Industries : Their Need and Classification

The chapter “Industries: Their Need and Classification” likely emphasizes the fundamental role of industries in a nation’s progress, highlighting their contribution to infrastructure development, job creation, and the provision of essential goods and services by converting raw materials into finished products.

The chapter then proceeds to categorize industries based on various criteria: size, distinguishing between cottage, small-scale (often labor-intensive), and large-scale (requiring substantial investment and advanced technology); ownership, classifying them as private, public (government-controlled), joint (public-private partnerships), and cooperative; and raw materials, grouping them as agro-based (utilizing agricultural produce), mineral-based (relying on minerals), forest-based (using forest resources), and animal-based (processing animal products).

Furthermore, the chapter likely explores the factors that determine the geographical location of industries, such as nearness to raw materials and markets, accessibility of essential resources like land, water, and power, availability of labor, efficient transportation networks, and governmental regulations and incentives. For instance, industries processing bulky raw materials often locate closer to their source to minimize transportation costs. The chapter might also touch upon the historical significance of the Industrial Revolution in transforming production methods and shaping modern industrial landscapes, alongside a discussion on the environmental pollution stemming from industrial activities and potential mitigation strategies.

Discuss

Discuss the importance of cottage industry for a country which has a large population with little education.
Ans:

For a country with a large, less-educated population, cottage industries are vital because they:

• Create widespread employment requiring simple skills and low investment.
• Utilize local resources and traditional knowledge, strengthening local economies.
• Promote decentralized economic growth and reduce urban migration.
• Empower women and marginalized groups with flexible work.
• Foster local entrepreneurship and innovation.

Essentially, they offer accessible livelihoods, leverage local assets, and support broader economic and social development.

Discuss

What, according to you, would be the future of industries if we destroyed our forests and wildlife ?
Ans:

Eliminating forests and wildlife would create a precarious future for industries. We’d face severe shortages of essential resources like timber and clean water, as forests regulate water cycles and provide raw materials. The loss of biodiversity would disrupt vital ecosystem services such as pollination, crucial for agriculture-based industries. Soil degradation, exacerbated by deforestation, would harm agricultural productivity.

Economically, industries relying on nature tourism would collapse. Increased environmental regulations to combat the devastation would raise operational costs for all sectors. Resource scarcity and environmental decline could trigger social instability, further hindering industrial growth.

While the crisis might force innovation towards sustainability, the scale of destruction could overwhelm these efforts. Ultimately, the long-term viability of most industries depends on healthy ecosystems, and their destruction would pave the way for an unsustainable and economically fragile future.

THINK AND ANSWER

Why do you think multinational companies are attracted to establish ventures in foreign countries ?
Ans:

MNCs invest abroad mainly to:

• Reach more customers in new markets and bypass trade barriers.
• Lower costs by accessing cheaper labor and resources.
• Gain strategic advantages like new technologies and risk diversification.
• Adapt better to local tastes and build local connections.

Essentially, they seek growth, efficiency, and stronger global competitiveness.

VALUES & LIFE SKILLS

A lot of children below the age of 14 years work in various industries.
Do you think these children should work in these industries ?
Why do you think they have to work there ?
Ans:

They are forced to work primarily due to:

• Extreme poverty: Families need their income to survive.
• Lack of education: No access to schooling leaves work as the only option.
• Debt bondage: Children work to repay family debts.
• Exploitation: Employers seek cheap, vulnerable labor.

Child labor is a serious problem requiring comprehensive solutions focused on poverty reduction, education access, and law enforcement.

EXERCISES

A. Fill in the blanks.

1. People who work together to make cars work in the _______ industry.

Ans: Large- scale

2. The USA and China are strong because they have thousands of _______ .

Ans: Industries

3. Nepal has ______ industries.

Ans: Few

4. The ______ of an industry depends on the number of people employed, the capital invested and the area it occupies.

Ans: Size

5. A _______ industry is a household unit run by a family.

Ans: Cottage

B. Match the following.

Ans:

C. Choose the correct answer.

Question 1.
China/Nepal has many industries.
Ans:

China has many industries.

Question 2.

Cottage industries produce handicrafts/cement.

Ans:

Cottage industries produce handicrafts.

Question 3.

Small-scale industries are smaller/bigger than cottage industries.

Ans:

Small-scale industries are bigger than cottage industries.

Question 4.

Sports equipment are produced by small-scale/large- scale industry.

Ans:

Sports equipment are produced by small-scale industry.

Question 5.

Chota Nagpur Plateau is well known for steel/textile production.

Ans:

Chota Nagpur Plateau is well known for steel production.

D. State whether the following is true or false.

1. The USA has many industries.
Ans: True.

2. Industries do not contribute much to national income.
Ans: False.
Correct : Industries contribute much to national income.

3. The number of labour employed has no relation to the size of an industry.
Ans: False.
Correct : The number of labour employed has relation to the size of an industry.

4. Cottage industry employ labour from outside.
Ans: False.
Correct : Cottage industry employ only family members.

5. Small-scale industries employ only family members.

Ans: False.

Correct : Small-scale industries employ labour from outside.

E. Answer the following questions in brief.

Question 1.
What is an industry?
Ans:

An industry represents a specific branch of economic activity that involves a collection of businesses engaged in the production, manufacturing, or provision of a particular type of goods or services. These businesses often share common production methods, utilize similar raw materials, and cater to comparable consumer markets.

Essentially, an industry is a distinct segment within the broader economy, characterized by a focus on a particular category of economic endeavor. For instance, the software industry encompasses all companies involved in the development, distribution, and maintenance of computer software. Similarly, the financial services industry includes banks, insurance companies, and investment firms.

In simpler terms, an industry is a defined sector of the economy where businesses offer similar products or services.

Question 2.

Name the three major types of industries.

Ans:

The three major types of industries are typically classified based on the scale of their operations and investment. These are:

1. Cottage Industries (or Household Industries): These are the smallest scale industries, usually carried out by individuals or families within their homes or small workshops. They often use traditional skills and local raw materials, with minimal capital investment and technology. Examples include handicrafts, pottery, weaving, and food processing at a very local level.
   
2. Small-Scale Industries: These industries have a larger investment than cottage industries but are still relatively small in terms of capital, labor, and output compared to large-scale industries. They often use some level of machinery and employ a small number of workers. Examples include small manufacturing units, workshops, and service-based businesses.
   
3. Large-Scale Industries: These industries involve significant capital investment, employ a large workforce, and have high production volumes. They typically utilize advanced technology and machinery and often produce goods on a mass scale for national and international markets. Examples include automobile manufacturing, iron and steel plants, textile mills, and petrochemical industries.

Question 3.

What goods are produced by a cottage industry?

Ans:

Cottage industries typically produce a wide variety of goods, often characterized by their handmade nature, use of local materials, and traditional skills. Here are some common examples:  

• Handicrafts: This is a broad category including items like pottery, jewelry, wood carvings, metalwork, leather goods, basketry, and intricate artwork.
• Textiles and Garments: Handloom fabrics, traditional clothing, embroidered items, knitted or crocheted goods, and handmade quilts are common products.  
• Food Products: Small-scale production of pickles, preserves, jams, spices, traditional snacks, and baked goods often falls under cottage industries.  
• Household Items: Handmade soaps, candles, incense, traditional utensils, and decorative items for the home.  
• Leather Products: Handmade shoes, bags, belts, and other leather accessories.  
• Art and Craft Items: Paintings, sculptures, decorative pieces, and other unique artistic creations.  
• Traditional Tools and Implements: In some rural areas, cottage industries might produce simple agricultural tools or household implements using local materials.

The specific goods produced by a cottage industry can vary greatly depending on the region, available resources, local skills, and cultural traditions. The emphasis is often on quality, uniqueness, and the preservation of traditional craftsmanship.

Question 4.

Name a few goods produced by small-scale industries.

Ans:

Small-scale industries produce a diverse range of goods, often catering to regional or niche markets. Here are a few examples:

• Processed Foods: Items like packaged snacks, small-batch sauces, pickles, bakery products, and beverages.
• Textile Products: Readymade garments, hosiery, knitted wear, bed linen, and towels.
• Engineering Goods: Small machine parts, hand tools, agricultural implements, and simple machinery.
• Electrical Goods: Small electrical appliances, wiring accessories, and electronic components.
• Chemical Products: Detergents, soaps, paints, varnishes, and small-scale pharmaceuticals.
• Leather Products: Shoes, bags, belts, and other leather articles.
• Plastic Products: Molded plastic items, packaging materials, and household plastic goods.
• Furniture: Wooden, metal, or plastic furniture for homes and offices.
• Paper Products: Stationery, packaging materials, and printed materials.
• Repair and Maintenance Services: While services, they often involve small workshops producing replacement parts or specialized tools.

The key characteristic is often a moderate level of investment in machinery and technology, employing a limited workforce compared to large-scale industries, and catering to specific market demands.

Question 5.

Which type of industry produces cement and petrochemicals?

Ans:

The production of cement and petrochemicals is characteristic of large-scale industries.

Cement manufacturing necessitates substantial financial outlays for expansive kilns, heavy-duty equipment for crushing and grinding raw materials, and comprehensive logistical networks for the movement of both raw materials and the final cement product. The sheer volume of cement required by the construction sector also mandates production on a large scale.

Similarly, the petrochemical industry involves intricate and extensive refining processes of crude oil and natural gas. This requires immense infrastructure, sophisticated technology, and significant capital investment. The output of petrochemical plants serves as essential feedstock for numerous other industries, thus necessitating large-scale production capacities to meet this widespread demand.

F. Answer the following questions in detail.

Question 1.
Why do we need industries?
Ans:

Industries are essential for several fundamental reasons that underpin modern society:

• Producing Necessary Goods and Services: They are the primary source for the vast array of products we use daily, from food and clothing to electronics and medicine, alongside crucial manufacturing-related services.
• Creating Employment: Industries are major employers, providing jobs that generate income, reduce unemployment, and raise living standards across various skill levels.
• Driving Economic Growth: They are key drivers of economic expansion, contributing to national wealth (GDP) and facilitating both domestic and international trade.
• Improving Quality of Life: The availability of diverse and  industrial products enhances our living standards in areas like healthcare, convenience, and transportation.
• Fostering Innovation: Industries are often centers of technological advancement, constantly seeking new and better ways to produce goods and services.
• Utilizing Raw Materials: They transform raw resources from agriculture, mining, and forestry into valuable finished products.
• Supporting Infrastructure: Many industries are directly involved in building essential infrastructure like construction materials and transportation equipment.
• Ensuring National Security: Key industries like defense and energy production are vital for a nation’s independence and security.

Question 2.

What is a cottage industry?

Ans:

A cottage industry is a small-scale manufacturing endeavor, typically run from a home or a modest workshop. Key characteristics include:

• Minimal capital investment: Requiring very little money to establish and operate.
• Basic technology and tools: Often relying on manual skills or simple machinery.
• Family or individual workforce: Frequently run by family members or a few local artisans.
• Production of traditional or specialized items: Often focused on handicrafts, textiles, local food products, or unique goods utilizing regional skills and materials.
• Modest output: Production volumes are usually limited compared to larger industries.
• Local or niche markets: Products often serve nearby communities or specific customer segments.

Question 3.

What are the differences between a cottage industry and a small-scale industry?

Ans:

• Cottage industries are like very small, home-based businesses using simple tools and family labor to make traditional or unique items for local sale.
• Small-scale industries are a step up, with more investment in machinery, hired workers, and a larger production to serve a wider area. They are more organized and produce a broader range of goods.

Question 4.

What are large-scale industries?

Ans:

Large-scale industries are characterized by massive investment, advanced technology, a large workforce, and high-volume production aimed at national and international markets. They require extensive infrastructure and complex management. Think of car factories or steel mills.

Question 5.

Give an account of the factors that determine the establishment of an industry.

Ans:

Establishing an industry hinges on several interconnected factors:

• Raw Material Access: Industries prefer locations offering easily available and affordable raw materials, especially for bulky or perishable goods. Reliable supply chains are crucial.
• Labor Availability: The cost, skill level, productivity, and industrial relations of the local workforce are key considerations. Different industries have varying labor needs.
• Power Resources: Consistent and affordable energy (electricity, fuel) is vital for industrial operations. Specific energy requirements can also influence location.
• Market Proximity: Being close to the target market reduces transportation costs and allows for better responsiveness to consumer demand. Market size and accessibility matter.
• Transportation and Communication: Efficient infrastructure for moving goods and reliable communication networks are essential for smooth operations.
• Water Availability: Many industries need significant amounts of water for processing, making access to suitable water sources critical.
• Land and Cost: Availability of appropriate land at a reasonable cost, considering topography and zoning, is a primary concern.
• Government Policies: Incentives, regulations (including environmental), and overall industrial policies significantly impact industry establishment.
• Climate and Geography: Certain industries have specific climate needs, and areas prone to natural disasters are generally avoided.
• Capital Availability: Access to funding for investment is crucial for setting up and running industrial ventures.
• Entrepreneurship: The presence of individuals with the drive and skills to start and manage industries is a key enabler.

LET’S DO SOMETHING

With the help of the Internet, find out the names of three companies from the following industries :

1. Iron and steel
2. Textile
3. Cement

Ans:

Iron & Steel: Bluescope, ThyssenKrupp, Nucor.

Textile: Raymond, Levi’s, Asahi Kasei.

Cement: JK Cement, Vicat, SCG.

F. Answer the following questions in detail.

Question 1.
Why do we need industries?
Ans:

Industries are essential for several fundamental reasons that underpin modern society:

• Producing Necessary Goods and Services: They are the primary source for the vast array of products we use daily, from food and clothing to electronics and medicine, alongside crucial manufacturing-related services.
• Creating Employment: Industries are major employers, providing jobs that generate income, reduce unemployment, and raise living standards across various skill levels.
• Driving Economic Growth: They are key drivers of economic expansion, contributing to national wealth (GDP) and facilitating both domestic and international trade.
• Improving Quality of Life: The availability of diverse and  industrial products enhances our living standards in areas like healthcare, convenience, and transportation.
• Fostering Innovation: Industries are often centers of technological advancement, constantly seeking new and better ways to produce goods and services.
• Utilizing Raw Materials: They transform raw resources from agriculture, mining, and forestry into valuable finished products.
• Supporting Infrastructure: Many industries are directly involved in building essential infrastructure like construction materials and transportation equipment.
• Ensuring National Security: Key industries like defense and energy production are vital for a nation’s independence and security.

Question 2.

What is a cottage industry?

Ans:

A cottage industry is a small-scale manufacturing endeavor, typically run from a home or a modest workshop. Key characteristics include:

• Minimal capital investment: Requiring very little money to establish and operate.
• Basic technology and tools: Often relying on manual skills or simple machinery.
• Family or individual workforce: Frequently run by family members or a few local artisans.
• Production of traditional or specialized items: Often focused on handicrafts, textiles, local food products, or unique goods utilizing regional skills and materials.
• Modest output: Production volumes are usually limited compared to larger industries.
• Local or niche markets: Products often serve nearby communities or specific customer segments.

Question 3.

What are the differences between a cottage industry and a small-scale industry?

Ans:

Feature	Cottage Industry	Small-Scale Industry (SSI)
Location	Typically located within the home or dwelling place of the artisan.	Usually located in small workshops or units, often outside the home.
Labor	Primarily relies on family labor.	Employs hired or outside labor in addition to or instead of family members.
Capital Investment	Very low capital investment, utilizing personal savings and simple tools.	Comparatively higher capital investment in machinery and equipment, often through loans or private resources.
Technology	Uses traditional, often manual techniques and simple tools.	May use both traditional and modern, power-driven machinery and techniques.
Scale of Production	Very small scale, often producing goods for local consumption or barter.	Small scale but generally larger production volume than cottage industries, aiming for a wider market.
Market Reach	Primarily local or village markets.	Wider market reach, potentially including regional or even national markets.
Organization	Often unorganized and decentralized.	More organized structure with defined roles for workers.
Skills	Relies on traditional skills passed down through families.	May involve both traditional and specialized skills of hired workers.
Power Usage	Minimal or no use of power; primarily manual operation.	Often utilizes electricity and power-driven machinery.

Question 4.

What are large-scale industries?

Ans:

Large-scale industries are characterized by massive investment, advanced technology, a large workforce, and high-volume production aimed at national and international markets. They require extensive infrastructure and complex management. Think of car factories or steel mills.

Question 5.

Give an account of the factors that determine the establishment of an industry.

Ans:

Establishing an industry hinges on several interconnected factors:

• Raw Material Access: Industries prefer locations offering easily available and affordable raw materials, especially for bulky or perishable goods. Reliable supply chains are crucial.
• Labor Availability: The cost, skill level, productivity, and industrial relations of the local workforce are key considerations. Different industries have varying labor needs.
• Power Resources: Consistent and affordable energy (electricity, fuel) is vital for industrial operations. Specific energy requirements can also influence location.
• Market Proximity: Being close to the target market reduces transportation costs and allows for better responsiveness to consumer demand. Market size and accessibility matter.
• Transportation and Communication: Efficient infrastructure for moving goods and reliable communication networks are essential for smooth operations.
• Water Availability: Many industries need significant amounts of water for processing, making access to suitable water sources critical.
• Land and Cost: Availability of appropriate land at a reasonable cost, considering topography and zoning, is a primary concern.
• Government Policies: Incentives, regulations (including environmental), and overall industrial policies significantly impact industry establishment.
• Climate and Geography: Certain industries have specific climate needs, and areas prone to natural disasters are generally avoided.
• Capital Availability: Access to funding for investment is crucial for setting up and running industrial ventures.
• Entrepreneurship: The presence of individuals with the drive and skills to start and manage industries is a key enabler.

LET’S DO SOMETHING

With the help of the Internet, find out the names of three companies from the following industries :

1. Iron and steel
2. Textile
3. Cement

Ans:

Iron & Steel: Bluescope, ThyssenKrupp, Nucor.

Textile: Raymond, Levi’s, Asahi Kasei.

Cement: JK Cement, Vicat, SCG.

G. Ask your parents to take you to a cottage or small-scale industry in your city so that you can see how goods are produced there ?

Ans:

Do it yourself with the help of parents.

H. Picture Study
This is a picture of an industry.

1. What type of industry is this ?
2. Can you give two features of this industry?

Answer:

Based on the image, this appears to be an automobile manufacturing industry.

Here are two features of this industry:

• Assembly Line Production: The image clearly shows a conveyor belt system with car bodies in various stages of assembly, a hallmark of mass production in the automotive industry.
• Large-Scale Operations: The size of the facility suggests a large-scale operation, typical of automobile manufacturing, which involves significant capital investment and a complex supply chain.