Economic Geography

1. Sugar Industry
• Geographical Conditions of Growth
- Temperature: 21 to 27 C
- Rainfall: 75-150 cm
- Soil: Deep rich loamy soil rich in nitrogen, calcium and phosphorous
• Distribution

• Location Factors
1. Raw Material
2. Nearness to Farms
3. Cheap Transportation Facilities
4. Capital, market and power

• Reasons for shifting of sugar industry from north India to Peninsular India
5. High Yield
6. High Sucrose Content
7. Long crushing season
8. Modern machinery
9. Cooperative holding

• Signi cance
- Multiple linkages
- Employment
- Biofuel
- Bagasse
• Problems
- Sugarcane Crops
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 - Sugar Mill Industry
- Policy Issues
• Government Initiatives
- De-regulation of sugar sector
- Facilitated supply of ethanol under Ethanol Blending Petrol programme
- SEFASU: Scheme for Extending Financial Assistance to Sugar Undertakings

• Measures Suggested by Rangarajan Committee

- Removing distance norm
- Reviewing Revenue Sharing Policy
- Exports and Byproducts
- Production cost
- RnD
- Diversi cation by mills

2. Jute Industry
• Geographical Conditions of Growth of Jute
1. Temperature: 25-30 C
2. Climate: Warm and wet with high relative humidity 70 to 90%
3. Rainfall: High 150 to 200 cm
4. Soil: New grey alluvial soil
5. Land: Plain land with a gentle slope

• Geographical Distribution

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 • Location Factors
1. Availability of Quality Jute
2. Transportation
3. Cheap Labour
4. Water
5. Market
6. Power

• Reasons for high concentration of jute mills in West Bengal

- Raw material
- Water
- Transportation
- Climate
- Energy Availability
- Labour
- Port
- Market
- Capital Availability
• Signi cance of Jute Industry
• Economic
- Labour Intensive Industry
- Balancing regional development
- Useful in civil engineering
- Export earnings
• Environment
- Suitable substitute for plastic
- Fertility of soil

• Problems of Jute Industry

6. Shortage of raw material
7. International Competition
8. Obsolete Machinery
9. Low acreage area
10. Competition from substitutes
11. Strikes and Lock-outs
12. Decrease in the demand of jute products
13. Lack of marketing strategy
14. Not waterproof

• Government Initiatives
- Schemes:
• Incentive scheme for acquisition of plant and machinery
• Jute-ICARE (Improved Cultivation and Advanced Retting Exercise)
• Jute Technology Mission
- Policies and Executive actions:
• Mandatory Packaging
• National Jute Policy
• Jute SMART
• Jute Corporation of India
• Jute Geo Textiles and Agro-Textiles
• National Jute Board

• Measures
• Improve quality
• Diversi cation of jute products
• Reduce cost
• Increase cultivation
• Encourage usage

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 3. Cotton Textile Industry
• Geographical Conditions of Growth of Cotton
- Temperature: It is a crop of tropical and sub-tropical areas
- Climate: 210 frost free days in a year
- Rainfall: 50 to 100 cm
- Soil: Black soil
• Geographical Distribution

• Location Factors
- Availability of Raw material
- Transportation facilities
- Accessibility of Ports
- Cheap Labour
- Market
- Moist climate
- Skilled and semi-skilled labour

• Signi cance of Cotton Industries

- Linkage with agriculture
- Cultural and traditional appeal
- Diversi ed Industries
- Employment Generation
- Export Potential
- Strong backward and forward linkages

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 • Problems of Cotton Textile Industry
1. Low productivity of labour
2. Scarcity of raw cotton
3. Fragmented Industry
4. Erratic Power Supply
5. Outdated Technology
6. Sti Competition
7. Non- exible labour laws
8. Lack of scale
9. Sick Mills

• Government Initiatives
- Amended Technology Upgradation Fund Scheme (ATUFS)
- Scheme for Integrated Textile Parks (SITP)
- SAMARTH (Scheme For Capacity Building in Textile Sector)
- North East Region Textile Promotion Scheme
- Power-Tex India
- National Textile Policy
- 100% FDI

• Measures
• Investment in new technology
• Flexible labour laws
• Federal support
• Mega apparel park
• Training for workers
• One-window solution: The government should provide one-window solution to deal with the
problems of the industry.

4. Tea Industry
• Geographical Conditions of Growth
- Temperature: 20 to 30 C
- Climate: Tropical and Sub-Tropical plant grows well in hot and humid climate
- Rainfall: High 150 to 300 cm
- Soil: Well drained, deep friable and loamy soil
- Labour: Cheap and e cient labour
- Land Type: Slopes of hills having humid climate

• Geographical Distribution

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• Problems in the Indian Tea sector
1. Competition
2. Decline in productivity and quality
3. Poor worker conditions and low wages
4. Small Tea growers
5. Ecological Imbalance
6. Climate Change

• Government Initiatives
• Revenue Insurance Scheme for plantation crops
• Tea Board
• Asian Tea Alliance

5. Coal Industry
• Distribution of Coal in India and World

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• Signi cance of coal in India

1. Domestic Energy Need
2. Growth in Secondary Sector
3. Backward and Forward Linkages
4. Source of Linkages
5. Source of revenue
6. Cheapest source of energy
7. Easier to mine and transport
8. Rising energy demand

• Challenges of coal sector in India

9. Economic Challenges
10. Administrative Challenges
11. Technology Challenges
12. Environmental Challenges
13. Social Challenges

• Government Initiatives
• Schemes
- SHAKTI
- PM Khanij Kshetra Kalyan Yojana
- UTTAM (Unlocking Transparency by Third Party Assessment of Mined Coal) App
• Policy Changes
- New Coal Linkage Policy
- Online Coal Clearances System
- Coal Allocation Monitoring System (CAMS)
• Legislations
- Coal Mines (Special Provisions) Act, 2015

6. Iron and Steel Industry

• Location Factors
- Raw Material
- Labour
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 - Transportation
- Market
- Port Location
- Technology
- Government Policy
• Distribution
• India

• World

• Signi cance of Iron and Steel Industry

- Link to development
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 - Backbone of physical infrastructure
- Provides strong forward and backward linkages
- Important for regional development
- Boost transportation

• Challenges
- Demand and Competition
- Ine ciency
- Funding Issue
- Bottleneck
- Obsolete Technology
- Under-utilization of Labour
- Cheap imports

• Government Initiatives
- National Steel Policy 2017
- Steel Scrap Recycling Policy
- E-platform
- 100% FDI
- Digitisation of mines

• Way Forward
- Modernisation Planning
- Long term nancing
- Anti dumping duties
- Servicing of bad loans
- Increased foreign investment

7. Footloose Industries:
Footloose industry is a general term for an industry that can be placed and located in a
wide variety of places without much e ect from factors such as raw material. These are
called footloose as these types of industries are prone to relocation. For example, the
diamond and computer chips belong to the footloose industry.

• Important characteristics of footloose industries

• Location
• Less Labour Force
• Eco-friendly
• Less transport cost
• Small plant size
• Less raw material dependence
• Skilled workers
• Factors responsible for location of footloose industries
• Connectivity
• Cheap Land
• Accessibility
• Close to similar industries
• Raw material dependent
• Close to research centre

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8. Information Technology
• Distribution

• Importance
Economic
• Revenue Generation: The total revenue generated by the IT and BPM industry in India
was over 191 billion U.S. dollars in 2020
• Export Potential: IT and Software sectors are the core of India’s service exports and thus
bring in high growth and revenue.
• Employment: The sector is responsible for employing 4 million and also forms a large
share of Indian professional share.
• Investments: The IT sector attracts the 2nd most FDI in ows in India through the sector’s
100% FDI limit.
• Lower Labour costs: Indian developers charge much less compared to that in the US and
UK, thus making outsourcing to India easier.
• Economic Transition: The rise in the IT sector helps India transition from an Agro-based
Economy towards more secondary and tertiary sector based.
• Economic Growth: The Software sector is responsible for rising Indian growth rates since
the last 2 decades.
• E-Commerce: The strength of India’s IT sector helps in boosting e-commerce and thus
the manufacturing sector.
• Innovation: The sector helps bring innovative softwares and technologies for local Indian
needs as well as for the world.

Social
• Rural Development: The IT revolution can help in nancial services, education, health
services, long distance communications, and expertise on agriculture and climate, and
also markets and buyers.
• Example: ITC’s e-Choupal links vegetable procurement with the farmers through the
internet. Skilled Employment: The sector promises to boost the standard of jobs from
the unskilled towards skilled technical jobs.

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 • Woman Empowerment: Many apps and softwares have been developed to provide
security, nancial empowerment as well as enable education.
• Example: Mahila E-Haat helping women sell their products online.
• Healthcare: The sector contributes in making innovative products like telemedicine, online
consultation of doctors as well other clinical technology to detect diseases.
• Education: The Pandemic made education more online based, the sector enabled multiple
innovative media for such online teaching.
• Elderly/Disabled: Many apps and softwares have helped the elderly and disabled to lead
a proper life without being restricted.
• Example: Reserve Bank of India launched a mobile application MANI to help the visually
impaired to identify banknotes.

Strategic
• Defence Technology: The IT sector has frequently collaborated in making defence and
strategic weapons softwares.
• Example: DRDO’S IMSAS software provides global Maritime Situational Picture, Marine
planning tools and Analytical capabilities to Indian Navy.
• Space Technology: The indigenous software development is also crucial for Indian space
technology and its development.
• Border Surveillance: The BOSS system has been deployed at the Ladakh border area for
day and night surveillance.
• Weather: helps in generating models for climate and weather systems for area or globally.
• E-Governance: The IT sector plays a vital importance for the development and growth of
egovernance in India.

9. Industrial Corridors

• Features:
• High-speed transportation network – rail and road
• Ports with state-of-the-art cargo handling equipment
• Modern airports
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 • Special economic regions/industrial areas
• Logistic parks/transshipment hubs
• Knowledge parks focused on catering to industrial needs
• Complementary infrastructure such as townships/real estate
• Other urban infrastructure along with enabling policy framework

• Signi cance:
• Economic:
1. Logistic infrastructure: Provide necessary logistics infrastructure needed to reap
economies of scale, thus enabling rms to focus on their areas of core competence.
2. Increase export: Production costs would come down due to improved transportation
system and agglomeration e ect, making Indian goods competitive in domestic as well
as foreign markets.
3. Employment opportunities: The production of export surplus would generate
employment opportunities and raise per capita incomes.
4. Economic development: The manufacturing and the infrastructure sector will see a
huge improvement in the country which will contribute to the GDP, and lead to overall
economic prosperity.
5. Increase investment: These will attract investments in manufacturing and position India
as a strong player in the Global Value Chain.
6. Increase competitiveness: These are expected to enhance India’s competitiveness in
manufacturing through the creation of quality infrastructure ahead of demand.
• Socio-Economic:
1. Ease burden on urban centre: People would nd job opportunities close to their homes
which would curb migration towards cities, thus preventing stress on already burdened
urban landscape.
2. Raise standard of living: The spread e ects of industrial corridors in socio-economic
terms are many such as setting up of industrial townships, educational institutions,
roads, railways, airports, hospitals that will generate employment and raise standard of
living.
3. Preserve family as an institution: People would nd job opportunities close to their
homes and would not have to migrate to far-o places thereby preserving family as an
institution. This will also increase social integration in the country.
• Environmental bene t: Prevention of concentration of industries in one particular location
would prevent exploitation of environment as well as ensure balanced development in the
country.

• Challenges:
1. Land Acquisition: Since the industrial corridor would cut across the length of the state,
acquisition of land has been slow because of legal hurdles and the amount of
compensation.
2. Destruction and displacement: Massive investment in industrial corridor will pave the way
for large human displacement and destruction of fertile agricultural land.
3. Financial feasibility: The economic and nancial feasibility of industrial corridors is still
under consideration. Which need to be ensured by attracting potential investors to set up
manufacturing units at NMIZ.
4. Fear of widening gap: Fear of widening Rural-urban gap in terms of Human Development,
economic well-being and standards of living.
5. Proper assessment: The challenges while creating ICs would include correctly assessing
the demand and viability, transport options for goods and workers, land values, and
economic incentives for companies.

• Way Forward:
1. Industrial inclusion: There is a need of inclusion of industrial point of view for better
compatibility with the current need of industries.
2. Proper investment channel: Making industrial corridor is a big project and need a viable
funding channel for the completion of project which need to be taken care of.
3. Private participation: A private parties can be invited for the private expertise for the
making of industrial corridor.

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 4. Macroeconomic stability: It is necessary to have a stable exchange rate so that foreign
players with investments in India can avoid currency risks.
5. Clear taxation regime: India’s taxation regime needs to clearly de ne the tax liabilities of
foreign rms operating in India as permanent establishments and otherwise.

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