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Importance of Manufacturing Industries

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Manufacturing industries are described as the backbone of development in general and economic development in particular; mainly because these industries not only help in modernizing agriculture but also reduce the heavy dependence of people on agriculture by providing them jobs in secondary and tertiary sectors.

The manufacturing industries convert raw materials into finished products. It makes use of machinery or labor to manufacture the finished goods. The economic prevalence and stand of the nation are measured by the development of manufacturing industries. Industrial development is an important precursor for the eradication of poverty and unemployment in our country. Industries are important to bring down regional disparities by establishing industries in tribal and other backward areas.

We know that India is an agricultural country and the growth that we see in manufacturing industries has modernized farming and it also helped in reducing the heavy dependency of people. Due to this, many employment opportunities were generated. In short, we can say that agriculture and industry both benefit from each other. Now India has agro-based industries in large numbers and agriculture plays an important role in the expansion of manufacturing industries. As manufacturing industry helps the farmer by providing different farming machines, equipment, and more.

Manufacturing is the process of turning basic materials into more valuable commodities in big quantities. Manufacturing industries in the secondary sector are those that produce finished goods from raw materials.

Manufacturing industry are critical to a country’s overall, and especially its economic development. The expansion of a country’s manufacturing industries is used to gauge its economic strength.

Working of an Industry

Working of an Industry

Importance of the Manufacturing  

  • The manufacturing sector is regarded as the backbone of both social and economic development.
  • They aid in the modernization of agriculture and the reduction of people’s significant reliance on agricultural income by offering jobs in the secondary and tertiary sectors.
  • It is the main principle underpinning public sector enterprises and joint sector operations in India that industries serve to reduce unemployment and poverty.
  • By building companies in tribal and backward areas, they reduce regional inequities.
  • Exporting manufactured items boosts trade and brings in much-needed foreign currency.
  • Countries that convert their basic materials into a diverse range of higher-value finished items are affluent.
  • Agriculture and industry are not mutually exclusive. They’re walking hand in hand. In India, for example, agro-industries have provided agriculture a substantial boost by increasing productivity.
  • In today’s globalized world, our sector must become more efficient and competitive, with only the best products remaining competitive.

Location of Manufacturing Industries

There are various factors on which the location of manufacturing industries depends:

  1. Availability of suitable land at the desired price.
  2. Proximity to the market.
  3. Availability of adequate labor, power, and capital.
  4. Good transport connectivity.

Contribution of industries to the National Economy      

  • Manufacturing’s portion of GDP has remained stable at 17% of GDP, out of a total of 27% for the industry, which includes 10% for mining, quarrying, power, and gas.
  • India’s GDP is substantially lower than that of several East Asian economies, which ranges from 25 to 35 percent.
  • Manufacturing has grown at a rate of roughly 7% per year on average over the last decade.
  • With proper government policy interventions and increased efforts by industry to improve productivity, the desired growth rate over the following decade is 12%.
  • The National Manufacturing Competitiveness Council (NMCC) was established solely for this purpose.

Classification of Manufacturing Industries

The manufacturing industries can be classified into the following:

  1. Based on Ownership: They can be classified into cooperative sector industries, joint sector industries, private sector industries, and public sector companies.
  2. Based on the weight and bulk of raw materials and finished products: Light and heavy industries are two types. Manufacturing heavy engineering and construction equipment, iron and steel as heavy industries. In the same way, manufacture light electrical goods for light industries.
  3. Based on Capital: Based on the capital invested industries are classified as small-scale, medium, and large-scale industries.
  4. Based on raw materials: They can be classified into mineral-based industries and agro-based industries. Some examples of mineral-based industries are Aluminium, iron, and street and petrochemical
  5. Based on Role: This type of industry can be classified as a consumer or basic industry.
Indian Textile Industry


Agro-based Industries

The industries which are based on agriculture are known as agro-based industries. For example, cotton, jute, silk, woolen textile, etc.

Textile Industry: Occupies a unique position in the Indian economy as it contributes immensely to the Indian economy, through production, employment generation, and foreign exchange earnings.

Cotton Textiles: This industry has close links with agriculture and provides a living to farmers, cotton boil pluckers, and workers engaged with ginning, spinning, weaving, and so on. By creating demands supports many other industries, like chemicals and dyes, packaging, and so forth. Hand-spun khadi provides large-scale employment to weavers in their homes as a cottage industry. Cotton has a large share in foreign trade.

Jute Textiles: India is the largest producer of raw jute. Most mills are located in West Bengal. Stiff competition in the international market from synthetic substitutes is an important challenge. However, internal demand is increased by the government through the mandatory use of Jute packaging. The global concern for environment-friendly and biodegradable materials has opened up doors for jute expansion.

Sugar Industry: India stands second as a world producer of sugar but first in the production of gur and khandsari. Mills are located in Uttar Pradesh, Bihar, Maharashtra, and so forth. The tendency to shift towards western and southern states like Maharashtra is because the cane produced here has more sucrose content and a cooler climate also ensures a longer crushing season. The seasonal nature of the industry is an important drawback.

Mineral-based Industries

When minerals and metals are used as raw materials, these industries are known as mineral-based industries.

Iron and Steel Industry: It is a basic industry since most heavy industries depend on it for their machinery. In 2019 with 111 million tonnes of crude steel production, India was ranked 2nd among world crude steel production. Chhotanagpur plateau region has a maximum concentration of iron and steel industries.

Aluminum Smelting: It is the second most important metallurgical industry in India. It is light, resistant to corrosion, a good conductor of heat, malleable, and becomes strong when mixed with other metals. Gained popularity as a substitute for steel, copper, zinc, and lead in a number of industries. Plants are located in Odisha, West Bengal, Kerala, and so forth. Bauxite is a raw material used often and is a very bulky, dark reddish-colored rock.

Chemical Industries: It is fast growing and diversifying; both large and small scale manufacturing units. Rapid growth in both organic and inorganic sectors. This industry is widely spread in the country.

Fertilizer Industries: Centered around the production of nitrogenous fertilizers, phosphatic fertilizers, and ammonium phosphate. After Green Revolution, the industry expanded very much.

Cement Industries: It is essential for construction activity. Bulky raw materials like limestone, silica, and gypsum. Coal and electric power are needed along with railways.

Automobile Industries: Healthy growth of the automobile industry in India after the policy of liberalization. The industry is located in Delhi, Gurugram, Mumbai, Pune, and so forth.

Information Technology and Electronics Industry: Bengaluru has emerged as the electronic capital of India. It has generated employment and continued growth in hardware and software.

Iron and Steel Plants


Software and Technology Park

Industrial Pollution and Environmental Degradation

Industries are responsible for four types of pollution: Air, Water, Land, and Noise.

Air Pollution: The high concentration of sulfur dioxide and carbon monoxide causes air pollution. Smoke is emitted from chemical and paper factories, brick kilns, refineries, smelting plants, and the burning of fossil fuels. Toxic gas leaks can be hazardous in long run.

Water Pollution: It is caused by organic and inorganic industrial wastes and effluents discharged into rivers. Fly ash, phosphor-gypsum, and iron and steel slags are major solid wastes in India.

Thermal Pollution: Hot water from factories and thermal plants is drained into rivers and ponds before cooling. Cancers, birth defects and miscarriage can be caused by wastes generated from nuclear power plants.

Noise Pollution: Noise pollution can cause irritation, anger, and hearing impairment, and increase heart rate and blood pressure among physiological effects. Industrial and construction activities, generators, and so forth.

Control of Environmental Degradation 

Pollution of fresh water can be reduced by 

  1. Minimizing the use of water for processing by reusing and recycling it.
  2. Harvesting rainwater.
  3. Treating hot water and effluents before releasing them into rivers and ponds.

Smoke can be reduced by using oil or gas instead of coal in factories. Generators can be fit by silencers. The challenge and requirement of sustainable development can be achieved by sustainable development with environmental concerns.

FAQs on Manufacturing Industries

Question 1: What are the examples of manufacturing industries?


Few examples of manufacturing industries are heavy machinery, automobiles, aircraft, consumer electronics and so forth.

Question 2: Name the 3 types of manufacturing.


The 3 types of manufacturing are :

  1. Make to Assemble
  2. Make to Order
  3. Make to Stock

Question 3: What are the 3 types of industries?


The 3 types of industries are:

  1. Primary industries.
  2. Secondary industries.
  3. Tertiary industries.

Question 4: Why are manufacturing industries important?


Manufacturing industries are like the backbone of the economy. Government of India is trying to promote “Make in India” and many other initiatives to make India’s flourish more, with the development of the manufacturing sector.

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Last Updated : 16 Aug, 2023
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