This chapter explains manufacturing — the production of goods in large quantities from raw materials — as the backbone of economic development. It shows how agriculture and industry depend on each other, and classifies industries by source of raw material (agro-based and mineral-based), main role (basic and consumer), capital investment (large and small scale), ownership (public, private, joint and cooperative) and the bulk and weight of materials (heavy and light). The location of industries depends on raw materials, power, labour, capital, market access and transport. The chapter studies major industries — cotton and jute textiles, sugar, iron and steel, aluminium smelting, chemicals, fertilisers, cement, automobiles and information technology — describing their distribution and importance to the economy. It also addresses industrial pollution of air, water, land and noise and the over-use of resources, suggesting measures such as treating effluents, recycling water, harvesting rainwater and using cleaner technologies to make industrial growth environmentally sustainable.
Importance of manufacturingClassification of industriesFactors of industrial locationAgro-based and mineral-based industriesIron and steel and other key industriesIndustrial pollution and its control
Key terms
Manufacturing
The production of goods in large quantities from raw materials.
Agro-based industry
An industry that uses agricultural products as raw material, like textiles and sugar.
Mineral-based industry
An industry that uses minerals and metals as raw material, like iron and steel.
Basic industry
An industry whose products are used by other industries, such as iron and steel.
Consumer industry
An industry that produces goods for direct use by consumers.
Public sector industry
An industry owned and operated by the government.
Industrial pollution
Damage to air, water, land and the noise environment caused by industries.
Agglomeration economies
Benefits firms gain by locating together near markets and services.
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