Contempory India

India has the second largest installed capacity of spindles in the world, with 43.13 million spindles (2011-12) after China. Since the mid-eighties, the spinning sector has received a lot of attention. We have a large share in the world trade of cotton yarn, accounting for one fourth of the total trade. However, our trade in garments is only 4 per cent of the world’s total. Our spinning mills are competitive at the global level and capable of using all the fibres we produce. The weaving, knitting and processing units cannot use much of the high quality yarn that is produced in the country. There are some large and modern factories in these segments, but most of the production is in fragmented small units, which cater to the local market. This mismatch is a major drawback for the industry. As a result, many of our spinners export cotton yarn while apparel/garment manufactures have to import fabric. Why is it important for us to improve our weaving sector instead of exporting yarn in large quantities? Although, we have made significant increase in the production of good quality long staple cotton (356 lakh bales of 170 kgs each during 2011-12), the need to import is still felt. Power supply is erratic and machinery needs to be upgraded in the weaving and processing sectors in particular. Other problems are the low output of labour and stiff competition with the synthetic fibre industry. Jute Textiles India is the largest producer of raw jute and jute goods and stands at second place as an exporter after Bangladesh. There were about 80 jute mills in India in 2010-11. Most of these are located in West Bengal, mainly along the CONTEMPORARY INDIA – II banks of the Hugli river, in a narrow belt (98 km long and 3 km wide). The first jute mill was set up near Kolkata in 1859 at Rishra. After Partition in 1947, the Factors responsible for their location in the Hugli basin are: proximity of the jute producing areas, inexpensive water transport, supported by a good network of railways, roadways and waterways to facilitate movement of raw material to the mills, abundant water for processing raw jute, cheap labour from West Bengal and adjoining states of Bihar, Orissa and Uttar Pradesh. Kolkata as a large urban centre provides banking, insurance and port facilities for export of jute goods. In 2010-11 the jute industry was supporting 3.7 lakh workers directly and another 40 lakhs small and marginal farmers who were engaged in cultivation of jute and mesta. Many more people were associated indirectly. Challenges faced by the industry include stiff competition in the international market from synthetic substitutes and from other competitors like Bangladesh, Brazil, Philippines, Egypt and Thailand. However, the internal demand has been on the increase due to the Government policy of mandatory use of jute packaging. To stimulate demand, the products need to be diversified. In 2005, National Jute Policy was formulated with the objective of increasing productivity, improving quality, ensuring good prices to the jute farmers and enhancing the yield per hectare. The main markets are U.S.A., Canada, Russia, United Arab Republic, U.K. and Australia. The growing global concern for environment friendly, biodegradable materials, has once again opened the opportunity for jute products. Sugar Industry India stands second as a world producer of sugar but occupies the first place in the production of gur and khandsari. The raw Iron and Steel Industry material used in this industry is bulky, and in haulage its sucrose content reduces. Where should the mills be ideally located? In 2010-11 there were over 662 sugar mills in the country spread over Uttar Pradesh, Bihar, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh and Gujarat along with Punjab, Haryana and Madhya Pradesh. Sixty per cent mills are in Uttar Pradesh and Bihar. This industry is seasonal in nature so, it is ideally suited to the cooperative sector. Can you explain why this is so? In recent years, there is a tendency for the mills to shift and concentrate in the southern and western states, especially in Maharashtra, This is because the cane produced here has a higher sucrose content. The cooler climate also ensures a longer crushing season. Moreover, the cooperatives are more successful in these states. Major challenges include the seasonal nature of the industry, old and inefficient methods of production, transport delay in reaching cane to factories and the need to maximise the use of baggase. Mineral based Industries Industries that use minerals and metals as raw materials are called mineral based industries. Can you name some industries that would fall in this category? The iron and steel Industry is the basic industry since all the other industries — heavy, medium and light, depend on it for their machinery. Steel is needed to manufacture a variety of engineering goods, construction material, defence, medical, telephonic, scientific equipment and a variety of consumer goods. Production and consumption of steel is often regarded as the index of a country’s development. Iron and steel is a heavy industry because all the raw materials as well as finished goods are heavy and bulky entailing heavy transportation costs. Iron ore, coking coal and lime stone are required in the ratio of approximately 4 : 2 : 1. Some quantities of manganese, are also required to harden the steel. Where should the steel plants be ideally located? Remember that the finished products also need an efficient transport network for their distribution to the markets and consumers. In 2010-11 with 72.2 million tonnes of steel production, India ranked 4th among the world crude steel producers. It is the largest producer of sponge iron. In 2010-11 per capita cosumption of steel in the country was only around 49 kg per annum against the world average of 182 kg. Processes of Manufacture of Steel India: Iron and Steel Plants 72 CONTEMPORARY INDIA – II

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