At the time of Independence, India did have an industrial foundation of sorts which included several jute and cotton textile mills, some sugar factories and two major iron and steel plants. However, even this very limited base was characterized by disparity and imbalance, especially in the capital goods sectors. The British Rule in India was marked by its colonial and imperial outlook. It not only stagnated  but thoroughly impoverished Indian economy. As a result it only succeeded in reducing India to an appendage of the British economy. After Independence, India had opted for mixed economy. The Indian captains of industry even under the foreign rule showed that they did not lack in talent and entrepreneurship. Furthermore, in the long drawn struggle for freedom Indian industrialists and business community had thrown their lot along with the Indian masses against the British rule. This being so, India decided to work within the over all framework of free enterprise and a market economy on the one hand and  banking on state planning where the state run public enterprise was to be gradually raised to the commanding heights. This was mainly because the freedom struggle was inspired by the ideals such as social and distributive justice and removal poverty and economic and regional disparities. Government, therefore, sought to make the nation self-reliant, using economic planning by the state as a vehicle.

Indian soon started with the establishment of state-sponsored research institutions and financial support through state investment corporations. Indian’s industrial  output grew until the mid-sixties, over a period of 15 years, at an annual rate of 7 to 8 per cent in real terms.

But after this, the industrial economy faced a demand recession, leading to a sharp fall in capacity utilization and in public investment. Between 1965 and 1975, the growth came down to around 4 per cent per year. Liberalization of Licensing, as well as controls over foreign trade in the mid-seventies, reoriented the policy towards export, but the situation became critical with the oil crises of 1973 and 1979. However, the sixth plan saw a fresh effort at stopped up investment, mainly in the energy industries of the public sector, accompanied by a further Liberalization of licensing and pricing in a number of industries in 1980’s. Several industries immediately initiated expansion and modernization, upgrading technology.

As a result of its industrial policy and the emphasis on import substitution, Indian can today manufacture a wide variety of industrial products. But the overall effects of this on the economy has been poor. At an aggregate GNP India ranks tenth in the world. However, the more appropriate of development is the per capita income which was $ 280, ranking the country 159 almost at the bottom of the list. In aggregate industrial production, India ranks between 15th and 20th in the world.

From the mid-60s, consistent efforts have been made towards industrial dispersal under various schemes to develop industries in industrially backward areas. This policy was based on the recognition of the wide disparities between states in terms of industrial progress. It is in relation to this backwardness that the Government of India has introduced a district Industrial Centre Programmer with a view to develop industrialization in the backward districts.

The Industrial Policy Resolution 1980, indicated as one of its aims the correction of regional imbalance through a preferential treatment of industrially backward areas. It offered concessions and subsidies to entrepreneurs who set up industries in identified backward areas.

Classification of Industries

On the basis of size and investment, industries are classified into large, medium and small  scale industries. Large scale industries require every large investment of capital, employ a large number of workers and production, too is on a large scale e.g. iron and steel, petrochemicals. In medium scale investment is less, they employ less workers and the goods produced are also smaller. Small scale industry have a small capital base, employ less laborers, are more wide-spread. Usually the medium and small scale industries provide subsidiary/ancillary products for large scale industries. In India about 92% of the factories are in the small scale. Only 8% of the total are in the large scale sector.

On the basis of management, industries are classified into public sector, private sector and joint sector. The public sector is owned and controlled by the Central or State Government and comprises of public utilities like railways, road transport services, airways, ports, posts and telegraphs, power and irrigation, defence production, heavy and light steel and engineering works, aircraft, ship-building, petroleum refineries. Only about 6% of the total number of factories belong to the public sector.

Private Sector Industries are owned and managed by private industrialists as joint stock companies or proprietary concerns e.g. cotton or textile mills, chemicals, smaller engineering concerns etc. Of the total number of factories, 92% belong to this group.

Joint Sector Industries are owned jointly by Government and private individuals who have contributed to their capital but the day-to-day management is in private hands. The remaining 2% of factories are  in the joint sector.

Agro Based Industries

The textiles industry accounts for 14 % 0f industrial production, which is 4 per cent of GDP; employs 45 million people and accounts for nearly 11 per cent share of the country's total export.

The Technology Upgradation Fund Scheme

(TUFS) provides for interest reimbursement / capital subsidy / margin money subsidy and has been devised to bridge the gap between the cost of interest and the capital component to ease up the working capital requirement and to reduce the transaction cost, etc.

National Textile Corporation (NTC) (1968) : It was established to manage the affairs of sick textile undertakings taken over by the Govt. of India in three Nationalization Acts in 1974, 1986 and 1995. The Corporation has completed modernization of 18 old mills.

Textiles Research Associations (TRAs) : There are eight TRAs - the Ahmedabad Textiles Industry Research Association (ATIRA), the Bombay Textiles Industry Research Association (BTRA) the South India Textiles Industry Research Association (SITRA) and the Northern India Textiles Industry Research Association (NITRA) which carry out consultancy, testing training and research and development m cotton and cotton/synthetic as well as cotton/ natural fibre blends

Woollen Textiles

• The first woolen mill was started at Kanpur in 1876.
• India is the 6th largest producer of wool and contributes 3% to total world production.
• Distribution:Most of  the woolen textile mills are located in northern Punjab in a belt extending from Amritsar-Gurdaspur to Ludhiana. Ludhiana is a very important hosiery centre.The other important centers are Kanpur and Agra in U.P., Jaipur in Rajasthan, Gwalior in M.P., Jamnagar in Gujarat, Mumbai in Maharashtra, Bangalore in Karnataka and Srinagar in Kashmir. J & K is a large producer of handloom woolen goods.

Agro industry in India:

Tea

• Tea is one of the most important beverage crops of the world. On the basis of processes of production, there are three main types of tea: (a) Black ; (b) Green; (c) Brick
• Black tea is produced in India, Sri Lanka and Indonesia.
• Green tea is prepares in China, Japan and Formosa.
• Brick tea is of inferior quality. It is prepared in China.
• Britain had accumulated truckload of wealth from its Asian-African colonies and through industrial revolution.
• By 1830s, monopoly over Chinese tea-trade was lost with the entry of other European players exercising sphere of influence over China.
• The monsoon lands of Asia hold the monopoly of tea production in the world. The most important tea producing countries are India, China, Sri Lanka, Japan, Indonesia and Bangladesh.

India is the largest producer of tea in the world. In India tea is grown in two major regions:

North East India produces 75% of tea of India.

• In North East India, tea is grown in the Brahmaputra valley and Surma Valley of Assam state.
• Assam accounts for about 53.2 per cent of the total cropped area and contributes more than half of total production of tea in the country.
• The hill slopes provide excellent drainage facilities. The climate is ideal for tea culture. The soils are alluvial in character. Labour is locally available.
• The state of West Bengal ranks second in the production of tea in India. The Himalayan ranges of Darjeeling and Jalpaiguri region supply best quality tea.

South India produces 20% tea of India

• Tea in South India is grown in the hill slopes of the Nilgiri and the Anamalai mountains.
• The state of Tamil Nadu, Karnataka and Kerala contributes about 20% of India’s tea production.

SUGAR INDUSTRY

India is the largest producer of sugarcane in the world. Main regions are:

Northern region

• The northern regions of the country produce about 70% of India’s cane. The main producing states are U.P., Northern Bihar, West Bengal, Haryana and Punjab 
• Sugarcane and sugarbeet are the two most important sources from which sugar is extracted. These two crops grow under contrasting geographical conditions. Sugarcane is a tropical crop whereas sugarbeet grows in temperate countries

Sothern and Central Region:

• Maharashtra has progressed a lot and captured first position from U.P. to emerge as the largest producer of sugar in India. Large production of sugarcane, higher rate of recovery and longer crushing period are some of the factors which have helped the state to occupy this enviable position.
• The state has one-fourth of the total sugar mills and produces a little more than one-third of the total sugar of India. Sugar mills of Maharashtra are much larger as compared to the mills in other parts of the country. The major concentration of sugar mills is found in the river valleys in the western part of the Maharashtra Plateau. Ahmednagar is the largest centre. The other major centres are in the districts of Kolhapur, Solapur, Satara, Pune and Nashik.
• Tamil Nadu has shown phenomenal progress with regard to sugar production during the last few years. High yield per hectare of sugarcane, higher sucrose content, high recovery rate and long crushing season have enabled Tamil Nadu to obtain highest yield of 9.53 tonnes of sugar per hectare in the whole of India.
• As a result of these advantages, the state has emerged as the third largest producer of sugar, contributing over nine per cent of the total sugar production of India. Most of the 32 mills of the state are located in Coimbatore, North Arcot Ambedkar, South Arcot Vallalur and Tiruchchirapalli.

Difference between the Sugar Industry of Northern and Peninsular India:

• There are marked differences between the sugar industry of the northern and the peninsular India. As a result of better conditions prevailing in the peninsular India, the sugar industry is gradually shifting from north India to the peninsular India.

This is evident from the fact that previously north India used to produce about 90 per cent of India’s sugar which is reduced to 35-40 per cent now. A brief description of differences between the sugar industry of the northern and peninsular India is given below:

• Peninsular India has tropical climate which gives higher yield per unit area as compared to north India.
• The sucrose content is also higher in tropical variety of sugarcane in the south.
• The crushing season is also much longer in the south than in the north. For example, crushing season is of nearly four months only in the north from November to February, whereas it is of nearly 7-8 months in the south where it starts in October and continues till May and June.
• The co-operative sugar mills are better managed in the south than in the north.
• Most of the mills in the south are new which are equipped with modern machinery.

Jute Textiles

• Jute manufacturing existed in Bengal as handloom industry but the large-scale industry started in 1854-1855 at Rishra, near Kolkata.In 1859, the first power looms were started in the same mill and the spinning as well as weaving was undertaken. It was an export-oriented industry and it made a rapid progress.The number of jute mills increased from 24 in 1884 to 76 in 1918-19 and to 116 in 1947.
• The Government has announced the first National Jute Policy on April 15, 2005, and as envisaged in the Poiicy, the Government on June 2, 2006, approved the implementation of the Jute Technology Mission (JTM)
• India is the largest producer and second largest exporter of jute goods and this sector supports the livelihood of about 40 lakh farm families, and provides direct and indirect employment to 4 lakh workers. There are 83 jute mills in the country (64 are in WB, 3 each in Bihar and U.P., 7 in A.P. and 2 each inAssam and Chattisgarh and one each in Orissa and Tripura).
• At present there are 68 jute mills, of which 6 belong to the National Jute Manufacturing Corporation (NJMC) under the Ministry of Textiles.
• In India, the jute textile industry is highly locatlised and concentrated in specific regions. More than eighty five percent of the jute manufacturing units are located in  and around the Hooghly industrial belt. The important centers of the industry are Bali, Agarpara, Rishra, Titagarh, Serampore, Budge Budge, Sibpur, Salkia, Howrah, Shyamnagar, Bansbaria, Kankinara, Uluberia, etc.
• Silk Textiles
• India is known for producing four varieties of silk (mulberry, tasar, eri and muga).
• India is the second largest producer of silk after China
• Mulberry silk production accounts for nearly 80 % of India's total silk production. Production of mulberry silk is mainly confined to the states of Karnataka, Andhra Pradesh, West Bengal. Tamij Nadu and Jammu and Kashmir. Tasar, eri and muga are other varieties of silk produced in India. Eri silk ranks first among non-mulberry silk production and found mostly in the hill tracts of the north-eastern states.
• Central Silk Board (1948) : It is a statutory body functioning under the administrative control of the Ministry of Textiles. It is entrusted with the overall responsibility of developing the silk industry.
• CSB has established 3 major Research institutes for Mulberry at Mysore (Karnataka) Berhampore (West Bengal) and Pampore (J & K). The Insitute at Ranchi deals with Tasar, whereas, the Institute at Lahdoigarh (Assam' deals with research and. development related to Muga and Eri sericulture.
• The Silk Mark Scheme was launched in 2004 to protect the silk consumers' interest.
• Karnataka is the largest silk producing state of the country accounting for about 70% of the total production.
• Assam, W. Bengal, Bihar, J & K are other important silk producing states.

Handicrafts

• To protect the distinctive identity of handloom. Products, the Handloom Mark and Geographical indication registration has been provided to traditional handloom products from specific regions such as Chanderi : Varanasi, West Bengal etc.
• The Govt. had launched the Rajiv Gandhi Shilp Swasthya Bima Yojana in Mardi 2007 to provide health care services to the artisans family, including self, spouse and two children.
• India is the world leader in exported carpet with 26 per cent of global share.

Cotton Textile Industry

• Development :Though the first  cotton textile mill was st up in 1818 at FortGloster, the real beginning was made in 1854 with the establishment of first mill in Mumbai.
• Distribution and location:Mumbai and Ahmedabad are the principal centers of the industry accounting for 1/3 of the total number of mills followed by Tamil Nadu, U.P., M.P., and Bengal, etc.In Tamil  Nadu, A.P., the industry is mostly located in Coimbatore, Madurai and Tirunelveli, while Nellore, Vishakhapatnam, Chittoor, Cuddapah and Tanjore have relatively small share in the distribution of the industry.

Mineral based industry

Iron and Steel Industry:

• Iron and steel is a basic industry and is the backbone of industrial development of any country.
• The first unit, which was able to produce pig iron successfully, in the country came up at Kulti in 1874 and was named the Bengal Iron Work Country. Another plant came up at Sakchi (now Jamshedpur) in 1907, set up by the Tatas and called the Tata Iron and Steel Company (TISCO).
•  In 1919, the Indian Iron and Steel Company (IISCO) plant was set up at Burnpur. In 1923, another plant came up, called the Mysore Steel Works (later named the Visveshwaraiya Iron and Steel Limited—VISL).
• The TISCO plant at Jamshedpur can be said to be the oldest in the country. It is based on the haematite iron ores from the Gurumahisani mines in Mayurbhanj district of Orissa and from the Noamundi mines in Singhbhum district of Jharkhand. Coal is derived from Jharia mines in Jharkhand. Manganese for the TISCO plant comes from Joda in Kendujhar (Orissa); limestone, dolomite and fireclay from Sundergarh (Orissa); water from Subarnarekha and Kharkai rivers. Labour force for the plant comes from Jharkhand and Orissa.
• The VISL plant is located at Bhadravati in Shimoga district of Karnataka which lies in the mineral rich forest belt of western Karnataka. The plant is situated on river Bhadra. The plant produces high quality chrome steel. Iron ore for the plant is obtained from Kemangundi in the Bababudan hills in Chikmagalur district. Earlier, charcoal from forest wood was used because no coal was available, but now power is available from the Bhadravati Hydel Power Project. Limestone for flux is obtained from the Bhandigudca deposits. Manganese comes from Shimoga and Chitradurga.

Copper Smelting Industry:

• It was in the year 1857 that the Singhbhum Copper Company was formed to undertake mining operations at Saraikela. In 1924, the Indian Copper Corporation (ICC) was set up with concentration plant and smelter which produced copper at Ghatsila in Jharkhand (then in Bihar). In 1972, the ICC was taken over by the Hindustan Copper Limited (HCL), and now, the HCL is the sole producer of primary copper in India.
• The Khetri Copper Complex at the foothills of Aravallis in Rajasthan erected by the HCL was formed to exploit the Khetri-Singhbhum ores. The unit consists of Khetri and Kolihan mines, a matching concentrator plant, smelter, electrolytic refinery and wire bar casting plants. The Khetri Copper Complex is an integrated copper mining- cum-metallurgical unit—by-product is sulphuric acid and fertilizer triple superphosphate is also manufactured
• The Malanjkhand copper project in Madhya Pradesh is the first large sized open cast mine and has been developed mainly to supply copper concentrates to Khetri to enable the plant to achieve the target capacity.
• Other copper smelting projects include the Rakha copper project (Singhbhum-Maubhandar), Dariba Copper Project (Alwar) and Chandmari Copper Project (Jhunjhunu in Rajasthan).

Aluminium Industry:

• It was in the year 1938 that the country saw, for the first time, aluminium production at Alupuram Reduction Works of the Indian Aluminium Company. Later, this company was converted into a public sector company in 1944. By 1967, there were five smelters, one each at Jaykaynagar, Alupuram, Hirakud, Renukoot and Mettur .
• Besides mining of ore, the aluminium industry has four distinct stages, viz. production of alumina and aluminium; fabrication of aluminium ingots into sheets, circles, foils and various other types of structurals, and the production of articles from aluminium, like kitchenware’s, articles used in electrical transportation, building and construction, canning and packing material, furniture, etc.
• The location of the aluminium industry is governed mainly by the availability of bauxite. It has been found that to produce – one tonne of aluminium of 50 per cent or more content, nine tonnes of bauxite, 0.44 tonne of petroleum coke, 0.26 tonne of caustic soda, 0.09 tonne of lime, very small quantities of cryolite, aluminium fluoride, soda ash and about 18,750 KW of electricity are required. Hence, the aluminium industry is mostly located in areas producing bauxite and having relatively cheap availability of hydro-electricity as in West Bengal, Uttar Pradesh, Maharashtra, and Tamil Nadu.
• The Hindustan Aluminium Company (HINDALCO), a private sector company has its aluminium plant at Renukoot, Uttar Pradesh. In order to achieve the economics of scale, a second smelter was set up at Hirakud, Orissa.
• HINDALCO, and the Bharat Aluminium Company (BALCO) set up two units at Korba and Ratnagiri to utilise bauxite ores of Amarkantak in Madhya Pradesh and of Udaigiri-Dhangarvadi region in Maharashtra, respectively.

Lead arid Zinc Smelting Industry:

• In India the main source of lead and zinc ores is the Zawar deposits of Rajasthan. The paucity of ore supplies has been largely responsible for the rather late and slow development of the lead-zinc smelting industry in the country.
• The mines under production other than the Zawar mines are Agnigundla lead mines of Andhra Pradesh, Rajpura-Dariba mines in Udaipur, Rajasthan and Sargipalli lead mines of Orissa. Two smelters are under production: the Debari zinc smelters of Udaipur and the Vizag lead smelter plant at Visakhapatnam (Andhra Pradesh). The Debari plant was erected by the Hindustan Zinc Ltd (HZL) with technical assistance from Krebspenarroya of France and Lurgi of Germany.

Factors affecting location of Industries in India

Raw Materials

The significance of raw materials in manufacturing industry is so fundamental that it needs no emphasizing. Indeed, the location of industrial enterprises is sometimes determined simply by location of the raw materials. Modem industry is so complex that a wide range of raw materials is necessary for its growth. Further it should be kept in view that finished product of one industry may well be the raw material of another. For example, pig iron, produced by smelting industry, serves as the raw material for Steel making industry. Industries which use heavy and bulky raw materials in their primary stage in large quantities are usually located near the supply of the raw materials. It is true in the case of raw materials which lose weight[1] in the process of manufacturing or which cannot bear high transport cost or cannot be transported over long distances because of their perishable nature. The jute mills in West Bengal, sugar mills in Uttar Pradesh, cotton textile mills in Maharashtra and Gujarat are concentrated close to the sources of raw materials for this very reason. Industries like iron and Steel, which use very large quantities of coal and iron ore, losing lot of weight in the process of manufacture, are generally located near the sources of coal and iron ore.

Some of the industries, like watch and electronics industries use very wide range of light raw materials and the appealing influence of each separate material diminishes. The denouement is that such industries are often located with no reference to raw materials and are sometimes referred to as ‘footloose industries’ because a wide range of locations is possible within an area of sufficient population density.

POWER

Regular supply of power is a pre-requisite for the localisation of industries. Coal, mineral oil and hydro-electricity are the three important conventional sources of power. Most of the industries tend to concentrate at the source of power. The iron and steel industry which mainly depends on large quantities of coking coal as source of power are frequently tied to coal fields. Others like the electro-metallurgical and electro-chemical industries, which are great users of cheap hydro-electric power, are generally found in the areas of hydro-power production, for instance, aluminum’ industry.

As petroleum can be easily piped and electricity can be transmitted over long distances by wires, it is possible to disperse the industry over a larger area. Industries moved to southern states only when hydro-power could be developed in these coal-deficient areas. Thus, more than all other factors affecting the location of large and heavy industries, quite often they are established at a point which has the best economic advantage in obtaining power and raw materials. Tata Iron and Steel Plant at Jamshedpur, the new aluminum producing units at Korba (Chhattisgarh) and Renukoot (Uttar Pradesh), the copper smelting plant at Khetri (Rajasthan) and the fertilizer factory at Nangal (Punjab) are near the sources of power and raw material deposits, although other factors have also played their role.

LABOUR

No one can deny that the prior existence of a labour force is attractive to industry unless there are strong reasons to the contrary. Labour supply is important in two respects (a) workers in large numbers are often required; (b) people with skill or technical expertise are needed. Estall and Buchanan showed in 1961 that labour costs can vary between 62 per cent in clothing and related industries to 29 per cent in the chemical industry; in the fabricated metal products industries they work out at 43 per cent.

In India, modem industry still requires a large number of workers in spite of increasing mechanization. There is no problem in securing unskilled labour by locating such industries in large urban centres. Although, the location of any industrial unit is determined after a careful balancing of all relevant factors, yet the light consumer goods and agro-based industries generally require a plentiful of labour supply.

TRANSPORT

Transport by land or water is necessary for the assembly of raw materials and for the marketing of the finished products. The development of railways in India, connecting the port towns with hinterland determined the location of many industries around Kolkata, Mumbai and Chennai. As industrial development also furthers the improvement of transport facilities, it is difficult to estimate how much a particular industry owes to original transport facilities available in a particular area.

MARKET

The entire process of manufacturing is useless until the finished goods reach the market. Nearness to market is essential for quick disposal of manufactured goods. It helps in reducing the transport cost and enables the consumer to get things at cheaper rates. Ready market is most essential for perishable and heavy commodities. Sometimes, there is a considerable material increase in weight, bulk or fragility during the process of manufacture and in such cases industry tends to be market oriented.

WATER

Water is another important requirement for industries. Many industries are established near rivers, canals and lakes, because of this reason. Iron and Steel industry, textile industries and chemical industries require large quantities of water, for their proper functioning.

Itrequires 36,400 litres of water to produce one kwh of thermal electricity. Further, it is worth noting that water used in industries gets polluted and is therefore not available for any other purpose.

SITE

Site requirements for industrial development are of considerable significance. Sites generally, should be fiat and well served by adequate transport facilities. Large areas are required to build factories. Now, there is a tendency to set up industries in rural areas because the cost of land has shot up in urban centres.

CLIMATE

Climate plays an important role in the establishment of industries at a place. Harsh climate is not much suitable for the establishment of industries. There can be no industrial development in extremely hot, humid, dry or cold climate. The extreme type of climate of north-west India hinders the development of industries. In contrast to this, the moderate climate of west coastal area is quite congenial to the development of industries. Because of this reason, about 24 per cent of India’s modem industries and 30 per cent of India’s industrial labour is concentrated in Maharashtra-Gujarat region alone. Cotton textile industry requires humid climate because thread breaks in dry climate. Consequently, majority of cotton textile mills are concentrated in Maharashtra and Gujarat. Artificial humidifiers are used in dry areas these days, but it increases the cost of production.

Non-Geographical Factors

Now-a-days alternative raw materials are also being used because of modem scientific and technological developments. Availability of electric power supply over wider areas and the increasing mobility of labour have reduced the influence of geographical factors on the location of industries. The non-geographical factors are those including economic, political, historical and social factors. These factors influence our modem industries to a great extent. Following are some of the important non-geographical factors influencing the location of industries.

CAPITAL

Modem industries are capital-intensive and require huge investments. Capitalists are available in urban centres. Big cities like Mumbai, Kolkata, Delhi, Chennai are big industrial centres, because the big capitalists live in these cities.

Government Policies /Deglomerative factors

Government activity(Deglomerative factors[2]) in planning the future distribution of industries, for reducing regional disparities, elimination of pollution of air and water and for avoiding their heavy clustering in big cities, has become no less an important locational factor. There is an increasing trend to set up all types of industries in an area, where they derive common advantage of water and power and supply to each other the products they turn out. The latest example in our country is the establishment of a large number of industrial estates ail over India even in the small-scale industrial sector.

It is of relevance to examine the influence of India’s Five Year plans on industrial location in the country. The emergence of suitable industries in south India around new nuclei of public sector plants and their dispersal to backward potential areas has taken place due to Government policies.

The State policy of industrial location has a greater hand in the establishment of a number of fertilizer factories, iron and Steel plants, engineering works and machine tool factories including railway, shipping, aircraft and defence installations and oil refineries in various parts in the new planning era in free India. We may conclude by noting that the traditional explanation of a location of industry at a geographically favourable point is no longer true. Location of oil refinery at Mathura, coach factory at Kapurthala and fertiliser plant at Jagdishpur are some of the results of government policies.

INDUSTRIAL INERTIA

Industries tend to develop at the place of their original establishment, though the original cause may have disappeared. This phenomenon is referred to as inertia, sometimes as geographical inertia and sometimes industrial inertia. The lock industry at Aligarh is such an example.

EFFICIENT ORGANISATION

Efficient, enterprising organisation and management is essential for running modem industry successfully. Bad management, sometimes squanders away the capital and puts the industry in financial trouble leading to industrial min. Bad management does not handle the labour force efficiently and tactfully, resulting in labour unrest. It is detrimental to the interest of the industry. Strikes and lock-outs lead to the closure of industries. Hence, there is an imperative need of effective management and organization to run the industries.

BANKING FACILITIES

Establishment of industries involves daily exchange of crores of rupees which is possible through banking facilities only. So the area with better banking facilities is better suited to the establishment of industries.

INSURANCE

There is a constant fear of damage to machine and man in industries for which insurance facilities are badly needed.

Indian Pharmaceutical Industry

• The pharmaceutical industry in India is among the most highly organized sectors. This industry plays an important role in promoting and sustaining development in the field of global medicine. Due to the presence of low cost manufacturing facilities, educated and skilled manpower and cheap labor force among others, the industry is set to scale new heights in the fields of production, development, manufacturing and research. In 2008, the domestic pharma market in India was expected to be US$ 10.76 billion and this is likely to increase at a compound annual growth rate of 9.9 per cent until 2010 and subsequently at 9.5 per cent till the year 2015.
• The pharma industry generally grows at about 1.5-1.6 times the Gross Domestic Product growth
• Globally, India ranks third in terms of manufacturing pharma products by volume
• The Indian pharmaceutical industry is expected to grow at a rate of 9.9 % till 2010 and after that 9.5 % till 2015

Challenges

• Regulatory obstacles
• Lack of proper infrastructure
• Lack of qualified professionals
• Expensive research equipments
• Lack of academic collaboration
• Underdeveloped molecular discovery program
• Divide between the industry and study curriculum

Cement Industry in India

• Manufacturing of cement requires heavy, low value and weight loosing materials and is primarily a raw material oriented industry. Limestone is the main raw material and comprises 60-65 per cent of the total product. On an average 1.5 tonnes of limestone are required to produce one tonne of cement. Hence, the location of a cement plant is based on the limestone deposits.
• The other raw materials used are sea shells, slag from steel plants and slag from fertilizer plants and these raw materials influence the localisation of cement industry in their own way. Silica (20-25%) and alumina (5-12%) are also important ingredients. Gypsum is necessary to regulate the setting time of cement. Power is used in raw material grinding, clinkerisation of limestone in the kiln operation and clinker grinding along with gypsum to form cement.
• The older plants required 120 to 130 units per tonne of cement produced. Modern energy efficient plants consume only 80 to 90 units per tonne. Coal is another major input along with electricity and forms 40 per cent of the total cost. Coal is used not only as fuel in the kiln but also to burn the limestone.
• The ash of the burnt coal combines with the limestone to form clinkei. On an average 250 kg of coal is required to produce one tonne of cement. The quantum of other materials required to produce one tonne of cement are 4 kg of gypsum, 0.4 kg of bauxite and 0.2 kg of clay.
• Cement and its raw materials are low value bulk materials and the transportation over long distance by rails and roads involves huge costs. Some of the transportation cost of transporting limestone is reduced by beneficiating this mineral at the quarry heads.
• The transportation cost is also reduced if the manufacturing plant is located near the market. In fact ready market is the pre-requisite for the proper growth of an industry, producing heavy commodity with low specific cost like cement.

Delhi-Mumbai Industrial Corridor (DMIC)

DIMC will emerge as a global manufacturing and investment destination. It will produce 24 smart industrial cities. It is a joint venture of India and Japan. The total investment is pegged at 90 billion US $. It will cover 13.8 per cent of India’s geographical area and the 17 percent population. It extends over seven states and two union territories besides the NCR.  These are: Daman & Diu and Dadra & Nagar Haveli, Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra.

The Delhi-Mumbai Industrial Corridor is expected to deliver 2+3+4+5 benefits. It is meant for two times increase in the employment with in seven years, triple industrial output in nine years, quadruple exports in next nine years and 13-14 percent growth rate within five years. It will be built along a dedicated rail freight corridor, and once commissioned, will reduce the Delhi-Mumbai transit time from 36 to 60 hours.

It will include:

There will be power infrastructure for the industrial and residential zones. It will be world class power infrastructure with require 24 x 7 good quality supply. DMIC has planned six gas based projects of around 1000 – 1200 MW each. Other power options include renewable energy sources integrated through a smart grid.

Industrial infrastructure will be node based on Hub and Spoke model. There will be Investment Regions and Industrial Areas and these will be 24 in total. There will be world class infrastructure including domestic and international connectivity, reliable power and the competitive business environment. Seven major industrial cities have been planned for the first phase and will serve as the key nodes for overall growth and development.

At the heart of the infrastructure is the MULTI MODAL HIGH AXLE LOAD DEDICATIED FREIGHT CORRIDOR (DFC), a high capacity railway system. It will cover 1483km and will have nine junction stations along which other railroad networks will connect allowing the system to extend its reach across a wider coverage. The infrastructure includes logistic hubs, feeder roads, power generation facilities, up-gradation of existing ports and airports, developing Greenfield ports, environment protection mechanisms and social infrastructure.

Land acquisition has been promised to DMIC on 50:50 formula, state governments will provide 50 percent and the remaining will be arranged by the owners of the project.

DMIC passes through the water scarce regions and the industrial hubs will be designed to have an integrated water resource management. Each industrial city will be self-reliant and sustainable in terms of its water requirements.

The industrial corridor project will be implemented by the Delhi-Mumbai Industrial Corridor Development Corporation, an autonomous body composed of government and the private sector.

This entire project includes land improvement, road works, earthworks, sewerage, storm water drainage, flood management and the solid waste management. The entire concept will be implemented through PPP- public private partnerships.

Amritsar - Delhi - Kolkata Industrial Corridor

• In order to give a boost to industrial development in the densely populated states of Northern India, the Prime Minister has approved the commencement of preparatory work on creating an Amritsar - Delhi - Kolkata Industrial Corridor.
•  The Amritsar - Kolkata Industrial Corridor is patterned on the Delhi-Mumbai Industrial Corridor (DMIC). The DMIC uses the Western Dedicated Freight Corridor as the backbone and is one of the most significant developments taking place in the sphere of industrialization. The DMIC has financial support from the Japanese Government and is expected to attract large investments leading to rapid industrial growth in Rajasthan, Gujarat, Haryana and Maharashtra through the development of new cities, industrial zones, and world-class infrastructure.
• In a similar manner, the Amritsar - Delhi - Kolkata Industrial Corridor will use the Eastern dedicated Freight Corridor as the backbone. The Eastern DFC extends from Ludhiana in Punjab to Dankuni near Kolkata. Therefore, the Amritsar - Delhi - Kolkata Industrial Corridor will be structured around the Eastern DFC and also the Highway system that exists on this route. It will also leverage the Inland Waterway System being developed along National Waterway - 1 which extends from Allahabad to Haldia.
• The Amritsar - Delhi - Kolkata Industrial Corridor will cover the states of Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and West Bengal. This is one of the most densely populated regions in the world and houses about 40% of India's population. This is a region which needs a major push for industrialization and job-creation and the Amritsar - Delhi - Kolkata Industrial Corridor will act as a catalyst for this growth. The corridor will cover the cities of Amritsar, Jalandhar, Ludhiana, Ambala, Saharanpur, Delhi, Roorkee, Moradabad, Bareilly, Aligarh, Kanpur, Lucknow, Allahabad, Varanasi, Patna, Hazaribagh, Dhanbad, Asansol, Durgapur and Kolkata.

MAJOR INDUSTRIAL REGIONS OF INDIA

Mumbai-Pune industrial region:is the most important industrial region of the country. The re­gion owes its origin to the British rule in India. The British got the Mumbai Island as a marriage gift of Catherine of Braganza's dowry in 1661.The coastal district of Ratnagiri pro­vided skilled and unskilled labour at the initial stages of development. The Thai Ghat and Bhor Ghat provided vital connecting links with the rest of the peninsular hinterland in the leeward side of the Western Ghats. This hinterland of Mumbai was rich in cotton cultivation. The region is much involved in the textile industry which occupies 42 per cent of the total factory workers. Besides textiles electrical goods, engineering, petroleum refining, transport equipments, rubber products, paper, electronic goods, leather, synthetic and plastic goods, drugs and food process­ing are other important industries of the region. The major geographic and economic factors are:

• The region has a well-developed infrastructure for the development of different types of industries based on agro and mineral raw materials.
• Parsis, a community of Mumbai, have ample capital for investment in manufacturing industries.
• Mumbai is a natural harbor this facilitates imports and exports.
• Hydro electricity is made available from Tata Hydro Electric Works situated nearby.
• Plenty of cheap labour both skilled and unskilled is available.
• The region is well connected with parts of the country with efficient rail, road and air service.

Hugli industrial belt:It is located along both the banks of the Hugli River: (a) along the left bank from Naihati to Budge, and (b) along the right bank from Tribeni to Nalpur. Kolkata, the focal point of the region, was set up as a trading centre in 17th century (1662-1694) on three villages obtained from Sirajuddaula, the Nawab of Bengal.The Ganga and its perennial tributaries could serve as the principal water highways for the haulage of cargo from the rich hinterland of the Ganga and Brahmaputra plains. Besides navigable rivers, roads and the railways provided subsequent links to the great benefit of Kolkata port. The coal and iron ore findings in the Chotanagpur plateau, the beginning of tea planta­tions in Assam and North Bengal, the processing of deltaic Bengal's jute, the availability of cheap labour from Bihar and Orissa and the investment of capital accumulated through the trade of opium, indigo and cotton led to the establishment of a chain of jute mills on either side of the Hugli river. Jute indus­try is the most important industry of the region. Similarly engineer­ing, leather goods and consumer goods industries were also set up in the region by drawing in the raw materials from the adjoining regions and distribut­ing the finished goods to the consuming points. Hence, role of communication network has been as important as the favorable location factors in the growth of this region.

Bengaluru-Mysore industrial belt:The Bengaluru and Mysore belt is known for automobile, pharmaceutical and textile industries. Agriculture and animal husbandry are the mainstays of the region, and the main crops include cotton, sorghum, millet, and peanuts.The coffee city of India has heavy concentration of a variety of manufacturing including those of high Tech. industries like computers, aircraft manufacturing, (HAL), electrical. Electronics, machine tools (HMT), Telephones and other communication equipment etc. Silk textiles are its specialty.

Chotta Nagpur plateau region:This region is known as ruler of India because of its richness in different minerals and sources of power. The region embraces the parts of Jharkhand, Orissa and West Bengal. The major industries of the region are locomotives, automobiles, engineering goods, electricals, electronics, cement, fertilizers, paper etc. The major contributory factors are-

• The nearness of coal in the Damodar valley and iron ore in the Jharkhand Orissa -mineral belt has attributed to the development of iron and steel and other allied industries in the region.
• The tribal people provide cheap unskilled labour for different processes related to manufacturings.
• Means of transportation, rail and road are well developed which help in transportation of products in the markets.
• The region has Tata Iron and Steel Company Jamshedpur, Hindustan steel Ltd of Durgapur and Bokaro. The development of iron and steel industry has laid the foundation for establishment of various other industries by supplying iron and steel to them.

Gurgaon-Delhi-Meerut industrial belt: The major industries are Textiles, chemical, cycles, tractors, engineering goods, electronic, electric equipment, Sugar refining, flour milling, petro chemicals, auto mobiles, oil refining, sports goods, paper manufacturing etc. The major contributory factors are-

• Availability of hydro-electricity from Bhakra Nangal Project, 
• Thermal electricity being generated in Delhi,
• Availability of plenty of skilled and unskilled labour in the region,
• Availability of market in Delhi, Haryana. Punjab, UP, Rajasthan etc in particular and other parts of the country in general,
• Incentives provided by the state Governments for the development of industries
• There exists a network of efficient transportation system of rail and road. 

Madurai-Coimbatore-Salem belt: The region encompasses states of Karnataka and Tamil Nadu. The region is known for manufacturing of cotton, silk textiles, sugar refining, leather goods, auto and aircraft parts, electronics, tele-communication equipment, watches, electricals, engineering goods etc.Coimbtore is a major centre for manufacturing cotton textiles, sugar refining, tanneries, cement etc. The city is appropriately called the Manchester of Tamil Nadu on account of major concentration of cotton textile mills.The main geographic and economic factors are:

• Hydro electricity is obtained from Metten Sivasamudram. Papnasam, Pykara and Sharavati power projects.
• Technical labour is in plenty in the region or comes from other states of India.
• Cheap local labour is available.
• Climate favors industrial activity.
• A wide market for the products exists in and around the region.

Ahmedabad-Vadodara region: The region is an important industrial hub of India and has a very developed petro­chemical, textiles, jewellery, pharmaceuticals, drugs, diamond cutting, leather, glassware's, plastics, chemicals, fertilizers and engineering goods industries. Ahmedabad is known as the Manchester of India on account of having heavy concentration of textile manufacturing industry. The major contributory factors are-

• Availability of cheap land.
• Availability of capital with the local Gujratis and Marwaris.
• Nearness to Kandla port.
• Discovery of oil in the region & development of petro chemicals on account of availability of oil.
• Development of efficient rail and road transportation.
• Nearness to Rajasthan, Haryana, Punjab and Maharashtra areas, serving market for the produced manufactured.

MINOR INDUSTRIAL REGIONS OF INDIA

Godavri Krishna Delta: This region is known for tobacco, sugar, vegetable oil, textiles, flour milling etc. Agro based industries have been developed.

Assam Valley:Tea processing, rice shelling, Textiles, oil refining, consumer goods etc

Kanpur:Sugar, leather goods, textiles, aircraft parts etc.

Indore Ujjain:Cotton textiles, scooters, engineering goods, consumer goods etc

Nagpur Wardha:Textiles, engineering goods, glass, clay industries etc.

Sholapur:Cotton textiles, leather goods, engineering industries.

Northern Bihar and Eastern UP:Sugar refining

Kollam:Southern part of Kerala, cashew processing, coir coconut, oil handicrafts etc.

Belgaun Dharwar: Textiles, rail equipment.