Skip to content
GK24
GK NotesGeographyIndustries of India

Industries of India: Location, Steel, Textiles and Regions

Notes on the industries of India for exams: classification, factors of location, iron and steel plants, cotton and jute mills, industrial regions and city nicknames.

By · Published · 5 min read

Industries of India: Location, Steel, Textiles and Regions — GK24 title card
Industries of India: Location, Steel, Textiles and Regions — GK24 title card

Manufacturing is the conversion of raw material into a more valuable product, and geography asks two questions about it: what kind of industry is this, and why is it here and not somewhere else. A jute mill stands on the Hugli because the fibre is grown in the delta and the port is at hand; an aluminium smelter stands near Korba because it needs cheap power more than anything else; a software firm can sit anywhere because its raw material travels on a wire. Once these reasons are clear, the lists of plants, regions and nicknames that papers ask about fall into place.

How industries are classified

  • By source of raw material: agro-based, such as cotton textiles, jute, sugar, vegetable oil and tea; mineral-based, such as iron and steel, cement and aluminium; forest-based, such as paper, lac and furniture; and marine-based, such as fish processing.
  • By role: basic or key industries, whose products feed other industries, such as iron and steel and machine tools; and consumer industries, whose goods reach the buyer directly, such as sugar, soap and paper.
  • By capital investment: large scale, small scale and cottage or household industry.
  • By ownership: public sector, private sector, joint sector, and cooperative sector, of which the sugar mills of Maharashtra are the standard example.
  • By weight of material: heavy industries, which handle bulky raw material, and light industries, which use light material and produce light goods.

Why a factory stands where it does

Industrial location is a balance of costs. A weight-losing raw material, like iron ore, pulls the plant towards the mine; a perishable one, like sugarcane, pulls the mill to the field; a power-hungry process, like the smelting of aluminium, goes to cheap electricity; a market-oriented industry, like bread or ice, sits beside the buyer. Labour, transport, banking, water and government policy complete the list, and a port adds the advantage of imported material and export markets. When many industries gather at one place, each of them gains from the roads, power lines, banks, skilled workers and repair shops the others have created; these savings are called agglomeration economies, and they explain why industry clusters rather than spreading evenly. Industries that are free of these pulls, because their material is light and valuable, are called footloose industries.

Iron and steel

India's first iron and steel works of the modern kind was set up in 1907 by the Tata Iron and Steel Company at Sakchi, now Jamshedpur, in the Chota Nagpur plateau, where coal, iron ore, manganese, limestone and water were all within reach. The Indian Iron and Steel Company followed at Burnpur and the Visvesvaraya Iron and Steel Works at Bhadravati in Karnataka, which uses hydel power. After independence the public sector built the integrated plants.

PlantStateBuilt with the help of
RourkelaOdishaGermany
BhilaiChhattisgarhThe erstwhile Soviet Union
DurgapurWest BengalThe United Kingdom
BokaroJharkhandThe erstwhile Soviet Union
VisakhapatnamAndhra PradeshA coastal plant, using imported coking coal
SalemTamil NaduA special steels plant
VijayanagarKarnatakaIndigenous technology

The Steel Authority of India Limited was set up in 1973 to manage the public sector plants. Note the pattern: the older plants sit on the Chota Nagpur plateau and its edges, close to ore and coal, while Visakhapatnam is on the coast because imported coking coal is cheaper to land at a port than to carry inland.

Cotton, jute and the other agro-based industries

The first successful cotton textile mill in India began work at Bombay in 1854, and the industry stayed in Mumbai and Ahmedabad because the black soil of the region grows cotton, the port brought machinery, and capital and labour were available; Mumbai's early nickname was Cottonopolis and Ahmedabad came to be called the Manchester of India. The largest producing state today is Maharashtra together with Gujarat and Tamil Nadu, and Coimbatore alone has so many mills that it is called the Manchester of South India. Jute is different. The first jute mill was set up at Rishra near Calcutta in 1855, and the industry is still concentrated in a narrow belt along the Hugli, because the fibre grows in the delta, the river gives cheap water transport and soft water for processing, Kolkata provides the port and the banks, and cheap labour came from the neighbouring states. Sugar mills follow the cane, since cane loses sucrose after cutting, so Uttar Pradesh and Maharashtra lead; woollen mills are at Kanpur, Ludhiana and Dhariwal, and silk is centred on Karnataka.

Mineral and knowledge-based industries

Aluminium smelting goes where power is cheap, at Korba, Renukoot, Angul, Hirakud and Alupuram. Cement needs bulky limestone, coal and gypsum, and the industry began at Chennai in 1904, spreading across Rajasthan, Madhya Pradesh, Gujarat and Andhra Pradesh. The first large fertiliser plant was at Sindri in 1951. Petroleum refining began at Digboi in Assam, the country's oldest refinery. Automobile plants cluster near Chennai, Pune, Gurugram, Jamshedpur and Kolkata, and the information technology industry grew at Bengaluru, Hyderabad, Pune, Chennai and the National Capital Region, drawn by skilled workers rather than by minerals.

Major industrial regions and nicknames

Geographers count eight major industrial regions: Mumbai and Pune, the Hugli belt, Bengaluru and Tamil Nadu, Gujarat, Chota Nagpur, Visakhapatnam and Guntur, Gurugram, Delhi and Meerut, and Kollam and Thiruvananthapuram.

NicknamePlace
Manchester of IndiaAhmedabad
Manchester of South IndiaCoimbatore
Steel City of IndiaJamshedpur
Detroit of IndiaChennai
Silicon Valley of IndiaBengaluru
Sugar Bowl of IndiaUttar Pradesh

Two ideas tie the chapter together. First, industry concentrates because of agglomeration economies, and industrially developed urban centres are ringed by an agricultural rural hinterland that supplies food, raw material and workers. Second, the reason for a location can change: coal once fixed industry to the coalfields, but electricity, oil pipelines and container ports have loosened that hold, which is why the newest plants are found on the coast and the newest industries in cities with universities.

Exam Point of View

Three kinds of questions come from this chapter. The first is classification: which of these is an agro-based industry, which a basic industry, which a footloose one. The second is location, asked either directly, as in why aluminium smelters are near power stations or why jute mills line the Hugli, or through the vocabulary of the chapter, where agglomeration economies and the agricultural rural hinterland of an industrial centre are the two terms that repeat. The third is the factual list: the year 1907 and Jamshedpur for TISCO, 1854 and Bombay for the first cotton mill, 1855 and Rishra for the first jute mill, 1904 and Chennai for cement, 1951 and Sindri for fertiliser, and the foreign collaboration behind each public sector steel plant, where Rourkela with Germany and Bhilai with the Soviet Union are asked most. Nicknames such as Manchester of India for Ahmedabad and Manchester of South India for Coimbatore are easy marks, and statement-based questions often pair a plant with the wrong state.

Important Facts

First modern steel plantTISCO, Sakchi, now Jamshedpur, 1907
RourkelaOdisha, built with German collaboration
Bhilai and BokaroChhattisgarh and Jharkhand, built with help from the erstwhile Soviet Union
DurgapurWest Bengal, built with British collaboration
Coastal steel plantVisakhapatnam, Andhra Pradesh, which uses imported coking coal
Visvesvaraya Iron and Steel WorksBhadravati, Karnataka, which uses hydel power
Steel Authority of India LimitedSet up in 1973 to run the public sector steel plants
First successful cotton millBombay, 1854
First jute millRishra, near Calcutta, 1855
Cement industryBegan at Chennai in 1904; needs limestone, coal and gypsum
First large fertiliser plantSindri, 1951
Oldest refineryDigboi, Assam
Aluminium smeltersKorba, Renukoot, Angul, Hirakud and Alupuram, sited near cheap power
Major industrial regionsEight: Mumbai-Pune, Hugli, Bengaluru-Tamil Nadu, Gujarat, Chota Nagpur, Visakhapatnam-Guntur, Gurugram-Delhi-Meerut, Kollam-Thiruvananthapuram
Manchester of IndiaAhmedabad; Coimbatore is the Manchester of South India
Detroit of IndiaChennai, for its automobile industry

Practice MCQs on this topic

Q1.GeographyAsked in: Uttar Pradesh · UPPSC Civil Services GS Official PaperHard

Given below are two statements, one labelled as Assertion (A) and the other as Reason (R):

Assertion (A): Ahmedabad is the largest centre of the cotton textile industry in India.
Reason (R): Ahmedabad is located in the major cotton-growing region of India, so it has no problem with raw materials.

Select the correct answer from the codes given below:

  1. A.Both (A) and (R) are true and (R) is the correct explanation of (A)
  2. B.Both (A) and (R) are true but (R) is not the correct explanation of (A)
  3. C.(A) is true but (R) is false
  4. D.(A) is false but (R) is true
Show answer

Correct answer: D. (A) is false but (R) is true

Explanation

The correct answer is D, the assertion is false but the reason is true. Ahmedabad is a very large cotton textile centre and is called the Manchester of India, but it is not the largest in the country; that place belongs to Mumbai, the old Cottonopolis, which grew first because of its port, its mills and its capital, and Maharashtra remains ahead of Gujarat in the industry. The reason, however, is a correct statement in itself: Ahmedabad lies in the black soil tract of Gujarat where cotton is grown in quantity, so raw material has never been a constraint there. Options A and B both treat the assertion as true, which it is not. Option C reverses the position by calling the reason false, although Gujarat is indeed a leading cotton-growing state.

Q2.GeographyAsked in: SSC GD Constable · 24 Jan 2023, Shift 2Medium

What is a group of industries that tend to come together to make use of the advantages offered by the urban centres known as?

  1. A.rural economies
  2. B.amalgamation economies
  3. C.urban economies
  4. D.agglomeration economies
Show answer

Correct answer: D. agglomeration economies

Explanation

The correct answer is D, agglomeration economies. When industries gather at one urban centre, each of them can use the roads, railways, power lines, water supply, banks, insurance offices, skilled workers, component suppliers and repair workshops that the others have brought into being, and the saving in cost that follows from this sharing is called an agglomeration economy. It is the main reason industry forms clusters rather than spreading evenly. Option A is wrong because rural economies is not a term for industrial clustering at all. Option B is wrong because amalgamation means the merger of two firms into one, which is a matter of ownership and not of location. Option C is wrong because urban economies describes the economic life of towns in general, a much wider idea than the specific saving this question asks about.

Q3.GeographyAsked in: SSC GD Constable · 16 Jan 2023, Shift 4Easy

What are the industrially developed urban centres usually surrounded by?

  1. A.agricultural urban hinterland
  2. B.agricultural rural hinterland
  3. C.coastal hinterland
  4. D.seaport hinterland
Show answer

Correct answer: B. agricultural rural hinterland

Explanation

The correct answer is B, an agricultural rural hinterland. An industrial city does not stand alone: the country around it supplies food for its workers, agricultural raw material such as cotton, cane, oilseed and jute for its mills, and labour from the villages, while the city in turn sells manufactured goods and services back to that countryside. The land around a city is rural by definition, and in India it is largely agricultural, so the phrase is agricultural rural hinterland. Option A contradicts itself, since a hinterland cannot be both urban and the countryside surrounding an urban centre. Options C and D are wrong because a coastal or seaport hinterland describes the inland area served by a port, which applies only to coastal cities and not to industrially developed centres generally.

Q4.GeographyEasy

The Bhilai steel plant was set up with the collaboration of:

  1. A.Germany
  2. B.The United Kingdom
  3. C.The erstwhile Soviet Union
  4. D.Japan
Show answer

Correct answer: C. The erstwhile Soviet Union

Explanation

The correct answer is C, the erstwhile Soviet Union. Of the three integrated plants taken up in the Second Five Year Plan, Bhilai in what is now Chhattisgarh was built with Soviet help, and the later plant at Bokaro in Jharkhand came up with Soviet help as well, so the two Soviet plants are Bhilai and Bokaro. Option A is wrong because German collaboration built Rourkela in Odisha, the plant most often confused with Bhilai in this question. Option B is wrong because British collaboration built Durgapur in West Bengal. Option D is wrong because no integrated public sector steel plant of that period was built with Japanese help; Japan's role in Indian industry came later and mainly through the automobile sector. Remember the trio as Rourkela with Germany, Durgapur with Britain and Bhilai with the Soviet Union.

Q5.GeographyMedium

The Rourkela steel plant is located in which state?

  1. A.Jharkhand
  2. B.Odisha
  3. C.Chhattisgarh
  4. D.West Bengal
Show answer

Correct answer: B. Odisha

Explanation

The correct answer is B, Odisha. Rourkela stands in the Sundargarh district of Odisha, on the Brahmani river, and was built in the Second Five Year Plan with German collaboration; it drew iron ore from the Odisha deposits, coal from the Jharia belt and limestone from Purnapani. Option A is wrong because Jharkhand has Jamshedpur, which is a private plant of 1907, and Bokaro, a public sector plant built with Soviet help. Option C is wrong because Chhattisgarh has Bhilai, also Soviet-aided, which is the plant most often interchanged with Rourkela in examination questions. Option D is wrong because West Bengal has Durgapur, built with British collaboration, along with the older Burnpur works of the Indian Iron and Steel Company. All four states lie in or beside the same mineral belt, which is what makes the question worth asking.

Q6.GeographyEasy

India's first modern iron and steel plant was established in 1907 at:

  1. A.Bhadravati
  2. B.Burnpur
  3. C.Sakchi, now Jamshedpur
  4. D.Durgapur
Show answer

Correct answer: C. Sakchi, now Jamshedpur

Explanation

The correct answer is C, Sakchi, now Jamshedpur. The Tata Iron and Steel Company set up its works there in 1907, choosing the site because iron ore, coal, manganese and limestone all lay within a short distance in the Chota Nagpur region, water was available from the Subarnarekha and Kharkai rivers, and the railway ran to the port of Kolkata. Option A is wrong because the Visvesvaraya Iron and Steel Works at Bhadravati in Karnataka came later and is known for using hydel power instead of coking coal. Option B is wrong because the Indian Iron and Steel Company's plant at Burnpur in West Bengal also belongs to a later stage. Option D is wrong because Durgapur is a public sector plant of the Second Five Year Plan, built with British collaboration after independence.

Q7.GeographyMedium

The first successful cotton textile mill in India was started in 1854 at:

  1. A.Ahmedabad
  2. B.Bombay
  3. C.Coimbatore
  4. D.Kanpur
Show answer

Correct answer: B. Bombay

Explanation

The correct answer is B, Bombay. The first successful cotton textile mill began work there in 1854, and the city had every advantage the industry needed: cotton from the black soil of the Deccan, a port through which machinery arrived, capital from its merchants, a humid climate that suited spinning, and workers from the surrounding districts. Option A is wrong because Ahmedabad's mills came a little later, though the city grew into such a centre that it is called the Manchester of India. Option C is wrong because Coimbatore's rise belongs to the twentieth century, when hydel power from the Western Ghats made it the Manchester of South India. Option D is wrong because Kanpur developed as a cotton, woollen and leather centre of northern India, but not as the site of the first mill.

Q8.GeographyMedium

The first jute mill in India was set up in 1855 at Rishra, which lies in the present state of:

  1. A.Bihar
  2. B.Odisha
  3. C.West Bengal
  4. D.Assam
Show answer

Correct answer: C. West Bengal

Explanation

The correct answer is C, West Bengal. Rishra stands on the Hugli near Kolkata, and the mill set up there in 1855 began an industry that is still packed into a narrow belt along that river. The reasons are geographical: raw jute grows in the delta, the river gives cheap water transport and the soft water needed for processing, coal comes from Raniganj and Jharia, and Kolkata provides the port, the banks and the insurance offices. Option A is wrong because Bihar supplied labour to these mills but not the first mill. Option B is wrong because Odisha has no such concentration of jute manufacture. Option D is wrong because Assam grows jute in quantity yet the manufacturing stayed downstream in Bengal, which is exactly the distinction between the growing area and the industrial belt that examiners test.

Q9.GeographyEasy

Which city is known as the 'Manchester of South India'?

  1. A.Chennai
  2. B.Coimbatore
  3. C.Madurai
  4. D.Bengaluru
Show answer

Correct answer: B. Coimbatore

Explanation

The correct answer is B, Coimbatore. The city has a very large number of cotton textile mills and hosiery units, helped by cotton grown nearby, the hydel power of the Western Ghats and a long tradition of engineering workshops that make textile machinery, and so it is called the Manchester of South India, as Ahmedabad is the Manchester of India. Option A is wrong because Chennai is called the Detroit of India for its automobile industry. Option C is wrong because Madurai is known as the temple city and for its handloom weaving rather than for mill industry on this scale. Option D is wrong because Bengaluru is the Silicon Valley of India, a name earned by information technology, and also has aircraft, machine tool and electronics units in the public sector.

Q10.GeographyMedium

Industries whose raw material is light and valuable, so that they are not tied to any particular location, are called:

  1. A.Basic industries
  2. B.Footloose industries
  3. C.Cottage industries
  4. D.Heavy industries
Show answer

Correct answer: B. Footloose industries

Explanation

The correct answer is B, footloose industries. Because their raw material is light, valuable and easy to move, and because they need little power or water, such units are free of the usual pulls of ore, coal and bulky material; electronics, computer assembly, diamond cutting and software are the standard examples, and they depend mainly on skilled labour and good communications. Option A is wrong because basic or key industries, such as iron and steel, supply other industries with their raw material and are strongly tied to minerals. Option C is wrong because a cottage industry is defined by its scale and its household organisation, not by its freedom of location. Option D is wrong because heavy industries handle bulky material and are the very opposite of footloose, being drawn to the mine, the coalfield or the port.

Q11.GeographyEasy

Which one of the following is an agro-based industry?

  1. A.Cement
  2. B.Aluminium smelting
  3. C.Sugar
  4. D.Petrochemicals
Show answer

Correct answer: C. Sugar

Explanation

The correct answer is C, sugar. An agro-based industry uses a farm product as its raw material, and sugar is made from sugarcane, which is why the mills stand in the cane belts of Uttar Pradesh, Maharashtra, Karnataka and Tamil Nadu; cotton textiles, jute, vegetable oil, tea and paper from bagasse belong to the same class. Option A is wrong because cement is mineral-based, resting on limestone, coal and gypsum. Option B is wrong because aluminium smelting is mineral-based as well, using bauxite, and is besides tied to cheap electricity. Option D is wrong because petrochemicals are based on mineral oil and natural gas and grow up beside refineries. The habit worth forming is to ask where the raw material comes from, the field, the mine, the forest or the sea.

Q12.GeographyHard

The Visvesvaraya Iron and Steel Works, which uses hydel power instead of coking coal, is located at:

  1. A.Bhadravati in Karnataka
  2. B.Salem in Tamil Nadu
  3. C.Vijayanagar in Karnataka
  4. D.Visakhapatnam in Andhra Pradesh
Show answer

Correct answer: A. Bhadravati in Karnataka

Explanation

The correct answer is A, Bhadravati in Karnataka. The works, begun in the time of the Mysore state and later named after Sir M. Visvesvaraya, lies on the Bhadra river and is remembered in geography as the plant that uses electricity generated from water power, along with charcoal from the nearby forests, because the region has no coking coal of its own. Option B is wrong because Salem in Tamil Nadu is a special and stainless steels plant of a later period. Option C is wrong because Vijayanagar in Karnataka is a modern plant built with indigenous technology, and although it lies in the same state it is a different site. Option D is wrong because Visakhapatnam is the coastal plant that works on imported coking coal landed at its own port.

Frequently Asked Questions

What are agglomeration economies?

The savings a firm makes because other firms are already there. A new factory in an industrial city finds roads, power lines, water supply, banks, insurance, skilled workers, component suppliers and repair workshops in place, so its own costs are lower than they would be on an isolated site. This is why industries form clusters instead of spreading evenly over the country.

Why are jute mills concentrated along the Hugli?

Because every requirement lies together there: raw jute grows in the Ganga-Brahmaputra delta, the river gives cheap inland water transport and soft water for processing, coal comes from the nearby Raniganj and Jharia fields, Kolkata supplies the port for export as well as banking and insurance, and cheap labour came from West Bengal, Bihar, Odisha and Uttar Pradesh.

Why is the Visakhapatnam steel plant on the coast?

Because it works largely on imported coking coal, which is cheaper to unload at a port than to carry inland, and because finished steel can be shipped out from the same port. The older plants such as Jamshedpur, Bhilai and Bokaro were placed inland instead, close to the iron ore and coal of the Chota Nagpur plateau and its neighbourhood.

Which industries are called footloose?

Those that are not tied to any particular site because their raw material is light, valuable and easily transported, and because they use little power or water. Electronics, computer assembly, diamond cutting and software are the usual examples; such units depend mainly on skilled workers and good communications, so they can be set up in or near almost any city.

Why are sugar mills located close to cane fields?

Sugarcane is bulky and begins to lose its sucrose content within a day or two of cutting, so the crushing must happen quickly and the cane cannot be carried far. This makes sugar a weight-losing, perishable, raw-material-oriented industry, and it explains why the mills are scattered through the cane belts of Uttar Pradesh, Maharashtra, Karnataka and Tamil Nadu.

Which was the first modern iron and steel plant in India?

The plant of the Tata Iron and Steel Company, set up in 1907 at Sakchi, now called Jamshedpur, in the Chota Nagpur region. It had iron ore, coal, manganese and limestone within a short distance, water from the Subarnarekha and Kharkai rivers, and rail access to the port of Kolkata.

Sources

  • Contemporary India II (Class X), Chapter 6: Manufacturing Industries — NCERT
  • India: People and Economy (Class XII), Chapter: Manufacturing Industries — NCERT
  • Integrated Steel Plants of the Public Sector — Ministry of Steel, Government of India
View all