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Indian INDUSTRIES
Pharmaceutical industry in India
1) The Pharmaceutical industry in India is the world's third-largest in terms of
volume and stands 14th in terms of value. India is now among the top five
pharmaceutical emerging markets of the world. Bio-pharma is the biggest
contributor generating 60 percent of the industry's growth
2) The government started to encourage the growth of drug manufacturing by
Indian companies in the early 1960s, and with the Patents Act in 1970.
3) Economic liberalisation in 90s removed composition patents from food and
drugs, and though it kept process patents, these were shortened to a period of
five to seven years. The lack of patent protection made the Indian market
undesirable to the multinational companies that had dominated the market, and
while they streamed out. Multinationals now represent only 35% of the
market, down from 70%. Indian companies carved a niche in both the Indian
and world markets with their expertise in reverse-engineering new processes
for manufacturing drugs at low costs.
4) The number of purely Indian pharma companies is fairly low. Indian pharma
industry is mainly operated as well as controlled by dominant foreign
companies having subsidiaries in India due to availability of cheap labour in
India.
5) In terms of the global market, India currently holds a modest 1–2% share, but
it has been growing at approximately 10% per year. India gained its foothold
on the global scene with its innovatively engineered generic drugs and active
pharmaceutical ingredients (API), and it is now seeking to become a major
player in outsourced clinical research as well as contract manufacturing and
research.
6) As it expands its core business, the industry is being forced to adapt its
business model to recent changes in the operating environment. It reinstated
product patents for the first time since 1995 after India ratified TRIPS
agreement. The legislation took effect on the deadline set by the WTO’s
Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement,
which mandated patent protection on both products and processes for a period
of 20 years.
7) This new patent legislation has resulted in fairly clear segmentation. The
multinationals narrowed their focus onto high-end patients who make up only
12% of the market, taking advantage of their newly bestowed patent
protection. Meanwhile, Indian firms have chosen to take their existing product
portfolios and target semi-urban and rural populations.
8) SME are to comply with good manufacturing practices (GMP). This is
beneficial to consumers and the industry at large. SMEs have been finding it
difficult to find the funds to upgrade their manufacturing plants, resulting in
the closure of many facilities. Others invested the money to bring their
facilities to compliance, but these operations were located in non-tax-free
states, making it difficult to compete in the wake of the new excise tax.
9) Low investment on research and innovation is another challenge.
10) The drug discovery process is further hindered by a dearth of qualified
molecular biologists. Due to the disconnect between curriculum and industry,
pharma in India also lack the academic collaboration that is crucial to drug
development.
11) Unclear clinical trials policy
12) The biotech sector faces some major challenges in its quest for growth. Chief
among them is a lack of funding, particularly for firms that are just starting
out. The most likely sources of funds are government grants and venture
capital, which is a relatively young industry in India. Government grants are
difficult to secure, and due to the expensive and uncertain nature of biotech
research, venture capitalists are reluctant to invest in firms that have not yet
developed a commercially viable product.
13) Due to recent National drug pricing policy which reduced the cost of essential
drugs, pharma industry has recorded low growth rate as their profit margins
have considerably reduced.
14) FDA laws of USA and recent objection by Canada of sub standard drugs have
also put the industry’s progress in question.
15) The recent SC judgement of compulsory licensing regarding Novartis has also
made foreign companies wary of Indian market.
AUTOMOBILE INDUSTRY IN INDIA
1) 90% of automobile industry is located in big cities like Mumbai, Bangalore,
Kolkata, Chennai etc. It is basically located near source of raw materials and
having market place.
2) The industry emerged in India in 1940. Growth was slow in 50’s and 60’s.
After 1970 the industry growth was driven by tractors, vehicles, and scooters.
3) In 1980 Japanese launched joint venture with for building motorcycles and
light motor vehicles for eg maruti 800.
4) After 1991 many Indian companies grew like Tata motors, Mahindra, fiat,
ashok Leyland etc.
5) Hindustan motors LTD was est. in 1942 by Birla group. Plants at: thiruvallur
(TN) of Mitsubishi lancer; Uttar Para (WB) for ambassador, contessa and
MUV.
6) Tata motors in 1954. It has the prestige of being the first Indian company to be
listed in New York stock exchange. Developed mini truck ACE, Tata nano,
Tata indica was acclaimed. Tata engg and locomotives LTD at Jamshedpur
produce TATA tracks,
7) Bajaj auto is world’s largest 2 wheeler and 3 wheeler manufacturer. It has
facilities in pune, Aurangabad and chakan, REVA car in 2001.
8) Mahindra est. in 1945. It develops SUV, MUV and tractors; now also
developing moped 2 wheelers. It offers engg services and developing
components.
9) India is also one of the key markets for hybrid and electric medium-heavy-
duty trucks and buses.
10) National mission for electric mobility.
11) India is an extremely important market for Hyundai. The Indian automobile
sector is poised for steady and strong growth in the future. The Indian
automobile industry holds good growth potential for the mid-term and long
term horizon.
12) Examples of growth: hero Moto Corp plans to establish 20 manufacturing and
assembly facilities to expand its presence across 50 countries by 2020; Nissan
Motor India, the Indian unit of Japanese auto maker Nissan Motor Co Ltd, has
entered into an agreement with Ennore Port Ltd (EPL), to export at least
60,000 cars a year through the port for the next 10 years;
13) Chennai is home to around 35-40% of India's total automobile industry and for
this reason it is known as the Detroit of Asia. It is on the way to becoming the
world's largest Auto hub by 2016 with a capacity of over 3 million cars
annually.
14) India's passenger car and commercial vehicle manufacturing industry is
the sixth largest in the world, with an annual production of more than 3.9
million units in 2011.
15) The majority of India's car manufacturing industry is based around three
clusters in the south, west and north. The southern cluster consisting
of Chennai is the biggest with 35% of the revenue share. The western hub
near Mumbai and Pune contributes to 33% of the market and the northern
cluster around the National Capital Region contributes 32%.
16) In tune with international standards to reduce vehicular pollution, the central
government unveiled the standards titled 'India 2000' in 2000 with later
upgraded guidelines as 'Bharat Stage'. 13 cities where Bharat Stage IV has
been imposed while the rest of the nation is still under Bharat Stage III.
17) India's automobile exports have grown consistently and reached $4.5 billion in
2009, with United Kingdom being India's largest export market followed by
Italy, Germany, Netherlands and South Africa.
18) India's strong engineering base and expertise in the manufacturing of low-cost,
fuel-efficient cars has resulted in the expansion of manufacturing facilities of
several automobile companies
like Hyundai, Nissan, Toyota, Volkswagenand Maruti Suzuki.
19) During April 2012 Indian Government has planned to unveil the roadmap for
the development of the domestic electric and hybrid vehicles (xEV) in the
country.
20) Auto mobile penetration is 7-8 per 1000 person against 500/1000 in mature
markets.
21) Problems in Indian auto mobile industries: heavy congestion on roads taking
toll of business, different vehicular pollution control norms for different cities
hence companies have to manufacture according to changes and hence price
increases, lack of unified market create price fluctuations, huge competition,
fluctuating oil prices, low technology upgradation especially in SME, most
spare parts have to be imported, low progress on hybrid cars and its marketing.
FERTILIZER INDUSTRY IN India
Fertiliser industry has made a tremendous progress after independence. The first
fertiliser plant was established in India in 1906. The five decades of planning
and development of fertiliser industry have brought India to the frontline of
fertiliser producing countries. India today is the third largest producer of
nitrogenous fertilisers in the world. The domestic production of urea in the
year 2009-10 was about 199 lakh tonnes which is 85°/o of the urea
requirement of the country, while the per hectare consumption was about 129
kg. per hectare.
The public sector has been playing a dominant role in the fertiliser industry.
The first state-owned fertiliser unit was set up in 1951 at Sindri in Bihar
(Jharkhand) which was followed by another plant at Nangal in Punjab. At
present, there are, 57 fertiliser units manufacturing a wide range of
nitrogenous and complex fertilisers, 29 units producing urea, and 9 units
producing ammonium sulphate as a by-product. Besides there are 68 medium
and small scale units in opera-tion producing single superphosphate.
For a fertiliser industry, the basic raw materials are naphtha, rock-phosphate,
sulphur, gypsum, and smelter gases. In case gas is not available, the plant may
be operated with the help of coke and coke-oven-gas. In India, we have coal
based fertiliser plants at Bhilai and Korba (Chhattisgarh), Durgapur (West
Bengal), Ramgundam (Andhra Pradesh), Jamshedpur and Sindri (Jharkhand),
and Rourkela and Talcher (Orissa). Neyveli is based on lignite while Hazira
(Gujarat) and Thal (Maharashtra) use natural gas from the Bombay High.
Most of the fertiliser plants are located close to the petroleum refineries. Plants
near sea are based on imported material. Some of the fertiliser plants have,
however, been located near the consumer centres. The maximum number of
fertiliser plants are in the state of Gujarat and Tamil Nadu.
1) The Indian Fertilizer Industry is one of the allied sectors of the agricultural
sphere. India has emerged as the third largest producer of nitrogenous
fertilizers. India stands as the third largest fertilizer consumer and producer of
the world. It has been observed that the subsidies on Indian fertilizer have
been rising at a constant rate. This is due to the rise in the cost of production
and the inability of the government to raise the maximum retail price of the
fertilizers.
2) Fertilizer industry today has more than Rs. 5700 Cr investment and has
become one of the important industries of the economy. The total FDI in the
fertilizer sector by the end of 2005-06 was Rs.25,923 crore.
3) In the last 30-40 years this industry has become an organised industry. It has
made many joint ventures, multinationals and co-operatives which is one of
the unique characteristic of this industry development in the nation. This
industry has provided shelter to 3.5 lakh families in the last fifty years directly
and a number of supporting industry during the last three decades.
4) India has five main sick industries: fertilizer corporation of india, national
fertilizer LTD, Hindustan fertilizer corporation LTD, rashtriya chemicals and
fertilizers LTD, projects and development India LTD. The reasons for the
sickness of FACT are mainly because of outdated technology of the plant,
high energy consumption norms, large manpower and high fixed costs of the
new ammonia plant.
5) The reasons for losses are due to the fact that the ammonia plant is not
operating at full capacity due to non-matching capacity of urea plants and the
NPK plant is operating at low capacity due to high cost and inadequate
availability of phosphoric acid.
6) No attention is paid toward development of SME in chemical fertilizers and
organic fertilizers, low availability of raw materials and that too at high cost,
subsidy doesn’t calculate the huge transportation cost, due to huge govt
control FDI is meagre, private industries too find fertilizer industries too
expensive and unattractive.
COTTON TEXTILE INDUSTRY
Textile industry includes cotton, jute, wool, silk, and synthetic fibre textiles. India is
one of the leading producers of textile goods. It is one of the largest and most
important sector in the economy in terms of output, foreign exchange earning, and
employment in India. Its contribution in forms 20 per cent of the industrial
production, 10 per cent of the excise collection, 18 per cent of employ-ment in the
industrial sector, 20 per cent of the country's total export earning and 4 per cent of the
GDP. At present, India is the third largest producer of silk, fifth largest producer of
synthetic fibres, and has the largest loom and spindles in the world.
India enjoyed monopoly in the production of textile goods from 1500 BC to 1500 AD.
Indian cotton and silk textiles were in great demand all over the world. It was the
arrival of the British in India and the Industrial Revolution in Britain in 1779 which
led to the downfall of the Indian manufacturing. The British after the consolidation of
their rule in India encouraged the export of raw material from India to Britain and
import of manufactured goods from Britain to India. The first textile mill was
established in 1854 in Mumbai by C.N. Dewar. The fast growth of cotton textile
occurred in 1870 when there was much demand of Indian goods in the wake of
American Civil War. Before the First World War the number of Indian textile mills
rose to 271. The demand for cloth during the Second World War led to further
progress of the textile industry.
The industry suffered a setback in 1947 as good quality cotton growing area went to
Pakistan. Consequently, India had to import cotton from the African countries.
Cotton being a pure raw material provides a chance to establish textile mill either in
the areas of raw material or in the market. In India, most of the textile mills are in the
cotton growing areas or in the neighbouring cities and towns. The location of cotton
textile industry is also affected by: (i) raw material, (ii) proximity to market, (iii)
moist weather, (iv) capital, (v) skilled and cheap labour, (vi) transport, (vii) sea-port,
(viii) export facility and the domestic and international mar-kets.
Production of Cotton Goods State-wise
Maharashtra
The state of Maharashtra is the largest producer of cotton goods. The locational
factors in the high concentration of cotton mills in the state of Maharashtra are:
(i) Availability of raw material: The state of Maharashtra is one of the leading
producers of cotton.
(ii) Climate: The city of Mumbai where most of cotton mills are located has a humid
climate with enough moisture in the air; so the thread does not break frequently.
(iii) Mumbai is close to Egypt, Sudan, and east African countries from where the long
staple cotton is imported for the production of good quality of cloth.
(iv) Labour: Cheap skilled labour is available in the state.
(v) Electricity: Cheap electricity is available and there is not much power breakdown
in the state.
(vi) Market: There is a large market of cotton products, both in India and abroad.
(vii) Seaport: The seaport of Mumbai is well connected by rails and highways.
(viii) Investment: There is no dearth of money investment in this industry.
(ix) Entrepreneurs: Mumbai being the commercial capital of the country enjoys the
presence of entrepreneurs who are always willing to invest in this industry.
(x) Early Start: The state of Maharashtra and the city of Mumbai got the advantage of
an early start in cotton textile industry.
With 122 cotton textile mills in Maharashtra, this industry contributes about 39 per
cent of the total cloth production of the country. The city of Mumbai with 63 cotton
mills is the largest producer of cotton in the country. Due to the high concentration of
cotton mills Mumbai is called the `Cottonopolis of India'.
Gujarat
Gujarat has 118 mills producing about 35 per cent of the total cotton goods of the
country. The city of Ahmedabad is the second largest cotton producing centre after
Mumbai in the country. It specialises in the production of fine qualities of dhotis and
saris and a large variety of bleached, coloured, or printed fabrics. It has advantage of
low cost of land and cheap labour than Mumbai. Availability of world class
infrastructure water and power, it is giving a tough competition to Mumbai. It is
famous for producing low cost textiles
TamilNadu
Tamil Nadu has the largest number of cotton mills in the country. It is the third largest
producer of cotton textile in the country. The largest number of mills are, however, in
the city of Coimbatore (cottonopolis of south India)which has over 200 small and big
factories. Tamil Nadu's mills are however, smaller in size. This state produces about
45 per cent of the total yarn of the country. Chennai, Madurai, Perambur, Salem,
Tiruchirappalli, Tirunelveli, and Tuticorin are the other important cotton textile
centres in the state.
Uttar Pradesh
Kanpur is the most important cotton textile centre of Uttar Pradesh. In addition to this,
cotton textile industry is located in the cities of Agra, Aligarh, Bareilly, Etawah,
Lucknow, Mirzapur, Modinagar, Modipuram, Moradabad, Saharanpur, and Varanasi
West Bengal
Kolkata is the most important cotton textile producing centre of West Bengal. Cotton
goods are also produced in Haora, Hugli, Murshidabad, Panihar, Sirampur, and
Shiampur.
In India, cotton goods are produced in the following three types of sectors: (i) Mills,
(ii) Power-looms, and (iii) Handlooms.
Problems of the Cotton Textile Industry
The cotton textile industry is suffering from many serious problems. Some of the
problems of the cotton textile industry have been briefly presented here:
1. Shortage of Raw Material
There is a shortage of raw material especially of good quality cotton to meet the
growing demand of the Indian textile industry. The fluctuating prices and
uncertainties in the availability of raw material lead to low production and sickness of
the mill. Consequently, long staple cotton is imported from Egypt, Sudan Kenya,
Peru, Tanzania, Uganda, and USA. There is a need of Silver Fibre Revolution in the
country. Erratic weather phenomenon also decreasing output.
2. Obsolete Machinery
Most of the Indian textile mills are working with obsolete machinery. According to
one estimate 70 per cent of the spindles are more than 30 years of age. The outdated
machinery cannot compete with the machinery of countries like China, Japan, South
Korea, Taiwan, and USA which have the latest sophisticated machinery in their textile
mills.
3. Erratic Power Supply
Power supply to most of the factories is inadequate and erratic which adversely
affects the production of goods.
4. Strikes and Lockouts
The cotton textile industry suffers seriously because of frequent strikes by the
workers. Occasionally the owners lockout the mills which decreases the production of
goods.
5. Competition in Foreign Market
The Indian cotton goods are facing a stiff competition in foreign markets, especially
from China, Egypt, Japan, South Korea, and Taiwan.
6. Heavy Excise Duties
The cotton textile industry suffered because of heavy excise duties. The high rate of
duty on imported cotton has increased the cost of production of clothes which has
created problems in selling the cloth in the international market.
7. Competition with Synthetic Fibres
The poor people of the country prefer to use synthetic fibre clothes which are more
durable and attractive.
Woolen Textile in India
Woollen textile is one of the oldest industries of India. During the ancient and
medieval periods woollen clothes were manufactured at the cottage industry level.
The modern woollen textile
industry started with the establishment of 'Lai at Kanpur in 1876. It was followed by
the setting up of `Dhariwal' at Punjab in 1881. Subsequently woollen mills were
established in Mumbai (1882) and Bangalore (1886). The industry made tremendous
progress after Independence. At present there are 625 big and small woollen textile
factories in the country.
The main concentration of woollen textile industry is found in Punjab, Maharashtra,
and Uttar Pradesh. Other states which are producing woollen goods are Gujarat,
Jammu and Kashmir, Karnataka, and West Bengal. India is not self sufficient in
quality wool production. Good quality wool is, however, imported from Australia.
Problems of the Woollen Textile Industry
The woollen textile industry is facing the problems of:
(i) Shortage of quantity and quality of wool
(ii) Obsolete machinery
(iii) Competition with more advanced countries
(iv) Competition with synthetic fibres
(v) Shortage of power
(vi) Low quality of goods
(vii) Lack of market
(viii) Strikes by the workers.
9) low value addition
10) inability of cottage industries to face competition of Big manufacturers.
Aluminium Industry in India
Aluminium is the second most important metallurgical industry of the country. It
plays a very vital role in the overall industrial development of the country. Its
elasticity and good conductivity of electricity and heat, and capacity to be moulded
into any desired shape has made it a universally accepted metal. It is widely used in
the generation and distribution of electricity, manufacturing of aeroplanes, railway
coaches, defence and nuclear accessories, utensils, packing, and for making coins. It
is a cheaper substitute of steel, copper, zinc, lead, etc. in a large number of industries.
Locational Factors:
Availability of bauxite (raw material) and hydro-electricity are the basic requirements
for the establishment of aluminium industry. The production of one tonne of
aluminium requires approximately six tonnes of bauxite. About 30 to 40 per cent of
the production cost of aluminium is accounted for electricity alone. Bihar,
Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, and Tamil
Nadu are the major producers of bauxite in India.
Development:
The aluminium industry was started in India during the Second World War at
Alupuram (Alwaye) by the Aluminium Company in 1938. It was later on converted
into a public sector company in 1944. Another company, namely Aluminium
Corporation of India started production of aluminum in 1942 at Jaykaynagar (West
Bengal). At the time of Independence, there were only two plants in the country with
a total installed capacity of 4000 tonnes of ingots. During the Second Five-Year Plan
two new aluminium plants were established at Hirakud (INDALCO) and Renukoot
(HINDALCO).
Another plant was established in the Third Five-Year Plan at Mettur (MALCO) in
1967. The INDAL established a new plant at Belgaum in 1970. Later on the Bharat
Aluminium Plant was established at Korba. Consequently the annual production
increased to more than three lakh tonnes in 1979. At present, there are seven major
aluminium producing plants in the country.
Important Aluminum Plants in India
A brief account of the important aluminium plants has been given here:
1. The Indian Aluminium Company Ltd. (INDAL), Hirakud
This company started production in 1938 as a private company and was converted
into a public company in 1944. It is an integrated plant having three units at five
different places for the pro-duction of alumina and aluminium sheets. The plants for
the extraction of alumina from bauxite are located at Muri (Jharkhand), near the
bauxite mines. Its three smelting units are located at Alupuram (Alwaye in Kerala),
Hirakud (Orissa), and Belgaum (Karnataka). The rolling mill at Belur (West Bengal)
manufactures aluminium sheets, rod, aluminium paste, electrical conductors, and
domestic utensils. The plant gets bauxite from the Bagru Hills near Lohardaga, coal
from Damodar valley, and hydro-electricity from Hirakud. The plant has an installed
capacity of one lakh tonnes of aluminium ingots.
2. The Aluminium Corporation of India, Jaykaynagar (near Asansol)
The production from this plant was started in 1942. The plant gets bauxite from
Ranchi (Jharkhand) and Unchera (M.P.). It has its own coal-mine, a thermal power
plant and an alumina plant, a reduction plant, a sheet rolling plant and a utensils
producing plant. It has a capacity of producing 9000 tonnes of aluminium ingots
annually.
3. The Hindustan Aluminium Corporation Ltd. (HINDALCO), Renukoot
This plant was set up at Renukoot, about 160 km south of Mirzapur, in 1958. It
obtains bauxite from Lohardaga (Jharkhand and Amarkantak region of Madhya
Pradesh), and power from the Rihand Dam. Its installed capacity is 1.26 lakh tonnes
of ingots per annum, manufacturing mainly aluminium sheets and wires.
4. The Madras Aluminium Company Ltd. (MALCO), Mettur
This company set up its plant at Mettur near Salem in 1965. It obtains bauxite from
the Shevaroy Hills and electricity from the Mettur Hydel Project. Its installed capacity
is 25,000 tonnes of aluminium ingots.
5. The Bharat Aluminium Company Ltd. (BALCO), Korba
This is a public sector company which set up its plant at Korba (Bilaspur District,
Chhattisgarh) in 1965. It obtains bauxite from the Amarkantak (Shandol District of
Madhya Pradesh) and electricity from the Korba Thermal Power Plant. The plant has
an installed capacity of 2.00 lakh tonnes of ingots per year. The government has
recently disinvested its share to a private company namely, Sterlite Industries, India
(March 2001).
6. The National Aluminium Company Ltd. (NALCO), Koraput
Located at Koraput, it is the largest aluminium plant of the country. The Company
was incorporated in 1981. It obtains bauxite from the bauxite mines at Panchpatmali
(District Koraput). It has an installed capacity of 1.6 million tonnes of ingots per year.
There is an alumina refinery at Damanjodi (District Koraput) and alumina smelter at
Angul. It obtains hydro-electricity from the Angul Power Plant and the port facilities
from the Vishakhapatnam for export of alumina and import of caustic soda. It has a
capacity of production of alumina of 8 lakh tonnes per annum. The Central
Government has disinvested about 45 per cent of NALCO's shares. The Government
has approved the second phase expansion of NALCO's Integrated Aluminium
Complex in 2004 at the outlay of Rs. 4,091.51 crore to be completed by 2008. With
this expansion, capacity of Bauxite Mines Refinery, Smelter, and Captive Power Plant
will increase from 4 8 million tonnes per year to 6.3 million tonnes per year.
The aluminium industry has made a commendable progress during the planned
period. It may be seen that the total production of aluminium was only 4 thousand
tonnes in 1950-51 which rose to 585 thousand tonnes in 2005-06.
Trade and Problems of Aluminium Industry in India
Trade
India is almost self-sufficient in the matter of aluminium. Except some high quality
aluminium which it imports from the foreign countries. The demand for good quality
of aluminium is on the increase and consequently, India is importing aluminium and
its products from the developed countries.
Problems
The major problem of the aluminium industry is international competition. India has
the best grade of bauxite but unfortunately, the quality of products are not at par to
that of the countries like Australia, Canada, France, Germany, Japan, UK, and USA.
Non-availability of power at a cheaper rate, strikes, and labour unrests are the other
problems this industry is facing.
Minor Industrial Regions
There are several minor emerging industrial regions in the country. Some of
them are as under:
(i) Kanpur-Lucknow Industrial Region:
Cotton, woollen and jute textiles, leather goods, fertilisers, drugs,
pharmaceuticals, electric goods, and light machinery.
(ii) Assam Valley Industrial Region:
This region has the industries of petro-chemical, jute and silk textiles, tea-
processing industry, paper, plywood, match, and food processing industries.
Important industrial centres are: Bongaigaon, Dibrugarh, Digboi, Guwahati,
Noonmati, and Tinsukia
Darjeeling-Siliguri Industrial Region: Tea-processing industry and tourism.
(iv) North Bihar and Eastern Uttar Pradesh Industrial Region:
Sugar, glass, fertilisers, locomotive, paper, and food processing are the main
industries of this region. The main industrial centres are Allahabad,
Dalmianagar (Bihar), Gorakhpur, Patna, Sultanpur, and Varanasi.
(v) Indore-Ujjain Industrial Region:
Main industries are cotton textile, chemicals, drugs, electronic and engineering
goods, and food processing.
(vi) Amritsar-Jalandhar-Ludhiana Industrial Region:
Sports goods, cotton and woollen textiles, hosiery, food-processing, and
tourism are the main industries of this region.
(vii) Nagpur-Wardha Industrial Region: Textiles, engineering, chemicals,
and food processing are the main industries of this region.
(viii) Godavari-Krishna Delta: Main industries are iron and steel, ship-
building, fertiliser, rice-milling, cotton textile, sugar, fish processing,
engineering, and chemicals. Main industrial centres are Guntur,
Machlipatnam, Rajamundry, and Vishakhapatnam.
(ix) Dharwar-Belgaum Industrial Region: Cotton textile, chemicals, spices
packing, and food processing are the main industries.
(x) Kerala Coast Industrial Region:
Main industries of this region are coconut-oil extraction, rice-milling, fish
packing, paper, coir-matting, ship-building (Kochi), petroleum refining
(Kochi), and chemical and electronic goods.
INDUSTRIAL PROBLEMS OF INDIA
India has made tremendous progress during the plan period and the industrial sector
and service sectors have made significant progress. Despite industrial progress, India
is not self sufficient in the matter of industrial products. Moreover, the quality of the
products are not at par with the products of the developed countries. The main
problems of the Indian industries have been briefly described here:
1. Inadequacy of Industrial Structure: Despite over fifty-five years of planning,
India is not self sufficient in the production of transport equipments, electrical and
non-electrical machinery, iron and steel, paper, fertilisers, drugs and pharmaceuticals,
and plastic materials.
2. Low Demand of Industrial Products: The purchasing power and poor standard of
living.
3. Regional Concentration of Industries: Most of the industries of India are located
in and around Mumbai, Kolkata, Ahmedabad, Delhi, and Chennai. This is leading to
unequal industrial development.
4. Industrial Sickness: In the private sector after the policy of liberalisation, the
small and medium as well as some of the large industries are becoming sick. The
reasons for industrial sickness may be poor management, obsolete technology, and
international competition.
5. Loss in Public Sector: Most of the public undertakings are running at loss. The
reasons may be poor efficiency of the management and workers, strained labour and
management relations, and obsolete technology.
6. Lack of Infrastructure: Inadequate infrastructure is a serious barrier in the speedy
industrialisation of the country. There is energy crisis in most of the industrial regions
of the country. The power cut and load-shedding reduce the efficiency and production
of the industries.
7. Irrational Location of Industries: Some of the industries in the private sector
have been located without considering the transportation cost. Many a times the
political expediency have been the basis of selection of site of industries. This not
only makes the product expensive, but also promotes sub-nationalism/regionalism.
The location of Barauni Refin-ery far away from the source of crude oil (Digboi-
Assam) is one of such examples.
8. Shortage of Industrial Raw Material: Many of the raw materials used in
industries are agro-based. Indian agriculture over greater part of the country depends
on monsoon.Moreover, the purchasing power of the Indian rural community largely
depends on the success or failure of monsoon.
9. Shortage of Capital: For the industrial and infrastructural development, India
largely depends on loans from the World Bank and the Asian Development Bank. A
lot of foreign exchange is lost in the payment of these loans.
10. Low Quality of the Products: Our industries are not able to compete in the
international market because of the relatively poor quality of goods. China has
become an additional competitor with the Indian goods both in the developed and the
developing countries. The Indian industries survive on the basis of domestic demands.
SPECIAL ECONOMIC ZONE (SEZ)
Special Economic Zone is a geographical region that has economic laws that are more
liberal than country's typical economic laws. The category `SEZ' covers a broad range
of more specific zone types, including Free Trade Zones (FTZ), Export Processing
Zone (EPZ), Free Zones (FZ), Industrial Estates (IE), Free Ports, Urban Enterprise
Zones, and others.
Defining Feature
Broadly SEZ has certain defining features such as special tax incentives; duty free
movement of goods and services; world class infrastructure; construction intensive
nature; export orientation; differentiated economic management like relaxation in
certain basic restrictions applicable to the rest of the economy; and free inflow of
foreign capital.
Objectives of Special Economic Zone
The main objectives of SEZs are:
(i) To provide a conducive structure to increase foreign and domestic investment in
industries.
(ii) To promote foreign trade.
(iii) To generate more employment.
(iv) To develop the relatively less developed areas.
(v) To accelerate the process of industrialisation and urbanisation.
(vi) To reduce the regional inequalities in socioeconomic development.
Special Economic Zones of India
In order to enhance foreign investment and promote exports from the country and to
provide liberal facilities to the foreign and domestic investors, the Special Economic
Zones were created in India. The Government of India had in April 2000 announced
the introduction of Special Economic Zones policy in the country, deemed to be
foreign territory for the purpose of trade operations, duties, and tariffs. As of 2007,
more than 500 SEZ have been proposed, 220 of which have been created. India
passed Special Economic Zone Act in 2005.
The policy provides for setting up of SEZs in the public, private, joint sector or by
state governments. It was also envisaged that some of the existing Export Processing
Zones would be converted into Special Economic Zones. Accordingly, the
government has converted Export Processing Zones located at: (i) Kandla and Surat in
Gujarat, (ii) Cochin (Kerala), Santa Cruz, (Mumbai—Maharashtra), Falta (West
Bengal), Chennai, Ilandaikulam, Nanguneri and Tirunelveli (Tamil Nadu),
Vishakhapatnam (Andhra Pradesh), NOIDA (Uttar Pradesh), Rajiv Gandhi Info Tech
Park, Hinjewadi, Pune-Maharashtra, and Indore (Madhya Pradesh).
The process of planning through SEZs is, however, under question, as the state in
which the SEZs have been approved are facing intense protests, from the farming
community, accusing the government of forcibly snatching fertile land from them, at
heavily discounted prices as against the prevailing prices in the commercial real estate
industry. Also some reputed companies like Bajaj and others have commented against
this policy and have suggested using barren and wasteland for setting up SEZs.
Prospects
If the right price is paid for acquiring land through open bidding, land of any size may
be available. Otherwise, the current phenomenon of mushrooming SEZs in and
around major cities will only add to the pressure on the already weak urban
infrastructure and will result in migration of people to cities when the objective
should be to bring about a reversal of this trend.
Tourism in India
In India tourism has emerged as an instrument of employment generation, poverty
alleviation and sustainable human development. During 2008-09, direct employment
in the tourism sector was estimated to be over 50 million. Tourism promotes national
integration and international understanding and gives support to local handicrafts and
cultural activities.
Tourism in India may be examined under the following headings:
1. Nature Tourism and Hill Stations
India has great geographical diversity, which resulted in varieties of nature tourism.
The scenic beauty attracts tourist.
2. Historic Monuments and Archaeological Sites
India has a large cultural heritage. Its cultural, historical, and archaeological centres
are of great interest for the domestic and international tourists.
3. Cultural and Religious Tourism
The main places of cultural tourism are Varanasi, kedarnath, jama masjid, bodhgaya
etc
4. Adventure Tourism
India has enormous potential for adventure tourism. For example: (i) river rafting and
kayaking in Himalayas, (ii) mountain climbing in Himalayas, (iii) rock climbing, (iv)
skiing in Gulmarg and Auli, (v) boat racing in Kerala, (vi) paragliding in Maharashtra,
Problems of Indian Tourism Industry
The tourism industry in India is confronted with many problems: Some of the
problems of the tourist industry are given below:
(i) Lack of adequate infrastructure (transport, banking, and hotels)
(ii) Complex visa formalities
(iii) Multiplicity of taxes
(iv) Problem of law and order in some of the regions of the country like Jammu and
Kashmir, and the states of North East India
(v) Safety and security of the tourists
(vi) Inadequacy of qualified tourist guides
(vii) Absence of participation of the people.
8) lack of integrated transport systems to different places in country.
Despite all these shortcomings and problems, India has great potential for tourism
development. The World Tourism and Travel Council (WTTC) has estimated that
India's travel and tourism potential can provide a substantial resource to economy (Rs.
500,000 crores to GDP) by 2010. The World Tourism and Travel Council has
suggested the following four-fold plan of action to achieve the potentials of tourism:
(i) Make travel and tourism a strategic economic, and employment priority.
(ii) Move towards open and competitive markets including civil aviation
liberalisation.
(iii) Pursue sustainable development.
(iv) Eliminate barriers to growth of tourism, i.e. provide incentives to the private
sector and invest in human resources.
ECO-TOURISM
Eco-tourism, also known as ecological tourism, is a form of tourism that appeals to
the ecological and socially-conscious individuals. Generally, eco-tourism focuses on
volunteering, personal growth, and learning new ways to live on the planet, typically
involving travel to destinations where flora, fauna, and cultural heritage are primary
attractions.
Some visits are called eco-tourism simply because they take tourists to ecologically
interesting areas, such as national parks. Most principles of genuinely sensitive
tourism, developed internationally over the last years, are ignored. This includes
carrying out assessments of the ecological impact of tourism and whether it actually
benefits the local people or not.
According to some experts, eco-tourism is responsible tourism. Responsible eco-
tourism includes programmes that minimise the negative aspects of conventional
tourism on the environment, and enhance the cultural integrity of people. Therefore,
in addition to evaluating environmental and cultural factors, an integral part of eco-
tourism is in the promotion of recycling, energy efficiency, water conservation, and
creation of economic opportunities for the local communities.
Ideally, eco-tourism should satisfy several criteria, such as:
(i) Conservation of biological diversity and cultural diversity through ecosystem
protection.
(ii) Promotion of sustainable use of biodiversity, by providing jobs to local
populations.
Definitional Problems of Eco-tourism
To approach an understanding of the problem, a clear definition must delineate what
eco-tourism is, and what it is not. Ideally, eco-tourism satisfies several general
criteria, including the conservation of biological diversity and cultural diversity
through ecosystem protection, promotion of sustainable use of biodiversity, share of
socioeconomic benefits with local communities through informed consent and
participation, increase in environmental and cultural knowledge, affordability and
reduced waste, and minimisation of its own environmental impact. In such ways, it
contributes to the long-term benefits to both the environment and local communities.
The Native and Psycho-Social Impact of Eco-tourism
Some of the negative impacts of eco-tourism are:
1. Commercialisation
Eco-tourism is a trend towards commercialisation of tourism throughout the nation.
This trend has become one of the fastest growing sectors of tourism industry growing
annually 10-15 per cent worldwide. Many of the eco-tourism projects are, however,
not meeting these standards.
Even if some of the guidelines are being executed, the local communities are still
facing other negative impacts. For example, South Africa is reaping significant
economic benefits from eco-tourism, but negative effects including physical
displacement of persons, gross violation of fundamental rights, and environmental
hazards far out weight the medium-term economic benefits.
2. Direct Environmental Impact
Eco-tourism operations typically fail to live up to conservation ideals. It is often
overlooked that eco-tourism is a highly concentrated activity, and that environmental
conservation is only means to further economic growth.
3. Problem of Garbage and Pollution
4. Impact on Fauna and Flora
5. Encroachment on Virgin Land
6. Heavy Traffic in Ecologically Fragile Areas
To generate revenue you have to have a high number of traffic of tourists, which
inevitably means a higher pressure on the environment.
7. Adverse Effect on Local People especially tribal’s
8. Trade of Wild Animals
The presence of affluent eco-tourists encourage the development of destructive
markets in wildlife souvenirs, such as the sale of coral trinkets and animal products,
contributing to illegal harvesting and poaching from the environment.
9. Threat to Indigenous Cultures
10. Mismanagement of Eco-tourism. Sites
Improving Sustainability for Eco-tourism
1.Environmental Protection Strategy
More initiatives should be carried out to improve their awareness, sensitise them to
environmental issues, and care about the places they visit.
2. Qualified Eco-tourist Guides
Tour guides are an obvious and direct medium to communicate awareness. With the
confidence of eco-tourists and intimate knowledge of the environment, they can
actively discuss conservation issues. A tour guide training programme can go a long
way in improving the quality of guides and ultimately making the eco-tourism
sustainable.
3. Small Scale Eco-tourism
There is need to develop eco-tourism at a small scale.
4. Participation of Local People in Eco-tourism
INDUSTRIAL COMPLEXES
The industrial complexes are made up of a set of specific industries, which have
important production, marketing, and other interrelationships among them,
strengthened by their togetherness and innovations. These complexes are
geographically localised.
Developed as an important tool for development planning, the industrial complexes
gained popularity in the wake of vigorous process of industrialisation and planning,
which started in the developing world under the Soviet influence, taking immediate
clues from the planned industrial development of France. The idea is associated with
the concept of 'the growth pole' (Francois Perroux, 1955) and 'the growth centre' (J.R.
Boudeville, 1966).
Once the governments of the planned economies started developing the industrial
complexes as part of their conscious policy, there developed the concept of 'industrial
complex analysis'. Developed by W.Isard, industrial complex analysis is a method of
analysing the linkages between industries in an industrial complex with the objective
of identifying the type of industrial complex which would be most suitable for a given
development plan or region—it is based on inter-industry relations of input-output
analysis and comparative cost analysis.
In the industrial complexes, the localised industries do significant purchases from
each other using one's output as another's input, saving the cost of transportation and
assuring quality as well due to immediate feedbacks. As a result, not only these
industries grow faster but the whole industrial region grows too, via the 'spillover
effect' and the 'multiplier effect, ultimately benefitting the whole economy through the
'trickle down effect'.
Industrial Complexes in India
We see thousands of such industrial complexes in India, which have been developed
in all the major and minor industrial regions. There are vibrating iron and steel based
industrial complexes in the vicinity of iron and steel plants in the country. Similarly,
petro-complexes, pharma complexes, hosiery complexes, garment complexes,
electronics complexes, etc. with their strengths and strongholds in the specific
industries are dispersed around the country, and developed around the important
vibrant and dynamic major industries functioning as growth poles and growth centres.
In the era of economic reforms, the ongoing process of setting up such complexes are
being continued by the central as well as the state governments. The Export
Processing Zones (EPZs) and the Special Economic Zones (SEZs) of present are
among the best examples of the industrial complexes in India. The Technology Parks,
Hardware Parks, Software Parks, Biotechnology Parks, etc. are all the examples of the
industrial complexes in India. Till the process of planning remains relevant, the
industrial complexes are going to be relevant in India. To the extent private sector
industries are concerned, the idea is not different.
Conceived as the catalysts of growth and development, the industrial complexes
in India faced the following problems hampering their expected functioning in
general:
1. Difficulties in selecting a suitable industry around which the industrial complexes
could be grown.
2. Frequent sicknesses of industries, which lead to breaking down the chain of inter-
linkages hampering the proper growth of the industrial complexes.
3. Lack of Infrastructural facilities in general and power in particular have done a
great damage to the prospects of the complexes.
4. Underdeveloped and lopsided market of the country has also hampered proper
growth and development of industrial complexes.
5. Proper support of external sector has also been one major problem.
6. Lack of skill and entrepreneurial acumen together with the problem in the
availability of adequate and timely finance has hampered the prospects of industrial
complexes in India.
7. Also, the labour laws have not been conducive to the growth of industrial
complexes.