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SECONDARY SECTOR: INDUSTRY - Coggle Diagram
SECONDARY SECTOR: INDUSTRY
MEANING
INDUSTRIES
Processing of raw materials to produce more valuable products in large quantities
Industrial revolution
started with invention of steam engine in 1769 in England
INDUSTRIALISATION
Process in which more and more industries are established in a country
Not only confined to the establishment of more and more industries but also involves a change in whole economic structure of the country
IMPORTANCE OF INDUSTRIALISATION
Increase in export earnings
Development of agriculture
Exploitation of resources
Balanced development
Increasing employment opportunities
Self-sustained growth
Rapid growth of income
Nation's security
INTERDEPENDENCE OF AGRICULTURE AND INDUSTRY
CONTRIBUTION OF AGRICULTURE TO INDUSTRY
Source of capital formation for industries
Provides a good market for industrial goods
Supplies food for the workers
Source of healthy and strong labour
Supplies raw materials to industries
CONTRIBUTION OF INDUSTRY TO AGRICULTURE
Infrastructure required for agriculture
Opens up new and additional sources of employment to absorb all surplus labour
Supplies various agricultural inputs - helps in raising agricultural productivity
As a result of industrialisation, when agricultural productivity improves, farmer's income increases
CLASSIFICATION OF INDUSTRIES
Cottage Industries
Capital- small
Mechanical power is limited
Hereditary skills
Simple tools and equipments
Labour- family members
Aesthetic value
Local raw materials
Traditional art
Small-scale Industries
Capital Investment
Small number of power driven machines
Skilled labourers
Traders
Hired workers
Employment
Local materials - raw materials
Role of small-scale and cottage industries
Decentralisation of industries
Less pressure of population on land
Equal distribution of income and wealth
Exports
Quick production
Complementary to large industries
Less capital resourced
Check on large scale migration of rural population
Employment- oriented
Problems
Non-availability of raw materials
Problem of taxation
Competition from large scale industries
Lack of technological innovations
Marketing and sales problems
Managerial difficulties
Lack of capital resources
Other problems
Organisational deficiencies
Suggestions for promotiom
Better techniques of production
Less burden of taxes
Cheap credit facilities
Training facilities
Power supply
Marketing
Supply of raw material
Government measures
Allocation of scarce raw material
Comprehensive help programme
Policy of reservation for small industries
Setting of Boards and Corporations
All India Handicrafts Board
All India Handloom Board
The cottage Industries Board
Khadi and village Industries Board
The National Small Industries Board
Establishment of District Industry Centre (DIC)
National industries corporation
Industrial policy
Industrial cooperatives
Medium scale Industries
Role
Equality
Output
Employment
Overall Investment fixed investment is more than Rs. 5 crore and less than Rs. 10 crore.
Large scale Industries
Having huge infrastructure , raw material, high manpower requirement and large capital investment - more than Rs. 10 crore
Characteristics
Capital Investment - high involving
Highly mechanised - Heavy power operated machines - Power consumption
Skilled, trained and efficient labour/ managerial staff
Mass production
Large number of labourers
Transportation network
Huge quantities of raw materials
Significance
Produce capital and basic goods instruments machines, chemicals etc
Capable of generating funds for the research and development of new technologies
Indian economy relies heavily on large scale industries
Have potential to lower the cost of goods
Causes of regional disparities
Availability of resources
Found in facilities
Strategic location pf big port cities
Gives various economic incentives