Detail of Industries of India

Industries of India

Industries of India

Industry refers to the people or companies engaged in a particular kind of commercial enterprise. It is described it as the manufacturing of a good or service .

Primary Industries

  • Use natural raw material
  • Examples  Hunting-gathering, pastoral activities, fishing, forestry, agriculture, mining and quarrying

Secondary Industries

  • Make complex products using the material obtained from primary industry
  • Steel    Automobiles, Railway engines
  • Wooden Pulp    Rayon
  • Al + Cu    Electrical & Electronics products
  • Fibers    Readymade Garments
  • Secondary Industry can be sub classified into
  • Heavy Industries  Engineering, metal goods, heavy chemicals, shipbuilding, locomotives
  • Light industries  Electronics, plastic, textile, cosmetic etc.

Tertiary Industries
  • Not a branch of manufacturing but sells the product of primary and secondary industries via transport, trading, wholesale & retailing
  • Basically include Service providers industry
  • Provides services such as tourism, education, entertainment, advertisements, consultancy, Administration, healthcare etc.

Factors responsible for the location of industries 

  • Availability of Raw Material
  • Power Resources
  • Availability of water
  • Labour
  • Transportation
  • Availability of Market
  • Capital
  • Government Policies

Factors Influencing the Location of Industries : Geographical and Non-Geographical Factors
Many important geographical factors involved in the location of individual industries
 e.g., availability of raw materials, power resources, water, labour, markets and the transport facilities
But besides such purely geographical factors influencing industrial location, there are factors of historical, human, political and economic nature which are now tending to surpass the force of geographical advantages.
1. Raw Material:
The earliest industries in India developed near the sources of raw material. For instance, the textile mills of Bombay had supply of cotton coming from Gujarat and Vidarbha and the jute mills of Hooghly region got the raw material from the delta region of the Ganga. The nature of raw material also has a bearing on the location.
For instance, those raw materials which get reduced in weight during manufacturing (i.e., which are perishable) influence the industry to be located near the source.
This explains the particular location of sugar mills in Maharashtra and western Uttar Pradesh and of iron and steel industry in West Bengal-Bihar- Orissa belt.
2. Energy:
The iron and steel industry has been traditionally tied with the coal resources, as it uses coking coal for fuel.
Similarly, the electro- metallurgical and electro-chemical industries, being power intensive, have been located where electricity is easily available.
This explains the location of aluminum producing units at Korba and Renukoot in Madhya Pradesh and of the fertiliser plant at Nangal in Punjab. However, since electricity can be easily transmitted, and petroleum can be transported, these industries can also be dispersed.
 It was only because of the transmissibility of electricity that industrial development could take place with hydel power in the coal deficient peninsular region.
3. Transport:
Transport is required for carrying raw materials to manufacturing units and finished products to the market. The earliest industries developed near the port towns of Kolkata, Mumbai and Chennai, since these ports were linked with rail and road to hinterland. This infrastructure for transport was further developed after independence.
4. Labour:
The availability of both unskilled and skilled, or technically qualified manpower, is an important factor in the location of industries.
Unskilled labour is easily available in urban locations due to large rural-urban migration. One characteristic feature of the labour factor is its mobility. The industrial belt around Mumbai attracts labour from all over the country. Some of the small scale industries traditionally associated with labour is glasswork (Ferozabad), brass-work (.Moradabad), utensils (Yamunanagar in Haryana), silk sarees (Varanasi), carpets (Mirzapur), etc.
5. Water:
Water is required to produce hydel power and in the process of manufacturing for cleaning, cooling, washing, etc. The industries which heavily depend on water, for one purpose or the other, include iron and steel (for cooling), textile (for bleaching and washing), paper and pulp, chemical, jute, food processing, leather and atomic power. Naturally, these units are located at places where water is easily available.
6. Market:
High demand and a satisfactory purchasing power give impetus to industrial development. Government policies facilitate expansion of the market and, thus, of the industry. Market may be local, national or international.
7. New Factors in a Changed Situation:
With scientific and technological advancement, the constraining geographical factors have not remained rigid. Labour has become more mobile, long distance transmission of energy is possible now and alternatives of various raw materials are available. Therefore, new factors have come into play which include skilled managerial services, availability of capital and financial resources and export potential of products.
The government policies seek to promote regional parity by locating the industry in backward regions. For instance, such objectives guided the government’s decision to locate an oil refinery in Mathura, a coach factory in Kapurthala, and a fertiliser plant in Jagdishpur, Uttar Pradesh.
Government policies also seek to check environmental degradation and to reduce congestion. Export potential of iron and steel products guided the location of new steel plants at Visakhapatnam and Salem. Visakhapatnam is a port, while Salem is well connected to the ports of Chennai and Kochi by rail and road.

Need for Industrialization in India

  • To reduce dependence on the other countries and become self sufficient
  • To maintain the balance of trade
  • To accelerate the economic growth
  • To solve the problem of unemployment

Why decentralization of industries

  • Employment opportunities in every region of the country
  • Equitable distribution of national income
  • Removal of regional disparities
  • Check upon the concentration of population in certain parts of the country

Industries polluting the environment

  • Emitting Harmful Effluents and Smoke into the Air
  • Discharging Large Quantities of Chemical Waste and Garbage
  • Degradation of fertile Land
  • Contamination of Underground Water


  • Use of Hydro-Electricity instead of thermal power
  • Use of Higher Quality Coal for Thermal Plants emitting less smoke
  • Shifting of Factories out of Municipal Limits
  • Discharging dirty water & smoke only after treatment
  • Recycling of industrial Water
  • Enacting Stringent Laws for checking Pollution and Degradation of the Environment
  • Planting of Trees and Creating Mini-Forest Areas by Industry owners

Indian Industries

Cottage Industries

  • Provide jobs to millions of people
  • Check migration of rural people to urban areas
  • Can be started with low investment
  • Helps to earn additional income for rural people
  • Use local raw material  Optimum utilization of national resources
  • Earn a lot of foreign exchange for the country
  • Generate seasonal as well as perennial employment for labour
  • Play significant role in our national economy

Timber industry

Near raw material
  • Dependent on bamboo, softwood
  • E.g. South Gujarat, Odisha, MP
Near market
  • Kolkata    Raw material brought from North Eastern States, cheap labor, coal, water available
  • Lucknow  Depend on bagasse (from sugar mills), rags, wheat bran & Sabai grass brought from Tarai region

Fishing in India → East vs West

  • In India, fishing is more developed along western coast than in Eastern coast because -
  • Continental shelf in Western Coast are wider  more plankton  more fishes
  • Commercial varieties like Prawns and Mackerel are mostly confined along western coast.

Cotton and Textile Industry

  • Cotton as a raw material is lightweight & non-perishable
  • Cotton changed to yarn/textile  Hardly any weight loss
  • Therefore, proximity to raw material site is not essential doesn’t offer great cost-saving in transportation (Unlike sugar, Cement or Steel industry)
  • Result  other factors become more important in industrial location viz.
  • nearness to market
  • nearness to water body (for dyeing, bleaching)
  • Energy to run power looms and textile machines
  • cheap labour supply & availability of capital/finance

Climate as factor

  • In dry climate, the cotton-threads will break quickly during spinning.
  • Machine halts, you’ve to join the threads again to restart operation  not good for mass production.
  • In humid climate, thread will rarely break.
  • So, cotton textiles were setup near coastal areas.
  • Today we’ve humidifiers that can artificially increase the air-moisture in factory/workshed
  • Hence you can setup factory anywhere, run it efficiently, irrespective of climate outside.

Cotton Industry locations in India

  • Maharashtra (Mumbai – Cottonopolish of India)
  • Ahmadabad (Gujrat)
  • Coimbatore (Tamil Nadu)

Challenges faced by cotton industry

  • Fluctuations in the production of raw material
  • Production of cotton is uncertain
  • Fluctuates depending on the climatic conditions
  • Makes the supply of raw material irregular
  • Poor Quality of Cotton produced in India
  • Unavailability of adequate and unfailing supply of Power due to inadequacy of regular coal supply
  • Increased competition in global market both in cost and quality from countries viz. Japan, Korea, the USA and Taiwan
  • Old and outdated machinery and need for modernization  low productivity and high production cost
  • Strikes, lock-outs and market rivalry have also made the industry sick
  • The invention of synthetic as a substitute for cotton has also resulted in the decline of cotton industry

Why cotton textile industry is largely concentrated in Maharashtra

  • Availability of Raw Material
  • Cotton is the basic input of cotton textile industry
  • Maharashtra is the leading producer of cotton
  • Transport & Export Facility
  • Mumbai has excellent transportation network
  • It is also a port city and so good export facilities are available
  • Good quality cotton, machines and the raw material are easily imported and finished products can be easily exported
  • Labour, finance & Market Availability
  • Maharashtra has high density of population mainly due to immigration
  • Skilled and unskilled labour is easily available
  • Due to high density of population, demand for the products is also high
  • Home of all major financial and banking institutions to make finances available easily for the growth of this industry
  • Favourable Climate & Power availability
  • Maharashtra has equitable climate
  • Ensures the production of cotton
  • Western Ghats provide suitable conditions for the generation of cheap hydroelectricity required for this industry

Silk Industry

  • India has vast labour & market to match silk farming
  • India grows all important varieties of silk viz. Mulberry, Tasar, Oak Tasar, Eri and Muga
  • But demand is greater than production, so even we have to import from china (particularly bivoltine mulberry silk)
  • Mulberry silk  Mainly in Southern states (Karnataka, Tamil Nadu, Andhra Pradesh) + WB + J & K
  • Non – Mulberry  Jharkhand, Chhattisgarh, Odisha + North East

Geographical Factors

  • Raw material (Mulberry plants) can be grown in any type of soil even in forest fringes, hill slopes
  • Can even withstand draught
  • Works well in non-green revolution, non-irrigated areas of East and NE India
  • Sericulture does not involve hard labor.
  • Silkworms can be reared by women and old people  side income
  • In Eastern States, Farmers earlier used to grow Jute but Jute demand declined so they shifted to Sericulture
  • Works on simple technology
  • No sophisticated equipment needed
  • Can be done by small and marginal farmers

Woolen Industry

Raw material

  • Wool as raw material  non-perishable, lightweight
  • For Apparels  Indian wool consists of coarse fibers which irritate body.
  • Hence for decent apparels, we’ve import Australian wool (exception Kashmiri Shawls)
  • For non-apparels  Even to produce decent Carpets, blankets, you’ve to mix it with New Zealand’s wool
  • Hence location of woolen textile is not tied to raw material site


  • Winter in North India  brutally cold hence good demand
  • ~75% of industries concentrated in Northern States because of market factor
Parallel to wool-market factor, you can see that Cotton textile industry is profound in southern half of India because warm-humid climate hence more demand for Cotton garments in south India than woolen

Indian woolen textile regions

Near Raw Material
Kashmiri Shawl using Kashmiri goats
Raw material from Ludhiana, Dhaliwal, Amritsar
Raw material from Kathiawar (and parts of Rajasthan)
From Bikaner, Barmer
Near Market
In 1870s, Kanpur became major center of woolen textile to meet the requirements of British India Army
Mumbai, Chennai
Mostly use imported wool for making apparels

Jute Industry → West Bengal (India)

Raw material
  • 90% of Jute is cultivated in the Kolkata hinterland
  • Jute is the only crop that can withstand flooding of this region
  • From coal  Raniganj and Jharia coal mines
  • Jute processing require large quantity of water for washing, bleaching & retting
  • Easily available from Hubly river
  • Jute-processing is labour intensive
  • Cheap labour available from Bihar, Odisha, W Bengal
  • Kolkata always had good banking-finance facilities
  • Initially it was the capital of British India, Hence Jute mills flourished the most here

Major problems faced by the Jute Industry in India

  • After independence most of the jute-producing areas went to Bangladesh (erstwhile East Pakistan) resulting in acute shortage of raw jute (raw material required for Jute production)
  • Indian Jute industry is facing very stiff competition from other jute producing countries viz. Bangladesh, Philippines, Japan and Brazil
  • As such the market for jute goods has shrunk due to invention of synthetic substitutes as a replacement of Jute
  • Wage rates need to be linked with productivity, new sophisticated machinery needed, but labour unions is resistant  businessmen not doing new investment.
  • Labour unrest and strikes have further added problems for this industry
  • Lack of marketing strategy to promote Indian jute as eco-friendly, biodegradable packing material among environmentally conscious customers in US and Europe

Viticulture → India

  • Vineyards in Himachal, Nashik, Bangalore
  • Due to favorable climate & soil
Government Policy
  • State governments giving tax benefits to encourage wine industry
  • Maharashtra gives stamp and Excise duty exemption, sale tax holiday etc. to new wine units

Rubber Plantations

Nature of Raw Material

  • Natural Rubber is obtained from latex of rubber trees
  • Latex is white milky liquid, collected by making cut on rubber tree bark
  • Latex contains 30-40% rubber
  • Rest of the material is lost during processing
  • Hence preliminary processing is done near Raw material site

Labour availability

  • Tapper need to make cuts deep enough to chop the latex tube but without damaging cambium  need skills
  • Latex is collected by affixing artificial cups on the tree bark
  • But latex will coagulate in cup, if kept for long hence tapper needs to collect latex regularly  need lot of laborers


  • Hates cold + likes abundant moisture  Hot & wet climate
  • Both condition met near tropics

Rubber → Kerala

  • In Kerala, Rubber grown on hill slops of W Ghats in Travancore, Kozikode, Malabar, Kottayam distrcits
  • Kerala  lot of coconuts  their shell is used as “cup” to collect latex
  • Kerala being coastal state + hills  Warm & wet
  • Tapping done in morning to avoid afternoon rains
  • laterite soil  good for growth
  • Available and skilled
  • One tapper can go through almost 250-300 trees per day

Sugar Industry

Nature of Raw material

  • Sugar mills are located near sugar growing areas, because of two factors
  • Perishable  Sugarcane contains sucrose & once you cut the sugarcane, the sucrose content starts to decline. Hence raw material must be quickly transported.
  • Weight loss  Sugar accounts for only ~10% of the bulky sugarcane and therefore it is prohibitively expensive to transport sugarcane over long-distance in its original form.

Sugar mill

  • Sugarcane
  • Sugarcane is crushed between rollers  Sugar juice
  • Sugar juice + lime + boiling  Crystallization of sugar
  • Raw coarse brown sugar  Need further refining
  • Bagasse    Used as Fodder, Energy Fuel, & in Paper pulp industry
  • Molasses  Used to produce ethanol
Location Principle 
  • Must be located near sugar farming areas
  • As sugarcane being bulky-perishable
  • E.g. in Uttar Pradesh, Maharashtra, South Gujarat, Karnataka, TN, Andhra Pradesh

Sugar Refinery

Raw Coarse brown sugar (from sugar mill)
Raw sugar is refined
Brown and white sugars of various grades
Location Principle 
In countries like Japan (which rely on imports), the sugar refineries are setup at ports or near market centers.

Factor : North India vs South India → Sugar production

  • South India  No Loo + No frost + Moderating effect of ocean
  • Ideal climate for sugarcane growth
  • But the sugarcane cultivate/industry in South India is not as large as UP-Maharashtra belt as :
  • During British-raj, North India used to cultivate indigo as cash crop but then invention of synthetic dyes
  • Hence farmers switched to sugarcane
  • In South India, farmers have better cash-crop alternatives
  • For e.g. cotton, tobacco, coconut, groundnut etc.
  • Other Climatic & Economic factors Factors
  • Fertile soil
  • Tropical climate
  • More than 100 cm rainfall annually
  • Better availability of irrigation facilities
  • Availability of Electric power
  • Availability of cheap labour
  • So you don’t see a large sugar belt like UP

The sugar industry is now shifting from North to South because

  • The sugar contents in southern state’s cane is higher
  • South has better export facilities as compared to North
  • Climate is also suitable for the cultivation of sugarcane

Tea plantation Industry

Labour availability

  • Weeding, manure, pruning and plucking  tedious job + need skill + patience
  • Cheap female labour force is essential (same factor like sericulture)
  • Since tea has to be grown in hill slopes, mechanization not possible
  • Even while drying, rolling, fermentation, grading and packaging of tea, skilled manpower needed
  • Therefore, tea plantation is done near areas with high population density

Raw material

  • Tea leaves to tea, involves considerable weight loss
  • Hence tea processing is done in the estate/plantation itself
  • Further blending/repacking could be done at break of the bulk location
  • For e.g. port cities like London
  • [Break of the bulk] → Place where mode of transportation changes e.g. waterway to railways


  • Frost damages the leaves hence tea is not grown beyond Northern China / Honshu
  • Very long winter retards plant growth hence decreases yield


  • Doesn’t like stagnant water
  • Hence, has to be grown on highland or hill slopes
  • for e.g. hills of Darjeeling, Jalpaiguri (West Bengal) & Nilgiri (Tamil Nadu)

Coffee Plantation → Karnataka + Kerala (India)

  • Western Ghats + Nilgiri Hills region
  • Suited for both Tea + coffee
  • Red soil  best suited
  • Hill areas of  No stagnant water
  • Coffee grown on Northern and Eastern slopes of the Ghat (Because coffee hates direct sunlight)
  • Moderating effect of Lakshadweep sea
  • Temp stays ~25 throughout the year
  • Via Kochi port
  • Kochi port to (mostly) Italy
  • Local demand in South India