Why this chapter matters for UPSC: The GS1 syllabus asks for the factors responsible for the location of industries; GS3 covers the growth of manufacturing, industrial policy and pollution. This chapter is the base for both: how industries are classified, why each one sits where it does, and how industry pollutes and can be cleaned up.

Contemporary hook: Manufacturing was 14.88% of India's gross value added at current prices in 2025-26 (MoSPI, National Accounts Statistics 2026). India made 164.9 million tonnes of crude steel in 2025, second only to China (worldsteel). And on 28 February 2026 Micron's semiconductor assembly and test plant at Sanand, Gujarat, began commercial production (PIB).


🧠 First Principles — Read This First

Manufacturing adds value. NCERT's definition: "Production of goods in large quantities after processing from raw materials to more valuable products is called manufacturing." Paper from wood, sugar from cane, steel from iron ore: in each case the product is worth more than what went in, and that difference pays for wages, profits and export earnings.

Location is a search for the cheapest combination. Every industry needs raw material, power, labour, capital, transport and a market. Where the raw material is bulky or loses weight on the way, the industry moves to it: NCERT notes that sugarcane is bulky and that "in haulage its sucrose content reduces", and that steelmaking needs iron ore, coking coal and limestone in a ratio of about 4 : 2 : 1. Where the product is light and valuable, markets and skilled workers pull harder, which is why NCERT's automobile and IT centres are large cities.

One industry fits several classes. The bases of classification are independent of each other. A sugar mill is agro-based (raw material), a consumer industry (main role), and in Maharashtra often a cooperative (ownership). Before judging a statement, check which basis it uses.

Thresholds go stale. NCERT's small-scale limit of "rupees one crore" matches the old investment ceiling for a micro enterprise. Since 1 April 2025 that ceiling is ₹2.5 crore (box under "Classifying industries").


PART 1 — Quick Reference

Table 1: Classifying industries (NCERT)

BasisClassesNCERT's examples
Source of raw materialsAgro-based; mineral-basedAgro-based: cotton, woollen, jute, silk textile, rubber, sugar, tea, coffee, edible oil. Mineral-based: iron and steel, cement, aluminium, machine tools, petrochemicals
Main roleBasic or key industries, which "supply their products as raw materials to manufacture other goods"; consumer industries, which "produce goods for direct use by consumers"Basic: iron and steel, copper smelting, aluminium smelting. Consumer: sugar, toothpaste, paper, sewing machines, fans
Capital investmentSmall scale and large scale. Small scale is defined by the maximum investment allowed on the assets of a unit; NCERT gives it as "rupees one crore" and notes that the limit has changed over timeNone named
OwnershipPublic sector, "owned and operated by government agencies"; private sector, owned by individuals or groups; joint sector, owned jointly by the public and private sectors; cooperative sector, owned and operated by the producers or suppliers of raw materials, workers or bothPublic: BHEL, SAIL. Private: TISCO, Bajaj Auto Ltd., Dabur Industries. Joint: Oil India Ltd. (OIL). Cooperative: sugar in Maharashtra, coir in Kerala
Bulk and weight of raw materials and goodsHeavy; lightHeavy: iron and steel. Light: electrical goods

Source: NCERT, Contemporary India II, Class X, ch. 6 "Manufacturing Industries", Reprint 2026-27, p. 2. Cooperative members "pool in the resources and share the profits or losses proportionately".

How NCERT classifies industries: five bases, their classes and examplesA table-like tree with five rows of classification, each row a basis on the left with its classes in the middle and NCERT's examples on the right. Source of raw materials: agro-based, with examples cotton, woollen, jute, silk textile, rubber, sugar, tea, coffee, edible oil; mineral-based, with examples iron and steel, cement, aluminium, machine tools, petrochemicals. Main role: basic or key industries, which supply their products as raw materials to manufacture other goods, with examples iron and steel, copper smelting, aluminium smelting; consumer industries, which produce goods for direct use by consumers, with examples sugar, toothpaste, paper, sewing machines, fans. Capital investment: small scale and large scale; small scale is defined by the maximum investment allowed on the assets of a unit, which NCERT gives as rupees one crore and notes that the limit has changed over time; no examples named. Ownership: public sector, owned and operated by government agencies, examples BHEL, SAIL; private sector, owned by individuals or groups, examples TISCO, Bajaj Auto Ltd., Dabur Industries; joint sector, owned jointly by the public and private sectors, example Oil India Ltd. (OIL); cooperative sector, owned and operated by the producers or suppliers of raw materials, workers or both, examples sugar in Maharashtra, coir in Kerala. Bulk and weight of raw materials and goods: heavy, example iron and steel; light, example electrical goods.BASISCLASSESNCERT'S EXAMPLESSource of rawmaterialsAgro-basedExamplescotton, woollen, jute, silk textile,rubber, sugar, tea, coffee, edible oilMineral-basedExamplesiron and steel, cement, aluminium,machine tools, petrochemicalsMain roleBasic or key industries"supply their products as raw materials tomanufacture other goods"Examplesiron and steel, copper smelting,aluminium smeltingConsumer industries"produce goods for direct use by consumers"Examplessugar, toothpaste, paper, sewingmachines, fansCapitalinvestmentSmall scale and large scaleSmall scale is defined by the maximuminvestment allowed on the assets of a unit;NCERT gives it as "rupees one crore" and notesthat the limit has changed over timeExamplesNone namedOwnershipPublic sector"owned and operated by government agencies"ExamplesBHEL, SAILPrivate sectorowned by individuals or groupsExamplesTISCO, Bajaj Auto Ltd., DaburIndustriesJoint sectorowned jointly by the public and privatesectorsExamplesOil India Ltd. (OIL)Cooperative sectorowned and operated by the producers orsuppliers of raw materials, workers or bothExamplessugar in Maharashtra, coir in KeralaBulk and weightof raw materialsand goodsHeavyExamplesiron and steelLightExampleselectrical goods
Source: NCERT Class X, Contemporary India II, ch. 6 (Reprint 2026-27), "Manufacturing Industries", p. 2, Table 1 of this page.

Table 2: Cotton and jute textiles (NCERT)

Cotton textilesJute textiles
First millFirst successful textile mill, Mumbai, 1854First jute mill, Rishra near Kolkata, 1855
WhereEarly mills in the cotton-growing belt of Maharashtra and Gujarat; spinning "centralised in Maharashtra, Gujarat and Tamil Nadu"; weaving "highly decentralised"Mostly West Bengal, along the banks of the Hugli in a narrow belt
Why thereRaw cotton, market, transport including accessible port facilities, labour, moist climateNearby jute-growing areas; inexpensive water transport backed by railways, roadways and waterways; abundant water for processing; cheap labour from West Bengal, Bihar, Odisha and Uttar Pradesh; Kolkata's banking, insurance and port
NCERT's verdictTextiles are "the only industry in the country, which is self-reliant and complete in the value chain"India is the "largest producer of raw jute and jute goods" and second as an exporter after Bangladesh
Weak point NCERT namesWorld-class spinning, but weaving "supplies low quality of fabric" and cannot use much of the high-quality yarn India producesAt Partition in 1947, three-fourths of the jute-producing area went to Bangladesh (then East Pakistan)

Source: NCERT, Contemporary India II, Class X, ch. 6, Reprint 2026-27, pp. 3, 5. For current raw-jute output, see the FAOSTAT box under "Jute textiles".

Table 3: What decides where each industry goes (NCERT)

IndustryWhat decides locationWhere
SugarCane is bulky and loses sucrose in haulage; the industry is seasonal, so suited to cooperativesUttar Pradesh, Bihar, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Gujarat, Punjab, Haryana, Madhya Pradesh. "Sixty per cent mills are in Uttar Pradesh and Bihar"; mills are shifting to the southern and western States, especially Maharashtra
Iron and steelIron ore, coking coal and limestone in about 4 : 2 : 1, plus some manganeseChhotanagpur plateau, for "low cost of iron ore, high grade raw materials in proximity, cheap labour and vast growth potential in the home market"
Aluminium"Regular supply of electricity and an assured source of raw material at minimum cost"Odisha, West Bengal, Kerala, Uttar Pradesh, Chhattisgarh, Maharashtra, Tamil Nadu
Organic chemicalsLocated near oil refineries or petrochemical plantsNo States named
FertiliserSpread to many regions after the Green RevolutionGujarat, Tamil Nadu, Uttar Pradesh, Punjab and Kerala make about half the output
CementLimestone, silica and gypsum; coal, electric power and rail transportGujarat's plants have access to markets in the Gulf countries
AutomobilesDemand after liberalisationAround Delhi, Gurugram, Mumbai, Pune, Chennai, Kolkata, Lucknow, Indore, Hyderabad, Jamshedpur and Bengaluru
Electronics and ITNCERT names centres, not factorsBengaluru, "the electronic capital of India"; also Mumbai, Delhi, Hyderabad, Pune, Chennai, Kolkata, Lucknow, Coimbatore. IT is concentrated at Bengaluru, Noida, Mumbai, Chennai, Hyderabad and Pune

Source: NCERT, Contemporary India II, Class X, ch. 6, Reprint 2026-27, pp. 5-8.

What decides where each industry goes, and where it is foundEight rows, one per industry, each with a name tile on the left, a column 'What decides location' in the middle and a column 'Where' on the right, as NCERT gives them. Sugar: cane is bulky and loses sucrose in haulage, the industry is seasonal, so suited to cooperatives; Uttar Pradesh, Bihar, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Gujarat, Punjab, Haryana, Madhya Pradesh; sixty per cent mills are in Uttar Pradesh and Bihar and mills are shifting to the southern and western States, especially Maharashtra. Iron and steel: iron ore, coking coal and limestone in about 4 : 2 : 1, plus some manganese; Chhotanagpur plateau, for low cost of iron ore, high grade raw materials in proximity, cheap labour and vast growth potential in the home market. Aluminium: regular supply of electricity and an assured source of raw material at minimum cost; Odisha, West Bengal, Kerala, Uttar Pradesh, Chhattisgarh, Maharashtra, Tamil Nadu. Organic chemicals: located near oil refineries or petrochemical plants; no States named. Fertiliser: spread to many regions after the Green Revolution; Gujarat, Tamil Nadu, Uttar Pradesh, Punjab and Kerala make about half the output. Cement: limestone, silica and gypsum; coal, electric power and rail transport; Gujarat's plants have access to markets in the Gulf countries. Automobiles: demand after liberalisation; around Delhi, Gurugram, Mumbai, Pune, Chennai, Kolkata, Lucknow, Indore, Hyderabad, Jamshedpur and Bengaluru. Electronics and IT: NCERT names centres, not factors; Bengaluru, the electronic capital of India, also Mumbai, Delhi, Hyderabad, Pune, Chennai, Kolkata, Lucknow, Coimbatore; IT is concentrated at Bengaluru, Noida, Mumbai, Chennai, Hyderabad and Pune.INDUSTRYWHAT DECIDES LOCATIONWHERESugarCane is bulky and loses sucrose inhaulage; the industry is seasonal, sosuited to cooperativesUttar Pradesh, Bihar, Maharashtra, Karnataka,Tamil Nadu, Andhra Pradesh, Gujarat, Punjab,Haryana, Madhya Pradesh. "Sixty per cent mills arein Uttar Pradesh and Bihar"; mills are shifting tothe southern and western States, especiallyMaharashtraIron and steelIron ore, coking coal and limestone inabout 4 : 2 : 1, plus some manganeseChhotanagpur plateau, for "low cost of iron ore,high grade raw materials in proximity, cheaplabour and vast growth potential in the homemarket"Aluminium"Regular supply of electricity and anassured source of raw material at minimumcost"Odisha, West Bengal, Kerala, Uttar Pradesh,Chhattisgarh, Maharashtra, Tamil NaduOrganicchemicalsLocated near oil refineries orpetrochemical plantsNo States namedFertiliserSpread to many regions after the GreenRevolutionGujarat, Tamil Nadu, Uttar Pradesh, Punjab andKerala make about half the outputCementLimestone, silica and gypsum; coal,electric power and rail transportGujarat's plants have access to markets in theGulf countriesAutomobilesDemand after liberalisationAround Delhi, Gurugram, Mumbai, Pune, Chennai,Kolkata, Lucknow, Indore, Hyderabad, Jamshedpurand BengaluruElectronicsand ITNCERT names centres, not factorsBengaluru, "the electronic capital of India"; alsoMumbai, Delhi, Hyderabad, Pune, Chennai, Kolkata,Lucknow, Coimbatore. IT is concentrated atBengaluru, Noida, Mumbai, Chennai, Hyderabad andPune
Not a map. Source: NCERT Class X, Contemporary India II, ch. 6 (Reprint 2026-27), "Manufacturing Industries", pp. 5-8, Table 3 of this page.

Table 4: Crude steel production, 2025 (worldsteel)

CountryMillion tonnes, 2025Share of world output (computed)
China960.852.0%
India164.98.9%
United States82.04.4%
Japan80.74.4%
World1,849.4100%

Source: worldsteel, "December 2025 crude steel production and 2025 global crude steel production totals" (2026). India ranked second; its output rose 10.4% from 149.4 Mt in 2024, while China's fell 4.4% from 1,005.1 Mt. The shares are computed from worldsteel's tonnages.

Crude steel production, 2025: China, India, United States and JapanA horizontal bar chart of crude steel production in 2025 in million tonnes, on one axis from 0 to 1,000. China 960.8, which is 52.0% of world output (computed); India 164.9, 8.9% (computed), second; United States 82.0, 4.4% (computed); Japan 80.7, 4.4% (computed). A lighter bar under China and under India shows 2024: China 1,005.1 and India 149.4 million tonnes. A note says world output in 2025 was 1,849.4 million tonnes, that India's output rose 10.4% from 149.4 Mt in 2024 and that China's fell 4.4% from 1,005.1 Mt. The shares are computed from worldsteel's tonnages.Crude steel production, million tonnes (Mt)02004006008001000Million tonnesChina960.852.0% of world (computed)2024: 1,005.1India164.98.9% of world (computed)2024: 149.4United States82.04.4% of world (computed)Japan80.74.4% of world (computed)20252024 (China and India only)World output 2025: 1,849.4 Mt. India ranked second.India's output rose 10.4% from 149.4 Mt in 2024; China's fell 4.4% from 1,005.1 Mt.
Bars drawn to scale. Source: worldsteel, "December 2025 crude steel production and 2025 global crude steel production totals" (2026), Table 4 of this page. The shares are computed from worldsteel's tonnages; 2024 bars are drawn only for the two countries whose 2024 output the page prints.

Table 5: Industrial pollution and its control (NCERT)

TypeSources NCERT namesControls NCERT names
AirUndesirable gases "such as sulphur dioxide and carbon monoxide"; airborne particles (dust, spray, mist, smoke); smoke from chemical and paper factories, brick kilns, refineries, smelting plants and the burning of fossil fuelsSmoke stacks fitted with electrostatic precipitators, fabric filters, scrubbers and inertial separators; oil or gas instead of coal in factories
WaterOrganic and inorganic wastes from paper, pulp, chemical, textile and dyeing industries, petroleum refineries, tanneries and electroplating: dyes, detergents, acids, salts, heavy metals such as lead and mercury, pesticides, fertilisers, synthetic chemicals, plastics, rubberReuse and recycling of water in two or more successive stages; rainwater harvesting; treating hot water and effluents before release (primary, secondary, tertiary treatment); regulating industry's overdrawing of groundwater
Thermal (water)Hot water from factories and thermal plants drained into rivers and ponds "before cooling"Treating hot water before release
Land and soilDumping of glass, harmful chemicals, industrial effluents, packaging, salts and garbage; the major solid wastes are fly ash, phospho-gypsum and iron and steel slagsNo separate list (the NTPC box names ash utilisation)
NoiseIndustrial and construction activities, machinery, factory equipment, generators, saws, pneumatic and electric drills; effects include "hearing impairment, increased heart rate and blood pressure"Silencers on generators; machinery redesigned for energy efficiency and less noise; noise-absorbing material; earplugs and earphones

Source: NCERT, Contemporary India II, Class X, ch. 6, Reprint 2026-27, pp. 9-11. NCERT lists four types (air, water, land, noise) and adds that "polluting industries also include thermal power plants".


PART 2 — Concepts & Narrative

Why manufacturing matters

NCERT opens with a shopping trip before Diwali: Harish goes to the market with the family for shoes, clothes, utensils, sugar, tea and diyas, and finds the shops "flooded with items for sale". Every one of those goods was manufactured somewhere, which is the chapter's starting point.

NCERT gives manufacturing four roles:

  • It modernises agriculture. "Agriculture and industry are not exclusive of each other. They move hand in hand"; agro-industries raise farm productivity and depend on farms for raw material.
  • It reduces unemployment and poverty. Industrial development is "a precondition for eradication of unemployment and poverty". This was "the main philosophy behind public sector industries and joint sector ventures", which also aimed at "bringing down regional disparities by establishing industries in tribal and backward areas".
  • It earns foreign exchange. Exports of manufactured goods bring in "much needed foreign exchange".
  • It makes countries prosperous. "Countries that transform their raw materials into a wide variety of finished goods of higher value are prosperous."

NCERT ends the section with a warning: "our industry needs to be more efficient and competitive. Self-sufficiency alone is not enough." It calls the manufacturing sector "the backbone of development".

Beyond the Book

Manufacturing in the economy, 2025-26. MoSPI's National Accounts Statistics 2026 (base year 2022-23) puts manufacturing at 14.88% of gross value added at current prices in 2025-26. The whole secondary sector was 25.87% and the tertiary sector 54.03%. The 2020-21 NCERT edition gave manufacturing as 17% of GDP (see the pre-2023 section). The two figures are not directly comparable: the base year and the measure (GVA, not GDP) differ.

Classifying industries

NCERT classifies industries on five bases (Table 1). Two pairs are easily confused:

  • Basic versus heavy. "Basic" describes the role: the output becomes raw material for other industries. "Heavy" describes the weight of raw materials and products. Iron and steel is both, but the two words answer different questions.
  • Joint versus cooperative. A joint-sector unit is owned by the government and private investors together (NCERT's example: Oil India Ltd.). A cooperative is owned by its producers, suppliers or workers, who pool resources and share profits or losses (sugar mills in Maharashtra, coir units in Kerala).

NCERT's activity asks you to sort ten products (oil, knitting needles, brassware, fuse wires, watches, sewing machines, shipbuilding, electric bulbs, paint brushes, automobiles) into heavy and light industries.

Beyond the Book

MSME limits since 1 April 2025. The Ministry of MSME's revised definition took effect on 1 April 2025. Ceilings in ₹ crore, old to new:

  • Micro: investment 1 → 2.5; turnover 5 → 10.
  • Small: investment 10 → 25; turnover 50 → 100.
  • Medium: investment 50 → 125; turnover 250 → 500.

(PIB, Ministry of MSME Year End Review 2025, 30 December 2025.) NCERT's "rupees one crore" is the old investment ceiling for a micro enterprise. It is not the current limit for any class.

Textile industry

NCERT says the textile industry "occupies unique position in the Indian economy" and calls it "the only industry in the country, which is self-reliant and complete in the value chain i.e., from raw material to the highest value added products".

Cotton textiles. In ancient India cotton cloth was made by hand spinning and handloom weaving. Power-looms came into use after the 18th century. Traditional industries suffered a setback in the colonial period because they could not compete with "mill-made cloth from England". The first successful textile mill was set up in Mumbai in 1854.

The early mills clustered in the cotton-growing belt of Maharashtra and Gujarat, where "availability of raw cotton, market, transport including accessible port facilities, labour, moist climate, etc. contributed towards its localisation". The industry has close links with agriculture, providing a living to farmers, cotton-boll pluckers and workers in ginning, spinning, weaving, dyeing, designing, packaging, tailoring and sewing.

Today spinning is "centralised in Maharashtra, Gujarat and Tamil Nadu", while weaving is "highly decentralised" across handlooms, powerlooms and mills. NCERT names the mismatch: "India has world class production in spinning, but weaving supplies low quality of fabric as it cannot use much of the high quality yarn produced in the country." Khadi provides "large scale employment to weavers in their homes as a cottage industry". NCERT also asks why Mahatma Gandhi stressed spinning yarn and weaving khadi.

Jute textiles. NCERT says India "is the largest producer of raw jute and jute goods and stands at second place as an exporter after Bangladesh". Most mills are in West Bengal, "along the banks of the Hugli river, in a narrow belt". The first jute mill was set up near Kolkata in 1855 at Rishra. After Partition in 1947, the mills stayed in India but "three-fourth of the jute producing area went to Bangladesh (erstwhile East Pakistan)".

The Hugli basin has five advantages NCERT lists: nearness to jute-growing areas; inexpensive water transport, supported by railways, roadways and waterways; abundant water for processing raw jute; cheap labour from West Bengal and the neighbouring States of Bihar, Odisha and Uttar Pradesh; and Kolkata's banking, insurance and port facilities for export. In NCERT's puzzle, jute is "also known as the 'Golden Fibre'".

Beyond the Book

Is India still the largest producer of raw jute? FAO's data say no for recent years. In 2024 Bangladesh produced 2.09 million tonnes of raw jute and India 1.41 million tonnes, and Bangladesh was ahead in every year from 2020 to 2024 (FAOSTAT, crops and livestock products). FAO counts raw jute only, so it does not test NCERT's claim about jute goods. For a statement about current raw-jute output, the FAO figures apply.

Explainer

Mandatory jute packaging. The Union government reserves part of the packaging of foodgrains and sugar for jute. For the Jute Year 2023-24 the Cabinet kept the reservation at 100% for foodgrains and 20% for sugar, and said the sector supports about 4 lakh workers and 40 lakh farm families (PIB, 8 December 2023). Order S.O. 1830(E) of 22 April 2025 continued the same 100% and 20% reservation up to 30 June 2025. The 2020-21 NCERT edition named this "Government policy of mandatory use of jute packaging" as a support for the industry; the 2026-27 reprint does not mention it.

Sugar industry

NCERT: "India stands second as a world producer of sugar but occupies the first place in the production of gur and khandsari." The raw material is bulky, and "in haulage its sucrose content reduces", so mills sit in the cane fields. Mills are spread over Uttar Pradesh, Bihar, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Gujarat, Punjab, Haryana and Madhya Pradesh, and "Sixty per cent mills are in Uttar Pradesh and Bihar". The industry is "seasonal in nature so, it is ideally suited to the cooperative sector".

The mills are shifting to the southern and western States, especially Maharashtra, for three reasons NCERT gives:

  1. The cane grown there has a higher sucrose content.
  2. "The cooler climate also ensures a longer crushing season."
  3. The cooperatives are more successful in these States.

Iron and steel industry

Iron and steel is "the basic industry since all the other industries – heavy, medium and light, depend on it for their machinery". It is also a heavy industry, because its raw materials and its products are bulky and heavy. Steel is needed for "engineering goods, construction material, defence, medical, telephonic, scientific equipment and a variety of consumer goods", and NCERT notes that "Production and consumption of steel is often regarded as the index of a country's development".

"Iron ore, coking coal and lime stone are required in the ratio of approximately 4 : 2 : 1", with some manganese to harden the steel. Because so much raw material goes into each tonne of steel, the industry sits where the raw materials meet. NCERT: "Chhotanagpur plateau region has the maximum concentration of iron and steel industries", because of "low cost of iron ore, high grade raw materials in proximity, cheap labour and vast growth potential in the home market". Chapter 5 shows why: the Damodar valley coalfields (Jharia, Raniganj, Bokaro) lie close to the Odisha-Jharkhand iron-ore belt (Gua and Noamundi in Singhbhum, Badampahar in Odisha).

The 2026-27 text names no individual steel plants; they appear on its map. Its puzzle asks for Bhilai, the "public sector steel plant located in Chhattisgarh".

Beyond the Book

How Jamshedpur began. NCERT's private-sector example, TISCO, is today's Tata Steel. Jamsetji Tata, who first envisioned the township, died in Germany in 1904. In 1907 Sir Dorabji Tata established the Tata Iron and Steel Company at Sakchi; it was registered on 26 August 1907. The first collieries came in 1910, and the first steel ingot was rolled out in February 1912 at what Tata Steel calls the first private-sector steel plant, with a capacity of 1,00,000 tonnes. In 1919 Sakchi was renamed Jamshedpur in Jamsetji's honour (Tata Steel press release, 24 August 2007; Tata group timeline).

Steel output today. India produced 164.9 million tonnes of crude steel in 2025, up 10.4% from 149.4 Mt in 2024, and ranked second after China (960.8 Mt), out of a world total of 1,849.4 Mt (Table 4). The 2020-21 NCERT edition gave 106.5 Mt for 2018, also second (pre-2023 section).

Aluminium smelting

Aluminium smelting is "the second most important metallurgical industry in India". The metal is "light, resistant to corrosion, a good conductor of heat, malleable and becomes strong when it is mixed with other metals". It is used to make aircraft, utensils and wires, and it has gained popularity as a substitute for steel, copper, zinc and lead in a number of industries. Bauxite, the raw material, is a bulky, dark reddish rock. "Regular supply of electricity and an assured source of raw material at minimum cost are the two prime factors for location of the industry." Plants are in Odisha, West Bengal, Kerala, Uttar Pradesh, Chhattisgarh, Maharashtra and Tamil Nadu. Chapter 5's chart gives Odisha 65% of India's bauxite output in 2018-19.

Chemical industry

The chemical industry has two parts:

  • Inorganic chemicals include "sulphuric acid (used to manufacture fertilizers, synthetic fibres, plastics, adhesives, paints, dyes stuffs), nitric acid, alkalies, soda ash (used to make glass, soaps and detergents, paper) and caustic soda".
  • Organic chemicals include petrochemicals, used for synthetic fibres, synthetic rubber, plastics, dye-stuffs, drugs and pharmaceuticals. Organic plants are located "near oil refineries or petrochemical plants".

NCERT's one-line trap: "The chemical industry is its own largest consumer." Basic chemicals are processed into further chemicals for industry, farming and consumer markets.

Fertiliser industry

The industry centres on "nitrogenous fertilizers (mainly urea), phosphatic fertilizers and ammonium phosphate (DAP) and complex fertilizers which have a combination of nitrogen (N), phosphate (P), and potash (K)". Potash "is entirely imported as the country does not have any reserves of commercially usable potash or potassium compounds in any form". "After the Green Revolution the industry expanded to several other parts of the country", and Gujarat, Tamil Nadu, Uttar Pradesh, Punjab and Kerala "contribute towards half of the fertilizer production".

Cement industry

Cement is essential for construction: houses, factories, bridges, roads, airports and dams. It needs limestone, silica and gypsum; "Coal and electric power are needed apart from rail transportation." Plants in Gujarat are placed to reach markets in the Gulf countries. "The first cement plant was set-up in Chennai in 1904."

Automobile industry

Automobiles carry goods, services and passengers: trucks, buses, cars, motorcycles, scooters, three-wheelers and multi-utility vehicles. After liberalisation, new models stimulated demand, and the industry grew in passenger cars and two- and three-wheelers. It is located around Delhi, Gurugram, Mumbai, Pune, Chennai, Kolkata, Lucknow, Indore, Hyderabad, Jamshedpur and Bengaluru.

Information technology and electronics industry

The electronics industry covers products "from transistor sets to television, telephones, cellular telecom, telephone exchange, radars, computers" and much other equipment needed by the telecommunication industry. "Bengaluru has emerged as the electronic capital of India." Other centres for electronic goods are Mumbai, Delhi, Hyderabad, Pune, Chennai, Kolkata, Lucknow and Coimbatore, and the IT industry is concentrated at Bengaluru, Noida, Mumbai, Chennai, Hyderabad and Pune. NCERT's map shows the Software Technology Parks. "A major impact of this industry has been on employment generation", and "continuing growth in the hardware and software is the key to the success of IT industry in India".

Beyond the Book

The technology industry, FY2026. NASSCOM's Strategic Review 2026 estimates the industry's revenue at US$ 315.4 billion in FY2026 (estimate), up 6.1% from US$ 297.2 billion in FY2025. Exports are US$ 246.4 billion (up 5.6%) and the domestic market US$ 69.0 billion. Direct employment is projected at about 6.0 million, up 2.3%, a net addition of 135,000. NASSCOM's "technology industry" covers IT services, business process management, engineering R&D, software products and hardware, so it is wider than NCERT's IT industry.

Beyond the Book

Semiconductors: the newest electronics plants. On 29 February 2024 the Union Cabinet approved a fab by Tata Electronics with Taiwan's PSMC at Dholera, Gujarat (₹91,000 crore; 50,000 wafer starts a month; high-performance computing chips with 28 nm technology) and an assembly and test unit by Tata Semiconductor Assembly and Test at Morigaon, Assam (₹27,000 crore) (PIB, 29 February 2024). Micron's assembly, test, marking and packaging (ATMP) plant at Sanand, Gujarat, agreed in June 2023 and begun in September 2023, was inaugurated on 28 February 2026, "marking the commencement of commercial production" (PIB, 28 February 2026).

Industrial pollution and environmental degradation

Industry adds to income and jobs but also pollutes land, water and air. NCERT names "four types of pollution: (a) Air (b) Water (c) Land (d) Noise", and adds that "polluting industries also include thermal power plants" (Table 5).

  • Air pollution is caused by "the presence of high proportion of undesirable gases, such as sulphur dioxide and carbon monoxide" (NCERT) and by airborne particles. Smoke comes from chemical and paper factories, brick kilns, refineries, smelting plants and the burning of fossil fuels.
  • Water pollution comes from organic and inorganic industrial effluents: dyes, detergents, acids, salts and heavy metals such as lead and mercury, from paper, pulp, chemical, textile and dyeing industries, refineries, tanneries and electroplating units. "Fly ash, phospo-gypsum and iron and steel slags are the major solid wastes in India."
  • Thermal pollution of water occurs "when hot water from factories and thermal plants is drained into rivers and ponds before cooling". NCERT also mentions wastes from nuclear power plants.
  • Land pollution comes from dumping "glass, harmful chemicals, industrial effluents, packaging, salts and garbage", which renders the soil useless; rainwater carries pollutants to the groundwater.
  • Noise pollution causes irritation and stress and "can also cause hearing impairment, increased heart rate and blood pressure".

Controlling environmental degradation. NCERT's headline number: "Every litre of waste water discharged by our industry pollutes eight times the quantity of freshwater." Its remedies for water:

  1. Minimise water use in processing by reusing and recycling it "in two or more successive stages".
  2. Harvest rainwater to meet water requirements.
  3. Treat hot water and effluents before releasing them into rivers and ponds.

Effluent treatment has three stages:

  • Primary: mechanical means, such as screening, grinding, flocculation and sedimentation.
  • Secondary: a biological process.
  • Tertiary: biological, chemical and physical processes, which make it possible to recycle the wastewater.

NCERT adds that "Overdrawing of ground water reserves by industry" also needs legal regulation. For air, particulate matter can be cut by fitting smoke stacks with electrostatic precipitators, fabric filters, scrubbers and inertial separators, and smoke by using oil or gas instead of coal. For noise, "generators should be fitted with silencers", machinery can be redesigned to increase energy efficiency and reduce noise, noise-absorbing material can be used, and workers can wear earplugs and earphones.

Key Term

NTPC's environmental practices (NCERT box). NCERT presents NTPC, the power producer, as a company with "ISO certification for EMS (Environment Management System) 14001". Its listed practices: (a) optimum use of equipment by adopting the latest techniques and upgrading existing equipment; (b) minimising waste generation by maximising ash utilisation; (c) green belts and afforestation for ecological balance; (d) ash pond management, ash water recycling and liquid waste management to reduce pollution; (e) ecological monitoring, reviews and an online database management for its power stations.

What the pre-2023 edition said (removed in the rationalisation)

The 2023 rationalisation cut this chapter from about 5,300 to about 3,900 words. The main passages removed:

  • Industry in the economy. The share of manufacturing "has stagnated at 17 per cent of GDP – out of a total of 27 per cent for the industry which includes 10 per cent for mining, quarrying, electricity and gas", against "25 to 35 per cent" in East Asian economies. "The National Manufacturing Competitiveness Council (NMCC) has been set up" to improve productivity.
  • Industrial location. A section on the factors of location, including "agglomeration economies", the benefits firms gain from clustering near an urban centre.
  • Problems of cotton textiles. Imports of "long staple cotton", erratic power supply, machinery in need of upgrading, low output of labour and stiff competition.
  • Jute's markets. Competition from synthetic substitutes and from "Bangladesh, Brazil, Philippines, Egypt and Thailand"; growing demand for biodegradable materials; the "Government policy of mandatory use of jute packaging"; and export markets in "U.S.A., Canada, Ghana, Saudi Arabia, U.K. and Australia".
  • Problems of the sugar industry. Its seasonal nature, old and inefficient methods, transport delays in reaching the mills, and the need to use by-products better.
  • Steel statistics. "In 2018 with 106.5 million tonnes of crude steel production, India ranked 2nd"; India was the "largest producer of sponge iron"; per capita consumption was "70.9 kg per annum against the world average of 224.5 kg". Public-sector plants "market their steel through Steel Authority of India Ltd. (SAIL)". An integrated plant "handles everything in one complex", while mini steel plants "are smaller, have electric furnaces, use steel scrap and sponge iron". A chart compared crude steel output in India and China (World Steel Association), and a list of problems ended with "(d) Poor infrastructure".

Source: NCERT, Contemporary India II, Class X, ch. 6, 2020-21 edition (as archived by the Wayback Machine, 9 October 2021).


PART 3 — UPSC Integration

UPSC Connect

Cross-paper relevance

  • GS1 (Geography) — factors responsible for the location of industries (Tables 2-3): raw-material pull for sugar and steel, market pull for automobiles and IT, the Chhotanagpur cluster.
  • GS3 (Economy) — manufacturing's share of GVA, MSME definitions, cooperatives, the IT industry and the new semiconductor plants.
  • GS3 (Environment) — industrial pollution of air, water, land and noise; effluent treatment; NTPC's environmental management.
  • Essay — industry and employment, development versus environment.

Past questions on this chapter's themes: Mains GS1 2013 (decentralised cotton textiles; new sugar mills in the south), 2019 (resource-based manufacturing; agro-based food processing in North-West India), 2020 (iron and steel away from raw material), 2021 (IT industries in major cities); GS3 2023 (manufacturing share and MSMEs), 2024 (industrial pollution of rivers). Question IDs are in the Revision Capsule.

Frames for Mains Answers

1. "Why is the cotton textile industry decentralised?" Use NCERT's split: spinning is centralised in Maharashtra, Gujarat and Tamil Nadu, while weaving is spread across handlooms, powerlooms and mills, and khadi works from homes as a cottage industry. Add the original pull of the Maharashtra-Gujarat cotton belt (raw cotton, ports, moist climate) and the weakness NCERT names: weaving cannot use much of the high-quality yarn.

2. "Why are new sugar mills coming up in the south and west?" Start with location logic (bulky cane that loses sucrose in transit keeps mills near the fields), then NCERT's three reasons: higher sucrose content, a cooler climate and longer crushing season, and more successful cooperatives. NCERT adds that 60% of mills are in Uttar Pradesh and Bihar; that is the textbook's figure, not a current count.

3. "Why are steel plants now located away from raw materials?" The classical pattern is NCERT's: a 4 : 2 : 1 raw-material ratio pulls plants to the Chhotanagpur cluster of ore and coal. Then argue the shift: when raw materials can arrive cheaply by sea or rail, or when scrap and sponge iron replace ore (the old edition's mini steel plants), ports and markets can outweigh the mine.

4. "Resource-based manufacturing and regional employment." Use NCERT's agro-based (cotton, jute, sugar) and mineral-based (steel, aluminium, cement) examples, its aim of "bringing down regional disparities by establishing industries in tribal and backward areas", and cooperatives as a model in sugar and coir.

5. "Socio-economic effects of IT industries in major cities." NCERT: "A major impact of this industry has been on employment generation." Add NASSCOM's figure of about 6 million direct jobs (FY2026 estimate) and the concentration in six cities; then the costs of that concentration for housing, transport and water.

6. "Industrial pollution of rivers: causes, mitigation, government action." NCERT's list of water-polluting industries, thermal pollution and the "eight times" figure; then reuse and recycling, rainwater harvesting, three-stage effluent treatment and regulation of groundwater use, with NTPC's ash and water management as an example.

7. "Manufacturing's share in GDP and the role of MSMEs." Manufacturing was 14.88% of GVA in 2025-26 (MoSPI); the old NCERT edition's "17 per cent of GDP" against East Asia's 25-35% shows the long-standing concern. Add the MSME limits raised from 1 April 2025 and the semiconductor plants approved in 2024 as current policy examples.

Exam Strategy

Prelims fact-traps:

  • Jute: NCERT says India is the largest producer of raw jute and jute goods and second exporter after Bangladesh; FAO data put Bangladesh ahead in raw-jute output every year from 2020 to 2024.
  • Sugar: second in sugar, first in gur and khandsari. NCERT: sixty per cent of mills are in Uttar Pradesh and Bihar.
  • First plants: cotton mill Mumbai 1854; jute mill Rishra 1855; cement plant Chennai 1904; Tata Iron and Steel Company registered 1907, first steel ingot 1912.
  • Ratio: iron ore : coking coal : limestone ≈ 4 : 2 : 1, plus some manganese.
  • Aluminium is "the second most important metallurgical industry", a statement about importance, not output.
  • Potash is entirely imported; the chemical industry is its own largest consumer.
  • Ownership examples: Oil India Ltd. is NCERT's joint-sector example; TISCO, Bajaj Auto and Dabur are private; BHEL and SAIL public.
  • Pollution: NCERT counts four types; thermal pollution is a form of water pollution. ISO 14001 is an environmental management system standard.
  • MSME: micro = investment up to ₹2.5 crore and turnover up to ₹10 crore since 1 April 2025; NCERT's ₹1 crore is the old micro ceiling.

Practice Questions

Questions 1-2 are the NCERT exercise MCQs. Practice (UPSC-pattern, not past papers): questions 3-7.

1. Which one of the following industries uses bauxite as a raw material?
(a) Aluminium Smelting
(b) Cement
(c) Paper
(d) Steel

Answer: (a). Bauxite is the ore of aluminium.

2. Which one of the following industries manufactures telephones, computer, etc.
(a) Steel
(b) Electronic
(c) Aluminium Smelting
(d) Information Technology

Answer: (b). NCERT's electronics industry covers products "from transistor sets to television, telephones, cellular telecom, telephone exchange, radars, computers".

3. Consider the following pairs of company and sector, as classified by NCERT:
1. BHEL: public sector
2. Oil India Ltd.: joint sector
3. Dabur Industries: cooperative sector
How many of the pairs given above are correctly matched?
(a) Only one
(b) Only two
(c) All three
(d) None

Answer: (b). Dabur Industries is NCERT's example of the private sector; its cooperative examples are sugar in Maharashtra and coir in Kerala.

4. Which of the following does NCERT give as reasons for sugar mills shifting to the southern and western States?
1. Higher sucrose content of the cane
2. A cooler climate that lengthens the crushing season
3. More successful cooperatives
4. Nearness to export ports
Select the correct answer:
(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4

Answer: (b). NCERT gives the first three; it says nothing about ports.

5. Arrange the following in chronological order:
1. First jute mill, at Rishra
2. First successful textile mill, at Mumbai
3. First cement plant, at Chennai
4. Registration of the Tata Iron and Steel Company
(a) 2-1-3-4
(b) 1-2-3-4
(c) 2-1-4-3
(d) 1-2-4-3

Answer: (a). Mumbai 1854, Rishra 1855, Chennai 1904, TISCO 1907.

6. Under the MSME definition in force from 1 April 2025, a micro enterprise has:
(a) investment up to ₹1 crore and turnover up to ₹5 crore
(b) investment up to ₹2.5 crore and turnover up to ₹10 crore
(c) investment up to ₹10 crore and turnover up to ₹50 crore
(d) investment up to ₹25 crore and turnover up to ₹100 crore

Answer: (b). Option (a) is the earlier micro limit, (c) the earlier small limit and (d) the new small limit.

7. Which of the following does NCERT name as the major solid wastes in India?
1. Fly ash
2. Phospho-gypsum
3. Iron and steel slags
Select the correct answer:
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (d). NCERT names all three.

NCERT exercise (30 words): (i) What is manufacturing? The production of goods in large quantities by processing raw materials into more valuable products, such as sugar from cane. (ii) What are basic industries? Industries whose products are raw materials for making other goods; for example, iron and steel.

NCERT exercise (120 words): (i) How do industries pollute the environment? Use Table 5: air (sulphur dioxide, carbon monoxide, smoke), water (effluents, heavy metals, thermal pollution), land (dumped wastes, fly ash, slags) and noise. (ii) Steps to minimise environmental degradation: reuse and recycling of water, rainwater harvesting, three-stage effluent treatment, regulating groundwater use, electrostatic precipitators and scrubbers, cleaner fuels, silencers and redesigned machinery.

NCERT one-word activity: the seven answers are power, worker, market, retailer, product, manufacture and pollution (its last clue: "Land, Water and Air degraded").

NCERT puzzle answers: (1) agro-based, (2) sugarcane, (3) jute, (4) iron and steel, (5) Bhilai, (6) Varanasi (clue: the place in Uttar Pradesh where railway diesel engines are manufactured).


📦 Revision Capsule

Revision Capsule

Hard Facts

  • First successful textile mill: Mumbai, 1854. First jute mill: Rishra, 1855. First cement plant: Chennai, 1904.
  • Tata Iron and Steel Company registered 26 August 1907 at Sakchi; first steel ingot February 1912; Sakchi renamed Jamshedpur in 1919.
  • Steelmaking raw materials: iron ore, coking coal, limestone ≈ 4 : 2 : 1.
  • Sugar: second in the world; first in gur and khandsari; 60% of mills in Uttar Pradesh and Bihar (NCERT's figure).
  • Jute: NCERT says largest producer of raw jute and jute goods, second exporter after Bangladesh; three-fourths of the jute area went to Bangladesh at Partition.
  • "Every litre of waste water ... pollutes eight times the quantity of freshwater."

Core Concepts

  • Manufacturing adds value to raw materials; location minimises the combined cost of raw material, power, labour, transport and market.
  • Weight-losing raw materials (cane, iron ore and coal) pull industry to the source; light, valuable products go to markets and skilled labour.
  • Effluent treatment: primary (mechanical), secondary (biological), tertiary (biological, chemical and physical; allows recycling).

Confused Pairs

  • Basic vs heavy: role in the economy vs weight of materials. Iron and steel is both.
  • Joint vs cooperative: government plus private (Oil India) vs producers or workers (Maharashtra sugar, Kerala coir).
  • Raw jute vs jute goods: FAO shows Bangladesh ahead in raw jute since 2020; NCERT's claim covers both.
  • Integrated vs mini steel plant (old edition): everything in one complex vs electric furnaces using scrap and sponge iron.
  • 17% of GDP (old edition) vs 14.88% of GVA (2025-26): different base years and measures.

Data Points

  • Manufacturing: 14.88% of GVA at current prices, 2025-26 (MoSPI, NAS 2026).
  • Crude steel 2025: world 1,849.4 Mt; China 960.8; India 164.9 (2nd, +10.4%) (worldsteel).
  • Technology industry FY2026 (estimate): US$ 315.4 bn; exports 246.4 bn; about 6.0 million employed (NASSCOM).
  • Raw jute 2024: Bangladesh 2.09 Mt, India 1.41 Mt (FAOSTAT).
  • MSME micro ceiling from 1 April 2025: investment ₹2.5 crore, turnover ₹10 crore.
  • Dholera fab: ₹91,000 crore, 50,000 wafer starts a month (approved 29 February 2024); Micron Sanand commercial production from 28 February 2026.
  • Jute packaging reservation: 100% foodgrains, 20% sugar (Jute Year 2023-24; continued to 30 June 2025).

PYQ Pattern

  • Mains GS1: gs1-pyq-2013-23b (factors behind the decentralised cotton textile industry), gs1-pyq-2013-23a (new sugar mills in the southern States), gs1-pyq-2020-08 (iron and steel located away from raw material), gs1-pyq-2019-09 (regional resource-based manufacturing and employment), gs1-pyq-2019-10 (agro-based food processing in North-West India), gs1-pyq-2021-17 (IT industries in major cities).
  • Mains GS3: gs3-pyq-2024-08 (industrial pollution of river water, mitigation and government initiatives), gs3-pyq-2023-01 (manufacturing's share in GDP, MSMEs and present policies).

Sources

  • NCERT, Contemporary India II, Textbook in Geography for Class X, ch. 6 "Manufacturing Industries", Reprint 2026-27 — ncert.nic.in PDF.
  • NCERT, Contemporary India II, ch. 6, 2020-21 edition (file jess106.pdf in the whole-book zip), as archived on 9 October 2021 — Wayback Machine.
  • MoSPI, National Accounts Statistics 2026, Statement 8.17.2 — mospi.gov.in XLSX.
  • worldsteel, "December 2025 crude steel production and 2025 global crude steel production totals", 2026 — worldsteel.org.
  • FAO, FAOSTAT, Production: crops and livestock products (bulk download) — FAOSTAT.
  • PIB, Cabinet decision on mandatory jute packaging for the Jute Year 2023-24, 8 December 2023 — PIB 1984208.
  • Government of India, order S.O. 1830(E), 22 April 2025, on the compulsory use of jute packaging (Gazette of India, Extraordinary).
  • Tata Steel, "Tata Steel... A 100 Years And Still Counting", press release, 24 August 2007 — tatasteel.com.
  • Tata group, Our Timeline — tata.com.
  • NASSCOM, Strategic Review 2026, Executive Summary — nasscom.in PDF.
  • PIB, Cabinet approval of three semiconductor units, 29 February 2024 — PIB 2010135.
  • PIB, inauguration of Micron's ATMP facility at Sanand, 28 February 2026 — PIB 2233998.
  • PIB, Ministry of MSME Year End Review 2025, 30 December 2025 — PIB 2209712.