Industries: Overview and Location Factors
Industry is the secondary sector. Location of an industry depends on raw material, power, labour, capital, market, transport, government policy and water. Weber's theory (least-cost) and agglomeration are the key ideas.
Classification
| Basis | Classes |
|---|---|
| Raw material | Agro-based (cotton, sugar, jute), mineral-based (iron and steel, cement), forest-based (paper), animal-based (leather, wool) |
| Size | Large, medium, small, micro (MSME) |
| Ownership | Public, private, joint, cooperative |
| Function | Basic, capital, intermediate, consumer goods |
| Weight | Heavy and light |
MSME classification (2020, revised)
| Category | Investment | Turnover |
|---|---|---|
| Micro | Up to Rs 1 crore | Up to Rs 5 crore |
| Small | Up to Rs 10 crore | Up to Rs 50 crore |
| Medium | Up to Rs 50 crore | Up to Rs 250 crore |
(Revised again in the Union Budget 2025, which increased limits by about 2.5 times for investment and turnover. Check the latest.)
Industrial policies
- Industrial Policy Resolution 1948, 1956 (public sector reservations), 1991 New Industrial Policy (liberalisation, LPG reforms).
- Make in India (2014); Atmanirbhar Bharat; PLI (Production Linked Incentive) schemes (2020 onwards); National Manufacturing Policy 2011 (NIMZ).
- SEZ Act 2005.
- Startup India (2016).
Keep practising
Notes are only half the work. Test yourself with questions and discuss doubts with other aspirants.
Prepared for exam revision from NCERT, standard geography textbooks, the Census of India 2011, the India State of Forest Report, IMD, Ministry of Agriculture and other official sources. Maps are schematic teaching maps, not Survey of India maps, and zone boundaries are approximate. Figures such as production, capacity, counts of parks and ports, and census status change, so check the latest official source before relying on them. Found a mistake? Tell us.