Introduction:-
Look around you! The clothes you wear, the books you read, and even the chair you sit on—everything is made somewhere. But how? This happens in industries, where raw materials are changed into useful things. Industries help in making products that we use every day.
What is Manufacturing?
It is a secondary activity that changes raw materials into useful products.
- Example: Pulp → Paper → Notebook (Each step increases value).
- Note:- Finished products become more valuable and useful than raw materials.
Where does this manufacturing take place?
It takes place in factories which is an important part of many industries.
What is an Industry?
- Industry refer to an economic activity.
- It is a place where raw materials are turned into products, minerals are extracted, and services are provided to people.
- We classify industries under secondary activities or manufacturing sector.
- Note:- Economic activity means any work people do to earn money.
Classification of Industries
Industries fall into different types based on raw materials, size, and ownership.
Classification by Raw Materials
- Agro-based Industries – They use plants and animals to make products.
- Example: Food processing, cotton textile, dairy, leather.
- Mineral-based Industries – They take minerals and turn them into useful materials.
- Example: Iron & steel (used for machines, railway coaches, buildings, etc.).
- Marine-based Industries – These industries use sea products to make items.
- Example: Seafood processing, fish oil production.
- Forest-based Industries – These are the industries which turn forest materials into products.
- Example: Paper, furniture, medicines.
Agro based industries | Mineral based industries |
1. Agro-based industries rely on plant and animal products | 1. Whereas mineral-based industries depend on extracted minerals and ores. |
2. Cotton textiles, dairy, and food processing belong to agro-based industries | 2. While iron & steel, cement, and aluminum manufacturing fall under mineral-based industries. |
3. These industries transform natural resources into consumable goods like food and fabric | 3. Mineral-based industries refine raw minerals into construction materials and machinery. |
4. Agro-based industries thrive near agricultural regions | 4. However, Mineral-based industries establish themselves close to mining areas and industrial hubs. |
5. They enhance rural livelihoods and boost farming activities | 5. They strengthen infrastructure and fuel technological advancements. |
Classification by Size
Size depends on investment, workers, and production level.
- Small-scale Industries – They use less capital and simple tools.
- Example: Silk weaving, food processing.
- Medium-scale Industries – They are bigger than small-scale, but smaller than large-scale. Also, they use more workers and better technology.
- Example: Clothing factories, machine parts production.
- Large-scale Industries – These industries need big investments, advanced machines. And they produce goods in bulk.
- Example: Automobile, heavy machinery.
- Cottage Industry – A type of small-scale industry where artisans handcraft items.
- Moreover, It is also known as household industry because these industries are run by family members.
- Example: Pottery, basket weaving, handicrafts.
Small Scale Industries | Large Scale Industries |
1. These industries require low capital. | 1. These industries need huge investment. |
2. They produce limited goods. | 2. Whereas, they manufacture in bulk. |
3. Small-scale industries use simple machines | 3. While, large-scale industries rely on advanced technology. |
4. They hire fewer workers. | 4. They provide jobs to thousands. |
5. Silk weaving and pottery are small-scale industries | 5. Automobile and steel production belong to large-scale industries. |
Classification by Ownership
Industries operate under different ownership are :
- Private Sector – Individuals or groups run the business.
- Example: Tata, Reliance.
- Public Sector – The government controls and operates them.
- Example: SAIL, Hindustan Aeronautics Ltd.
- Joint Sector – The government and private owners share control.
- Example: Maruti Udyog Ltd.
- Cooperative Sector – Producers, workers, or suppliers manage the industry.
- Example: Amul, Sudha Dairy.
Industries shape the economy, create jobs, and provide useful products.
Public Sector Industry | Join Sector Industry |
1. The government fully owns public sector industries | 1. Joint sector industries are shared between the government and private individuals or companies. |
2. Public sector industries focus on public welfare and national development | 2. While joint sector industries balance social benefits with profit-making. |
3. These industries get fund from the government. | 3. These industries get funds from both private and public sources. |
4. For Example:- Indian Railways and Bharat Heavy Electricals Limited (BHEL) | 4. Maruti Udyog Limited, Oil India Limited etc. |
5. Only the government manages the working. | 5. Both government and private entities actively participate in running joint sector industries. |
Factors affecting location of Industries:-
- Raw Materials – Industries need raw materials, so they are often set up near where these are available.
- Land and Water – They require open space and water for working and cleaning.
- Labour – Workers must be available nearby to run the industries.
- Power Supply – Electricity or fuel is needed to run machines.
- Capital – Industries need money to start and grow.
- Transport – Good roads, railways, or ports help in moving raw materials and finished goods.
- Market – Industries grow better where people can easily buy their products.
- Government Support – Sometimes, the government offers help like cheaper electricity or transport to encourage industries in less-developed areas.
Note:- Many big cities in India like Jamshedpur and Bhilai grew because of nearby industries.
Industrial System:-
An industrial system works like a cycle. It has three parts:
- Inputs:- These are the things needed to start:
- Raw materials (like cotton)
- Labour (people who work)
- Land, power, transport, and money
- Processes:- These are the steps that change raw materials into final products:
- Example (in textile industry): Ginning → Spinning → Weaving → Dyeing → Printing
- Outputs:- These are the final products and the money earned:
- Example: A cotton shirt is the output.

Industrial Region:-
- Industrial regions form when many industries set up close to each other.
- These industries share roads, power, workers, and other things.
- Big industrial regions grow near:
- Coal fields
- Sea ports
- Temperate areas (not too hot or cold)
Major Industrial Regions of the World
- Eastern North America
- Western and Central Europe
- Eastern Europe
- Eastern Asia
Major Industrial Regions in India
- Mumbai–Pune Cluster
- Bangalore–Tamil Nadu Region
- Hugli Region (West Bengal)
- Ahmedabad–Baroda Region (Gujarat)
- Chotanagpur Belt (Jharkhand)
- Vishakhapatnam–Guntur Belt (Andhra Pradesh)
- Gurgaon–Delhi–Meerut Region
- Kollam–Thiruvananthapuram Cluster (Kerala)
Note – These areas grow fast because industries bring jobs, transport, and money.
Distribution of major industries:-
Three big industries in the world are:
- Iron and Steel
- Textile
- Information Technology (IT)
Note:- Iron and Steel and Textile are old industries. And Information Technology is a new and fast-growing industry.
Where are these industries found?
- Iron and Steel Industry – Germany, USA, China, Japan, and Russia
- Textile Industry – Common in India, Hong Kong, South Korea, Japan, and Taiwan
- IT Industry – Popular in Silicon Valley (USA) and Bangalore (India)
Iron and Steel Industry
- This is a feeder industry that supplies steel to other industries.
- Inputs: iron ore, coal, limestone, labour, money, land, power.
- Process: smelting in blast furnace, then refining.
- Output: steel.
- Steel is strong. People can shape it, cut it, or make wires from it.
- Moreover, factory workers use alloys to make steel stronger and prevent rust.
- Alloys are a mix of steel and small amounts of other metals.
- For example, aluminium, nickel, or copper.
- Steel is called the backbone of modern industry.
- It is used to make tools, machines, ships, trains, cars, and buildings.
- Before 1800, factories stayed near raw materials and water.
- After 1950, they shifted near ports to import iron ore easily.
- In India, main centres are Jamshedpur (Jharkhand) , Bhilai (Chhattisgarh) , Rourkela (Odisha) , Bokaro (Jharkhand) , and Durgapur (West Bengal).
- Other major centres are Bhadravati and Vijay Nagar in Karnataka, Vishakhapatnam in Andhra Pradesh, and Salem in Tamil Nadu.
Jamshedpur – India’s First Steel City
TISCO (Tata Iron and Steel Company) started in 1907 at Sakchi, near the rivers Subarnarekha and Kharkai in Jharkhand.
Later, Sakchi became Jamshedpur.
The site offered many benefits:
- Close to Kalimati railway station (32 km away)
- Near iron ore, coal, and manganese from Odisha and Chhattisgarh
- Coal comes from Jharia
- Water comes from Subarnarekha and Kharkai rivers
- Kolkata gave a large market
- The government provided capital for expansion
Other industries also came up later. These make chemicals, machinery, agricultural tools, wires, and tinplate.
Importance of Iron and Steel Industry
This industry supports almost all other industries in India. It includes:
- Large steel plants
- Mini steel mills
- Rolling mills
- Secondary producers
Pittsburgh – USA’s Steel Hub
Pittsburgh in the USA became a big steel centre.
- Coal is available nearby
- Iron ore comes from Minnesota (1500 km away) via Great Lakes
- Trains carry ore from lakes to Pittsburgh
- Rivers like Ohio, Monongahela, and Allegheny supply water
Today, most steel mills lie in river valleys around Pittsburgh.
Factories here use steel to make railroad tools, heavy machines, and rails.
The chapter is now complete! I hope each concept was easy for you to understand and you feel confident about the material. Feel free to share your feedback and comments on the notes posted. Your thoughts are always welcome!