Manufacturing is the production of merchandise and goods in huge quantities after treating the raw material into a more valuable product. Significance of Manufacturing The Manufacturing industries go on to assist in reviving agriculture; which makes the backbone of the economy. Other than this, the manufacturing industry also reduces the heavy dependency of individuals on
Manufacturing is the production of merchandise and goods in huge quantities after treating the raw material into a more valuable product.
Significance of Manufacturing
- The Manufacturing industries go on to assist in reviving agriculture; which makes the backbone of the economy. Other than this, the manufacturing industry also reduces the heavy dependency of individuals on agricultural income.
- Industrial development assists in the eradication of poverty and unemployment.
- Export of the manufactured goods go on to expand trade plus commerce and also bring in much-required foreign exchange.
- A country with a higher level of manufacturing projects becomes prosperous.
The Contribution of Industries to the National Economy
Well, the share of the manufacturing sectors in the Gross Domestic Product (GDP) has been still at 17 percent over the past 2 decades. The entire contribution of the industry to GDP is 27 percent out of which 10 percent comes from quarrying, mining, gas, and electricity.
A few of the factors that affect an industrial location is as follows:
- The availability of the labor
- The availability of the raw materials
- The availability of the capital
- The availability of the power
- The availability of the market
- The Infrastructure
At times, the industries are mostly located in cities or nearby. Cities offer markets and also offer services like insurance, transport, banking, labor, consultants, etc.
Classification Of the Industries:
Based on raw materials:
- Agro-Based Industries: Woolen, jute, cotton, silk textile, sugar, coffee, tea, rubber, etc.
- Mineral Based Manufacturing Industries: Steel and Iron, cement, petrochemicals, aluminum, etc.
As per their major role:
Key or Basic Industries: Such industries go on to supply their raw materials or products to manufacture several other goods, for instance, copper smelting, iron & steel, aluminum smelting.
The Consumer Industries: Such industries go on to produce goods that are directly utilized by consumers, for instance, sugar, electronics, paper, soap, etc.
Based on capital investment:
- Large Scale Industries: When the capital invested is over Rs. 1 crore, the industry is known as the large-scale industry.
- Small Scale Industry: When the capital invested is up to Rs. 1 crore, the industry is known as a small-scale industry.
Based on ownership:
- The Public-Sector: These are the industries that are operated and owned via government agencies.
- The Private-Sector: These are the industries that are operated and owned via groups of individuals or individuals.
- The Joint Sector: Well, these are the industries that are together owned by individuals and the government or the group of individuals.
- Cooperative Sector: The industries are operated and owned by the suppliers or producers of workers, raw materials, or both. The resource is pooled via each stakeholder and the profits or the losses are distributed proportionately.
Based on bulk and the weight of the raw materials plus finished goods:
- The Heavy Industries: Steel & Iron
- The Light Industries: The Electronics
Well, that is very much all you have here to read and learn about the significance of manufacturing industries and the classification of industries. To know further, you may look over the web and gather more info. Hopefully, this guide will assist you all to know the ins and outs of it.