Major Industries of India

Major Industries of India

Iron & Steel Industry

The Ministry of Steel is responsible for planning and development of the iron and steel industry, development of essential inputs such as iron ore, limestone, dolomite, manganese ore, chromites, ferro-alloys, sponge iron, etc., and other related functions.

This industry has been a core pillar of industrial development in the country. India's crude steel capacity has steadily risen to 142 MT at present, and India has become the world's second-largest producer of steel (111 MT crude steel production in 2018).

Global Ranking of Indian Steel

Out of the second-largest crude steel production of 1,003.9 MT (during January-June 2021, up by 14.4%).

India was the 2nd largest crude steel producer (57.9 MT) with a 5.8% share in total world production and a 31.3% growth in production over the same period of 2020.

China produced 563.3 MT of crude steel during this period and remained the largest crude steel producer in the world, accounting for 76.4% of Asian production and 56.1% of world crude steel production. [Source: INDIA 2022]

Iron & Steel Industries before Independence

Tata Iron and Steel Company (TISCO), established by Jamshedji Tata at the bank of the Subarnarekha River in a place called Sakchi, Singhbhum, Jharkhand (then Bihar), is considered to be the first major establishment in this industry in India.

Iron & Steel Industries after Independence

Industries established during the 2nd 5-Year Plan (1956-61):

• Bhilai Steel Plant: It was established in 1955 in Bhilai, the then Madhya Pradesh (currently in Durg district, Chhattisgarh) with the help of the Soviet Union. Production was started here in 1959.

• Hindustan Steel Limited, Rourkela: It was established in 1959 with the help of West Germany in Rourkela in Odisha.

• Hindustan Steel Limited, Durgapur: It was established in 1956 with the help of Britain in Durgapur, West Bengal. Production was started here in 1962.

Purvodaya

• A flagship initiative-Purvodaya was envisaged for an integrated steel hub in the Eastern states.

• It will drive best-in-class capacity creation, augment value addition, and boost competitiveness through the setting up of green best-in-class plants, clusters, capital goods, and requisite logistics infrastructure.

• The Eastern states of India (Odisha, Jharkhand, West Bengal, Chhattisgarh, and Northern Andhra Pradesh) are home to 80% of the Indian iron reserves.

• Additionally, they have access to important logistics infrastructure such as ports, inland waterways, and slurry pipelines.

• Therefore, for the envisaged expansion of the Indian steel sector, the Eastern Hub will serve as the engine driving the growth of the steel sector.

[Source: INDIA 2022]

Industries established during the 3rd 5-Year Plan

• This steel plant was set up in 1964 at Bokaro with Russian collaboration (The Then Soviet Union).

• This plant was set up on the principle of transportation cost minimisation by creating the Bokaro-Rourkela combine.

• It receives iron ore from the Rourkela region, and the wagons on return take coal to Rourkela.

Industries established during the 4th 5-Year Plan.

• Salem Steel Plant: The Salem Steel Plant in Tamil Nadu was commissioned in 1982.

• Vishakhapatnam Steel Plant: The Vizag Steel Plant, in Vishakhapatnam in Andhra Pradesh, is the first port-based plant which started operating in 1992.

• Vijaynagar Steel Plant: The Vijaynagar Steel Plant at Hosapete (Bellari district) in Karnataka was developed using indigenous technology.

• Steel Authority of India Limited (SAIL): After independence, during the Second Five-Year Plan (1956-61), three new integrated steel plants were set up with foreign collaboration: Rourkela in Orissa, in Chhattisgarh, and Durgapur in West Bengal.

• Hindustan Steel Limited: These were public sector plants under Hindustan Steel Limited (HSL). On 24th January, 1973, the Steel Authority of India Limited (SAIL) was created with a capital of Rs. 2000 Crores to manage these plants.

Aluminium Industry

• The first Aluminium industry in India was set up in 1937 near J.K. Nagar, Asansol in West Bengal.

• Further, in 1938, the second industry was established at Muri, Bihar (Now Jharkhand), Alwaye (Kerala), Belur (W.B.), and Hirakud (Odisha).

• Subsequently, the third industry of Aluminium was established at Renukoot (U.P.), and the fourth industry was started by Madras Aluminum Company at Mettur (Tamil Nadu).

• Hindustan Aluminium Corporation (HINDALCO) was established at Renukoot (U.P.) in 1958.

• Its first real contribution to the vision of an industrial India occurred four years later, when G.D. Birla set up India's First integrated aluminium facility at Renukoot, in the eastern Uttar Pradesh, India. It was backed by a captive thermal power plant at Renusagar in 1967.

• On 7th Jan 1981, National Aluminium Company was established to ​​​​​​produce Alumina and Aluminium.

• Its registered office is at Bhubaneshwar, Odisha.

The Jawaharlal Nehru Aluminium Research Development and Design Centre (JNARDDC), Nagpur, is a Centre of Excellence set up in 1989 as a joint venture of the Ministry of Mines, Govt of India, and UNDP.

Cotton Industry

In 1854, the first modern cotton mill was established in Mumbai. Subsequently, two more mills, the Shahpur Mill and the Calico Mill, were established in Ahmedabad.

Condition Before and After Independence

• By 1947, the number of mills in India had gone up to 423, but the scenario changed after partition, and this industry suffered a major recession.

• This was because most of the good quality cotton growing areas had gone to West Pakistan, and India was left wwith29% of the cotton producing area.

• After Independence, this industry gradually recovered and eventually flourished.

Production Trends

• The production of the organised sector has drastically fallen from 81% in the mid-twentieth century to only about 6% in 2000.

Characteristics of Cotton

• Cotton is a "pure" raw material that does not lose weight in the manufacturing process.

Development of Cotton Textile Centres

After 1921, with the development of the railway network, cotton textile centres expanded rapidly.

• Southern India: Mills were set up at Coimbatore, Madurai, and Bengaluru.

• Central India: Nagpur, Indore, Solapur, and Vadodara became cotton textile centres.

• Northern India: Kanpur became a centre based on local investment.

• Eastern India: Mills were also set up at Kolkata due to its port facilities.

Importance of Cotton in India

• Cotton is one of the most important cash crops in India, and the country accounts for around 25% of the total global fiber production.

• In the raw material consumption basket of the Indian textile industry, the proportion of cotton is around 59%.

Leading Cotton Producing States

• Maharashtra, Gujarat, and Tamil Nadu are the leading cotton-producing states.

• Tamil Nadu has the largest number of mills, and most of them produce yarn rather than cloth.

• The cotton textile industry is located in the cotton-producing Telangana region, where most of the mills are spinning mills producing yarn.

Jute Industry

Jute is popularly known as the 'Golden Fibre of Bengal'.

• India is the largest producer of jute in the world, with an average production of about 80 lakh bales of raw jute annually.

• The first factory of Jute was established at Rishra (West Bengal) in 1855.

• The Jute Corporation of India was set up in 1971 for its development and to manage import, export, and the internal market.

• India is the largest exporter of Jute items after Bangladesh.

• India contributes 35% to the production of Jute items.

Important places related to the Jute Industry

Note - International Jute Organisation (H.Q.: Dhaka) was founded on 09.01.1984.

Sugar Industry

The sugar industry is the second most important agro-based industry in the country.

• India is the largest producer of both sugarcane and cane sugar and contributes about 8% of the total sugar production in the world.

• This industry employs more than 4 lakh persons directly and a large number of farmers indirectly.

• The development industry on modern lines dates back to 1903, when a sugar mill was started in Bihar.

In 1840, the first sugar industry was set up in Betia, Bihar, but its actual production started in 1931 when protection of this industry was provided by set ucentralgove.

In 1950-51, 139 factories were in operation. The number of sugar factories rose to 662 in 2010-11.

Important places related to the sugar Industry

• Maharashtra has emerged as a leading sugar producer in the country and produces more than one-third of the total production of sugar in the country.

• Uttar Pradesh is the second-largest producer of sugar.

Final Thoughts 

The cotton industry has played a crucial role in shaping India's industrial and economic history. Starting with the establishment of the first modern mill in 1854, it has grown into one of the largest textile sectors in the world. Despite facing major challenges during the partition, the industry showed resilience and gradual recovery.

India’s diverse cotton-producing states like Maharashtra, Gujarat, and Tamil Nadu have strengthened the industry’s foundation, with Tamil Nadu emerging as the hub for yarn production. With a 25% share in global fiber production, India’s cotton industry continues to be a key contributor to employment, exports, and GDP.

However, modernization, technological upgrades, and value-added textile manufacturing are crucial for maintaining global competitiveness. The cotton industry’s future lies in balancing traditional strengths with innovative practices, ensuring its continued importance in India's economic landscape.