Secondary: Industry | ICSE Class 9 Economics Notes

This note covers the secondary sector of the Indian economy, the part of the economy that turns natural products into manufactured goods. It explains what industry and manufacturing mean, why industry matters, how agriculture and industry depend on each other, how industries are classified, the features and examples of large-scale, cottage and small-scale industries, and the meaning of medium-scale industries, and why small units matter for India. It then looks at the harm that industrialisation can cause through pollution and deforestation, and at measures that reduce it, including afforestation (planting trees to create forest) and waste management (handling waste so that it does little harm).

What is industry, and how does it fit into the economy?

Paper is manufactured from wood, sugar from sugarcane, iron and steel from iron ore and aluminium from bauxite. Some types of clothes are manufactured from yarn, which is itself an industrial product. Iron ore and bauxite (a bulky, dark reddish rock) are ores, that is, rocks or minerals from which a metal is obtained.

What does manufacturing mean?

Definition: Manufacturing is the production of goods in large quantities after processing raw materials into more valuable products. The word literally means making by hand, but it now includes goods made by machines.

Conceptually, an industry is a geographically located manufacturing unit that maintains books of accounts and records under a management system. The word is so comprehensive that it is also used as another name for manufacturing.

What is the secondary sector?

Economic activities are grouped into sectors. The primary sector produces goods by using natural resources directly. The secondary sector covers activities in which natural products are changed into other forms through manufacturing, in a factory, a workshop or at home. It is the next step after the primary sector and is also called the industrial sector. The tertiary sector supports the other two and generates services rather than goods.

The economic strength of a country is measured by the development of its manufacturing industries.

How does manufacturing add value?

Cotton in the boll (the pod in which cotton grows) has limited use, but once it is transformed into yarn it becomes more valuable and can be used to make clothes. Iron ore cannot be used directly from the mines, but after it is converted into steel it can be used to make many valuable machines and tools. This is value addition, the rise in the worth of a material as each stage of processing changes it.

A flow chart of five boxes in a row, joined by arrows: fibre production, spinning, weaving or knitting, dyeing and finishing, and garment manufacture. A double-headed arrow joins the last two boxes. Below, four grey boxes hang from the stages: raw fibre, yarn, fabric and garments.

See Fig. 6.1 in your NCERT textbook

Why does industry matter for a country like India?

The manufacturing sector is considered the backbone of development in general and economic development in particular, mainly for the reasons below.

• It modernises agriculture, which forms the backbone of the Indian economy, and by providing jobs in the secondary and tertiary sectors it reduces the heavy dependence of people on agricultural income.
• It helps remove unemployment and poverty. Industrial development is a precondition for the eradication of unemployment and poverty. This was the main philosophy behind public sector industries (owned by the government) and joint sector ventures (run jointly by the state and private parties). It also aimed at bringing down regional disparities, the gaps in development between regions, by establishing industries in tribal and backward areas.
• It earns foreign exchange. Export of manufactured goods expands trade and commerce and brings in much needed foreign exchange (foreign currency earned by selling goods abroad).
• It brings prosperity. Countries that transform raw materials into a wide variety of finished goods of higher value are prosperous. India's prosperity lies in increasing and diversifying its manufacturing industries as quickly as possible.

What do the employment numbers show?

Between 1977-78 and 2017-18, industrial output, that is, the production of goods, went up by more than nine times, while employment in industry went up by around three times. The share of the secondary sector in total employment rose from 11 per cent to 25 per cent. The primary sector continues to be the largest employer even now, because not enough jobs were created in the secondary and tertiary sectors.

A stacked column chart with two columns, 1977-78 and 2017-18, each divided into primary (blue, bottom), secondary (red, middle) and tertiary (green, top) segments. The labels read 71, 11 and 18 for 1977-78, and 44, 25 and 31 for 2017-18.

Reference: NCERT Class 10 Economics Graph 3

Draw a bar graph of four bars, on a scale of times increase: industrial output (more than 9), industrial employment (around 3), service output (14) and service employment (around 5).

How do agriculture and industry depend on each other?

Agriculture and industry are not exclusive of each other. They move hand in hand. Agro-industries, industries based on agricultural raw materials, have given a major boost to agriculture in India by raising its productivity. They depend on agriculture for raw materials and sell irrigation pumps, fertilisers, insecticides, pesticides, plastic and PVC (polyvinyl chloride) pipes, machines and tools to farmers.

The development and competitiveness of manufacturing industry has not only helped farmers to increase their production but has also made production processes very efficient.

What links the two in practice?

How does the textile industry show this link?

The cotton textile industry has close links with agriculture. It provides a living to farmers, cotton boll pluckers and workers engaged in ginning (separating the cotton fibre from the seeds), spinning, weaving, dyeing, designing, packaging, tailoring and sewing. By creating demand, it supports other industries such as chemicals and dyes, packaging materials and engineering works.

How are industries classified?

Industries can be sorted by several criteria, so one industry can appear under more than one heading. Iron and steel, for example, is a mineral-based, basic and heavy industry.

What do the four ownership types mean?

• Public sector industries are owned and operated by government agencies, such as BHEL (Bharat Heavy Electricals Limited) and SAIL (Steel Authority of India Limited).
• Private sector industries are owned and operated by individuals or a group of individuals, such as TISCO (Tata Iron and Steel Company), Bajaj Auto Ltd. and Dabur Industries.
• Joint sector industries are jointly run by the state and individuals or a group of individuals. Oil India Ltd. (OIL) is jointly owned by the public and private sectors.
• Cooperative sector industries are owned and operated by the producers or suppliers of raw materials, workers or both, who pool their resources and share the profits or losses proportionately. Examples are the sugar industry in Maharashtra and the coir (coconut husk fibre) industry in Kerala.

The sugar industry is seasonal in nature, so it is ideally suited to the cooperative sector.

Industries are also grouped as chemical-based (using natural chemical minerals, such as petroleum for the petrochemical industry), forest-based (timber, wood, bamboo, grass and lac) and animal-based (leather and wool).

A tree chart, printed sideways, with four branches headed "Based on": size, inputs or raw materials, output or product, and ownership. Size splits into cottage or household, small scale and large scale; output into basic (iron and steel) and consumer goods; ownership into public, private and joint sector.

See Fig. 5.1 in your NCERT textbook

What are large-scale and medium-scale industries?

The size of an industry depends on the amount of capital invested, the number of workers employed and the volume of production. Medium-scale industries lie between small-scale and large-scale units in the capital invested, the number of workers employed and the volume of production. The small-scale limit has itself changed over a period of time, so the dividing lines are not fixed.

What is a large-scale industry?

Definition: Large-scale manufacturing involves a large market, various raw materials, enormous energy, specialised workers, advanced technology, assembly-line mass production and large capital.

This kind of manufacturing developed in the last 200 years in the United Kingdom, north-eastern U.S.A. and Europe. Now it has diffused to almost all over the world.

What are the features of modern large-scale manufacturing?

• Specialisation of skills. Under the craft method, factories produce only a few pieces, made to order, so costs are high. Mass production makes large quantities of standardised parts, with each worker performing only one task repeatedly.
• Mechanisation. This means using gadgets that accomplish tasks. Automation, which works without the aid of human thinking, is its advanced stage.
• Organisational structure. Complex machine technology and extreme specialisation and division of labour (splitting work into separate tasks) produce more goods with less effort and at low costs. This needs vast capital and large organisations.
• Uneven geographic distribution. Major concentrations of modern manufacturing have flourished in a small number of places, which cover less than 10 per cent of the world's land area.

Which industries are run on a large scale?

Industries such as iron and steel, textiles, sugar and aluminium are usually run on a large scale. The chemical industry in India comprises both large and small scale manufacturing units.

How do iron and steel and aluminium show a large-scale industry at work?

Why is iron and steel called a basic industry?

The iron and steel industry is the basic industry because all the other industries, heavy, medium and light, depend on it for their machinery. Steel is needed for engineering goods, construction material, defence, medical, telephonic and scientific equipment and a variety of consumer goods. The production and consumption of steel is often regarded as the index of a country's development.

It is also a heavy industry, because all the raw materials and the finished goods are heavy and bulky, which entails heavy transportation costs. Iron ore, coking coal and limestone are required in the ratio of approximately 4 : 2 : 1. Some quantities of manganese are also required to harden the steel.

Coking coal needed = iron ore used ÷ 2 (approximately)

Limestone needed = iron ore used ÷ 4 (approximately)

Worked example 1: raw materials for steel. A steel plant uses iron ore, coking coal and limestone in the approximate ratio 4 : 2 : 1. It uses 24 tonnes of iron ore. How much coking coal and limestone does it need?

Working: one part of the ratio is 24 ÷ 4 = 6 tonnes. Coking coal is 2 parts and limestone is 1 part.

Answer: coking coal = 2 × 6 = 12 tonnes and limestone = 1 × 6 = 6 tonnes, approximately.

How is steel made?

1. Raw material is transported to the plant.
2. In the blast furnace, iron ore is melted, limestone is added as a fluxing material (a substance that helps impurities separate), slag (the waste material) is removed and coke (a fuel made from coal) is burnt to heat the ore.
3. The molten materials are poured into moulds called pigs, which gives pig iron.
4. In steel making, the pig iron is further purified by melting and oxidising the impurities (removing them by reaction with oxygen), and the metals manganese, nickel and chromium are added.
5. The metal is shaped by rolling, pressing, casting and forging.

Five boxes joined by arrows: transport of raw material to plant, blast furnace, pig iron, steel making and shaping metal.

See Fig. 6.2 in your NCERT textbook

What makes aluminium smelting important?

Aluminium smelting, the process of extracting aluminium from its ore, is the second most important metallurgical industry (an industry that extracts and works metals) in India. Aluminium is light, resistant to corrosion (slow eating away by chemical attack), a good conductor of heat and malleable (it can be hammered into shape), and it becomes strong when it is mixed with other metals. It is used to manufacture aircraft, utensils and wires, and it has gained popularity as a substitute for steel, copper, zinc and lead in a number of industries.

Regular supply of electricity and an assured source of raw material at minimum cost are the two prime factors for the location of the industry.

In the chain from bauxite to aluminium, alumina is the intermediate product.

Alumina needed (tonnes) = 2 × aluminium produced (tonnes)

A pink bar reads "4 to 6 tonnes of bauxite", then an arrow to "2 tonnes of alumina", then an arrow to "1 tonne of aluminium".

A larger chart shows a bauxite quarry sending bauxite by rail or ship to an aluminium refinery, where it is crushed and alumina is dissolved out. Three arrows from the refinery box point to a list: bulk ore shipped to the site of the smelter, calcinated petroleum coke from a refinery, and pitch from a colliery (a coal mine). An aluminium smelter box takes in electricity at 18,600 kWh (kilowatt-hours, a unit of electrical energy) per tonne of ore from below and one more input, labelled cryolite, from above.

See Figs. 6.4 and 6.5 in your NCERT textbook

Worked example 2: raw materials for aluminium. In making aluminium, 4 to 6 tonnes of bauxite give 2 tonnes of alumina, and 2 tonnes of alumina give 1 tonne of aluminium. How much alumina and how much bauxite are needed for 5 tonnes of aluminium?

Working: alumina = 2 × 5 = 10 tonnes. Bauxite for 1 tonne of aluminium is 4 to 6 tonnes, so for 5 tonnes it is 5 × 4 to 5 × 6.

Answer: 10 tonnes of alumina and 20 to 30 tonnes of bauxite.

What are cottage and small-scale industries?

What is a cottage or household industry?

A household industry, also called a cottage industry, is the smallest manufacturing unit. Artisans (skilled craft workers) use local raw materials and simple tools to produce everyday goods in their homes, with the help of family members or part-time labour. The finished products may be for consumption in the same household, for sale in local (village) markets or for barter (exchange of goods without money).

Capital and transportation do not wield much influence, because this type of manufacturing has low commercial significance and most of the tools are devised locally. Common products include foodstuffs, fabrics, mats, containers, tools, furniture, shoes, pottery and bricks, and some crafts are made out of bamboo and wood obtained locally from the forests.

Items like diyas (earthen lamps) are made by individual artisans in household industry. The handspun khadi (cloth) provides large scale employment to weavers in their homes as a cottage industry.

Photograph: Household industry at work (NCERT Class 12 Geography Figures 5.2 and 5.3). Three photographs. The first shows a man making pots in his courtyard in Nagaland, with clay pots around him. The second shows a man weaving a bamboo basket by the roadside in Arunachal Pradesh. The third shows woven baskets and other products of cottage industry on sale in Assam.

What is a small-scale industry?

Definition: Small-scale manufacturing is distinguished from household industry by its production techniques and place of manufacture, a workshop outside the home or cottage of the producer. It uses local raw material, simple power-driven machines and semi-skilled labour.

Semi-skilled workers have some training but are not fully skilled. A small scale industry is defined with reference to the maximum investment allowed on the assets of a unit. This limit has changed over a period of time. In this definition the maximum investment allowed is rupees one crore (1 crore = 100 lakh), though official limits for small enterprises have since been revised upwards. Some utensils are manufactured in small industries.

Worked example 3: the small-scale limit. A unit has invested ₹80 lakh in its assets. The maximum investment allowed for a small scale industry is rupees one crore, and 1 crore = 100 lakh. Is the unit within the limit, and how much more could it invest and still stay within it?

Working: the limit is 1 crore = 100 lakh. The unit has invested ₹80 lakh, which is below ₹100 lakh. The room left is 100 − 80 = 20 lakh.

Answer: yes, it is within the limit, and it could invest ₹20 lakh more.

How do the three sizes compare?

Why are cottage and small-scale industries significant for India?

The points below show why cottage and small-scale units matter for India.

• They provide employment. Small scale manufacturing provides employment and raises local purchasing power. Countries like India, China, Indonesia and Brazil have developed labour-intensive small scale manufacturing, which relies mainly on workers rather than machines, in order to provide employment to their population.
• They employ people at home. The handspun khadi provides large scale employment to weavers in their homes as a cottage industry.
• They give scope to traditional skills. While spinning continues to be centralised in Maharashtra, Gujarat and Tamil Nadu, weaving is highly decentralised to provide scope for incorporating traditional skills and designs of weaving in cotton, silk, zari (gold or silver thread work) and embroidery.

What happened to traditional cotton textile production?

In ancient India, cotton textiles were produced with hand spinning and handloom weaving techniques. After the 18th century, power-looms came into use. Traditional industries suffered a setback during the colonial period because they could not compete with the mill-made cloth from England.

What adverse impacts does industrialisation have through pollution?

Industries contribute significantly to India's economic growth and development, but the increase in pollution of land, water, air and noise, and the resulting degradation of the environment, cannot be overlooked. Environmental degradation means the worsening of the quality of the natural surroundings. Industries are responsible for four types of pollution: air, water, land and noise. The polluting industries also include thermal power plants, which generate electricity from heat.

How much fresh water does industrial waste water pollute?

Every litre of waste water discharged by Indian industry pollutes eight times the quantity of freshwater.

Freshwater polluted = 8 × waste water discharged

Worked example 4: freshwater polluted. Every litre of waste water discharged by industry pollutes eight times the quantity of freshwater. A factory discharges 500 litres of untreated waste water. How much freshwater is polluted?

Working: freshwater polluted = 8 × 500 litres.

Answer: 4,000 litres of freshwater.

How can industrialisation lead to deforestation?

Deforestation is the clearing of forests. Deforestation and mining are among the human activities that have contributed significantly to land degradation, the damage that makes land less useful. Mining supplies the minerals that mineral-based industries use. Mining sites are abandoned after the digging is complete, leaving deep scars. In states like Jharkhand, Chhattisgarh, Madhya Pradesh and Odisha, deforestation due to mining has caused severe land degradation.

Forests also supply raw materials: timber for the furniture industry, wood, bamboo and grass for the paper industry, and lac for lac industries. Paper is manufactured from wood. Industries that rely on forest raw materials, and mining that feeds mineral-based industries, can therefore be linked to forest loss.

What harm does deforestation do?

• Less rainfall. Clearing forests results in decreased photosynthesis (the process by which green plants make food using sunlight) and reduced transpiration (the loss of water vapour from plants), which can lead to a decline in the local rainfall.
• Soil erosion. Without tree roots to hold the soil together, soil erosion, the wearing away of the topsoil, could increase.
• Loss of biodiversity. Over time, habitats could be destroyed, leading to a decline in biodiversity, the variety of living things, as many species lose their natural homes.
• More carbon dioxide. Human activities like burning fossil fuels and deforestation have raised atmospheric carbon dioxide (CO₂) by about 35 per cent since 1960.

How can the adverse impacts of industry be reduced?

The challenge of sustainable development requires integration of economic development with environmental concerns. The measures below cover each type of pollution.

How can water pollution be reduced?

1. Minimise the use of water for processing by reusing and recycling it in two or more successive stages.
2. Harvest rainwater (collect and store it) to meet water requirements.
3. Treat hot water and effluents before releasing them in rivers and ponds.
4. Regulate legally the overdrawing of ground water by industry where there is a threat to ground water resources.

Treatment of industrial effluents can be done in three phases. Primary treatment is by mechanical means. Secondary treatment is by a biological process. Tertiary treatment is by biological, chemical and physical processes, and it involves recycling of wastewater.

How can air, noise and land pollution be reduced?

What does NTPC show about industry and the environment?

NTPC is a major power providing corporation in India. Its steps to preserve the natural environment include minimising waste generation by maximising ash utilisation (putting the ash left after burning coal to use) and providing green belts (belts of planted trees) for nurturing ecological balance (a steady balance among living things and their surroundings).

What are afforestation and waste management?

What is afforestation?

Definition: Afforestation is the planting of trees on a large scale to create forest on land that has lost its forest cover or has none.

Afforestation and proper management of grazing can help to some extent to solve the problems of land degradation. The famous Chipko movement in the Himalayas has not only successfully resisted deforestation in several areas but has also shown that community afforestation with indigenous (native) species can be enormously successful. In industry, green belts help to nurture ecological balance.

What is waste management?

Definition: Waste management is the handling of waste from the time it is produced to its final disposal, by reducing it, reusing and recycling it, treating it and disposing of the remainder safely.

Several of the measures above are waste management: reusing and recycling water, treating effluents before release, and minimising waste generation by maximising ash utilisation.

What is the difference between biodegradable and non-biodegradable waste?

• Biodegradable substances are broken down by biological processes.
• Non-biodegradable substances are not broken down in this way. They may be inert and simply persist in the environment for a long time, or may harm the various members of the ecosystem. Many human-made materials, like plastics, will not be broken down by the action of bacteria.

Improvements in life-style have resulted in greater amounts of waste material generation, and changes in packaging have resulted in much of our waste becoming non-biodegradable.

Glossary

• Manufacturing — production of goods in large quantities after processing raw materials into more valuable products, now including goods made by machines.
• Secondary sector — activities in which natural products are changed into other forms through manufacturing; also called the industrial sector.
• Basic industry — an industry whose products serve as raw materials to manufacture other goods, such as iron and steel.
• Cottage industry — the smallest manufacturing unit, where artisans use local raw materials and simple tools at home with family members or part-time labour.
• Small-scale industry — an industry defined by the maximum investment allowed on the assets of a unit, working in a workshop with simple power-driven machines.
• Large-scale industry — manufacturing that involves a large market, advanced technology, assembly-line mass production and large capital.
• Joint sector — industries run jointly by the state and individuals or a group of individuals, such as Oil India Ltd.
• Cooperative sector — industries owned and operated by producers, suppliers of raw materials, workers or both, who share profits or losses proportionately.
• Effluent — liquid waste discharged by a factory into rivers or ponds, which causes water pollution if it is not treated first.
• Deforestation — the clearing of forests, which can reduce local rainfall, increase soil erosion and destroy habitats.
• Afforestation — planting trees on a large scale to create forest on land that has lost its forest cover or has none.
• Waste management — handling waste from its production to its final disposal by reducing, reusing, recycling, treating and safely disposing of it.

Common errors and misconceptions

• Misconception: Cottage industries and small-scale industries are the same thing. Correct: A cottage industry works at the artisan's home with family members or part-time labour and simple tools, while a small-scale industry works in a workshop outside the home with simple power-driven machines and semi-skilled labour.
• Misconception: Agriculture and industry are separate and do not affect each other. Correct: They move hand in hand. Agro-industries depend on farms for raw materials and sell pumps, fertilisers, pesticides and tools to farmers.
• Misconception: A basic industry is any large factory. Correct: A basic industry supplies its products as raw materials to manufacture other goods, as iron and steel does, while a consumer industry makes goods for direct use.
• Misconception: Industries pollute only the air. Correct: Industries are responsible for four types of pollution, air, water, land and noise, and thermal pollution occurs when hot water is drained into rivers and ponds before cooling.
• Misconception: Most Indian workers are now employed in industry. Correct: In 2017-18 the primary sector had 44 per cent of employment, the secondary sector 25 per cent and the tertiary sector 31 per cent, and the primary sector continues to be the largest employer.
• Misconception: The small-scale investment limit is fixed for all time. Correct: The limit has changed over a period of time, and at present the maximum investment allowed is rupees one crore.

Exam-style questions with model answers

Q1. State two ways in which agriculture and industry depend on each other. [2 marks]

1. Agro-industries depend on agriculture for raw materials, for example cotton for the textile industry and sugarcane for sugar mills.
2. Industry sells inputs such as irrigation pumps, fertilisers, insecticides, pesticides and machines to farmers, which raises farm productivity.

Q2. Give two differences between a cottage industry and a small-scale industry. [2 marks]

1. A cottage industry works in the home of the artisan with family members or part-time labour, whereas a small-scale industry works in a workshop outside the home of the producer.
2. A cottage industry uses local raw materials and simple tools, whereas a small-scale industry uses local raw material, simple power-driven machines and semi-skilled labour.

Q3. Write any three features of large-scale industries. [3 marks]

1. They need large capital and sell in a large market.
2. They use assembly-line mass production, in which large quantities of standardised parts are made and each worker performs only one task repeatedly.
3. They rely on advanced technology and specialised workers, and they use enormous energy and various raw materials.

Q4. Explain four ways in which cottage and small-scale industries are significant for India. [4 marks]

1. They provide employment, because labour-intensive small scale manufacturing has been developed in India to give work to its population.
2. They raise local purchasing power, which is the ability of people in the area to buy goods.
3. Handspun khadi provides large scale employment to weavers in their homes as a cottage industry.
4. Weaving is highly decentralised, which gives scope for traditional skills and designs in cotton, silk, zari and embroidery.

Q5. An iron and steel plant uses iron ore, coking coal and limestone in the approximate ratio 4 : 2 : 1. It uses 20 tonnes of iron ore. (a) Calculate the coking coal and limestone it needs. (b) Why is iron and steel called a basic industry? [4 marks]

1. One part of the ratio is 20 ÷ 4 = 5 tonnes.
2. Coking coal is 2 parts = 2 × 5 = 10 tonnes, and limestone is 1 part = 5 tonnes, approximately.
3. Iron and steel is a basic industry because it supplies its products as raw materials to manufacture other goods.
4. All the other industries, heavy, medium and light, depend on it for their machinery.

Q6. Explain how industrialisation harms the environment through pollution and deforestation. [5 marks]

1. Air pollution: gases such as sulphur dioxide and carbon monoxide, and smoke from factories, harm human health, animals, plants and buildings.
2. Water pollution: effluents and wastes discharged into rivers carry dyes, acids, heavy metals and chemicals, and hot water causes thermal pollution.
3. Land pollution: dumped wastes render soil useless, and rain water carries the pollutants down so that ground water is also contaminated.
4. Noise pollution: machinery, generators and drills cause irritation, hearing impairment, and increased heart rate and blood pressure.
5. Deforestation: mining has led to deforestation, which has caused severe land degradation in states like Jharkhand and Odisha, and clearing forests can reduce local rainfall, increase soil erosion and destroy habitats.

Q7. Suggest five measures to reduce the adverse impacts of industrialisation. [5 marks]

1. Reuse and recycle water in two or more successive stages, and harvest rainwater.
2. Treat hot water and effluents before releasing them into rivers and ponds.
3. Fit smoke stacks with devices such as electrostatic precipitators and scrubbers, and use oil or gas instead of coal, to reduce smoke and particles.
4. Fit silencers to generators and use noise absorbing material, earplugs or earphones, to cut noise pollution.
5. Practise afforestation, such as green belts, and manage waste, for example by maximising ash utilisation and treating wastes before disposal.

Q8. Classify industries on the basis of (a) source of raw materials, (b) main role and (c) ownership, giving an example of each type. [6 marks]

1. Agro-based industries use agricultural raw materials, for example cotton textiles, jute, sugar and edible oil.
2. Mineral-based industries use minerals and metals as raw materials, for example iron and steel, cement and aluminium.
3. Basic or key industries supply their products as raw materials to make other goods, for example iron and steel.
4. Consumer industries produce goods for direct use by consumers, for example sugar, toothpaste, paper, sewing machines and fans.
5. Public sector industries are owned and operated by government agencies, for example BHEL and SAIL, while private sector industries are owned by individuals or groups, for example Bajaj Auto Ltd. and Dabur Industries.
6. Joint sector industries are run by the state together with individuals, for example Oil India Ltd., while cooperative sector industries are owned by producers, suppliers or workers, for example the sugar industry in Maharashtra.

Q9. Explain the meaning of afforestation and of waste management, and say how they reduce the adverse impacts of industrialisation. [3 marks]

1. Afforestation is planting trees on a large scale to create forest on land that has lost its forest cover or has none.
2. Waste management is handling waste from production to final disposal by reducing, reusing, recycling, treating and safely disposing of it.
3. Afforestation can help to some extent to check land degradation, and green belts help to nurture ecological balance, while waste management cuts pollution by recycling water, treating effluents before release and minimising waste.

Key takeaways

• Manufacturing is the production of goods in large quantities after processing raw materials into more valuable products, and the secondary sector is also called the industrial sector.
• Manufacturing helps modernise agriculture, brings in foreign exchange and is a precondition for removing unemployment and poverty.
• Agriculture and industry move hand in hand: agro-industries depend on farms for raw materials and sell pumps, fertilisers, pesticides and tools to farmers.
• Large-scale industry needs a large market, advanced technology, assembly-line mass production and large capital, while medium-scale units lie between small-scale and large-scale ones.
• Cottage industries work at home with simple tools, and small-scale industries work in workshops with simple power-driven machines; both provide employment.
• Industries cause air, water, land and noise pollution, and mining and the use of forest raw materials can be linked to deforestation.
• Recycling and treating water, smoke filters, silencers, green belts, afforestation and waste management reduce the adverse impacts of industrialisation.

Test yourself

What is manufacturing?

Manufacturing is the production of goods in large quantities after processing raw materials into more valuable products.

Which sector is also called the industrial sector?

The secondary sector, because it covers activities in which natural products are changed into other forms through manufacturing.

Name two types of industry by source of raw materials, with one example each.

Agro-based industries, such as sugar or cotton textiles, and mineral-based industries, such as iron and steel or cement.

In which ownership sector does Oil India Ltd. fall, and why?

It is a joint sector industry, because it is jointly owned by the public and private sectors.

What is the maximum investment allowed on assets for a small scale industry at present?

Rupees one crore. The limit has changed over a period of time.

Name the four types of pollution that industries cause.

Air pollution, water pollution, land pollution and noise pollution. Thermal power plants are also among the polluting industries.

What share of employment did the secondary sector have in 2017-18?

It had 25 per cent of employment, up from 11 per cent in 1977-78.