1

DAILY
CLASS NOTES
GEOGRAPHY

Lecture – 62
Minerals and Energy
2

Minerals and Energy

Information Technology Sector:
Data and Facts Related to IT Sector:
❖ India is a top exporter of Software Services.
❖ IT Sector’s Share in GDP: 8%
❖ IT Sector’s Share in Services Exports: 48.5% (Approx)
❖ Export Revenue from this Industry (Excluding e-commerce) has been estimated at close to US$150 bn in 2020-
21
❖ Contribution of IT Sector in Employment Generation: 4.5 mn.

Socio Economic Implications:

❖ Economic Empowerment: The development of the IT Sector gave rise to a new middle class, new business
avenues.
❖ Gender Parity: The IT Sector has provided financial independence and economic empowerment to women.
❖ Cultural Changes: The rise of the IT Sector has also indirectly influenced some cultural changes with respect
to food habits, clothing habits, nuclear families.
❖ Social Infrastructure: The IT Sector plays an instrumental role in boosting new schools, hospitals, hotels,
colleges in and around.
❖ Development Divide: It also forces the concentration of people and development in a handful of cities, while
neglecting the tier-2 and 3 cities, it also creates a huge wage gap among people.
❖ Security Issues: The developmental divide indirectly led to the rise in crimes. The late-night work culture also
led to various security issues such as abductions, extortions, and crimes against women.

Growth of IT Sector:
❖ Government Impetus towards e-governance reflected in the form of Digitalisation (E.g., Digital India
Mission) that gave a significant boost to the IT Sector.
❖ The computerization in the Banking industry such as net banking (NEFT, RTGS, IMPS), mobile banking,
UPI, etc. also gave a boost to the IT Sector.
❖ New and Emerging Technologies such as AI, IoT, Machine Learning, Data Analytics, fast delivery of tasks
further facilitate the growth of the IT Sector.
❖ The rise in e-Education (e-Vidya, e-Pathshala, etc.), e-commerce, e-medicine, e-business also gave rise to
the IT Sector exponentially.
❖ Huge Market in USA and Europe gives a lot of opportunity for the Indian IT Sector to leap forward.
Economic Survey (2021-22):
❖ India’s software exports (with a share of 48.5 percent in total services exports) remained relatively resilient
during Covid-19 period with higher demand for digital support, cloud services and infrastructure
modernization catering to the new pandemic challenges.
3

Challenges in the IT Industry:

❖ Cyber Security: The wrong use of information technology also exposes the users to many cyber security
threats through cyber frauds and data compromise.
❖ Talent Retention: The employees in the IT Industry keep on jockeying from one company to other and this
creates issues of talent retention.
❖ Skill Gap: There is a huge skill gap between available and required skills in the IT Industry. According to
the Annual Employability Survey 2019, study by Aspiring Minds, only 2.5% of Indian engineers have the
necessary technical capabilities in artificial intelligence (AI) that the market demands.
❖ Dynamic Technology: The constant change in new technologies poses a challenge to the IT sector.
❖ Job Loss: With the evolution of new age technologies many experts are of the view that it may create huge
job losses due to AI, automation.
❖ Economic Slowdown: The less demand for IT work especially in developed nations due to economic recession
and bank failure will create a domino effect and it will indirectly lead to the global economic slowdown.
❖ Data Protection and Data Privacy: The growing dependence on IT products demands strong Data Protection
and Data Privacy laws and Policies.
❖ Gender Bias: There are issues with gender bias with respect to pay packages and facilities in the IT Industry.

National Policy on Software Products, 2019:

❖ Ten-fold increase in the share of the Global Software product market by 2025.
❖ To nurture 10,000 technology startups in the software product industry, and generate direct and indirect
employment for 3.5 million people by 2025.
❖ To build a cluster-based innovation driven ecosystem by developing 20 sectoral and strategically located
software product development clusters.
❖ National Software Products Mission will be set up with participation from Government, Academia and
Industry.

Impact of IT Industry on the Economy:

❖ Increase in Revenue: The IT Sector significantly facilitates in increasing the revenue of the government on
lines of FDI, FII, High GSDP, High GDP, etc.
❖ Job Opportunities: The IT Sector also provided a huge job opportunity for the youth in and outside the
country.
❖ Complimentary Industries: The IT Industry worked as a catalyst to many other complimentary industries
such as cabs, food chains, e-commerce, real estates, hotels, etc.
❖ Female Participation: The IT Sector also enhanced female participation in the workforce led to the financial
independence of the women.
❖ Integration with Global Economy: Globalisation also creates an opportunity of integration with the global
economy.
❖ Technological Advancement: Technological advancement not only provides seamless services but also gives
a boost to the economy.
4

❖ Education Development: The growing demand of IT Services also facilitates the development of the
educational sector in the forms of IIITS, IIMS, NITS, and Universities.

Positive Impact of IT on the Socio-Cultural Sphere:

❖ Enhanced Living Standards: The IT Sector gives an impetus to the real estate sector that led to growing
urbanisation and enhanced Living Standards.
❖ Better Social Infrastructure: It also gives a boost to the education and health sector as well.
❖ Rise of New Middle Class: The IT Industry gives rise to an educated and aware Middle-Class population.
❖ Addressing the Social Evils: The booming IT Sector indirectly promotes the annihilation of Caste Systems
and Dowry culture.
❖ Nuclear Families: The migration of job seekers to different cities gives rise to nuclear families and also
promotes independent decision-making.
❖ Women Independence: The most significant contribution of the IT Sector is empowering women financially
and helps in making informed decisions.
❖ Mobility: The Sector also provides a boost to the various mobility sectors like aviation, road, rail, taxi.

Negative Impact of IT Industry on Socio-Cultural Spheres:

❖ Ghettoisation Of Urban Poor: India's rapid urbanisation has become an insurmountable challenge. With the
development of the services sector, the population pressure on cities has escalated which led to the
ghettoization of the urban poor in dark slums and despair.
❖ Male Migration: Male migration for jobs led to the feminisation of Agriculture.
❖ Emotional Insecurity: The growing work stress, technological changes, and job insecurity in the IT Sector
also negatively impacted emotional stability that led to incidents like depression, and suicides.
❖ Non-Communicable Diseases: The growing population due to the boom in the IT Sector also has a serious
implications on health. The Assocham report states that there is a 30-40% higher rate of NCDs in urban areas.
❖ High Crime Rates: The growing IT Industry also creates a sharp social divide which again led to the increase
in urban crimes.
❖ Disintegration of Family: The family is the basic unit of society and translocation of job seekers to other
cities or countries also negatively impacts the family and leads to disintegration.

IT Industry Impact on Environment:

❖ Water Scarcity: To meet the growing demands of water of the growing population negatively impact potable
water. E.g., Recent water scarcity in Chennai, Bengaluru, etc.
❖ Urban Floods: The growing rampant unplanned urbanization to meet the demands of the working population
of the IT Sector also resulted in incidents like urban floods in Hyderabad, Pune, and Mumbai.
❖ Deforestation: The establishment of new real estate, offices, Malls, and Hospitals led to rampant deforestation
that indirectly lost the natural mitigation mechanism against air pollution. E.g., Noida, Bengaluru
❖ Pollution: According to the Greenpeace Report, 7 Indian cities are among the top most polluted cities in the
world.
❖ Electromagnetic Radiations: The electromagnetic radiation due to IT Industry also poses a threat to avian
species and insects like birds, bees, etc.
5

❖ Urban Water Bodies Destruction: Rapid urbanization had an extremely adverse impact on water bodies. The
first victims of water pollution from sewage are Water Bodies like ponds, lakes and reservoirs The E.g.,
Chennai, Bengaluru.

Tea Industry:
Data and Facts Related to Tea Industry in India:
❖ Indians are the largest consumer of tea.
❖ India is the second largest producer and fourth largest exporter of tea.
❖ 25% of Global Consumption of tea.
❖ 30% of Global Production of tea.
❖ Suitable Geographical factors for tea production:
❖ Tea grows well on Tropical and Subtropical climate
❖ It also requires well drained soil.

Evolution of Tea Industry:

British Era:
❖ Initially China was the only producer of tea.
❖ In 1837 tea production started from Assam and Darjeeling because of its cost effectiveness:
❖ Genuine tea planters
❖ Skilled labours
❖ Suitable climate
❖ British support
❖ In 1854, the tea plantation also started in Nilgiri Hills e.g., Ooty, Coonoor
Post British Era:
❖ The establishment of the Tea Board and later it became a statutory body under the provisions of the Tea Act
1953.
❖ The Tea Estates were developed in N. Western, Eastern and Southern Regions.
❖ Between 1895-2006 India became a world leader in tea production.
❖ After 2006, China became the world leader because:
❖ Increased land acreage under tea plantations in a small time span.
❖ Specialization in Green Tea.
❖ Consolidation of small growers to form large cooperatives.
❖ Incentives to Tea Planters in terms of wages, monitoring health conditions and providing training.

Significance:
❖ Employment: It provides a huge amount of employment (pluckers, workers, helpers, workers in the processing
units, transporters, etc.) almost 1 million workforces are attached to the Tea Industry.
❖ Women Empowerment: It provides women empowerment in fact more than 50% of the workforce in the Tea
industry are women.
6

❖ Education and Livelihood: The social improvement in terms of education of children and family livelihood
also develops.
❖ N.E. State GDP: The North Eastern states like Assam, Sikkim, Tripura, Meghalaya produce huge amounts of
tea and this increases the GDP of the states significantly.
❖ Reduced Migration: The constant flow of work in the tea sector also reduced the workforce migration to
other cities in search of jobs.
❖ Exports-Forex: The exports of tea (e.g., Darjeeling or Assam Tea) also generates foreign currency and helps
to maintain the Forex Reserves.
❖ Name and Fame: The quality of Assam and Darjeeling tea also earned worldwide fame. For instance,
Darjeeling Tea was the first Indian product to get a GI tag.

Challenges of Tea Industry:

❖ Shutdowns: The increasing incidents of shutdown due to strikes by unions lead to production loss.
❖ Low Production: The low production because of low finance, power and low subsidy in the Tea industry.
❖ Low Wages: There are a good number of temporary labour working in the tea industry, and sometimes they
are being underpaid or have low price realization in comparison to the international market.
❖ Improper Storage: The climatic variations and lack of proper storage facilities result in huge losses in the tea
sector.
❖ Political Turmoil: The political instability in places like Darjeeling and other N.E. States also create a
hindrance to the growth of the tea industry.
❖ Health Problems: Lack of proper health monitoring or health facilities lead to respiratory and worm
infestation to the workers.
❖ Adverse Wage Price Movement: The base year-1995-wages went up by 8 times but prices rose by 2%.
❖ Non-tariff barrier: The sanitary & phytosanitary barriers poses an impediment in terms of tea exports. E.g.,
Anthraquinone.
❖ Tea Price: The World Bank Report underlines 44% reduction in tea auction price.

Tea Plantation not Beyond Darjeeling:

❖ Extreme Climate: The gentle slope and sub-humid climate in the Darjeeling and Assam region is ideal for tea
production. The extreme climate in other regions doesn't help tea production, rather it affects tea production.
❖ Soil Erosion: The well-drained and sandy soil of Darjeeling and Assam region are ideal for tea production,
whereas the soil erosion problem in other places poses a hindrance to tea production.
❖ Labour Availability: The cheap and easy availability of labour in and around the Darjeeling-Assam region
helps tea production.
❖ Connectivity: Darjeeling and Assam region has good connectivity to the nearest port, hence the tea industry
prospers in this region more than anywhere else in India.
❖ Finance Availability: The easy availability of financial backing is also a major reason behind the growth of
the tea industry in this region.
❖ Monsoon: Good amount of rainfall during monsoon and well-drained soil helps more in the production of tea.
7

❖ Market Availability: The easy availability of the market is also a major factor behind the rise of the tea
industry in this region.
Tea Board of India:
❖ The Tea Board of India is a statutory body created under the Tea Act, 1953 and it was established for the
purposes of regulating the Indian tea industry and protecting the interests of tea producers.
❖ It is functioning as a statutory body of the Central Government under the Ministry of Commerce.
❖ Tea Board of India’s Head Office is situated in Kolkata.
❖ The Tea Board of India has overseas offices in Moscow, Dubai, Hamburg, London and New York.
❖ The Moscow office of the Tea Board of India operates under the Embassy of India, and its area of activity
includes Russia and the CIS countries, which comprise 50% of Indian tea exports.
❖ The Board is constituted of 31 members (including Chairman) drawn from Members of Parliament, tea
producers, tea traders, tea brokers, consumers, and representatives of Governments from the principal tea
producing states, and trade unions.
❖ The Board is reconstituted every three years.

Rubber Sector:
❖ Rubber is an equatorial crop. It also grows well in tropical and subtropical regions.
❖ The rubber is obtained from the latex of plants (Heavea Brasiliensis).
❖ The ideal temperature required for rubber is 20 - 30* C of average.
❖ The ideal Precipitation required for rubber production is 250 cm of average rainfall.
❖ It is generally grown on hill slopes to prevent water logging.
❖ Major areas of Rubber Production in India are Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Maharashtra,
Goa, Odisha, Andaman and Nicobar Island and Meghalaya.

Data and Facts Related to the Rubber Sector in India:

❖ India is the fourth largest producer of rubber and third largest consumer of rubber.
❖ The rubber industry is one of the fastest growing industries in India.
❖ It generates revenue of around 12000 Cr.
❖ It employs almost 4 lakhs of people.
❖ It provides Rs. 40 bn to the government exchequer.
❖ Yearly Production: 630 thousand tonnes per annum.
❖ 6000 units of production takes place in India.
❖ Geographical Factors:
➢ It was initially native to the Amazon Basin.
➢ In the late 19th Century, it got transmitted to Asia (S. Asia and S.E. Asia) and Africa.
➢ As per the Food and Agricultural Organisation (FAO), Thailand is the world’s largest producer of rubber.

Issues in the Rubber Industry:

❖ Low Productivity: There is a low production rate per hectare of the land due to lack of technology and the
use of conventional methods.
8

❖ Low Prices: The rubber prices seldom go very high, and because of this rubber industries achieve low gain
and it ultimately affects the employees attached with this industry.
❖ Cheaper Imports: The Indian Rubber industry faces a challenge of cheaper imports and dumping from China
and Thailand.
❖ High Labour Cost: The labour cost is high in the rubber industry because it requires a huge processing.
❖ Low Exports: Rubber industry experiences low exports and because of that the rubber industry in India fails
to earn much.

Environmental Issues in the Rubber Industry:

❖ Deforestation: Rubber industry requires cutting down vegetation and it leads to destruction and deforestation.
❖ Loss of Biodiversity: Due to loss of trees it indirectly affects the species to survive and results in loss of
biodiversity.
❖ Climate Change: The rapid deforestation will lead to climate change due to increased global temperature.
❖ Soil Erosion: The deforestation will result in lack of root binding capacities and ultimately lead to soil erosion
and desertification.
❖ Diseases: As rubber plantation is a mono culture practice it will have very low biodiversity and because of it
will become an ideal breeding ground for various diseases.
❖ Pollution: The emission of Sox and NOx from rubber processing units will lead to air pollution and water
pollution due to the waste generation.

   