Chapters :

Industry & Infrastructure – 05

Iron and steel industry

  • First steel industry at Kulti, Near Jharia, and West Bengal – Bengal iron
    works company in 1870. First large scale steal plant TISCO at Jamshedpur in 1907 followed by IISCO at Burnpur in 1919. Both belonged to private sector.
  • The first public sector unit was “Vishveshvaraya Iron and Steel works” at Bhadrawati. All these are managed by SAIL (at present all important steel plants except TISCO, are under public sector).
  • Steel Authority of India Ltd (SAIL) was established in 1974 and was made responsible for the development of the steel industry.
  • Presently India is the eighth largest steel producing country in the
  • India is the second largest producer of crude steel during 2018
  • India is the largest producer of sponge Iron in the world.
  • The per capita steel consumption is 70.9kg in 2018.

Jute industry

  • 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 agriculture and industrial sectors.
  • Its first modernised industrial unit was established at Reshra in West
    Bengal in 1855. The jute industry in the country is traditionally export oriented.
  • India ranks number one in the raw jute and jute goods production and
    number two in export of jute goods in the world.

Cotton and textile industry

  • Oldest industry of India, and employs 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 named “Mumbai’s Spinning and Weaving Co.” Was established in 1854 at Bombay by KGN Daber.
  • India is the second largest manufacturer and exporter in the world.
  • Cotton industry accounts for 12% of industrial production, 4% of GDP and 13% of exports in 2017-18.
  • Textile industry is an ancient industry of the Indian subcontinent from Roman and Greek times.
  • India is the second largest manufacturer and exporter in the world.
  • It contributes 12.6% to manufacturing and 2.3% of GDP. India has a 5% share of global trade.
  • Policies for textile industry
  • New textile policy 2020
  • Knitting and Knitwear Sector scheme: Government has launched a separate scheme for development of Knitting and Knitwear Sector to boost production in knitting and knitwear cluster at Ludhiana, Kolkata and Tirupur.
  • Government is implementing Amended Technology Up-gradation Fund Scheme (ATUFS) for technology up-gradation of the textile industry to incentivize production with an outlay of Rs.17,822 crore during 2016-2022. It is expected to attract investment of Rs.1 lakh crore and generate 35.62 lakhs employment in the textile sector by 2022.
  • Government has launched a special package of Rs.6000 crore in 2016 to boost investment, employment and exports in the garmenting and made-ups sector with the following components viz., (i) full refund is provided under Remission of State Levies (ROSL) to the exporters for the State level taxes; (ii) production linked additional incentive of 10% is provided under the Amended Technology Up-gradation Fund Scheme (ATUFS).
  • National Handloom Development Programme, Comprehensive Handloom Cluster Development Scheme, Handloom Weaver Comprehensive Welfare Scheme and Yarn Supply Schemes.
  • National Handicrafts Development Programme (NHDP) and Comprehensive Handicraft Cluster Development Schemes.
  • Power Tex India: A comprehensive scheme for Powerloom sector.
  • Silk Samagra – An integrated Scheme for development of silk.
  • Jute ICARE for increasing the income of farmers through different interventions.
  • North East Region Textile Promotion Scheme (NERTPS) for promoting textiles industry.

The Government is implementing the Scheme for Integrated Textile Park (SITP) which provides support for creation of world-class infrastructure facilities for setting up of textile units. Till date, 56 textile parks have been sanctioned under SITP which are under various stages of implementation.

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