Let us pause for a moment to consider the paints that we use to paint our homes, the clothes that we wear on a daily basis, the cars that we drive to go around, the cellphones that we use to keep connected, and many other large and small items that we buy, all of which we receive from a store.
Where do they come from, though? You are correct about the industries. Each industry component, such as producers, distributors, and retailers, work together like gears in a clockwork to ensure that the finished product reaches our doorstep in perfect synchrony. An industry is a group of comparable companies that get together to make and sell a similar sort of product or service.
So, the clothes we wear are made in the textile sector, the cars we drive are made in the automotive industry, and the smartphones we use are the result of the electronics industry’s hard work. Everything we use, from the tiniest of the tiniest to the largest of the large, is made by industry.
The Industrial Revolution was characterized by the move from manual to machine manufacturing processes, new chemical and iron manufacturing techniques, increased use of steam and water power, the invention of machine tools, and the establishment of the mechanized factory system.
In the year 1854, the first steam-powered cotton mill in Bombay heralded India’s entry into the industrial revolution. Industrialization increased employment prospects in both small and large scale industries. And, as they say, the rest is history, with India becoming the world’s sixth-largest economy.
What Is A Large-Scale Industry?
- What Is A Large-Scale Industry?
- Types of Large Scale Industries
- Large Scale Industries Examples
- Large Scale Business Ideas
- Advantages And Disadvantages of Large Scale Industries
- Final Thoughts
- Frequently Asked Questions
A large-scale industry, as the name implies, employs a large workforce and requires a large amount of energy. It necessitates a diverse range of raw resources, big-scale investments, and a large workforce capable of producing finished products with heavy gear. To ensure a continuous production line, these large-scale companies use excellent and cutting-edge technologies.
Large-scale industries in India are defined as those with a fixed asset worth more than a hundred million rupees (about Rs. 10 crores). The Indian economy is significantly reliant on such businesses for economic growth, foreign currency generation, and employment creation for millions of Indians living in the country.
Cotton, tea, jute, cement, paper, engineering, food processing, information and electronic technologies, and automobiles are just a few of the businesses that contribute to the Indian economy.
Types of Large Scale Industries
The heavy big scale industries and the light large scale industries are the two major subcategories of large scale industry.
Because they often manufacture smaller consumer goods, light large scale businesses are more consumer-oriented and less capital-intensive than heavy industry. These businesses generate items for end-users rather than as raw materials for other industries. Because its final product is a car, which is a consumer good, the automobile manufacturing industry falls into this category.
The heavy large-scale industry, in contrast to the light industry, produces huge, heavy goods and materials in quantity. They are more business-oriented and provide raw materials to other industries to meet their needs. Heavy industry includes the aircraft manufacturing industry.
Large Scale Industries Examples
1) Textile Industry
The textile sector contributes significantly to the economy of the country by employing around 45 million people (2017-2018). It contributes 2% of India’s GDP and 12% of India’s export revenues as of FY20. National Textile Policy, Khaadi App Store, and Pradhan Mantri Fasal Bima Yojana are three major government initiatives aimed at promoting this industry.
The textile industry covers a vast range of activities, from the production of raw materials like jute, wool, silk, and cotton to higher-value-added commodities like readymade clothes manufactured from various types of artificial or natural fibers.
India sells yarn to a wide range of nations, including Japan, the United States, the United Kingdom, Russia, France, Nepal, Singapore, and Sri Lanka. With 43.13 million spindles installed as of March 2011, India is the world’s second-largest spindle producer behind China.
Arvind Limited, Vardhaman Textiles Ltd, Raymonds Limited, and others are among the leading textile companies in India.
2) Food Processing Industry
India’s food and grocery market accounts for 70% of global sales and is the world’s sixth largest.
It is classified as a sunrise sector and has grown in popularity in recent years. It also serves as a link between the agricultural and industrial sectors of the economy. It employs 1.85 million people and contributes roughly 14% of India’s manufacturing GDP and 13% of India’s total food exports.
Some of the prominent companies in India’s food processing industry are Amul, MTR, Mapro Foods, Dabur, and many more.
3) Chemical Industry
India’s chemical industry is the country’s oldest domestic industry. It generates 7% of India’s GDP, making it a significant contributor to the country’s economy. Over five million individuals are employed in this industry.
We are the world’s sixth-largest chemical producer and Asia’s third-largest, producing about 80,000 commercial goods. The Indian chemicals and petrochemicals industry is expected to receive investments worth Rs. 8 lakh crores (US Dollar 107.38 billion) by 2025.
The Indian chemical industry primarily produces basic chemicals, as well as knowledge-based and specialized chemicals. India also manufactures petrochemicals, fertilizers, glass, toiletries, pharmaceuticals, and other goods. Tata Chemicals Ltd, Gujarat Alkalies and Chemicals Limited, Pidilite Industries Limited, and others are among the leading chemical firms in India.
Also Read: Starting a Business in India
4) Cement Industry
The Indian cement industry is the world’s second-largest, accounting for more than 7% of worldwide installed capacity. In FY20, cement production was estimated to be 329 MT, with 381 MT predicted in FY22.
The 10 big cement plants that span India are governed by a number of state governments. They have a combined installed capacity of 148.28 million tonnes per year. Private firms own 115 large cement factories and over 300 small cement plants in India, with a combined capacity of 11.10 million tonnes per year.
With the possible future development of the Indian infrastructure and building industries, the cement sector is predicted to grow. Certain recent projects, such as the creation of the National Infrastructure Pipeline (NIP) and Urban Rejuvenation, as well as others under the Pradhan Mantri Awas Yojana, are intended to provide this industry a significant boost.
Ambuja Cement, Aditya Cement, L & T Cement, and Ultratech Cement are some of the largest players in India’s cement industry.
5) Steel Industry
With crude steel production of 111.2 million tonnes (MT), India surpassed Japan as the world’s second-largest steel producer in 2019. This is owing to the industry’s ongoing modernization with cutting-edge steel mills.
The Indian steel industry is divided into three categories: primary, secondary, and tertiary producers. The Indian steel industry has benefited greatly from the plentiful supply of raw materials and low-cost labor. The Steel Research and Technology Mission of India (SRTMI), the National Steel Policy (NSP), and the Production-Linked Incentive (PLI) scheme are all initiatives taken by the Indian government to encourage steel production in India.
The key players in the steel Industry are the India’s Steel Authority (SAIL), Bokaro Steel Plant, etc.
6) Software Industry
The software sector encompasses information technology (IT) and business process management (BPM) combined. IT revenue increased by USD 181 billion in FY19. In fiscal year 2020, it employed almost 4 million people. In FY20, this industry accounts for 8% of India’s GDP.
India has undergone a significant boom in the previous ten years. The software product industry is estimated to reach a value of USD100 billion by 2025. Foreign markets will be the next priority for them as they look to extend their global reach and improve their global delivery centers.
The IT industry creates both domestic and international revenue. Exports were worth USD 137 billion in FY19, while domestic revenues (software and hardware) were worth USD 44 billion. Other industries, such as retail and healthcare, make extensive use of the Indian IT industry’s services and products, boosting its expansion. The IT-BPM market accounts for nearly 30% of the global market.
Tata Consultancy Services, Infosys Limited, and Wipro Limited are among the major players in the Indian IT-BPM sector.
Also Read: The Top 8 Causes of Startup Failure
Large Scale Business Ideas
In the economics, large-scale business is massive business. Manufacturing, agricultural, and service industries, for example, are all considered large-scale enterprises. This is due to the fact that they have a significantly wider economic footprint than other businesses that aren’t categorized as large-scale. Because these enterprises help produce things that people consume on a regular basis, the employment they provide are extremely valuable to communities.
- Textile Mill
- Artificial Intelligence
- Bioplastic Packaging
- Producer of Active Pharmaceutical Ingredients
- Organic Lifestyle Products
- Electric Vehicle Manufacturer
- Manufacturer of drones and defense systems
- Food Chain
Advantages And Disadvantages of Large Scale Industries
Large-scale enterprises have existed for more than two centuries, and they, like all things, have two sides. Let’s look at some of the benefits and drawbacks of large-scale industries.
|Alleviation of Poverty and Unemployment||Harmful to the environment|
|Research and Development||Union struggles|
|Goods standardization||Overflow of production|
|Bulk production||Cut throat competition|
|Division of labour||Wars due to international complications|
Advantages of Large Scale Industries
- Poverty and unemployment must be eradicated.
Accelerated industrialization has the potential to significantly reduce unemployment and poverty. Large-scale industries, as we all know, require a lot of labor to operate. They give a large number of job opportunities, attracting people from low-wage areas.
- Research and Development
Large-scale industries are constantly on the lookout for new products to provide them a competitive advantage. They promote scientific and technological advancement. Large-scale industries generate large amounts of revenue, resulting in more capital and financial resources. As a result, they can fund costly research and trials that lead to the development of newer, better, and less expensive technologies for manufacturing goods and providing services.
- Goods Standardization
Industries that produce large-scale outputs must also produce large-scale outputs. Because of the large-scale production, standardized commodities are produced. The best example is the automobile business, which offers standardized vehicles. Only when the industry is large enough can they transport them to other locations.
- Mass Production
Large-scale industries are built to create large quantities of items. The mass production of things allows them to meet the wants of an ever-increasing population. When things are produced in large quantities, the production cost is reduced, lowering the selling price. This allows the average person to purchase higher-quality products at lower prices.
- Division of Labor
One major complex process is broken into numerous smaller and easier processes in a large-scale industry. These processes are simpler and can be readily carried out by both men and women, and they do not involve much physical effort. This aids in improving output while lowering labor costs per unit.
Disadvantages of Large Scale Industries
- Environmentally harmful
Large-scale industry are one of the most serious polluters. Because these businesses create hazardous and dangerous gases and by-products, they are causing an surge in pollution. This poses a significant threat to our environment, contributing to global warming.
When these firms do not properly treat their wastes and dump or expel them without contemplating the potential harm, we pay a long-term price for our environment’s health and well-being. Large-scale industries must be more watchful and responsible when it comes to garbage disposal. Furthermore, these businesses degrade natural resources, which take many years to recover.
- Union Struggles
Labor unions were created to defend workers in the industries. Large-scale industries employ a big number of people for a low wage. This leads to conflicts and battles between laborers and capitalists. Both of these parties have opposing viewpoints.
- Overflow of Production
Large-scale industries are constantly creating large volumes of things. When the market demand does not heat up correctly, overproduction occurs. As a result, the prices of these products fall, and the firms lose money.
- Cutthroat Competition
All firms strive to increase the market share of their products, which results in fierce rivalry. When the number of players increases, so does the level of competition. Businesses will sometimes resort to deceptive tactics in order to gain a competitive advantage. This is bad for both society and business.
- International complications cause wars.
The majority of large-scale industries produce goods for export. This leads to a conflict of interest and material rivalry in the market. Such issues can sometimes lead to international confrontations. These scenarios have historically resulted in conflicts and should be avoided.
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Large-scale industries serve as a country’s foundation and backbone. They strengthen the economy and provide future stability. On the one hand, they assist society better its standard of living, but if not carefully governed, they may lead to humanity’s demise.
Frequently Asked Questions
Are there any other large-scale industries apart from the ones listed above?
Mining, jute, petroleum and natural gas, pharmaceutical, and electricity industries are all examples of industries.
What is the minimum fixed asset requirement for an industry to be large in India?
Massive infrastructure and an influx of capital assets should be used by large-scale industries. A large-scale industry in India must also have fixed assets of at least Rs. 10 crores.
What do large-scale industries require the most?
Large-scale industries, of course, require significant capital inputs as well as essential services such as water, electricity, and transportation infrastructure. They require large volumes of raw materials as well as a large number of skilled workers.
How to open a large scale industry?
Do market research first, then gather cash, set up a tiny business, secure funding, then scale up.