Unit 1 intro to gsi
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This document discusses the meaning and importance of industries and industrialization in India. It defines industry as the conversion of raw materials into final products using human labor and machines. It then discusses factors that hampered rapid industrial development in India, including a lack of infrastructure, population growth issues, and bureaucratic challenges. Finally, it covers the importance of selecting an optimal industrial location, and factors that influence location decisions such as availability of land, raw materials, labor, transportation, power sources, and government policy. The overall objective is to minimize operating costs and maximize revenues through strategic facility placement.
Unit 1 intro to gsi
- 1. Growth & Structure of Industries UNIT-1 BBA-2
- 2. Unit-1 • Meaning of industry and industrialization, Significance of industrialization in India • Factors hampering industrial development of India/ Problems of industrialization • Meaning and importance of location, • Factors affecting industrial location • Classification of industries
- 3. What is Industry? • Industry is characterized by the conversion of raw materials into final product with the help of human efforts working with machines. • Raw material human labor + machines (process) final product • Ex. Cotton weaving, bleaching, dying with help of labor cloth = cotton textile industry • Ex. Cement industry, Jute industry, oil industry, ship building industry, sugar industry,
- 4. Cotton to textile process
- 5. Cotton Gin
- 6. Spinning /Weaving of cotton
- 8. Dying
- 9. • Cotton is spun in small villages with very simple tools such as Charkha or handloom, all managed manually , it is called ‘Cottage industry’ • Human efforts play an important role
- 10. Industrialization • It refers to large scale modern industries which are characterized by the use of- - complex modern machinery - A large number of people handling machines - Factory system of production - Mass production of goods and services at rapid speed - Use of electricity or such power - Wide domestic and often foreign markets for goods produced in such factories or plants
- 11. Why industrialization in India? 1. Substitute for agricultural product: - ex. Man-made fibers for cotton yarn, synthetic rubber, plastic wrappings and materials 2. To reduce unemployment and poverty 3. Value addition process in India - Using raw material in India only to prepare final product, which increase income of people 4. To raise income of people engaged in agriculture
- 12. 5. Modernization of India's agricultural sector: - By increase in the supply of industrial goods i.e., tractors, electrical engines, pump, hybrid seeds etc. 6. More self reliance - Reduction in imports, less dependence in foreign countries 7. To develop defense system - Vast network of modern industries are required to produce bombs, warships, missiles, rifles and guns etc. 8. Decreasing importance of agriculture
- 13. Factors hampering rapid industrial development of India 1. Economic factor: - Lack of infrastructure facilities (transport, communication, training insti., fin. Insti.) - Lack of power 2. Socio-demographic environment: - Rapid growth of population -> low per capita income -> low rate of saving -> Low rate of investment, poverty - Variety of cast, religion, culture in India, only certain castes and community will associate with industry and commerce. Hindrance to entrepreneurs
- 14. - Mentality on life is influenced by fatalism, theory of Karma (deeds of past life) 3. Public administrative machinery: - Lack of decision making ability, bureaucratic delays, corruption, waste of various types of resources and inefficient implementation of developmental schemes. 4. International environment: - Developed countries may put restrictions on exports of capital goods and equipment for countries like India
- 15. Industrial Location Definition: • Facility or Plant location is a place where a factory, warehouse, office or any business enterprise is built • Selection of a location depends on the type of business. • The objective of selection of a location is to obtain the maximum efficiency and effectiveness by minimizing operating cost and achieve maximum revenues.
- 16. Reasons for Plant/Facility Location 1. Starting new business 2. Introduction of new product or service 3. Insufficient capacity 4. Changes in technology 5. Mergers 6. Changes in input resources 7. Shifts in geographical demand may occur 8. govt.
- 17. Importance of Location Decision 1. Efficiency and effectiveness • Efficiency and effectiveness are dependent upon location. • Location affect the operating cost such as production and distribution costs. • In service, it affects the demand and effectiveness of the entire operation.
- 18. 2. Long term commitment • Involve huge amount of capital. 3. Fixed Cost • Involve the cost of constructing or purchasing new plant, renovating (if renting). 4. Revenues • Revenue may depend on having the facility near the potential customer. 5. Variable Costs • Cost of labor, and material also depend on location.
- 19. Factors influencing industrial location 1. Land and raw material: - Land includes water, forest wealth, rivers, coastline, wind etc. - Rent of land - Climate and transportation - Ex. Moist climate suites textile industry of Mumbai - Ex. Fishing industry- coastline area, paper industry- bamboo tree area
- 20. 2. Labour: - Skilled, semiskilled, unskilled - Labor union - Rate of wages 3. Capital and finance: - Nearness of bank - Rate of interest - Relation with bank personnel
- 21. 4. Proximity of markets: - Perishable and heavy products units should be near to market 5. Availability of transport: - water, road, rail - Ex. Steel plant at Vishakhapattanam 6. Power: - Coal for iron and steel - Electricity at reasonable rates - Other sources i.e., wind, water, solar etc.
- 22. 7.Infrastructural facilities 8. Historical factors 9. Entrepreneurship 10. Strategic considerations 11. Government policy