Geography notes for Industries topic

1. Earth: Our Home You Will Learn
Full Geography • to describe the characteristics of Newly
Industrialising Economies.
• to evaluate the factors influencing the location of
an electronics industry in India.
• to discuss the challenges faced by the electronics
industry in India.
• to evaluate the strategies in managing sustainable
industrial development in India.
Chapter 3: Plate Tectonics
The Rise of NIEs The Rise of NIEs
• Advancements in transport and • Globalisation has allowed companies to
communications have broken conduct their businesses on a global scale.
down physical barriers and
national boundaries.
• Some of these companies, known as
transnational corporations (TNCs), often
• As a result. the world has set up units in the less developed countries
become more interconnected (LDCs), and train people there to manage
as information, ideas, cultures aspects of the business.
and values between countries
are exchanged. • As TNCs expand their operations, their levels
of industrialisation increase. These
• This process is known as economies are now referred to as Newly
globalisation. Industrialising Economies (NIEs).

2. Characteristics of NIEs Four Asian Tigers
• The term NIE is used to describe a country that • Singapore, Hong Kong, South Korea,
and Taiwan are first-tier NIEs, also
belongs to the less developed world, but is known as the ‘Four Asian Tigers’.
highly successful in their industrialisation
process. • Their growth rates and rapid
industrialisation between the early 1960s
and 1990s surpassed the growth rate of
• Some characteristics of NIEs include any other economy in the world.
– Fast rate of growth in manufacturing
– Rising share of world exports in manufactured • Education in these four countries or
products territories was identified as essential in
attaining developed country (DC) status.
– Fast growth in real per capita income
Case Study – India Case Study – India
• Different sectors of the electronics industry in India
• India as an NIE
Consumer Industrial Computer Communications
– In 2006, India was the second fastest growing Electronics Electronics Systems and broadcasting
economy in the world, behind China. Cameras and Traffic signals, Liquid crystal Modems,
camcorders,
– The growth of its economy had been television sets,
street lights,
sodium lamps,
display (LCD)
panels, capacitors,
ethernet switches
attributed to its growing industries, especially phones, video thermostats transformers
recorders
in manufacturing, as well as services.

3. Why did TNCs locate their electronics
Case Study – India manufacturing bases in India?
• Policy of import-substitution • Land
– To reduce its reliance on imported products, products
that are usually imported are replaced by locally – The electronics industry has become an
manufactured products. important sector of India’s economy. As such,
much land in the form of large industrial parks
• The government can achieve this by were constantly being expanded.
– Investing in the growth of new local industries that
manufacture the same types of products.
– Taxing imported goods more heavily in order to
encourage the purchase of cheaper local substitutes.
Why did TNCs locate their electronics Why did TNCs locate their electronics
manufacturing bases in India? manufacturing bases in India?
• Skilled labour • Government policies such as
– Rising literacy rates in India – Special Economic Zones (SEZs) to offer
– There has been an abundance of skilled incentives such as tax exemptions on export
labour available at lower costs as compared to income.
other countries – Company subsidies for the training of
employees.
– Special concessions and privileges for new
start-up companies.

4. Why did TNCs locate their electronics
manufacturing bases in India?
The Electronics City (Bangalore)
• Market • Industrial clustering of electronics firms
– Electronics industry was focused primarily on – Ease of obtaining components and services
the local India market, especially in consumer from other companies,
electronics. – Pooling of labour resources
– Strong demand for consumer electronics and – Sharing of knowledge to increase levels of
household appliances. productivity and efficiency.
The Electronics City (Bangalore) The Electronics City (Bangalore)
• Land and transport network • Government
– Well-served by major roads and connected to – Emphasis on the competitiveness of
the city centre of Bangalore, airport and Electronics City.
railway. – Development of infrastructure in the area to
• Market alleviate traffic congestions.
– Large domestic market for electronic – Improving accessibility of the area.
products.
• Labour
– High literacy level of workforce

5. Challenges facing the Shortage of component parts
electronics industry in India from local sources
• Infrastructure
– Energy • Local supply of component parts is too small to
• Reliable and adequate supply of energy is crucial for support the growing electronics industry in India.
industrial activities.
• However, a World Bank report states that companies in
India suffer a power failure almost every two days. • High costs of importing materials into India
– Transport increases the operating expenses of companies.
• Traffic congestions have also been common in the
country.
• This could result in accidents, delays in transporting
components and products, as well as problems with
punctuality of workers, thus incurring extra costs.
Technology Competition from other NIEs
• The electronics industry in India had a relatively • Intense competition from China
late start when it opened up to the global
economy.
• China has been the most popular destination for
• Thus, technology foreign investments, with the top 10 electronics
employed in the companies in the world choosing to set up
electronics branches there.
industry lagged
behind that of
other countries.

6. Strategies for managing sustainable Strategies for managing sustainable
industrial development industrial development
• Managing depleting resources by
• Sustainable industrial development is implementing policies and guidelines to
the development of industries that regulate land use and manage land
maintain economic growth without resources.
compromising the well-being of people
• Appropriate use of technology due to
and the environment.
technological advancements have helped
to minimise potentially damaging human
activities on the environment.
Strategies for managing sustainable What have you learnt in this
industrial development chapter?
• Recycling to dismantle e-waste and The characteristics of NIEs
recover useful raw materials, and to
The factors infl uencing the location of an
separate hazardous and non-hazardous electronics industry in India
materials for further processing.
The challenges faced by the electronics industry
in India
The strategies in managing sustainable industrial
development in India