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To manufacture goods or to provide service by using different resources is called as industry. This note has information about the industry, its types, importances, effects and its mitigating measures.

To manufacture goods or to provide service by using different resources is called as industry. Industrial development is the most reliable mode of economic progress for the developing countries like Nepal. It can also be run from agro-based materials as Nepal is an agricultural country. Our country should give priority to industrial development because it mobilizes human resources and helps to uplift the socio-economic status of the country. Other raw materials like minerals, forest products, etc. are found from environment.

Things required to set up industry

1. Land
2. Resources or raw material
3. Electricity
4. Transportation
5. Manpower
6. Machines
7. Water
8. Capital

Types of industries

On the basis of capital investment, fuel consumption, production and use of technology, industry can be classified as follows: -

1. Cottage industries

The labour-oriented industries which are based on local raw materials, and rural technology and related to national tradition, art and culture are cottage industries. Handloom, embroidery, painting, knitting, sewing and wood carving are some examples of cottage industries.

2. Small-scale industries

The industries which have fixed capital of up to 10 million to run are called small-scale industries.

3. Medium-scale industries

The industries having fixed capital of 10 million to 50 million rupees to run are called medium-scale industries.

4. Large-scale industries

The industries which require more than 50 million fixed capital to run are called large-scale industries.

Importance of industry

Industry runs with the use of natural resources like minerals, and forest products. Agriculture sector also supplies raw materials for industry. In fact, industry, human beings and environment are inter-related with one another.

So, the importances of industry are as follows: -

  1. Production and use of raw materials

    Raw materials like jute, sugarcane, cotton, herbs, which are required to run industry, come from agriculture and forest. Some raw materials like milk, bones, feather and leather are found from animals and birds. Industrial development encourages people for the production of raw these materials. These raw materials can be produced in the country and so need not be imported. Thus, money can be saved which can be spent for conducting other developmental works.

  2. Development of human resources

    Development of human resources is essential for development activities. Different industries need different manpower with particular knowledge, skill and dexterity. This helps the specialist to increase their knowledge and skills and thus can increase their performance. Those who have no skills can be made skilled by imparting them training. Therefore, industrial development helps to develop and mobilize human resources.

  3. Job opportunity

    Industries require both semi-skilled and skilled manpower to run it. In this way, industries provide employment opportunities. People of different skills, get job, increase their income and improve their quality of life. It can contribute to stop emigration of energetic youths in search of job.

  4. Production of goods

    Industries produce goods like cloth, foods materials, hardware, construction equipment, etc. which fulfill the requirements of the people. Industry makes the country self-dependent and decreases the import. It maintains balance in trade. High quality goods can be exported to other countries. In this way, international trade grows and foreign currency can be earned for economic development.

  5. Improvement in quality of life

    Industrial development can help to earn foreign currency and increase job opportunity n the country. It increases per capita income of the people. Improvement in their quality of life is possible through the fulfillment of basic needs like food, education, health, housing, etc. It also supports the development status of the country.

  6. Economic development

    Cottages as well as large-scale industries are important in our country. Industrial development cuts down the import and increases the export. Native manpower is also utilized. Thus, the economic status of the country can be improved.

  7. Mobilization of private sector

    Not only government but also private sectors should be encouraged for industrial development. It creates competition among the private sectors for the development of industry. As a result, competency and investment of private sectors also increase for the national development.

Effects of industrial development work on the environment

Industrial development is the backbone of the country’s progress. It supports economic and social development. However, it brings on a number of adverse effects.

Some of the effects of industrial development and their mitigating measures are s follows: -

  1. Over exploitation of natural resources

    One of the essential factors to establish and run industries is raw material which ready-made goods are manufactured. Iron, gold, silver, tin, coal, mineral oil, stone, juice, tobacco, wood, bamboo, etc. are raw materials. So, non-renewable raw materials should be used rationally because they are in limited quantity. Raw material produced from forest and agriculture can be used at large scale. While using raw materials, fruits, herbs, flowers and plants should not be destroyed. In the deforested places, trees should be planted.

  2. Pollution

    Brick and tile kilns as well as cement factories give off-air pollutants like carbon dioxide, sulphur dioxide, dust, smoke, etc. and surrounding air gets polluted. Then, physical environment of the surrounding area is spoilt. Factories discharge chemical mixed water and sewerage that pollutes the water resources. Pollution harms the health of all living creatures. Sound pollution is high in the urban areas and dense settlements which effects settlement as well as other living beings. So, emission of smoke, dust, poisonous gases should be controlled by applying low polluting devices

  3. Solid wastage

    Industries produce solid and liquid waste minerals. The water that comes from leather tanning factories, metal factories and sewerages discharge pollutes the environment. The aquatic and terrestrial creatures are badly affected. Polluted water is the cause of spreading several kinds of epidemic diseases such as diarrhea, typhoid and cholera. Solid wastes emitted from leather and bone industries are harmful to living beings. Therefore, the waste water from industries should be treated before discharging it into the sources of water.

  4. Depletion of ozone layer

    The accretion of sulphur dioxide, carbon dioxide, methane, and dust in the atmosphere depletes the ozone layer which is essential to block the harmful rays and heat coming from the sun. When the ozone layer is destroyed, the heat reaches the surface of the earth. It disturbs the lifecycle of living beings. It causes dreadful diseases like cataract and skin diseases. Tree plantation in the premise of an industry is the best way to prevent such effect.

  5. Excessive use of land

    Farmers use fertilizers and insecticides excessively to increase their agricultural products to sell to the industry. The uncontrolled use of such fertilizers destroys the productivity of the land. The chemicals coming from factories mix with water. All living beings including man have to face the adverse effects of it. So, it is essential to develop the concept of sustainable agricultural production to the farmers.

  6. Change in temperature

    Industrial emission of gases like sulphur dioxide, carbon dioxide, methane are harmful. They pollute the air in the atmosphere. Such air pollution increases the atmospheric temperature having adverse effects on climate and water-cycle. The environment loses its original quantity. Such healthy environment is harmful to human beings organisms as well as vegetation. Therefore, the emission of such gases should be controlled in the industrial plant by using appropriate modern technology and mechanism.

Things to remember
  • To manufacture goods or to provide service by using different resources is called as industry.
  • Land,resources or raw material, electricity, transportation, manpower, machines, water
  • and capital are the things required to set up industry.
  • The industries having fixed capital of 10 million to 50 million rupees to run are called medium-scale industries.
  • The industries which require more than 50 million fixed capital to run are called large-scale industries.
  • Industry, human beings and environment are inter-related with one another.
  • Industrial development is the backbone of the country’s progress. It supports economic and social development.
  • It includes every relationship which established among the people.
  • There can be more than one community in a society. Community smaller than society.
  • It is a network of social relationships which cannot see or touched.
  • common interests and common objectives are not necessary for society.
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Questions and Answers

Economic development is the greatest importance of industrial development.

Industrialization is the most reliable method of development under developing countries.

An industry is any business enterprise that produces or supplies goods or services.

The infrastructures of industrialization are capital, raw material, transportation and communication facilities, power supply and markets.

The industry that is run by high investment is called large–scale industry.

Air pollution is the main cause of the depletion of the ozone layer.

Mobilization of private sector plays a vital role for the betterment of the society in the following ways: -

  1. At first, it brings competition among the people and they can get quality product in considerable price.
  2. It brings changes in the administrative pattern by reducing the delaying.
  3. It produces human dexterity.

Industrial development refers to economic development through establishment of industries and their expansion. With the expansion of industry, resources are utilized and employment opportunities can be created. The three major importance of industrial development are as below:

  1. Creation of employment opportunities: More industries means more job opportunities. Industries provide to opportunities of employment to the manpower from unskilled to highly skilled.
  2. Economic development: Industries are essential for economic development of the country. They help to mobilize available resources and flourish trade and business.
  3. Production of goods: Industries produce consumer's goods. It helps to decrease imports of such goods from abroad.

Industry is one of the factors of socio-economic aspect of a country which is related to the production, management and distribution of goods along with planning and administrative activities. The factors determining industrial development are as follows:

  1. Availability of raw materials
  2. Capital
  3. Power supply
  4. Political stability and peace
  5. Market and management
  6. Favorable geo-physical condition

On the basis of capital investment, industries of Nepal are classified as small-scale industries, medium-scale industries and large-scale industries. Each type is described briefly as follows:

  1. Small-scale industries: Industries having fixed capital up to Rs.10 million are known as small-scale industries. Mostly, they used locally available raw materials, employed few workers and produced small quantities of goods.
  2. Medium-scale industries: Industries having fixed capital between Rs. 10 million and 50 million are known as medium scale industries. Such industries employ more workers and produce larger quantities of goods.
  3. Large-scale industries: Industries having fixed capital above Rs.50 million are large-scale industries. These industries utilize high technology, employ huge mass of workers and produce the largest amount of goods.

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