Industries: Their Need, and Classification

Discuss

Discuss the importance of cottage industry for a country which has a large population
with little education.
Answer:
A major benefit of cottage industries is that they allow people to work from their homes.
Women have benefited the most because they can work from home while still tending to
their families. Many cottage businesses include the entire family in their operations,
however, including husbands and children. Some businesses start as cottage industries
and then become too large, necessitating a move out of the home into a business
environment, but at that point they likely have the financial means to make the move.

Discuss

What, according to you, would be the future of industries if we destroyed our forests and
wildlife ?
Answer:
Forest-based Industries are based on forest products. If we destroys forest the
industries such packaging industry, furniture industry, sports good industry, paper
industry are shutdown because of unavailability of raw materials.

THINK AND ANSWER

Why do you think multinational companies are attracted to establish ventures in foreign
countries ?
Answer:
Multinational companies are attracted to establish ventures in foreign countries as
cheap labour and cheap raw material inputs, transport and power are easily available in
developing countries.

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 ?
Answer:
Child labour is the employment of children at regular and sustained labour.
No, the children should not work in any industry because of following reasons:
 1. Child labour does more than deprive children of their education and mental and
physical development – their childhood is stolen.
2. Immature and inexperienced child labourers may be completely unaware of the
short and long term risks involved in their work.
3. Working long hours, child labourers are often denied a basic school education,
normal social interaction, personal development and emotional support from their
family.
Poverty is undoubtedly a dominant factor in the use of child labour; families on or
below the poverty line force their children into work to supplement their
household’s meager income. Eradicating poverty, however, is only the first step on
the road to eliminating child labour.

EXERCISES

A. Fill in the blanks.

1. People who work together to make cars work in the large- scale industry.
2. The USA and China are strong because they have thousands of industries.
3. Nepal has few industries.
4. The size of an industry depends on the number of people employed, the capital
invested and the area it occupies.
5. A cottage industry is a household unit run by a family.

B. Match the following.

Answer:
C. Choose the correct answer.

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

Question 2.
Cottage industries produce handicrafts/cement.
Answer:
Cottage industries produce handicrafts.

Question 3.
Small-scale industries are smaller/bigger than cottage industries.
Answer:
Small-scale industries are bigger than cottage industries.

Question 4.
Sports equipment are produced by small-scale/large- scale industry.
Answer:
Sports equipment are produced by small-scale industry.

Question 5.
Chota Nagpur Plateau is well known for steel/textile production.
Answer:
Chota Nagpur Plateau is well known for steel production.

D. State whether the following is true or false.

1. The USA has many industries.

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

3. The number of labour employed has no relation to the size of an industry.

Answer. False.
Correct : The number of labour employed has relation to the size of an industry.

4. Cottage industry employ labour from outside.

Answer. False.
Correct : Cottage industry employ only family members.

5. Small-scale industries employ only family members.

Answer. False.
Correct : Small-scale industries employ labour from outside.

E. Answer the following questions in brief.

Question 1.
What is an industry?
Answer:
An Industry is a group of people or companies engaged in a particular kind of business
enterprise. There are different groups of people that work together to form an industry.
For example, people who work together to make cars form the car industry or people
who work together to fashion clothes form the fashion industry.

Question 2.
Name the three major types of industries.
Answer:
Three types of industries are :

1. Cottage industry
2. Small-scale industry
3. Large-scale industry.
4. Agro-based industry.

Question 3.
What goods are produced by a cottage industry?
Answer:
Handicrafts, handloom products, jewellery, pottery, leather products, etc. are produced
by cottage industry.
Question 4.
Name a few goods produced by small-scale industries.
Answer:
Electronic goods, sports equipment, brassware, bicycles, toys,
etc. are produced by small-scale industries.

Question 5.
Which type of industry produces cement and petrochemicals?
Answer:
Cement and petrochemicals are produced by large-scale industry.

F. Answer the following questions in detail.

Question 1.
Why do we need industries?
Answer:
Industries are required because of the following reasons :

1. Industries are needed to make a country strong financially: The more number of
industries in a country the stronger the country becomes. Countries such as the
USA and China are strong because of the hundreds and thousands of industries
they have. India too has many industries but not as many as USA or China. Some
countries like Nepal have very few industries.
2. Industries are needed for products of daily use : We will see items that we use
everyday such as toothpaste, soap, bicycle, exercise books, pencils, medicines,
cheese, and jams and so on. All these items are manufactured by different
industries.
3. Industries are needed so there is no shortage of necessary goods :
Apart from fulfilling our daily needs, industries must produce
sufficiently so that all the things people need are available to them at reasonable
prices.

Question 2.
What is a cottage industry?
Answer:
Cottage Industry : It is generally a household unit run by a family.
The craftsmen and their family members carry on the traditional work started by their
forefathers generations ago. Cottage industries generally produce all kinds of
handicrafts, handloom products, jewellery, pottery, leather products, etc. These
industries are encouraged by the government as they generate employment and
improve living conditions, especially in rural areas.
Question 3.
What are the differences between a cottage industry and a small-scale industry?
Answer:
The differences between a cottage industry and a smale- scale industry are:

1. The location of cottage industries is restricted in villages whereas the small-scale

industries are mostly located in urban and semi- urban areas.
2. Cottage industry being a household industry is mostly run by the members of the
family and therefore do not maintain hired labourers. But the small-scale industries
are mostly run by hired labourers.
3. Cottage industries are producing goods for meeting local requirements whereas
small-scale industries are producing goods to meet the demand for the people
living in a wider area.
4. Cottage industries are investing a very little amount of capital and are working with
simple tools. But the small industries are investing a comparatively higher amount
of capital (presently the limit has been raised from Rs. 60 lakh to Rs. 3 crore) and
are working with machines run by power.

Question 4.
What are large-scale industries?
Answer:
Large-scale industries involve huge investments, professional management and a large
force of skilled and unskilled labour.
Big power-driven machines are used with considerable automation. These industries
are generally established at places where raw materials, cheap transportation, sources
of power, plenty of labour and market are easily available. Industries producing iron and
steel, petrochemicals, cement, railway engines and coaches, automobiles, textiles, etc.
are examples of large-scale industries.

Question 5.
Give an account of the factors that determine the establishment of an industry.
Answer:
Factors that determines the establishment of an Industry are:

1. Availability of Raw Material — All industries that require heavy and bulky raw
material are generally set up near the sources of raw materials in order to save
heavy transportation cost. For example, iron and steel plants in India and other
countries have been set up near iron ore mines and coalfields as both iron ore and
coal are heavy and difficult to transport.
2. Availability of Power — For any industry power is a very critical factor. Cheap,
abundant and uninterrupted power supply is an essential need for any modem
industry using large machines.
3. Availability of Transport —An important factor for setting up industries is the
availability of efficient means of transportation as movement of raw material to the
factory and finished goods to the market depend on it.
 4. Availability of Labour — Though labour-skilled and unskilled-can be transported
from different regions, it is advantageous to have an assured labour supply locally
for setting up an industry.
5. Market — The ultimate aim of any industry is to sell its product easily, i.e., to find
a market for its product without much difficulty. Industries of certain types are set
up in specific regions where their goods can easily be sold. Woollen industries will
do well in areas of cold climate while industries making cotton goods will

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

Answer:

1. Tata Iron and Steel Corp., Bhilai Steel Plant, Durgapur Steel Plant.
2. Acrow India ltd., Al chemist corp. ltd. Acil Cotton Industries ltd.
3. Ultratech,ACC,Ambuja Cement, Ramco Cements. thrive in areas that have warm
and dry climate.
4. Other Factors — Factors like easy access to financial and banking facilities,
climate, state-government policies, etc. also influence either directly or indirectly
the location of an industry.

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 ?
Answer:
Do 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:

1. This is a large-scale industry of automobiles sector.

2. Large-scale industries involve huge investments, professional management and a
large force of skilled and unskilled labour. Big power-driven machines are used
with considerable automation. These industries are generally established at
places where raw materials, cheap transportation, sources of power, plenty of
labour and market are easily available.

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

Answer:

1. Tata Iron and Steel Corp., Bhilai Steel Plant, Durgapur Steel Plant.
2. Acrow India ltd., A1 chemist corp. ltd. Acil Cotton Industries ltd.
3. Ultratech, ACC, Ambuja Cement, Ramco Cements.