Pipeline Transport in India

Pipeline is an important means of transporting petroleum and natural gas. In some countries, pipelines are used for transporting milk. It is a cheap means of transportation in inaccessible areas, dense forests, deserts and on high mountains. The following pipelines have been constructed in India.

(i) A pipeline connects Assam oil fields with Guwahati and Barauni.
(ii) A pipeline connects Haldia oil refinery with Barauni.
(iii) Baraurn has been connected by a pipeline with Kanpur, Mathura and Jalandhar.
(iv) Mumbai High is connected with Trombay oil refinery by a submarine pipeline 207 km long.
(v) The longest pipeline in India is 1220 km long from Salaya (Kutch) to Koyali and onwards to Mathura via Vimgiam in Gujarat.
(vi) A pipeline to car natural gas connects Hazira in Gujarat vth Bijaipur in M.P. to Jagdishpur in U.P. This HBJ pipeline, 1730 km long, would supply gas to six fertilizer plants and two thermal power plants based on natural gas.
(vii) 600 km long pipeline connects Vizag to Secunderabad.
(viii) A. 710 km long pipeline from Mangalore to Coimbatore has also now been commissioned.

Integrating role of transport

Means of transport are the lifeline of a country. A developed and efficient system of transport is vital for maintaining the sovereignty and economic unity of the country. Under the 20 year Nagpur plan, a balanced and integrated transport system of rail, road and waterways
has been aimed at. The different means of transport have played an integrating role in the political and economic unity of India.
(i) These have connected far flung areas with one another. Leh has been connected with Kanya Kumari, while Assam has been connected with Kutch.
(ii) Means of transport distribute food grains, manufactured goods, raw materials and minerals to different parts of the country
(iii) Pipelines supply petroleum and gas to different areas.
(iv) The commercialization of agriculture, manufacturing, growth of towns and cities have been achieved due to means of transport.
(v) The new road, rail lines have integrated the border areas with the rest of the country Jawahar tunnels connects Kashmir valley with India.
(vi) Railway lines through gaps in the Viridhya Satpura hills and in Western Ghats have provided easy connections between the North and South.
(vii) Ganga as a waterway has acted as a unifying agent right from U.P. to West Bengal. Thus each means of transport has played its own role in a unified system of transport.
The inland navigation in India is not important as most of the rivers are not suitable for navigational purposes. Only 14,500 km of inland waterways are navigable. Navigation is carried on in Ganga and Brahmaputra, and in the lower reaches of the Godavari and Krishna, the Buckingham Canal in Tamil Nadu and Andhrà Pradesh and West Coast Canal of Kerala provide navigation.

Shipping Transport in India

Shipping plays a crucial role in a country like India with a coastline of 7516 km long. In 2001 there were 122 shipping companies. Of these about 40 were engaged in international trade. In 2001 net operative tonnage consisted of 546 ships with a gross registered tonnage of about 69,00,000. The ships belong to both government and private companies and operate almost on all routes around the world. There are 12 major ports, 25 intermediate ports and 156 minor ports. A major port handle traffic of 10 lath tonnes every year and is handled by a trust. A minor port handles less than 10 lath tonnes. Mumbai is a major port, Pondicherry is a minor port.

(A) Ports on the Western coast

(1) Kandla. This port is located at the head of Rann of Kutch. It is a new port and is expected to take the place of Karachi. it is a natural and safe harbour. It is a tidal port. It is connected with a vast and rich hinterland of North West India. It is located on the Suez Canal Route.

(2) Mumbai. Mumbai occupies central position on the west coast of India. It stands on an island connected with the mainland. It is the only natural deep water harbour of India. It is connected with Europe through Suez Canal. It has rich productive hinterland of black cotton soil region. A hinterland is an area which serves a port for its international trade. For example, Mumbai port is connected well with its hinterland of states of Maharashtra, Madhya Pradesh, Rajasthan, Punjab and Haryana. It is also known as the “Gateway of India.” A new port at Nhava Sheva near Mumbai has been developed.

(3) Marmugao. This port lies on the west coast in Goa. it is deep natural harbour. Its hinterland includes Goa, Maharashtra and Karnataka.

(4) Cochin. Cochin lies on the Malabar coast in Kerala. It is called the queen of the Arabian Sea. It is a safe, deep and natural harbour. It is located on the route to Australia and the Far East. It is important naval centre and a shipyard.

A new naval port of Karwar is being developed on Canara coast. New Mangalore is a major port of Karnataka. It exports iron ore from Kudremukh.

(B) Ports on the Eastern coast

(5) Kolkata. It is a river port on the mouth of Hooghly about 120 km inland. It has a rich hinterland of productive agricultural Ganges-Brahmaputra delta and Chota Nagpur region rich in minerals. It is located on the route to Japan and U.S.A. It is a tidal port. A new port at Haldia is being developed to share the burdens of Kolkata.

(6) Vishakhapatnam. It is a new major port on the east coast of India. It lies mid way between Kolkata and Chennai. it is a well protected natural harbour enclosed by hard rocks of Dolphin nose. It is connected with a mining region of iron ore, coal and manganese.

(7) Paradeep. It is a new major port on the Orissa coast. It is a deep natural port. It has a vast hinterland of Orissa with minerals, forest products and agricultural resources. It exports iron ore to Japan.

(8) Chennai. It is an artificial man-made port on the east coast. Two concrete walls (Break waters) have been built to provide shelter. Its hinterland includes Tamil Nadu and Karnataka. It is a rich agricultural region. Tuticorin is a new major port on S.E. Coast of Tamil Nadu.
Comparison between a harbour and a port.

Importance of Shipping

Shipping and navy are both important for India,s progress and defence. From almost negligible presence at the time of Independence, India today ranks 17th in world shipping tonnage.

Development of shipping is crucial for development of economic fisheries zone. India has to develop coastal and deep sea fishing. India’s rich oil field, Mumbai High lies in the offshore region. Some other minerals are also found in this area. India’s foreign trade is carried by ships through Indian Ocean.

Railways in India

The first railway line was constructed between Mumbai and Thana in the year 1853. It was only 34 km long. Railways are the chief means of transport in India.

Main characteristics:
(1) Indian railways have a total route length of 62,915 km.
(2) It is the largest railway system in Asia and the fourth largest in the world.
(3) About 18 lath workers are engaged in Indian railways.
(4) Indian railways have about 7,517 locomotives, 40,000 passenger service vehicles and 245,000 wagon linking 7100 stations spread over 13 lath km.
(5) These railways carried 4585 million passengers and 457 million tonnes freight in the year 2000.
(6) Super fast trains and fast goods trains have been introduced for container service. Metro railways have been started in Mumbai, Kolkata, Chennai.
(7) About 80% of freight traffic and 70% of passenger traffic is carried by railways.
(8) Most of the railways are found in the level Gangetic plain. About 50% of the total length of Railway in India is found in northern India. The Northern Railway is the longest railway with a length of 10,977 kilometres. Many physical and economic factors are responsible for it.
(i) Northern plain is a level plain with low altitude. It is best suited for construction of railway.
(ii) Due to dense population big towns have developed which have led to high density of railway.
(iii) The intensive development of agriculture and industries has promoted the construction of railway lines.
(iv) It is essential to connect Mumbai and Kolkata with their hinterlands of northern plain.
(9) Railways have not been extensively developed in Jammu and Kashmir, N.E. India, Western Ghats, Chhota Nagpur Plateau and Thar Desert (Rajasthan).
(10) In Southern India, construction of railways is retarded due to hilly areas and rivers.
(11) Indian railways have 56 steam, 4,651 diesel locomotives, 2,810 electric locomotives. The electric trains run over a distance of 14000 km. Indian Railways run on three gauges:
(i) Broad gauge—i.68 metres wide (49%)
(ii) Metre gauge—i metre wide (44%)
(iii) Narrow gauge—0.68 metre wide (7%)

Railway zones. Indian railways have been organised into 9 different zones.

Northern Railways
Eastern Railways
N. E. Railways
N.E. Frontier Railways
S.E. Railways
Central Railways
S.C. Railways
Southern Railways
Western Railways

The tenth zone, North-Central with headquarters at Allahabad, was created on August 28, 1996. The eleventh zone, with headquarters at Hajipur in Bihar, came into being on September 8, 1996. The twelfth zone, North-Western, with headquarters at Jaipur, came into being on October
17, 1996. The thirteenth zone, South Western with headquarters at Bangalore, came into being on November 1, 1996. These are the four of the six new zones being carved out of the existing nine zones.

Thrust Areas of Indian Railway

a) The existing capacity be utilized maximum.
b) Fast traffic be promoted.
c) Computerization be introduced.
d) The use of diesel and electric engines be increased. It provides fast, neat and clean travel.
e) Faster passenger trains be provided.
f) Container service for long routes be introduced.
g) The local trains, like Metro Railways in Kolkata and Delhi can be usefully utilized to link with the networks.


Road is a major medium of land transport. It is more important than rail transport in many ways. Roads have preceded railways. Roads can be easily built and maintained. Roads can be built in higher slopes and high mountains while it is difficult to construct railways over rough terrain. Roads can be made to pass through forests and deserts.

Roads are suitable for transporting light perishable goods. Goods can be delivered right to the doorsteps of consumers. Railways carry heavy goods to long distances and then trucks may be used to carry these goods to the local market. Thus roads are the cheapest means of transport for short distances. Loading, unloading and trans-shipment from one gauge to another make delay in the transportation of goods by railways. While road transport is away from such problems.

Road Transport in India

Transport, Communication and Trade are together included in Tertiary economic activity. They are also the chief means of exchange and interaction between different sectors or regions of an economy. Trade arises on account of specialisation and regional economic differences. For trade to take place transport and communication are necessary.
A good network of roads, railways,waterways and airways are the life-lines of a country. The agricultural and economic development of a country depends upon efficient transport system. The developed means of transport is essential for the utilization of natural resources. It is the basis of industries and the trade of country. It helps to join the far flung regions into a single national economy. These help in defending the independence and the national unity of a country. Just as the arteries supply blood to the different parts of human body, similarly transport system maintains the movement of men and different products in different parts of the country. So means of transport are called lifelines of a nation.

Means of transport can be divided into three types:
(i) Land Transport. (ii) Ocean Transport. (iii) Airways.

Road Transport in India

India today has more than 34 lakh km road networks, one of the world’s largest. Road is a major medium of land transport. It is the cheapest and the quickest means of transport for short distances. Roads can be constructed in rough and undulating terrain. The use of surface roads for automobiles has increased the importance of roads.

Surfaced and Unsurfaced Roads: There are two types of roads in India (i) metalled roads (surfaced roads) and (ii) unmetalled roads (unsurfaced roads). Metalled roads are the best roads made of cement or tarcol. The unsurfaced roads are Kutcha roads. These roads are important in rural areas of India. These can be easily constructed. These roads connect villages with towns. These roads open up the countryside to the modern ways of living in towns. These roads are suitable for carrying goods by bullock carts over short distances. India has 15 million bullock carts which carry nearly 900 million tonnes of goods. There are about 11 lakh kilometres of unsurfaced roads in India.

The history of road construction in India is very old. Sher Shah Sun constructed Grand Trunk Road. After independence, a 10 year road development scheme known as the Nagpur Plan, was prepared. Four types of roads are found in India (on administrative basis).
(i) National Highways
(ii) State Highways
(iii) District Roads
(iv) Village Roads

Road density: The length of road per 100 sq. km is known as density of road. It was 63 in 1997-98 in India. Low road density is found in hilly areas. High density of roads is found in states of Northern India, Tamil Nadu and Kerala.

Main features of Roads In India:

(1) India has 14 akh km of metalled roads.
(2) India has 11 lakh km of unmetalled roads.
(3) India has just 63 km road length for every 100 sq. km area. (Density). It has a road length of 251 km for every one lath people.
(4) India has 57,735 km of National Highways arid 4 lath km of state highways.
(5)About 26 lath automobiles move on roads of India.
(6)Annual income from roads is about 1500 crore rupees.
(7)Indian roads carry about 30% of total freight of the countly
(8)The important National Highways are:
(a) Sher Shah Sun Marg (G.T. Road) Kolkata to Jammu.
(b) Delhi-Mumbai Road
(c) Kolkata-Mumbai Road
(d) Mumbai-Chennai Road
(e) Great Deccan Road (Varanasi to Knyakumari)
(f) Kolkata-Chennai Road
(g) Pathankot-Srinagar Road

The Border Road Development Board was established in 1960. It has got constructed about 27,925 km long metalled roads in border areas. It has constructed the world’s highest road from Manali (H.P.) to Leh (I & K). The average height of this road is 4270 metres.

BOT organisation : The govt. has opened road building to a Private Sector with joint collaboration of foreign countries. Its policy is to ‘build’, ‘operate’ and ‘transfer’. It will bear the cost of construction, operate roads, collect road taxes.

Degradation of Environment due to Industrial Development and Measures to Control it

Degradation of Environment due to Industrial Development

The degradation of environment is one of the major problems of industrial development. Until very recently consideration for environment was considered as restricting the economic growth but now only after a decade of environment planning it is considered as an aid to industrial development. This means that industrial development and environment planning are complementary. They almost go band in hand. Some of the major problems of environment degradation on account of industrial development are the following:

(i) Problem of Resources: Many of the resources are used wastefully. In a developing country like India many resources are used at between 35% to 50% efficiency. For example lot of coal was wasted only just 5 years back. The same wastes are today used for making chemicals and fertilisers. The power plants have an efficiency of just 50% to 60%. A lot of coal, petrol and gas as well as human resources can be saved by raising the efficiency level.

(ii) Pollution and Wastes: Industries produce all types of wastes in liquid, solid and gaseous forms. These wastes are the chief cause of pollution. The chiorofluorocarbons (CFCS) which come from_aerosol sprays, nuclear weapons, refrigerators etc. have caused a hole in ozone layer of atmosphere. This hole is leading to increased amount of harmful ultraviolet radiation reaching the earth. Water pollution, atmospheric pollution, noise pollution etc. are all a result of industrialisation resulting in environment degradation.

(iii) Degradation of ecosystems : Man created land forms on account of large scale mining and housing, deforestation to make way for industries, modifications in vegetation and slopes, entry of chemicals in natural ecosystems, mechanisation of farming have produced artificial ecosystems leading to their degradation. This is resulting in spread of many diseases and extinction of flora and fauna.

Measures to Control Degradation

The struggle of people and their governments against environment degradation is best described today by conservation. Almost all the conservation measures are interlinked and interdependent. For example, increasing vegetation cover or afforestation can directly benefit industry• through cleaner environment, increasing ground water resources for industrial use and making many raw materials available. However, some of the specific measures taken in this field to controlling environmental degradation are the following:

(a) Mineral conservation : Minerals are the chief raw materials of industry. Minerals can be conserved through improving efficiency. in processing of minerals, reducing wastes, recycling of minerals like iron (scrap), aluminium, waste paper and many other resources, improving mining methods arid finding substitutes. Government of India has also taken many steps towards conservation of minerals. Some of the important steps taken include remote-sensing of mineral reserves, mapping including scientific development of mineral resources under the overall direction of Indian Bureau of Mines.

(b) Pollution Control : The Government of India has taken many measures under the Environment (Protection) Act, 1986 for management and control of hazardous substances. Many individual legislations have been passed by the Parliament. Municipal Solid Wastes (Management and Handling) Rules and Hazardous Wastes Rules pertaining to industry have also been formulated and many rules are already being implemented. The Water and Air Acts are major instruments for control of water and air pollution.

(c) Legal Measures and Public Awareness : The Government is taking many regulatory and legal measures like for example environment clearance for setting up new industries as well as their location; putting into force Ozone Depleting Substances (Regulation and Control) Rules 2000; prohibiting commercial lending agencies and banks to extend financial assistance or loans to industries using outdated technologies or ODS-technologies. Many awards like Rajiv Gandhi Environment Award for Clean Technology, Pitamber Pant National Environment Fellowship Award, Indira Gandhi Paryavaran Puraskar and other public awareness measures are also being taken to prevent environment degradation by industries.

Contribution of Industries to National Economy in India

The distribution of industries, their concentration in certain industrial regions as well as their pattern actually present a certain theoretical framework in which to examine the importance of industries and their contribution to national economy. Obviously this contribution is more significant if examined relative to two other sectors of the economy namely the primary sector and tertiary sector. The chief areas of this contribution are the following:

(a) Contribution to National Income : It is one of the two significant measures of industry’s contribution to national economy. The other being employment discussed below. Contribution to National Income is considered a value measure. It measures the value of finished product and is made up of different components like value of labour, interest on capital invested and taxes paid etc. The share of industrial sector has been consistently rising since industrialisation began in 1950s. It has reached to the level of about 18 per cent against 26 per cent of agricultural sector in 2001.

(b) Employment: According to the results of Economic Survey conducted in 1998 there were about 32 million enterprises in the country Out of these 27 million enterprises were in non-agricultural sector. Total number of hired workers in non-agricultural sector stood at about 40 million. While agriculture continues to provide employment to about 62 per cent of the work force, its share has been declining and that of industry rising.

(c) Growth: Industry is chiefly responsible for economic growth. Though the growth tale of industrial sector itself has slowed down to 5.6 per cent against the target of 8.2 per cent during Ninth Plan (1997 — 2001), industry significantly contributes to over all growth of the economy because of interdependence and linkages with agricultural sector.

(d) Trade : Trade is entirely dependent on’two important factors—(i) development of transportation and communication (ii) technology for making use of unevenly distributed resources of the earth. Both these factors depend on industry. India’s trade today is highly diversified and Indian industrialists including skills are finding greater and greater acceptance in international market. Daring 2001, exports have grown by about 20 per cent. A good part of these exports come from industrial sector and non-traditional products.

(e) Urbanisation : Industrialisation along with development of trade are chiefly responsible for emergence of large towns and cities. Industry not only provides economic base to urbanisation but also helps provide public utility services like for example drinking water, waste disposal system aid many other comforts for living.

A number of other value measures like for example development of transport, communication, education, entrepreneurship, better standard of living, higher health standards and other contributions can also be attributed to industrial development.

Major Industrial Regions in India

Spatial Distribution of Industries

The spatial distribution involves specific location and general distribution of industry. We have already studied the factors that affect location of industries. When analysing these factors it will be observed that geographic area or space has two chief aspects in the case of industry Firstly, major industries all over the world have come to be concentrated in certain regions or geographic areas. The concentration of industries in regions is mainly on account of availability of raw materials and markets around. Inter-relations, interactions and interdependence produce many benefits including on account of influence of transport. Industrial regions can be regarded as functional units which improve the prospects of industry. Secondly, aspect of spatial distribution is concerned with location of specific industries. We will study some major industries later in this chapter. Here we will first examine major industrial regions of India.

Major Industrial Regions

Indias major industries are concentrated in five main industrial regions — Northern Region, North Eastern Region, Southern Region, Western Region and Central Region.

(a) Northern Industrial Region: It includes Ganga and Yamuna river valley and industries located in Delhi, Kanpur, Varanasi, Allahabad, Lucknow, Ludhiana, Sonepat, Amritsar. Important industries located in this region are cotton and silk textiles, fertilizers, bicycle, sports goods, sugar, chemicals, leather, wool and rubber goods. In recent years car and watch assembly and manufacturing have also developed.

(b) North-Eastern Industrial Region: This zone includes the famous Damodar Valley Industrial belt including Hoogly and Kolkata.
Main industries developed in this region include locomotive, iron and steel, chemicals, aluminium, metallurgical, cement, fertilizers, glass, silk and paper. The region offers many advantages of availability of raw material, coal, hydel power, cheap and abundant skilled labour. The region has also excellent rail, road and transport facilities.

(c) Western Industrial Region : It included the Maharashtra and Gujarat industrial belt. Among important industries include cotton textiles, fertilizers, petrochemicals, oil refineries, cement. Famous industrial centres are Mumbai, Pune, Vadadora, Ahmedabad, Surat, Bhavanagar, Pimpri, Kalyan and a number ‘of other recently developed areas.
The region also offers excellent rail, road, air and shipping transport facilities. There is also large networks of pipelines carrying gas and even petroleum.

(d) Southern Region : The industrial centres of Bangalore, Chennai, Madurai, Coimbatore, Hyderabad are included in this region. Chief industries include iron and steel, like at Badravali and Salem,, telephone, machine tools, computer software, railway coaches, automobiles, watches, electricals and electronics. In this belt climate, port facilities including raw materials are chief factors responsible for location of industries on this region.

(e) Central Industrial Region : Its chief advantage is its location adjacent to North-Eastern Industrial Region. The iron and steel industry at Bhilai, other industries at Gwalior, Jabalpur, Bhopal, Indore and Nagpur are included in this region. Among important industries include cement, paper, iron and steel, heavy chemicals, textiles and automobiles.

Types of Industries in India

Industries can be classified into many different types. Some of the important criteria for the classification of industries include the following:

1) On the basis of strength and size of labour force employed

a) Large Scale Industries : These industries employ a large number of labour force and have also, huge investment in plant and machinery. Iron and steel, heavy engineering, cotton, jute, textiles can be placed in this category.

(b) Medium Scale : These industries employ neither too large a labour force nor too small. Many electrical, electronics, radio, television, computer hardware and even cloth mills fall in this category

(c) Small Scale Industries : According to registration criteria, small scale industry has a capital investment of less than Rs. 1 crore. In India about 80% of all manufacturing units can be classified as small scale industries.
Small scale industries also include cottage and village industries like handloom sector.

(2) On the Basis of Raw Material used and Finished Goods

(a) Heavy Industries: These industries use raw materials in bulk, examples are iron and steel, heavy engineering, ship building etc.

(b) Light Industries : These industries use light raw materials and also produce light finished good. Light engineering and electronics, watches etc. are included in this category.

(3) On the Basis of Ownership

(a) Private Sector Industries : Industries owned by private individual or groups are private sector industries. These are chiefly of two types — Proprietary and Partnership concern and corporate units registered under the company law. Corporate units are very much like public sector units though owned by individuals under share-holding pattern.

(b) Public Sector Industries: These industries are owned by the state or its agencies. Examples are Bharat Heavy Electricals Limited, Indian Petrochemicals Limited. Now many public sector industries are being privatised under the scheme of Disinvestment in Public Sector Units.

(c) Joint Sector: These industries are jointly owned by the government and private forms. Oil India Limited is an example of joint sector enterprise.

(d) Cooperative Sector: Industries under this category are run by cooperatives like those of farmers, milk producers etc. Many Sugar Mills, Mother Dairy etc. are examples of cooperative sector industries.

(4) On the Basis of Raw Materials

(a) Agro-Based Industries : These industries chiefly use raw materials supplied by agricultural sector. Examples are cotton textiles, sugar, silk, jute, fruit preservation etc.

(b) Mineral Based Industries : Minerals like iron, mica, bauxite, cement form their basic raw material for manufacture of goods. Iron and Steel Industry, Aluminium Industry are examples.

Other categories include forest based industries, pastoral based (hides, skins, animal bones etc.) industries etc. Classification of industries is also done on the basis of size of capital or labour force, for example we say capital intensive or labour-intensive industry.

Factors Affecting Location of Industries

Spatial distribution as well as type of industry much depends on its location. Manufacturing is a secondary process of transforming raw materials into finished products. The manufactured goods are more useful and valuable than the raw material. The location of manufacturing industries depends on a number, of physical and socio-economic factors.

(1) Nearness of raw materials : Large quantities of raw materials are needed for industries. Therefore, industries are located near the source of raw materials. It saves the cost of transportation. Steel centers are developed where coal and iron are easily available. Jute mills in West Bengal and cotton textile mills in Maharashtra are located due to the availability of the raw materials.

(2) Power resources : Coal, oil and water-power are the main sources of power. Most of the industries are located around coal-fields. Aluminium industries and paper industries are located near hydro-electric stations.

(3) Means of transportation: Modern industries need cheap, developed and quick means of transportation. Cheap means of transportation are required for the movement of workers, raw materials and machinery to the factories and to the market.

(4) Climate : Stimulating climate increases the efficiency of the labourers. Cotton textile industry requires humid climate. Film industry needs good weather with clear blue skies. Aircraft industry needs clear weather.

(5) Skilled labour: Cheap and skilled labour is essential for the location of the industries. Glass industry at Ferozabad, sports goods industry at Jalandhar are located due to the availability of skilled labour.

(6) Nearness to market: Industries are located near the market for their manufactured goods. Urban and industrial centres with dense population provide a large market.

(7) Early start: Momentum of an early start leads to the location of an industry such as cotton textiles at Mumbai.

(8) Defence : Some industries are located with a military motive such as air craft industry at Bangalore.

Types of Economic Activities

Generally there are three types of economic activities — primary, secondary and tertiary.

Primary Activity: It is concerned with production of raw materials for industrial use and for food stuffs. Agriculture, forestry, fishing, mining are termed as Primary Activity.

Secondary Activity: The economic activity undertaking production, processing arid manufacture, of primary products into finished or useful goods is termed as Secondary Activity. Thus all types of manufacturing activities can be regarded as secondary industries. In manufacturing goods products are made more useful and value is added. Value addition is thus the chief characteristic of secondary activity It is this value addition that not only changes the form and utility of goods but also increases national wealth.

Tertiary Activity: It acts as a link between primary and secondary activity as well as link between consumers and producers. It is basically concerned with distribution of goods. All types of transport, communication, banking, financing, education, consultancy etc. can be termed a Tertiary Activity.

India was perhaps the earliest civilization in the world engaged in industry. Fine quality cotton, pottery, jewellery etc. was manufactured during Indus Valley Civilization. However, on account of foreign invasions, there was a long period of disruption. Industrial activity again took off only after Independence in 1947. Start of modem industry had been made during the British rule itself. In 1854 the first cotton textile mill was established in Mumbai. After Independence the Government of India formulated the five year plans. Industrial development was included in the plans. The Industrial Policies of 1948 and 1956 provided certain direction for industrial development. It is under this process that structural reforms are being carried out since 1990s.

Recent Reforms

Chief features of reforms in industry in India are the following:

Liberalisation : in earlier planning process Government also took initiative to establish industries. As a result a significant number of industries were reserved for government sector known as public sector. With large number of industries already established, there is changed atmosphere today. There is now a trend towards giving greater encouragement to private sector for establishment of industries. Its chief characteristic are the strength and maturity of the industry stimulate competition to stabilise prices and improve quality In order to benefit the liberalisation process, New Industrial Policy (1991) proposed to make industrial licensing more flexible to remove many unnecessary controls as well as enforce greater degree of responsibility on private sector. This was done through not only giving tax concessions or easing regulations but in a variety of other important ways. Private sector participation is being sought in construction of roads, setting up power plants, undertaking manufacture of vital defense equipment arid even in nuclear installations.

Foreign Direct Investment: Another chief feature of reforms is encouragement given to inviting foreign investment in vital sectors of the economy. Known as Foreign Direct Investment or FDI, its chief objective is to stimulate economic development and achieve higher level of growth. It can result in technological upgradation as well as establishing large scale industries to bring down prices to benefit consumer. It will also help in making Indian industry more competitive and promote exports.

Expanded concept of Swadeshi: Swadeshi during the freedom struggle was started as a means of achieving self-reliance. It was also used as a weapon to hit British industry. Now the concept involves making Indian economy more competitive in the world market or simply selling Swadeshi in the world market. It can best be described in the words of Prime Minister Atal Behari Vajpayee:

“We have to expand the concept of swadeshi and make it self reliant. In an open economy, the state cannot impose ban, as this is not the Permit Raj. The state will control the economy only in extreme situations, like severe drought.”

The expanded concept of Swadeshi is very much in conformity with Globalisation discussed earlier under Institutional Reforms in Agriculture.

There are many other features of new industrial policy. The basic question faced in establishment of industry is its location. It is concerned with the questions like ‘where’, ‘when’ and ‘which’ industry to establish. Therefore, location of industry is very important consideration.