Large Scale Industries

A business can range from a single proprietor enterprise to a large corporation that employs thousands of workers across multiple countries.

Based on the scale of business, organizations are classified as micro-enterprises, small-scale enterprises, large scale industries, public enterprises, and multinational corporations.

Industries that require huge infrastructure and manpower with an influx of capital assets are Large Scale Industries. In India, large-scale industries are the ones with a fixed asset of more than one hundred million rupees or Rs.10 crores.

The Indian economy relies heavily on such industries for economic growth, the generation of foreign currency, and the creation of job opportunities for millions of Indians.

Large Scale Industries examples :

Indian Industries that come under the umbrella of a large scale industry are the cotton industry, tea industry, jute cement, paper industry, engineering industry, food processing, information and electronic technology, and automobile industry.

The following are the major large scale industries in India :

  • 1. Iron and Steel industry
  • 2. Jute industry
  • 3. Cotton and textile industry
  • 4. Sugar industry
  • 5. Fertiliser industry
  • 6. Paper industry
  • 7. Silk industry
  • 8. Petroleum and Natural gas

1. Iron and Steel Industry

First steel industry at multi, Near Jharia, West Bengal – Bengal ironworks company in 1870. First large scale steel plant TISCO at  Jamshedpur in 1907 followed by IISCO at burn per in 1919. Both belonged to the private sector.

2. Jute Industry

The jute industry is an important industry for a country like India because not only it earns foreign exchange but also provides substantial employment opportunities in the agriculture and industrial sectors.

 Its first modernised industrial unit was established at a Reshra in West Bengal in 1855.  The jute industry in the country is traditionally export-oriented.

India ranks number one in raw jute and jute goods production and number two in the export of jute goods in the world.

3. Cotton and textile industry

Oldest industry in India and employs the largest number of workers. It is the largest organised and broad-based industry which accounts for 4% of GDP,  20% of manufacturing value-added and one-third of total export earnings.

The first Indian modernised cotton cloth mill was established in 1818 at fort Gloaster near Calcutta. But this mill was not successful. The second mill names “Mumbai’s spinning and weaving Co.” was established in 1854 at Bombay by KGN and Daber.

4. Sugar industry

The sugar industry is the second largest industry among agriculture-based industries in India. India is now the largest producer and consumer of sugar in the world. Maharashtra contributes over one-third of the Indian total sugar output, followed closely by Uttar Pradesh.

5. Fertiliser industry

India is the third-largest producer of nitrogenous fertilizers in the world.

6. Paper industry

The first mechanised paper mill was set up in 1812 at Serampore in West Bengal. The paper industry in India is ranked among the 15 top Global paper industries.

7. Silk industry

India is the second-largest country in the world in producing natural Silk.

At present,  India produces about 16% of the Silk of the World. India enjoys the distinction of being the only country producing all the five known commercial varieties of silk example Mulberry, Tropical Tussar, etc.

8. Petroleum and natural gas

The first successful Oilwell was dug in India in 1889 at Digboi, Assam. At present, a number of regions with oil reserves have been identified and oil is being extracted in these regions.

Advantages of Large Scale Industries

1. Economies in the cost of production: The large scale production reduces the cost of production to a considerable extent.

In these industries power in the form of coal and electricity etc. is required in great quantities. The industrialist can purchase them at cheap rates which reduces the first unit expenditure.

The production is made with the help of big machines. Therefore, products manufactured by big machines are generally sold at a cheap rate.

2. Division of Labour: Large scale production is always associated with more and more divisions of labour because in these units machinery is used to a large extent.

Therefore, with the use of machinery per worker output increases and all the benefits which the division of labour provides are reaped automatically.

3. Able Organizers: The large scale production requires able and efficient organisers which requires the better remunerative facilities. It is possible only when the industries are running on a large scale.

On account of the able management that the cost of production is less and the quality of the product becomes superior.

4. Economies of information: Economies of information are the advantages of an industry derived from the publication of trade and Technical journals and the research centres. Research and experiment are also centralised in a localised industry.

5. Specialization: When an industry grows, it becomes possible to split up some of the processes which are taken up by special firms. For example, cotton mills can specialize in the production of sarees, Shirting, clothes etc.

6. Advantages to Consumers: Consumers are the great beneficiaries in the case of large scale production. They get good articles at cheap prices and thereby the standard of living of the society is raised.

Disadvantages of Large Scale Industries

1. Evils of Factory System: The large scale production is accompanied by all the evils of the factory system like overcrowding, density, pollution, bad morals, etc. Dirty habits of drinking and gambling spread very easily.

2. Danger of Over-Production: The large scale organisation results in overproduction at times, so demand cannot be properly estimated. At last, prices fall and depression sets in.

3. Less Supervision: A large scale production cannot pay full attention to every detail in various departments. Costs often rise on account of the dishonesty of workers. Thus, due to inefficient and inadequate supervision, the cost of production goes up.

4. Monopoly: The large scale production results in the localisation of industries. As a result, the bigger fish swallows, the smaller ones, and cut-throat competition and monopolies result.

5. Lack of Adaptability: As huge capital is invested in large scale production it is very difficult to bring about a change in the scale of production according to the circumstances.

6. Unequal Distribution of Wealth: All wealth and incomes of the country get concentrated in the pockets of big producers due to large scale production.

There is an unequal distribution of wealth and resources on account of large scale production. The rich become richer and the poor become poorer.

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