Manufacturing Industries

  • Production of goods in large quantities after processing from raw material is called manufacturing
  • Manufacturing industries acts as a backbone for the development of a nation .

Relation Between Growth of agriculture and industries 

  • The development of agriculture depend on the development of Manufacturing industries and both move hand in hand.
  • They depend on the latter for raw materials and sell their products such as irrigation pumps, fertilizers, insecticides, pesticides, plastic and PVC pipes, machines and tools, etc. to the farmers
  • For example the demand of a motor pump for agriculture leads to increase in the production of Motor pump.

The share in GDP by the manufacturing sector has remained stagnant in recent years which is a concern for the nation .

GDP Share of Various Sector
GDP Share of Various Sector
  • The growth rate is much lower in comparison to some East Asian economies, where the contribution of the manufacturing  sector is 25 to 35 per cent.
  • The National Manufacturing Competitiveness Council (NMCC) has been set up as an effort by the Govt.  to improve productivity, economists predict that manufacturing can achieve its target over the next decade.

Factors affecting location of an Industry 

  • The location of an industry is affected by availability of raw material, labour, capital, power and market, etc.
  • It is not possible to find all the factors at one place so industries tend to locate at such a place so that most of these are  available or at least these factors can be arranged at a minimal cost
  • Many industries tend to come together to make use of the advantages offered by the urban centres known as agglomeration economies. Gradually, a large industrial agglomeration takes place.

Read the Second Part here on Classification of Industries 

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