Secondary Economic Activities
Introduction
Secondary economic activities involve transforming raw materials (obtained from primary activities) into finished, valuable products through manufacturing, processing, and construction. These activities add value to natural resources and are carried out in factories. This chapter explains the types of industries, factors affecting their location, and major industrial regions worldwide.
1. What are Secondary Economic Activities?
- Definition: Activities that process raw materials from primary activities (e.g., agriculture, mining, forestry) into finished products for consumers.
- Examples: Manufacturing (e.g., cars, textiles), processing (e.g., sugar, food), and construction (e.g., buildings, roads).
- Key Feature: Adds value to raw materials, making them more useful and durable.
- Place of Work: Factories, where raw materials are converted into final products.
2. Factors Affecting the Location of Industries
The location of industries depends on physical, economic, political, and other factors. These factors determine whether industries are set up near raw materials, markets, or other strategic locations.
2.1 Physical Factors
Climate:
- Harsh climates (extreme heat, cold, or dryness) are unsuitable for industries.
- Moderate climates (e.g., coastal Maharashtra) support industrial growth.
- Example: Cotton textile mills in Maharashtra and Gujarat needed humid climates to prevent thread breakage (now artificial humidifiers are used, but they increase costs).
Availability of Raw Materials:
- Industries using heavy, bulky, perishable, or weight-losing raw materials are located near raw material sources.
- Examples:
- Sugar mills near sugarcane fields (sugarcane loses weight and sugar content over time).
- Fruit-processing industries near Mahabaleshwar and Nagpur (perishable fruits need quick processing).
Water and Power Supply:
- Industries need water for cooling, washing, and smelting, so they are often near rivers or lakes.
- Coal-based industries are near mining areas due to coal’s bulkiness.
- Electricity and oil can be transported, so industries using them can be located farther from sources.
Labour:
- Industries require skilled, semi-skilled, or unskilled labour.
- Examples:
- Textile industries need semi-skilled workers.
- Food processing or ornament-making needs skilled labour.
- Large industries often have nearby labour colonies.
Transportation:
- Low-cost and quick transportation is crucial.
- Heavy, bulky, or perishable materials need short transport routes (e.g., coal).
- Lightweight, non-perishable goods can be transported over long distances via cheaper modes like waterways (e.g., cotton textiles).
Site or Land Availability:
- Flat land with good transport connectivity is ideal for factories.
- Urban areas were preferred earlier, but high land prices now push industries to rural areas (e.g., Chakan in Pune).
2.2 Economic Factors
Proximity to Market:
- Industries need markets to sell products quickly and cheaply.
- Weight-gaining industries (where finished products are heavier than raw materials) are located near markets.
- Example: Bakeries produce cakes (heavier than raw materials) and are located in cities.
Capital:
- Industries require large investments for setup and operation.
- Areas with good banking and financial facilities attract industries (e.g., Mumbai, Delhi).
2.3 Political Factors
Government Policies:
- Governments provide incentives like subsidies, land, and tax concessions to promote industries in backward regions.
- They may discourage industries in eco-sensitive areas (e.g., coastal zones).
- Example: Maharashtra’s ‘D and beyond’ policy promotes industrial growth in less-developed areas.
Special Economic Zones (SEZs):
- SEZs are developed to boost export-quality production.
- They attract industries through facilities and incentives (e.g., SEEPZ in Mumbai).
2.4 Other Factors
Split Location:
- Different stages of production are done in different places to reduce transport costs.
- Example: In automobile industries, parts are made in various locations and assembled at one place.
Economies of Scale/Agglomeration:
- Industries cluster in areas with good facilities (e.g., transport, labour), attracting more industries.
- Example: Steel industries lead to related industries like car manufacturing or utensils.
Footloose Industries:
- These industries have no strong locational preference as their resources and markets are widely available.
- They produce lightweight, high-value products (e.g., watch-making, diamond cutting).
- Example: Honey processing is footloose as its location isn’t tied to raw material or market weight.
3. Weight-Losing vs. Weight-Gaining Industries
Weight-Losing Industries:
- Raw materials are heavier/bulkier than finished products.
- Located near raw material sources to reduce transport costs.
- Example: Sugar mills (sugarcane is bulky, sugar is lighter).
Weight-Gaining Industries:
- Finished products are heavier/bulkier than raw materials.
- Located near markets to reduce transport costs.
- Example: Bakeries (cakes are heavier than flour and sugar).
4. Classification of Industries
Industries are classified based on source of raw materials, capital investment, nature of output, and ownership.
4.1 Based on Source of Raw Materials
- Agro-Based:
- Process agricultural products (e.g., sugar mills, cotton textiles, food processing).
- Marine-Based:
- Process marine products (e.g., fish oil, sea-shell crafts).
- Forest-Based:
- Use forest products (e.g., paper, timber, resins, dyes).
- Mineral-Based:
- Use minerals from mining (e.g., iron and steel, petrochemicals).
- Pastoral-Based:
- Use animal products (e.g., leather goods, dairy, woollen clothes).
4.2 Based on Capital Investment
Large-Scale:
- High capital investment (> ₹10 crore in India).
- Examples: Iron and steel, power, cotton textiles.
Micro, Small, and Medium Enterprises (MSME):
- Micro: Investment < ₹25 lakh (plant) and < ₹10 lakh (equipment).
- Examples: Pens, dairy products.
- Small: Investment ₹25 lakh–₹5 crore (plant), ₹10 lakh–₹2 crore (equipment).
- Examples: Bottles, small toys.
- Medium: Investment ₹5 crore–₹10 crore (plant), ₹2 crore–₹5 crore (equipment).
- Examples: Cycles, TVs.
Cottage/Household:
- Small-scale, manual production using local raw materials at home.
- Examples: Pottery, weaving, Paithani sarees.
4.3 Based on Nature of Output
- Basic/Heavy Industries:
- Produce materials for other industries (e.g., iron and steel for automobiles).
- Consumer/Light Industries:
- Produce goods for direct consumption (e.g., watches, textiles, pharmaceuticals).
- Ancillary Industries:
- Produce parts for other industries (e.g., nails, tyres for trucks).
4.4 Based on Ownership
- Public Sector:
- Owned by the government (e.g., Bharat Heavy Electricals Limited – BHEL).
- Private Sector:
- Owned by individuals/partnerships (e.g., Tata Iron and Steel Company – TISCO).
- Joint Sector:
- Owned by government and private individuals (e.g., Maharashtra Natural Gas Limited – MNGL).
- Cooperative Sector:
- Owned and managed by a group (e.g., AMUL).
- Multinational Corporations (MNCs):
- Operate in multiple countries (e.g., Hindustan Lever, ONGC).
5. Industrial Regions
Definition: Areas with a high concentration of industries due to favorable conditions.
Characteristics:
- Agglomeration of industries.
- Dense population and large labour force.
- Good banking, transport, and communication facilities.
5.1 Major Industrial Regions Worldwide
North America:
- Regions: New England, Mid-Western, North Eastern, Southern, New York, Western.
- Industries: Petrochemicals, steel, automobiles, electronics.
- Factors: Rich minerals, large rivers, Great Lakes, skilled labour, ports.
Europe:
- Western Europe: Ruhr (Germany), France, Great Britain, Italy.
- Industries: Steel, chemicals, textiles, machinery.
- Factors: Coal and iron reserves, River Rhine, natural harbours.
- European Russia: Moscow-Tula-Vladimir, Ural, Volga.
- Industries: Oil and gas, chemicals, machinery.
- Factors: Coalfields, Volga River.
- Other Regions: Scandinavia, Switzerland, Poland.
Asia:
- China: North China Plain, Lower Yangtze, Manchuria.
- Industries: Textiles, oil refineries, steel.
- Factors: Coal, iron, cheap labour, ports.
- Japan: Tokyo-Yokohama, Osaka-Kobe, Nagoya.
- Industries: Electronics, automobiles, shipbuilding.
- Factors: Hydropower, coastal plains, ports.
- India: Chhota Nagpur, Mumbai-Pune, Delhi, Bengaluru-Coimbatore.
- Industries: Textiles, steel, IT.
- Factors: Cheap labour, government policies, ports.
- East Asia: South Korea, Singapore, Hong Kong.
South America:
- Regions: Argentina, Brazil, Venezuela, Chile.
- Industries: Food processing, textiles, automobiles.
- Factors: Mineral oil, fertile plains, ports.
Africa:
- Regions: Kimberley, Congo, Witwatersrand.
- Industries: Diamonds, gold, forest products.
- Factors: Minerals, forests, limited development due to climate.
Australia:
- Regions: Perth, Eastern Australia.
- Industries: Food, textiles, petroleum.
- Factors: Favorable climate, ports.
New Zealand:
- Regions: Auckland, Canterbury.
- Industries: Dairy, wool, timber.
- Factors: Agriculture, coniferous forests.
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