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.

8. Last but not the least, the industrial complexes also suffered because the selection

and location of the growth poles and growth centres in India has not been smooth.