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10 min read

Notes

Indian Geography - Industries

Definition/Introduction

Industries are defined as economic activities that involve the manufacturing of goods and services. In India, industries can be broadly classified into primary, secondary, and tertiary sectors, contributing to economic development and employment generation.

Historical Evolution

The industrial development in India can be traced back to the British colonial period when the focus was primarily on raw materials extraction rather than manufacturing. Post-independence, the emphasis shifted towards building a self-reliant industrial base.

Classification/Types

1. **Primary Industries**: Involves the extraction of natural resources (e.g., agriculture, mining).

2. **Secondary Industries**: Focuses on manufacturing processes (e.g., textiles, chemicals).

3. **Tertiary Industries**: Services that support primary and secondary industries (e.g., transportation, finance).

Important Provisions/Features

  • The contribution of small-scale industries is significant, representing around 40% of the turnover in manufacturing since 1992.
  • Public Sector Undertakings (PSUs) are critical for industrial development, with major bodies like NTPC and ONGC leading the way.
  • The Industrial Policy of 1991 marked a significant shift towards liberalization and privatization.
  • Landmark Judgments

  • **Minerva Mills vs. Union of India (1980)**: Emphasized the importance of the Directive Principles of State Policy in industrial growth.
  • **KP Varma vs. State of UP (1994)**: Clarified the role of the government in promoting industries.
  • Amendments

  • The 1991 Industrial Policy was a significant shift in India's approach to industrialization, focusing on liberalization and globalization.
  • Comparison Tables

    | Feature | Core Industries | Small Scale Industries |

    |---------|----------------|-----------------------|

    | Contribution to GDP | High | Moderate |

    | Employment Generation | Significant | Major |

    | Investment Requirement | High | Low |

    UPSC Exam Focus

  • Frequently asked aspects include the role of small-scale industries, contributions of PSUs, and the significance of core industries.
  • Tricky areas often involve the definitions and classifications of various industrial sectors, as well as the implications of historical policies.
  • Recent Developments

  • The **Small Industries Development Bank of India (SIDBI)** received an equity infusion of ₹5,000 crore, which is crucial for supporting small industries.
  • **Trucks-on-Trains Initiative** by Indian Railways aims to enhance freight movement, indicating a shift towards sustainable transport solutions in industrial logistics.
  • **Pangolakha Wildlife Sanctuary Forest Fire** highlights the need for industries to consider environmental impacts during development.
  • ### Connection to Static Concepts

    These recent developments related to industries can be linked to the ongoing trends in industrial policies and environmental considerations in industrial planning, indicating the UPSC's focus on integrated approaches to industrial growth.

    ### Exam Relevance

    UPSC may frame questions around the impacts of these initiatives on industrial efficiency and sustainability, along with the role of SIDBI in promoting small industries.

    ### Possible Question Angles

  • Analyze the impact of SIDBI's equity infusion on small industries.
  • Discuss the implications of the Trucks-on-Trains initiative on industrial logistics.
  • Key Concepts

    Small Scale Industries: Contribute to 40% of the gross turnover in the manufacturing sector (1997).

    Indian Industrial Policy 1991: Liberalization, privatization, and globalization of the economy.

    Public Sector Undertakings: Defined under the Companies Act, 1956; contribute significantly to the economy.

    Core Industries: Eight core industries constitute 37.90% of the Index of Industrial Production (IIP).

    Industrial Development: Focus on heavy industries during post-independence period; absence of these during British rule (1999).

    Consumer Price Index Number: Brought out by the Labour Bureau; important for understanding inflation.

    Industrial Centers: Major centers include Pune for automobiles, Tuticorin for pearl fishing, and Marmagao for shipbuilding (1999).

    NTPC: Largest power utility in India; plays a crucial role in energy production.

    Important Facts

    • •[1992] Contribution of small scale sector to gross turnover in manufacturingAround 40%, a significant aspect often questioned in UPSC.
    • •[2012] Core Industries constitute 37.90% of IIPCore industries are key for understanding industrial performance.
    • •[2002] NTPC is the largest power utility in IndiaImportant for energy sector questions.
    • •[1991] Public Sector Undertakings contribute significantly to the economyRelevant for historical policy questions.
    • •[2015] Consumer Price Index Number for Industrial Workers is brought out by Labour BureauEssential for inflation and economic questions.
    • •[1991] Industrial Policy of 1991 marked a shift towards liberalizationKey for economic policy analysis.

    Mnemonics & Memory Tricks

    Core Industries

    C-F-N-C-R-I (Cement, Fertilizers, Natural gas, Coal, Refinery products, Infrastructure)

    Types of Industries

    PST (Primary, Secondary, Tertiary)

    Key PSUs

    N-O-M (NTPC, ONGC, BHEL) - remember for energy and engineering sectors.