INTRODUCTION

Manufacturing is the conversion of raw materials into useful products. These manufactured things were created from raw ingredients to produce finished goods. These raw materials used in the manufacturing sector can either be in their natural form, such as cotton, wool, iron ore, etc., or they can be in a semi-processed form, such as cotton yarn, pig iron, etc., which can be used to create additional useful products. Therefore, a finished good from one industry might be used as a raw material in another.

Without developing its industries, a nation cannot experience economic development. The degree of industrial progress and a nation’s level of economic success are directly correlated. Highly developed industries are responsible for the success of developed nations like the USA, Japan, and Russia. Industrially underdeveloped nations continue to be economically backward because they export their natural resources and import completed goods at higher prices. About 30% of the gross domestic product in India was produced by manufacturing. About 28 million people are employed by these sectors. As a result, the economy and employment are heavily reliant on the industrial sector.

History

With the founding of the first cotton textile factory in Mumbai in 1854, which was mostly funded by Indian wealth and entrepreneurship, modern industrial development in India had its start. The jute industry got its start in 1855 when a jute mill was built with foreign investment and initiative in the Hooghly Valley near Kolkata. In Raniganj, coal mining initially began in 1772. In 1854, railways were first used. In Jamshedpur, the Tata Iron and Steel Plant was founded in 1907. Cement, glass, soaps, chemicals, jute, sugar, and paper, as well as other medium- and small-sized industries, followed. Prior to independence, industrial production was neither sufficient nor diverse. The economy was poor at the time of independence, with agriculture accounting for more over 60% of the GDP and the majority of export revenues. India has recently demonstrated signs of rising to the top of the economic world after 60 years of independence. India’s industrial growth can be separated into two stages. During the initial period, the government gradually strengthened its authority over several economic sectors (1947-1980). It took action to liberalise the economy between 1980 and 1992 during the second phase (1980–1977). These actions were a little impromptu. After 1992, the liberalisation process as a whole became more targeted and fundamentally altered.

Many heavy and medium industries were established after independence thanks to systematic industrial planning carried out under various five-year plans. The industrial policy’s main goals were to diversify the economy and eliminate regional inequities. To become self-sufficient, native skills were developed. India’s ability to advance in the industrial sector is a result of these efforts. We export a lot of industrial products to different nations today.

Classification

A)

Agro-Based Industry

Some examples of agro-based industries include the textile, sugar, paper, and vegetable oil sectors. Agriculture-related items serve as the raw material for several industries. The largest organised sector industry is the textile sector. It includes.

(i) Cotton textiles, (ii) Woolen textiles, (iii) Silk textiles (iv) Synthetic Fibres and (v) Jute Textile Industries. 

The industrial sector has long included textiles as a significant element. It contributes to a third of export revenue and nearly a fifth of industrial output. The only industry that comes close to it in terms of employment is agriculture.

Mineral Based Industry

Mineral-based industries are those that use minerals as their primary raw material. The most significant of these industries is the iron and steel sector. Other significant mineral-based industries include those in engineering, cement, chemicals, and fertilizer.

1. The Tata Iron and Steel (TISCO)
2. The Indian Iron and Steel Company (IISCO)
3. Visvesvaraiya Iron and Steel Works Ltd. (VISL)
4. Rourkela Steel Plant
5. Bhilai Steel Plant
6. Durgapur Steel Plant
7. Bokaro Steel Plant

B) 

C)

D) 

Industries Clusters

India’s levels of industrial development vary from region to region. At other places, Indian enterprises have gathered in groups. The majority of India’s industrial areas have grown up around important ports like Kolkata, Mumbai, and Chennai. These industrial areas benefit from having access to markets, energy, raw materials, and capital. Three of the six major industrial regions that emerged are in the areas surrounding ports.

1. Hooghly Industrial region

2. Mumbai – Pune Industrial region

3. Ahmedabad – Vadodara region

4. Madurai – Coimbatore – Banglore region

5. Chhota Nagpur plateau region

6. Delhi and Adjoining region

IMPACT OF ECONOMIC LIBERALIZATION

Before and after 1992, India’s industrialisation process can be separated into two distinct phases. The Indian economy quickly diversified and grew throughout the first forty years following independence. But strict controls and rules accompanied this rise. The Indian government changed its economic policy from state control to market forces in August 1992. It was considered that domestic and international private capital and business should be given more authority. The new industrial policy of liberalisation, privatisation, and globalisation was therefore established in August 1992 as a response. Although having significant social, economic, political, and other ramifications, the immediate purpose of these changes in economic policy was to tide over the balance of payments crises.

Liberalization refers to the government playing a smaller role and the market playing a larger one, or to the government’s liberal approach to the creation and management of industries. It was hailed as the answer to all of India’s economic woes. The fruits of 15 years of literalization, however, are not particularly appetising. The wealth divide between rich and poor has widened. The ability to produce items for mass consumption has not increased. The desired rate of growth in employment opportunities has not been achieved. Private money will acquire ownership of public companies through privatisation, allowing it to invest in and operate in additional industrial areas. Utilizing privately owned resources for public use is the primary goal of privatisation.

Here are five important points about the impact of economic liberalization on the defense sector in India:

1. Increased Foreign Direct Investment (FDI): Economic liberalization allowed for higher limits on FDI in the defense sector, making it possible for foreign companies to invest up to 74% in Indian defense manufacturing (100% with government approval). This has helped attract global defense companies and bring advanced technologies to India.

2. Boost to Private Sector Participation: Liberalization opened the defense sector to private companies, breaking the government monopoly. Indian private firms like Tata, Larsen & Toubro, and Mahindra now contribute to defense manufacturing, increasing competition and innovation in the sector.

3. Development of Defense Manufacturing Hubs: Liberalization has led to the development of defense corridors, such as the Tamil Nadu and Uttar Pradesh Defense Corridors, designed to encourage defense production and exports, boosting local industries and job creation.

4. Modernization of Armed Forces: With easier access to foreign technology and partnerships, India’s armed forces have been able to modernize faster. Advanced equipment, like fighter jets, missiles, and surveillance systems, have been introduced, improving the overall capability of the Indian military.

5. Defense Exports Growth: Economic liberalization has supported India’s goal of becoming a major defense exporter. Reforms allowed Indian defense companies to collaborate with global firms, leading to increased exports of military equipment, thus contributing to India’s economic growth and global standing in defense manufacturing.

In the current stage of globalization, national economies are becoming more economically interdependent with one another. The economic gap between countries is reduced by removing any obstacles obstructing the free flow of people, capital, services, and technology between them. Globalization has had a significant impact on people’s consumption patterns and lifestyles. The world has been transformed into a market today. The value system has been impacted by globalisation as well.