT IN GENERAL AND ECONOMIC DEVELOPMENT
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4
Q

Importance of Manufacturing (4 pts)

*
 A  (agriculture)
 I   (Industrial development)
 E  (Export of M. goods)
 T  (Transformation)
 S
A
  1. M.I not only helps in modernizing agriculture but also helps in reducing the heavy dependence of ppl on agricultural income by providing them jobs in secondary and tertiary sectors.
  2. a) Industrial Development is a precondition for eradication of unemployment and poverty.
    b) This was the main philosophy behind public sector and joint sector ventures!
    c) Also aimed at bringing down regional disparities by establishing industries in tribal and backward areas.
  3. Export of manufactured goods expands trade and commerce and brings in much needed foreign exchange.
  4. Countries that transform their raw mat. into a wide variety of finished goods of higher value are prosperous.
    India’s prosperity lies in increasing and diversifying its manufacturing industries as
    quickly as possible.
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5
Q

THEY MOVE HAND IN HAND.
Give Reason.

A

O The agro based industries has given a major boost to agriculture by increasing its productivity.
O They depend on the latter for raw materials
O They sell their products like pumps, fertilizers, insecticides, plastic, PVC pipes, machines etc..

Thus the development of M.I has not only assisted agriculturists in increasing their production but also made their production processes very efficient.

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6
Q

When will be able to compete in the international market?

A

O In the present world of globalization our industry needs to be more efficient and competitive.
O Self sufficiency alone is not enough
O Our Manufactured goods must be at par in quality with those in international markets
O Only then, will we be able to compete in international market

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7
Q

What is the contribution of industry to national economy
(OR)
What is the objective set by the NMCC?

A

O Over the last two decades the share of manufacturing sector has remained STAGNATED at 17% of GDP out of 27% for the industry (out of which 10% is for mining, quarrying, electricity, gas) *GEM-Q
O This is much lower when compared to east asian countries, where it is 25% - 35%
O Growth rate of M.I over the last decade has been around 7% per annum.
O Desired growth rate over the next decade is 12%
O Since 2003, M. is growing at a rate of 9-10 % per annum.

  • With appropriate policy interventions by the government and renewed efforts by the
    industry to improve productivity, economists predict that manufacturing can achieve its
    target over the next decade
  • The National Manufacturing Competitiveness Council (NMCC) has been set up with this objective
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8
Q

Factors on which industrial location is dependent on? (5 marks)
(OR)
What is agglomeration economies? (5 marks)
(OR)
On what basis an industry is located on?
(OR)
What influences the location of industries? (5 marks)

A

O The industrial location are complex in nature.
O They are influenced by the availability of raw materials like :
* Labour, Capital, Power, Market etc.. (LachuComesPM)
O It’s rarely possible to find all these factors in one place!
O So the M.I tend to locate the most appropriate place where all these factors are either available or can be arranged at lower cost.

O After an industrial activity starts, urbanization follows, sometimes industries are located in or near the cities, hence INDUSTRIALIZATION AND URBANISATION goes HAND IN HAND.

O Cities provides markets and also provide services such as banking, insurance, transport, labour, consultants and financial advises etc.. to the industries. MANY INDUSTRIES COME TOGETHER TO MAKE USE OF THE ADVANTAGES OFFERED BY THE URABAN CENTRES known as AGGLOMERATION ECONOMIES. Gradually a large industrial agglomeration takes place.

O In pre-independence period most M.I were located in places from the point of view of overseas trade such as CHENNAI, MUMBAI, KOLKATA etc…

O The key to decision of the factory location is LEAST COST

O Government policies and specialized labour also INFLUENCE THE LOACTION OF INDUSTRY !

O They gradually develop as urban centers surrounded by huge agricultural rural hinterland.

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9
Q

Factors on which industrial location is dependent on? (3 marks)

A

O The industrial location are complex in nature.
O They are influenced by the availability of raw materials like :
* Labour, Capital, Power, Market etc.. (LachuComesPM)
O It’s rarely possible to find all these factors in one place!
O So the M.I tend to locate the most appropriate place where all these factors are either available or can be arranged at lower cost.
O Government policies and specialized labour also INFLUENCE THE LOACTION OF INDUSTRY !
O They gradually develop as urban centers surrounded by huge agricultural rural hinterland

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10
Q

What is AGGLOMERATION ECONOMIES ? (2 marks)

A

MANY INDUSTRIES COME TOGETHER TO MAKE USE OF THE ADVANTAGES OFFERED BY THE URABAN CENTRES known as AGGLOMERATION ECONOMIES.

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11
Q

On the basis of source of raw materials

used:

A 
Agro based: cotton, woollen, jute, silk
textile, rubber and sugar, tea, coffee,
edible oil.
• Mineral based: iron and steel, cement,
aluminium, machine tools,
petrochemicals
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12
Q

According to their main role:

A 
Basic or key industries which supply their
products or raw materials to manufacture
other goods e.g. iron and steel and copper
smelting, aluminum smelting.
• Consumer industries that produce goods
for direct use by consumers – sugar,
toothpaste, paper, sewing machines,
fans etc.
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13
Q

On the basis of capital investment:

A 
• A small scale industry is defined with
reference to the maximum investment
allowed on the assets of a unit. This limit
has changed over a period of time. At
present the maximum investment allowed
is rupees one crore.
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14
Q

On the basis of ownership:

A

Public sector, owned and operated by
government agencies – BHEL, SAIL etc.

• Private sector industries owned and
operated by individuals or a group of
individuals –TISCO, Bajaj Auto Ltd.,
Dabur Industries.

• Joint sector industries which are jointly run
by the state and individuals or a group of
individuals. Oil India Ltd. (OIL) is jointly
owned by public and private sector.

• Cooperative sector industries are owned
and operated by the producers or
suppliers of raw materials, workers or
both. They pool in the resources and share
the profits or losses proportionately such
as the sugar industry in Maharashtra, the
coir industry in Kerala.

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15
Q

On the basis of ownership:

A

Public sector, owned and operated by
government agencies – BHEL, SAIL etc.

• Private sector industries owned and
operated by individuals or a group of
individuals –TISCO, Bajaj Auto Ltd.,
Dabur Industries.

• Joint sector industries which are jointly run
by the state and individuals or a group of
individuals. Oil India Ltd. (OIL) is jointly
owned by public and private sector.

• Cooperative sector industries are owned
and operated by the producers or
suppliers of raw materials, workers or
both. They pool in the resources and share
the profits or losses proportionately such
as the sugar industry in Maharashtra, the
coir industry in Kerala.

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16
Q

Based on the bulk and weight of raw material

and finished goods:

A

• Heavy industries such as iron and steel
• Light industries that use light raw
materials and produce light goods such
as electrical industries.

17
Q

Agro based industries are

A

Cotton, jute, silk, woollen textiles, sugar and
edible oil, etc…

Industries are based on agricultural raw materials.

18
Q
  1. TEXTILE INDUSTRY
A
  • Unique position in Indian economy ‘cause it contributes significantly to industrial production (14%), employment generation (35 million) directly.
  • Second largest after agriculture and foreign earnings about 24.6%
  • Contributes 4% towards GDP
  • Self reliant and completed value chain i.e. from raw materials to highest added products.
19
Q
  1. COTTON TEXTILES
A

0 Ancient India, cotton
textiles were produced with hand spinning
and handloom weaving techniques

0 Our traditional industries suffered a setback
during the colonial period because they
could not compete with the mill-made cloth
from England.

0 The first successful textile mill was
established in Mumbai in 1854.
The two world wars were fought in Europe, gave a boost to the development of the cotton textile industry, as there was a great demand for cloth in U.K.

0 In the early years, the cotton textile
industry was concentrated in the cotton
growing belt of Maharashtra and Gujarat :
1.Availability of raw cotton, market, transport including accessible port facilities, labour, moist climate, etc.
Contributed towards its localization.

  1. This industry has close links with agriculture and provides a living to farmers, cotton boll pluckers and workers engaged in ginning, spinning, weaving,
    dyeing, designing, packaging, tailoring and sewing.
  2. The industry by creating demands
    supports many other industries, such as,
    chemicals and dyes, mill stores, packaging materials and engineering works. While spinning continues to be centralized in Maharashtra, Gujarat and Tamil Nadu.

0 Weaving is done by handloom, power loom and in mills.

0 The handspun khadi provides large scale employment to weavers in their homes as a cottage industry.

0 India exports yarn to Japan. Other
importers of cotton goods from India are
U.S.A., Russia, East European countries etc…

0 India has the second largest installed
capacity of spindles in the world, after China.

0 We have a large share in the world trade of cotton yarn, accounting for one fourth of the total trade. However, our trade in garments is only 4 per cent of the world’s total.

0

20
Q

In the early years, the cotton textile
industry was concentrated in the cotton
growing belt of Maharashtra and Gujarat. GIVE REASON

A

Availability of raw cotton, market, transport
including accessible port facilities, labour,
moist climate, etc.
Contributed towards its localization.

This industry has close links with agriculture and provides a living to farmers, cotton boll pluckers and workers engaged in ginning, spinning, weaving,
dyeing, designing, packaging, tailoring and
sewing.

The industry by creating demands
supports many other industries, such as,
chemicals and dyes, mill stores, packaging
materials and engineering works.

0 weaving is highly decentralized to provide scope for incorporating traditional skills and designs of weaving in cotton, silk, zari, embroidery, etc.

0 weaving supplies low quality of fabric

21
Q

India has world class production in spinning but cannot use much. explain.

OR

Why many of our manufactures have to import fabric ?

A

0 weaving is highly decentralized to provide
scope for incorporating traditional skills and
designs of weaving in cotton, silk, zari,
embroidery, etc.

0 weaving supplies low quality of fabric as it cannot use much of the high quality yarn produced in the country.

0 Weaving is done by handloom, power loom and in mills.

0 The weaving, knitting and
processing units cannot use much of the high quality yarn that is produced in the country.

0 Most of the production is in fragmented small units, which cater to the local market

0 Power supply is erratic and machinery needs
to be upgraded in the weaving and processing
sectors in particular.

0 low output of labour and stiff competition with
the synthetic fibre industry.

This mismatch is a major drawback for the
industry. As a result, many of our spinners
export cotton yarn while apparel/garment
manufactures have to import fabric.

22
Q
  1. JUTE TEXTILES
A

India is the largest producer of raw jute and
jute goods and stands at second place as an
exporter after Bangladesh.

Most of these are located in West Bengal, mainly along the banks of Hugli river.

It supports a large no. of ppl directly and indirectly

The first jute mill was set up near Kolkata in
1859 at Rishra.

Factors responsible for their location in
the Hugli basin are:

proximity of the jute
producing areas,

inexpensive water
transport,

supported by a good network of
railways, roadways and waterways to
facilitate movement of raw material to the
mills, abundant water for processing raw
jute, cheap labour from West Bengal and
adjoining states of Bihar, Orissa and Uttar
Pradesh.

Kolkata as a large urban centre
provides banking, insurance and port
facilities for export of jute goods.

Challenges faced by the industry :

stiff competition in the international market from
synthetic substitutes and from other
competitors.

internal demand has been on the increase

In 2005, National Jute Policy was formulated with the
objective of increasing productivity, improving
quality, ensuring good prices to the jute farmers
and enhancing the yield per hectare.

The growing
global concern for environment friendly,
biodegradable materials, has once again opened
the opportunity for jute products.

23
Q

Factors responsible for their location in

the Hugli basin are:

A

proximity of the jute
producing areas,

inexpensive water
transport,

supported by a good network of
railways, roadways and waterways to
facilitate movement of raw material to the
mills, abundant water for processing raw
jute, cheap labour from West Bengal and
adjoining states of Bihar, Orissa and Uttar
Pradesh.

Kolkata as a large urban centre
provides banking, insurance and port
facilities for export of jute goods.

24
Q
  1. SUGAR INDUSTRIES
A

India stands second as a world produce, But first in the production of gur and khandsari.

The raw
material used in this industry is bulky

spread over Uttar Pradesh, Bihar,
Maharashtra, Karnataka, Tamil Nadu,
Andhra Pradesh and Gujarat along with
Punjab, Haryana and Madhya Pradesh. Sixty
per cent mills are in Uttar Pradesh and Bihar.

industry is seasonal in nature so, it is
ideally suited to the cooperative sector :

In recent years, there is a tendency for the
mills to shift and concentrate in the southern
and western states, especially in Maharashtra,
This is because the cane produced here has a
higher sucrose content. The cooler climate
also ensures a longer crushing season.
Moreover, the cooperatives are more
successful in these states.
Major challenges include the seasonal
nature of the industry, old and inefficient
methods of production, transport delay in
reaching cane to factories and the need to
maximise the use of baggase.

25
Q

Challenges faced by the industry

A

stiff competition in the international market from
synthetic substitutes and from other
competitors.

internal demand has been on the increase

In 2005, National Jute Policy was formulated with the
objective of increasing productivity, improving
quality, ensuring good prices to the jute farmers
and enhancing the yield per hectare.

The growing
global concern for environment friendly,
biodegradable materials, has once again opened
the opportunity for jute products.

26
Q

industry is seasonal in nature so, it is

ideally suited to the cooperative sector :

A

In recent years, there is a tendency for the
mills to shift and concentrate in the southern
and western states, especially in Maharashtra,
This is because the cane produced here has a
higher sucrose content. The cooler climate
also ensures a longer crushing season.
Moreover, the cooperatives are more
successful in these states.
Major challenges include the seasonal
nature of the industry, old and inefficient
methods of production, transport delay in
reaching cane to factories and the need to
maximise the use of baggase.

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