IMPACT OF INDUSTRIALIZATION IN CHENNAI

PROJECT REPORT Submitted by

M.VANATHI Register No: 088001308056

in partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

in DEPARTMENT OF MBA

VELALAR COLLEGE OF ENGINEERING AND TECHNOLOGY ERODE - 638012 JUNE-2010

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VELALAR COLLEGE OF ENGINEERING AND TECHNOLOGY ERODE - 638012

DEPARTMENT OF MBA PROJECT WORK JUNE-2010
This to certify that the project entitled

IMPACT OF INDUSTRIALIZATION IN CHENNAI

is the bonafide record of project work done by

M.VANATHI

Register No: 088001308056

of MBA during the year 2009-2010 . .

Dr. KRI Ganesaamurthy Professor & HOD Department of MBA

Dr. KRI Ganesaamurthy Professor & HOD Department of MBA

Submitted for the project Viva-Voce examination held on.. .. Internal Examiner ... External Examiner

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DECLARATION I affirm that the project work titled IMPACT OF INDUSTRIALIZATION IN CHENNAI being submitted in partial fulfillment for the award of MBA is the original work carried out by me it has not formed the part of any other project work submitted for award of any degree or diploma, either in this or any other University.

M.VANATHI Reg No: 088001308056

I certify that the declaration made above by the candidate is true

Dr. KRI Ganesaamurthy, MBA, M.Com, M.Phil., Ph.D., Professor & Head, Department of MBA

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ACKNOWLEDGEMENT
I feel it is my privilege and great pleasure to express my sincere and heart full thanks to Mr.S.D.Chandrasekar, B.A., Secretary of Velalar College of Engineering and Technology, Erode, for giving me such a great opportunity to study in this prestigious institutions. I extend my thanks to Dr.P.Sabapathi, B.E. (Hons), M.Sc.,

(Engg.) Ph.D., Administrative Director, Velalar College of Engineering and

Technology, Erode for providing the necessary facilities to undergo this project work. I am indebted to Dr.Palanisamy, Ph.D., Principal, Velalar College of Engineering and Technology, Erode for his constant encouragement and valuable guidance throughout the study. I express my sincere and heartful thanks to

Dr.KRI

Ganesaamurthy,MBA, MBA., M.Com., M.Phil., Ph.D., Head,

Department of Management Studies, Velalar College of Engineering and Technology, Erode, and also my guide, for his encouragement and valuable support at each and every stage of my work. His strong motivation, inspiring guidance, stimulated discussions, timely encouragement and support are responsible for the present shape of the work. I am extremely happy to thank all my friends for their care, affection and encouragement, which gave me the spirit, and courage both for my academic and social life. Finally, I thank my parents for their love, affection and support which helped for the successful completion of this work.

M.VANATHI

CONTENTS
Chapter Description Abstract List of Tables List of Charts I Introduction 1.1 About the study 1.1.1 Need for the Study 1.1.2 Objectives of the Study II Research Methodology 2.1 Research Design 2.2 Sampling Design 2.3 Tools for analysis 2.4 Limitation of the study III Data Analysis and Interpretation 3.1 Simple percentage analysis 3.2 Weighted Average Method 3.3 Chi-square test IV FINDINGS AND CONCLUSION 4.1 Findings 4.2 Conclusion Bibliography Appendix 49 51 29 38 45 24 25 26 28 1 22 23 Page No. VI VII VIII

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ABSTRACT Industrialization is a process that starts with the establishing and developing the industry for production of means and completes when the whole economy is transferred to the industrial methods of production. The project entitled IMPACT OF INDUSTRIALIZATION IN CHENNAI is to study the attitude of people towards the impact of industrialization in Chennai. The research is carried out through a questionnaire and sampling technique used is convenient sampling. The tools such as simple percentage analysis, weighted average method and chi-square method are used for analysis in the project. The major findings of the project is that the people of Chennai feels that pollution, climatic change and urbanization is the major problem but they are giving importance for the various advantages of industrialization. The project is concluded by saying that developing the industrialization is encourageable. At the same time some steps have to be taken for overcoming the problems of industrialization.

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LIST OF TABLES

TABLE NO. 3.1.1 3.1.2 3.1.3

TITLE Demographic Factors of the Respondents Main problem of industrialization pollution Type of pollution common in Chennai

PAGE NO. 29 31 31

3.1.4 3.1.5

Moral evils

34

Exposure To Medical Hazards Respondents Opinion Towards the Factors Regarding The Impact of Industrialization Respondents Opinion Towards the Disadvantages of Industrialization Respondents Opinion Towards the Advantages of Industrialization Monthly Income Vs Benefits Of Industrialization Type of Respondents Vs Role of Government

36

3.2.1

38

3.2.2

41

3.2.3

43

3.3.1 3.3.2

45 47

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LIST OF CHARTS

CHART NO. 3.1.1 Demographic Respondents

TITLE Factors Of The

PAGE NO. 30

3.1.2

Type Of Pollution Common In Chennai

33

3.1.3

Moral evils

35

3.1.4

Exposure to Medical Hazards

37

CHAPTER-1
INTRODUCTION 1.1 ABOUT THE STUDY Industrialization: Industrialization is a process of social and economic change whereby a human society is transformed from a pre-industrial (an economy where the amount of capital accumulated per capita is low) to an industrial state. This social and economic change is closely intertwined with technological innovation, particularly the development of large-scale energy production and metallurgy. Industrialization is also related to some form of philosophical change, or to a different attitude in the perception of nature, though whether these philosophical changes are caused by industrialization or vice-versa is subject to debate. The world's first industrialized city was Manchester in northwest England. Industrialization has spawned its own health problems. Modern stressors include noise, air, water pollution, poor nutrition, dangerous machinery, impersonal work, isolation, poverty, homelessness, and substance abuse. Health problems in industrial nations are as much caused by economic, social, political, and cultural factors as by pathogens. Industrialization has become a major medical issue worldwide, and hopefully will become less of a problem over the upcoming years. When capitalized, Industrial Revolution refers to the first industrial revolution, which took place in Britain during the 18th and 19th centuries. The Second Industrial Revolution describes later, somewhat less dramatic changes which came about with the widespread availability of electric power, the internal-combustion engine and assembly lines.

Most pre-industrial economies had standards of living not much above subsistence, meaning that the majority of the populations were focused on producing their means of survival. For example, in medieval Europe, 80% of the labour force was employed in subsistence agriculture. The countries in green are considered to be the current industrializing nations. China and India (in dark green) are special cases. Some pre-industrial economies, such as Ancient Athens, have had trade and commerce as significant factors, enjoying wealth far beyond a sustenance standard of living. Famines were frequent in most pre-industrial societies, although some, such as the Netherlands and England of the 17th and 18th centuries, the Italian city states of the 15th century and the ancient Greek and Roman civilizations were able to escape the famine cycle through increasing trade and commercialization of the agricultural sector. Industrialization is a process by which manufacturing industries develop from within a predominantly agrarian society. Characteristic features of industrialization include the application of scientific methods to solving problems, mechanization and a factory system, the division of labour, the growth of the money economy, and the increased mobility of the labour force-both geographically and socially. One problem is that these are features of capitalism, and capitalism is not the same thing as industrialization, although it was the first instrument of industrialization. Industrialization is generally accompanied by social and economic changes, such as a fall in the birth rate and a rise in per capita income. Initially there is an emphasis on primary and secondary, but as industrialization continues, there is a shift to tertiary industry. Although industrialization is often seen as a solution to problems of poverty in the

Third World, its effects may well not benefit any but a small sector of society. Furthermore, the pollution associated with industrial activity may cause serious difficulties. Industrialization in Asia: Apart from Japan, where industrialization began in the late 19th century, a different pattern of industrialization followed in East Asia. One of the fastest rates of industrialization occurred in the late 20th century across four countries known as the Asian tigers This starting model was afterwards successfully copied in other larger Eastern and Southern Asian countries, including communist ones. The success of this phenomenon led to a huge wave of off shoring i.e., Western factories or tertiary corporations choosing to move their activities to countries where the workforce was less expensive and less collectively organized. China and India, while roughly following this development pattern, made adaptations in line with their own histories and cultures, their major size and importance in the world, and the geo-political ambitions of their governments. Currently, China's government is actively investing in expanding its own infrastructures and securing the required energy and raw materials supply channels, is supporting its exports by financing the United States balance payment deficit through the purchase of US treasury bonds, and is strengthening its military in order to endorse a major geopolitical role.

Meanwhile, India's government is investing in specific vanguard economic sectors such as bioengineering, nuclear technology, pharmaceutics, informatics, and technologically-oriented higher education, openly over passing its needs, with the goal of creating several specialization poles able to conquer foreign markets. Both Chinese and Indian corporations have also started to make huge investments in Third World countries, making them significant players in today's world economy. Industrialization in the Independent India: Industrialization is a process that starts with the establishing and developing the industry for production of means of production and completes when the whole economy is transferred to the industrial methods of production. The most pressing problems of economic development of India could be solved only on the basis of industrialization. In the long run, the aim should have been to eliminate heterogeneous structure, integrate the economic system, ensure extended production on a national basis, eradicate unemployment and raise the nation-wide labor productivity. All these factors were, in turn influenced by the approach of the government and the various groups of the propertied classes to the problems of industrialization and possibly of subordinating interests of the various groups to those of the ruling class as a whole. Eliminating the heterogeneous economic structure meant that industrialization could not be implemented on a selective basis. Instead, the old methods of productions had to be replaced with the modern industrial

methods. This required, among other things, two major transformations: one, changing the old feudal property relations in the rural landscape and two, introduction of modern means of production and technology into the lower socioeconomic structure so that they too would be brought within the commodity-money and market circulation. However, as we have seen above, after independence, feudal landlord class was quick enough to ally itself with the ruling elite. The state, rather than curtailing its power, strengthened the class. Unsurprisingly, with support from the bourgeoisie, landlords successfully thwarted the land-reform program. Not only this, the interests of the bourgeoisie lied in hindering the emergence of new market forces, something that was inevitable, once the old base of artisans and other tiny producers would have been transformed along new lines. As expected, feudal landlords and the bourgeoisie were once again hands in glove to stop this from happening. In effect, industrialization was reduced to a process, which transformed only the modern sectors of the economy. Thus was the focus of the Second Plan. The men from FICCI had no doubt as to the character of the economy: it was capitalism, added by a strong public sector. They were preparing for it long ago. When Nehru became Prime Minister he had already discussed the future economy of the country at length with J.R.D. Tata Birla. Tata and Birla were in complete agreement with Nehru, as early as 1938, that economic planning was crucial in order to modernize the country. They agreed that the scale of investment was beyond the capacities of the entire FICCI membership, and that the country needed a healthy dose of state capitalism to put the economy on its feet. There was no talk of socialism. Nehru had realized, in his sub-conscious if not explicitly, that when he agreed to the 1935 Act and power sharing exercise of 1937, the

game was virtually over. Indias political trajectory had determined its economic future, and it was by then impossible for Nehru to pursue scientific or full-bodied socialism and expropriate the kings of industry, even if he had been so inclined. A serious attempt on his part to do so would have led to his instant removal from Congress leadership. He moved ahead with Bombay Club Plan prepared by Industrialist in veil of socialism. Quit a large number of industries was set up in public sector mainly in basic and capital goods industries like electricity, steel and machinemaking etc. These were the industries where private sector was not interested as these were long gestating i.e. yielded fruit after a long time. The government also took planning to ensure these, and other industries in private sector, develop according to pre-determine aims. Although little was provided in First Five Year Plan (1951-56) for industries, there was much by way of industrial development in Second Five Year Plan (1956-61) and the Third one (1961-66). The amount of resources too was stepped up from a meager 3 percent in total outlay of the First Plan to as much as 30 percent in Second Plan, and to about 35 percent in the Third Plan. During this period, profitability of industries, identified as private sector increased by leaps and bounds. Restriction on imports enabled private capital to tap the domestic market. Oddly though, in capital scarce country, interest remained low, keeping cost of investment low. India reaped the fruits of the government-supported financial sector. Tax concessions and availability of large funds by the new financial institutions set by the government enabled the private capital to make large profit.

In this period, the capital acquired the character of monopoly. Tata, Birla, and Mafatlal etc. were sufficiently strong from the days of independence struggle itself, but they did not have monopolistic influence over Congress; other classes also had a share in the decision making and resource allocation. However, as time passed, congress came totally in the grip of monopoly, which would use the former to restrict competition via unfair means, get undue favors in terms of reduction in import duties and excise and would ultimately go to the extent of corrupting the basic institutions of democracy e.g. parliament, electoral process, youth politics and so on. Infrastructure In view of their crucial importance, power, transport and other infrastructure industries are owned by the State. As a result of special attention given to the area in recent years, the infrastructure industries have been growing at the rate of 9 to 10 per cent annually. Power: The generation of power has increased impressively in recent years. In 1990-51, India generated 6.6 billion-kilowatt hour of electricity, in 1995-96 the figure was 380.1 billion-kilowatt hour. The installed capacity, which was 1400 MW at Independence in 1947, has crossed 83,288 MW The policy of inviting private sector has been well received; about 140 offers that can generate over 60,000 MW of power have came in. Coal: Coal is the primary source for power generation in India. The country has huge reserves of coal approximately 197 billion tons. A sufficient amount of lignite (brown coal used in thermal power stations) is also available.

India produced about 270 million tons of coal in 1995-96. The government now welcomes private investment in the coal sector, allowing companies to operate captive mines. Petroleum and Natural Gas: The recent exploration and production activities in the country have led to a dramatic increase in the output of oil. The country currently produces 35 million tons of crude oil, two thirds of which is from offshore areas, and imports another 27 million tons. Refinery production in terms of crude throughput of the existing refineries is about 54 million tons. Natural gas production has also increased substantially in recent years, with the country producing over 22,000 million cubic meters. Natural gas is rapidly becoming an important source of energy and feedstock for major industries. By the end of the Eighth Five-Year Plan, production was likely to reach 30 billion cubic meters. Railways: With a total route length of 63,000 Kin and a fleet of 7000 passenger and 4000 goods trains, the Indian Railways is the second largest network in the world. It carries more than 4000 million passengers per year and transports over 382 million tons of freight every year. It is well equipped to meet its demands for locomotives, coaches and other components. Lately, the Railways have launched a massive gauge conversion drive as about a third of the track is meter or narrow gauge. With improvement in tracks, plans are afoot to introduce faster trains. Very soon, certain prestigious long distance trains will be running at 160 Kin per hour.

The Railways have also started a scheme to privatize several services that will include maintenance of railway stations, meals, drinking water and cleaning of trains. Road Transport: The roadways have grown rapidly in independent India. Ranging from the cross-country link of the national highways to the roads in the deepest interiors, the country has a road network of 2.1 millionkm. India also manufactures most of its motorized vehicles -cars, jeeps, trucks, vans, buses and a wide range of two-wheelers of various capacities. While Indian scooters have established a good foreign market, the car industry is also looking up with several foreign companies setting up plants in India. Shipping: The natural advantage of a vast coastline requires India to use sea transport for the bulk of cargo transport. Following the policy of liberalization, the Indian shipping industry, major ports, as also national highways and water transport have been throw open to the private sector. Shipping activity is buoyant and the number of ships registered under the Indian flag has reached 471. The average age of the shipping fleet in India is 13 years, compared to 17 years of the international shipping fleet. India is also among the few countries that offer fair and free competition to all shipping companies for obtaining cargo. There is no cargo reservation policy in India.

Aviation: India has an aviation infrastructure, which caters to every aspect of this industry. Hindustan Aeronautics Limited (HAL) is India's

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gigantic aeronautical organization and one of the major aerospace complexes in the world. India's international carrier, Air India, is well known for its quality service spanning the world. Within the country, five international airports and more than 88 other airports are linked by Indian Airlines. Vayudoot, an intermediate feeder airline, already links more than 80 stations with its fleet of turboprop aircraft and it plans to build and expand its network to over 140 airports in the far-flung and remote areas of the country. Pawan Hans, a helicopter service, provides services in difficult terrain. The Government has adopted a liberal civil aviation policy with a view to improving domestic services. Many private airlines are already operating in the country. Pipelines: Oil and natural gas pipelines form an important transportation network in the country. The country completed recently, on schedule, one of its most ambitious projects, the 1700 km Hazira-Bijaipu Jagdishpur pipeline. Costing nearly Rs. 17 billion, the pipeline transports liquid gas from the South Bassein offshore field off Mumbai to Jagdishpur and Aonla, deep in the mainland in Uttar Pradesh. Besides, India has nearly 7,000 km of pipeline mainly for the transportation of crude oil and its products. Telecommunications: With rapid advances in technology, India now uses digital technology in telecommunications, which derives advantage from its ability to interface with computers. The present strategy focuses on a balanced growth of the network rapid modernization, a quantum jump in key technologies, increased productivity, and innovation in organization

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and management. Moving towards self-reliance, besides establishing indigenous R&D in digital technology, India has established manufacturing capabilities in both the Government and private sectors. The private sector is expected to play a major role in the future growth of telephone services in India after the opening of the economy. The recent growth in telecommunications has also been impressive. Till September 1996, the number of telephone connections had reached 126.1 lakh (12.6 million). Soon every village panchayat will have a telephone. By 1997, cellular services in most major urban areas were functional, and telephone connections were available on demand. India is linked to most parts of the world by E-mail and the Internet. Key Industries Steel: The iron and steel industry in India is over 122 years old. However, a concerted effort to increase the steel output was made only in the early years of planning. Three integrated steel plants were set up at Bhili, Durgapur and Rourkela. Later two more steel plants, at Bokhara and Vishakhapatnam, were set up. Private sector plants, of which the Tata Iron and Steel Company (TISCO) is the biggest, have been allowed to raise their capacity. The Steel Authority of India (SAIL), which manages the public sector plants, has undertaken a Rs. 40,500 crore program to modernize them. During 1995,96, production of salable steel in the country was about 21.4 million tons. The five SAIL plants accounted for over half of this: The export of iron and steel jumped from 9.10 lakh tons in 1992-93 (valued at Rs.'708 crore) to over 20 lakh tons (Rs. 1940 crore).

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TISCO and a large number of mini steel plants in the country contribute about 40% of the steel production in the country. The Government has given a push to sponge iron plants to meet the secondary sector's requirement of steel scrap. Engineering and Machine Tools: Among the Third World countries, India is a major exporter of heavy and light engineering goods, producing a wide range of items. The bulk of capital goods required for power projects, fertilizer, cement, steel and petrochemical plants and mining equipment are made in India. The country also makes construction machinery, equipment for irrigation projects, diesel engines, tractors, transport vehicles, cotton textile and sugar mill machinery. The engineering industry has shown its capacity to manufacture large-size plants and equipment for various sectors like power, fertilizer and cement. Lately, air pollution control equipment is also being made in the country. The heavy electrical industry meets the entire domestic demand. Electronics: The electronics industry in India has made rapid strides in recent years. The country produces electronics items worth over Rs. 200 billion annually. Exports are also rising; in 1995-96 they reached Rs. 4.5 billion. The software export during the same year reached Rs 2.5 billion. Compared to 1994-95, the software export growth in 1995-96 rose by an impressive 70%. The Software Technology Park scheme for attracting investments has proved successful. The relative low cost of production in India makes items made in India competitive in the world market.

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Some of the major items manufactured in India are computers, communication equipment, broadcasting and strategic electronics, television sets, microwave ovens and washing machines. The compound growth of the computer industry has been 50% during the last five years. Almost the entire demand for floppy disk drives, dot matrix printers, CRT terminals, keyboards, line printers and plotters is met from indigenous production. With the availability of trained technical manpower, computers have been identified as a major thrust area. Special emphasis has been given to software export. The Indian software industry has developed skill and expertise in areas like design and implementation of management information and decision support systems, banking, insurance and financial applications, artificial intelligence and fifth generation systems. Recognition for the Indian computer software industry has been global. Indian software enterprises have completed projects for reputed international organizations in 43 countries. Textiles: Textiles, the largest industry in the country employing about 20 million people, account for one third of India's total exports. During 1995-96, textile exports were estimated at Rs. 35,504.6 crore which was 13.3% more than the 1994-95 figure. In recent years, several controls have been removed and in October 1996, a new long-term Quota policy was announced to boost exports over the next three years, till 1999. Public Sector: The public sector contributed to the initial development of infrastructure and diversification of industrial base. It is

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now being exposed to competition. Part equity of some units is being disinvested. But many core and strategic areas, important for economy and self-reliance, will remain in the public sector. Industrial agriculture: Industrial agriculture is a form of modern farming that refers to the industrialized production of livestock, poultry, fish, and crops. The methods of industrial agriculture are techno scientific, economic, and political. They include innovation in agricultural machinery and farming methods, genetic technology, techniques for achieving economies of scale in production, the creation of new markets for consumption, the application of patent protection to genetic information, and global trade. These methods are widespread in developed nations and increasingly prevalent worldwide. Most of the meat, dairy, eggs, fruits, and vegetables available in supermarkets are produced using these methods of industrial agriculture. Historical development: The birth of industrial agriculture more or less coincides with that of the Industrial Revolution in general. The identification of nitrogen, potassium, and phosphorus as critical factors in plant growth led to the manufacture of synthetic fertilizers, making possible more intensive types of agriculture. The discovery of vitamins and their role in animal nutrition, in the first two decades of the 20th century, led to vitamin supplements, which in the 1920s allowed certain livestock to be raised indoors, reducing their exposure to adverse natural elements. The discovery of antibiotics and vaccines facilitated raising livestock in concentrated, controlled animal feed operations by reducing diseases caused by crowding. Chemicals developed

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for use in World War II gave rise to synthetic pesticides. Developments in shipping networks and technology have made long-distance distribution of agricultural produce feasible. Agricultural production across the world doubled four times between 1820 and 1975 to feed a global population of one billion human beings in 1800 and 6.5 billion in 2002. During the same period, the number of people involved in farming dropped as the process became more automated. In the 1930s, 24 percent of the American population worked in agriculture compared to 1.5 percent in 2002; in 1940, each farm worker supplied 11 consumers, whereas in 2002, each worker supplied 90 consumers. The number of farms has also decreased, and their ownership is more concentrated. Disadvantages of Industrial agriculture: Industrial agriculture uses huge amounts of water, energy, and industrial chemicals; increasing pollution in the arable land, useable water and atmosphere. Herbicides, insecticides, fertilizers, and animal waste products are accumulating in ground and surface waters. "Many of the negative effects of industrial agriculture are remote from fields and farms. Nitrogen compounds from the Midwest, for example, travel down the Mississippi to degrade coastal fisheries in the Gulf of Mexico. But other adverse effects are showing up within agricultural production systems - for example, the rapidly developing resistance among pests is rendering our arsenal of herbicides and insecticides increasingly ineffective."

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Dangers of industrialization: Mumbai, Kolkata, Kanpur etc. are densely populated. They are industrial towns. Cowing to over-crowing and congestion, climate becomes unhealthy. Moral evils increase. We all know that big machines are labor saving devices. A single machine can do the work of hundreds of men. So thousands are thrown out on the road. They become victims of unemployment. Hazards of industrialization are many. Sometimes there is leakage of gas from storage-tanks. This happened in Bhopal in the Union Carbide Factory. The fatal M.I.C. gas leaked out, killing thousands and injuring for life the health of many thousands more. According to the opinion of experts, even the children to be born would suffer from it. An industrial tragedy of such magnitude had never happened before anywhere in the world. Besides the above dangers, some other difficulties also come in the way of industrialization. Big machine are very costly. No under-developed country, like India, can manufacture heavy machines. She has to obtain them from foreign counties. The dependence on others is the first difficulty, which must be faced. To purchase the machines, a huge amount of money is required. In a poor country, like India money cannot be obtained from internal rescues. Heavy taxes are imposed on the people to get every possible paisa from them. People are subjected to untold hardships and miseries. 'No gain without pain' is an oft quoted saying. We must bear all difficulties and be prepared to face the dangers, if we want to reap the

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advantages of industrialization. Through industrialization, production increases rapidly. Goods become cheaper. Plenty and prosperity take the place of poverty. The standard of living of the people is raised. An industrialized country not only satisfies the demands of her own people, but also exports her surplus goods. This increases her foreign trade. In this way, the country becomes prosperous and strong. Further, industrialization is also essential for the defense of the country. Modern armaments cannot be manufactured without an industrial base. So the advantages of industrialization far outweigh the dangers and difficulties which come in its wake. Since independence India has been rapidly industrialized. Giant industrial concerns are located at suitable places all over the country. Industrialization is the only way open to her to take her rightful place in the comity of nations. The country must continue to march ahead on the road to industrialization, despite its many hazards, dangers and difficulties. Now multination has been invited to enter the field in a big way so that the speed of industrialization in India increased. E-waste: "Electronic waste" may be defined as all secondary computers, entertainment device electronics, mobile phones, and other items such as television sets and refrigerators, whether sold, donated, or discarded by their original owners. This definition includes used electronics which are destined for reuse, resale, salvage, recycling, or disposal. Rapid technology change, low initial cost, and planned obsolescence have resulted in a fast-growing surplus of electronic waste around the

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globe. Dave Kruch, CEO of Cash For Laptops, regards electronic waste as a "rapidly expanding" issue. Technical solutions are available, but in most cases a legal framework, a collection system, logistics, and other services need to be implemented before a technical solution can be applied. An estimated 50 million tons of E-waste is produced each year. The USA discards 30 million computers each year and 100 million phones are disposed of in Europe each year. Surplus electronics have extremely high cost differentials. A single repairable laptop can be worth hundreds of dollars, while an imploded cathode ray tube (CRT) is extremely difficult and expensive to recycle. This has created a difficult free-market economy. Large quantities of used electronics are typically sold to countries with very high repair capability and high raw material demand, which can result in high accumulations of residue in poor areas without strong environmental laws. Trade in electronic waste is controlled by the Basel Convention. The Basel Convention Parties have considered the question of whether exports of hazardous used electronic equipment for repair or refurbishment are not considered as Basel Convention hazardous wastes unless they are discarded. The burden of proof that the items will be repaired and not discarded rest on the exporter, and any ultimate disposal of non-working components is subject to controls under that Convention. In the Guidance document produced on that subject, that question was left up to the Parties. Like virgin material mining and extraction, recycling of materials from electronic scrap has raised concerns over toxicity and carcinogenicity of some of its substances and processes. Toxic substances in electronic

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waste may include lead, mercury, and cadmium. Carcinogenic substances in electronic waste may include polychlorinated biphenyls (PCBs). Capacitors, transformers, and wires insulated with or components coated with polyvinyl chloride (PVC), manufactured before 1977, often contain dangerous amounts of PCBs. Up to 38 separate chemical elements are incorporated into electronic waste items. Many of the plastics used in electronic equipment contain flame retardants. These are generally halogens added to the plastic resin, making the plastics difficult to recycle. Due to the flame retardants being additives, they easily leach off the material in hot weather, which is a problem because when disposed of, electronic waste is generally left outside. The flame retardants leach into the soil and recorded levels were 93 times higher than soil with no contact with electronic waste. The unsustainability of discarding electronics and computer technology is another reason commending the need to recycle or to reuse electronic waste. When materials cannot or will not be reused, conventional recycling or disposal via landfill often followed. Standards for both approaches vary widely by jurisdiction, whether in developed or developing countries. The complexity of the various items to be disposed of, the cost of environmentally approved recycling systems, and the need for concerned and concerted action to collect and systematically process equipment are challenges. One study indicates that two thirds of executives are unaware of fines related to environmental regulations.

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1.1.1Need for the study: Industrialization mainly results in economic development as well as urbanization and pollution. Though there are so many advantages from industrialization, there are some dangerous things that are resulted because of it. Chennai is one of the industrialized cities in Tamilnadu. So the study is to know the attitude of people towards the impact of industrialization in Chennai.

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1.1.2 Objectives: Primary objective: To know the impact of industrialization in Chennai, Tamilnadu.

Secondary objectives: To find out peoples attitude towards industrialization. To know the importance of industrialization. To study about the problems arising because of industrialization.

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CHAPTER-II RESEARCH METHODOLOGY

Research methodology is a systematic way to solve the research problem. Hence the methodology for each research problem needs to design by researcher through research. Research in common term refers to the search of knowledge. It can be defined as the scientific and systematic search for pertinent information on a specific topic in fact research is an art of scientific investigation.

2.1 RESEARCH DESIGN A research is a careful investigation of enquiry especially through search for new facts in any branch of knowledge .Research methodology is a way to systematically solve the research problem. DESCRIPTIVE RESEARCH Descriptive research study includes surveys and fact-findings enquiries of different kinds, which help the researchers to describe the present situation that makes the analysis about the impact of industrialization and helps to reach the objectives. Descriptive research is designed to describe characteristics or behaviors of a particular population in a systematic and accurate fashion. Descriptive research uses questionnaires and interviews to collect information about peoples attitudes, beliefs, feelings behaviors and lifestyles.

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2.2 SAMPLING DESIGN A sample design is a definite plan for obtaining a sample from the sampling frame. It refers to the technique or the procedure the researcher would adopt in selecting some sampling units from which inferences about the population is drawn. Sampling design is determined before any data are collected. CONVENIENCE SAMPLING Convenience sampling refers to the collection of information from members of population who are conveniently available as for researchers concern to provide it. Convenience sampling is selected from unknown population by the researcher convenient. SOURCE OF DATA a) Primary Data The primary data was collected by conducting survey through a questionnaire which seeks answer to a set of preconceived questions in a structured way. The questionnaire consisted of 21 questions. b) Secondary Data Secondary data was collected from the sources like websites, company annual reports, company manuals, other books, etc. Sample Size:

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The sample size consists of 300 respondents.

2.3 TOOLS FOR ANALYSIS: Simple Percentage method: The simple percentage is calculated from the ratio between the numbers of respondents to the total number of respondents multiplied by 100 Formula: No. of Respondents Percentage = Total No. of Respondents Chi square Test: A chi-square test is any statistical hypothesis test in which the test statistic has a chi-square distribution when the null hypothesis is true, or any in which the probability distribution of the test statistic (assuming the null hypothesis is true) can be made to approximate a chi-square distribution as closely as desired by making the sample size large enough. Formula: Chi-square = (Oi Ei)2 Ei where 100

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Oi ---- Observed Frequency, Ei ---- Expected Frequency.

Weighted Average method: When the relative importance of the different observations is not the same, we compute weighted arithmetic mean. The terms Weight stands for the relative importance of the different observations. The formula for this is, Xw Where Xw Xi Wi = = = Weighted arithmetic mean the variable Weights attached to the variable Xi i-1n = WiXi / Wi

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2.4 LIMITATION OF THE STUDY: The study was confined only to the industrial areas of Chennai i.e, Ambathur, Guindy and Manali. So the study wont be applicable for any other industrialized cities. Due to the time constraint the data collected was only limited. The study is based on the data collected through questionnaires.

27

CHAPTER - III DATA ANALYSIS AND INTERPRETATION 3.1. SIMPLE PERCENTAGE ANALYSIS: TABLE: 3.1.1 DEMOGRAPHIC FACTORS OF THE RESPONDENTS S.NO VARIABLES CATEGORY No. of Res. Percentage % below 21 years 54 18 21 - 30 years 132 44 1 Age 31 - 40 years 102 34 above 40 years 12 4 Total 300 100 Male 186 62 2 Gender Female 114 38 Total 300 100 Students 54 18 Housewife 24 8 Businessman 48 16 3 Type of Res. Professional 72 24 Employee 102 34 Others 0 0 Total 300 100 Below Rs.10001 94 31.4 Rs.10001 - 20000 118 39.3 4 Monthly income Rs.20001 - 30000 36 12 Above Rs.30000 52 17.3 Total 300 100 Below 10 yrs 114 38 10 - 20 yrs 102 34 5 Yrs in Chennai 21 - 30 yrs 72 24 Above 30 yrs 12 4 Total 300 100 Source: Primary data

28

CHART: 3.1.1 DEMOGRAPHIC FACTORS OF THE RESPONDENTS

29

TABLE 3.1.2 MAIN PROBLEM OF INDUSTRIALIZATION-POLLUTION MAIN PROBLEM OF S.NO INDUSTRIALIZATIONPOLLUTION 1 2 3 Yes No Total 300 0 300 RESPONDENTS PERCENTAGE % 100 0 100

Source: Primary data TABLE 3.1.3 TYPE OF POLLUTION COMMON IN CHENNAI TYPE OF POLLUTION S.NO COMMON IN CHENNAI 1 2 3 4 Air pollution Water pollution Noise pollution Total 228 70 2 300 RESPONDENTS PERCENTAGE % 76 23.3 0.67 100

Source: Primary data

30

INTERPRETATION: From the above tables it is clear that almost all the respondents feel that pollution is the main problem in Chennai because of industrialization. In that 76% of the respondents gave the opinion that air pollution is the main problem. Apart from all other impacts of industrialization, pollution is the only thing which is more dangerous to the human society. Air pollution and its impact on peoples health and the environment is a matter of great concern. Heavy reliance on coal in power production and a rapidly growing car fleet, usually in combination with outdated technologies and poor maintenance have led to a concentration of air pollutants.

31

CHART 3.1.2 TYPE OF POLLUTION COMMON IN CHENNAI

32

TABLE 3.1.4 MORAL EVILS S.NO 1 2 3 MORAL EVILS Yes No Total RESPONDENTS 19 281 300 PERCENTAGE % 6 94 100

Source: Primary data INTERPRETATION: It is clear from the above table that moral evils are not a great problem because of industrialization. So it is not an area that is to be considered as an impact of industrialization.

33

CHART 3.1.3 MORAL EVILS

34

TABLE 3.1.5 EXPOSURE TO MEDICAL HAZARDS S.NO 1 2 3 MEDICAL HAZARDS Yes No Total RESPONDENTS 114 186 300 PERCENTAGE % 38 62 100

Source: Primary data INTERPRETATION: From the above table it can be found that majority of the respondents are not exposed to any medical hazards. But due to the lack of proper attention on controlling the pollution and other demerits of industrialization, people are fearing that in future they might be exposed to any medical hazards because of industrialization.

35

CHART 3.1.4 MEDICAL HAZARDS

36

3.2 WEIGHTED AVERAGE METHOD TABLE 3.2.1 RESPONDENTS OPINION TOWARDS THE FACTORS REGARDING THE IMPACT OF INDUSTRIALIZATION S.No 1. 2. 3. FACTORS The major problem of industrialization is Pollution. Industrialization decreases the problem of unemployment. Industries contribute to the economic development of the country. 4. The Corporate Social Responsibility 102 4.5 WEIGHTED AVERAGE 108.6 105 103.2 RANK 1 2 3

activity of the companies really benefits the 5. public. The problem of urbanization is only due to industrialization. 6. Your standard of living has improved due to industrialization. 7. Industries are depleting the non-renewable resources. 8. The benefits of industrialization is shared equally in the economy. 93.6 8 99 7 101.4 6 102 4.5

37

9.

Industrialization helps to produce the agricultural commodities in cost-effective manner.

93

10.

The role of Government in developing the industries and assisting those in overcoming the problem of pollution is effective.

84.7

10

11.

Agriculture is affected because of increase in the number of industries.

82.2

11

12.

Industries are taking necessary steps to overcome the problem of pollution

81

12

13.

Transportation industrialization.

is

affected

due

to

73.2

13

14.

Due to industrialization, people are shifting from agriculture as an occupation.

72.8

14

15.

Food scarcity in India is an impact of industrialization.

62.4

15

Source: Primary data

38

INTERPRETATION: From the weighted average method, it can be found that the pollution and urbanization is the main problem. Though there is so many disadvantages of industrialization, it is having its own importance since it contributes to the economic development, it provides employment opportunities and it has been improved the standard of living. But the thing which makes people dissatisfied is that the government is not providing proper support and not taking proper action to control the dangers of industrialization and moreover the agriculture is mostly affected because of industrialization.

39

TABLE 3.2.2 RESPONDENTS OPINION TOWARDS THE DISADVANTAGES OF INDUSTRIALLIZATION S.No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Pollution Urbanization Affects natural environment Medical hazards Affects agriculture Dangerous machinery. Electricity problems Transportation problem Depletion of resources Importing high technology machines at high cost Source: Primary data FACTORS WEIGHT 2928 2144 1717 1634 1573 1364 1324 1254 1198 832 RANK 1 2 3 4 5 6 7 8 9 10

40

INTERPRETATION: The major disadvantages of industrialization are pollution, urbanization, affecting natural environment, medical hazards and affecting agriculture. So these are the areas which are to be considered for controlling and these problems should be minimized as well.

41

TABLE 3.2.3 RESPONDENTS OPINION TOWARDS THE ADVANTAGES OF INDUSTRIALIZATION S.No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. FACTORS Employment opportunities Economic development Affects natural environment Rural development Foreign Direct Investment Goods became cheaper Electricity problems Development in infrastructure Depletion of resources Production increases WEIGHT 2872 2648 1717 2118 1734 1554 1324 918 1198 788 RANK 1 2 3 4 5 6 7 8 9 10

Source: Primary data

42

INTERPRETATION: The employment opportunities, economic development and increase in foreign trade which are resulted from industrialization are considered as major advantage. The industrialization also contributes to for the infrastructure development, rural development and increase in standard of living, but these areas are that much considered by the people. So further development is needed in these least considered areas.

43

3.3 - CHI-SQUARE ANALYSIS TABLE 3.3.1 RELATIONSHIP BETWEEN MONTHLY INCOME AND BENEFITS OF INDUSTRIALIZATION Benefits income Below Rs.10001 Rs.10001 to 20000 Rs.20001 to 30000 Above Rs.30000 Total SA 31 A 28 D 35 SD 0 Total 94

24

87

118

11 18 84

19 34 168

6 0 48

0 0 0

36 52 300

Source: Primary data NULL HYPOTHESIS (Ho): There is no significant relationship between income level of the respondents and their opinion about benefits of industrialization shared equally in the economy. ALTERNATE HYPOTHESIS (H1): There is a significant relationship between income level of the respondents and their opinion about benefits of industrialization shared equally in the economy.

44

Calculated value

= 66.47 = (4-1)*(4-1) =9

Degree of freedom = (R-1)*(C-1)

Table value = 16.91 INTERPRETATION: The table value is lesser than that of the calculated value. Therefore the null hypothesis is not accepted. i.e. There is a significant relationship between income level of the respondents and their opinion about benefits of industrialization shared equally in the economy. So it can be found from the analysis that the respondents who are earning high income say that the benefit of industrialization is shared equally and the respondents who earns low income disagrees the statement. So it can be concluded that the richer are becoming richer and the poorer are becoming poorer.

45

TABLE 3.3.2 TYPE OF THE RESPONDENT AND THEIR OPINION ON ROLE OF GOVERNMENT IN INDUSTRIALIZATION Govt. Type Of res. School level Housewife Businessman Professional Employee Others Total 13 7 16 22 32 0 90 17 6 14 19 47 0 103 14 5 10 27 15 0 71 10 6 8 4 8 0 36 54 24 48 72 102 0 300 SA A D SD Total

Source: Primary data NULL HYPOTHESIS (Ho): There is no significant relationship between the type of the respondent and their opinion on the role of government in industrialization is effective.

ALTERNATIVE HYPOTHESIS (H1):

46

There is a significant relationship between the type of the respondent and their opinion on the role of government in industrialization is effective. Calculated value = 27.18 Degree of freedom = (R-1) * (C-1) = (6-1) * (4-1) = 5*3 = 15 Table value = 24.99 INTERPRETATION: Here the table value is lesser than that of the calculated value. Therefore it is found that there is a significant relationship between the type of the respondent and their opinion on the role of government in industrialization is effective.

CHAPTER - 4

47

FINDINGS AND CONCLUSION 4.1 FINDINGS: It is undoubtedly clear that the main problem of industrialization is pollution since all the respondents had given the same opinion and majority of the respondents (76%) feels that air pollution is more common in Chennai. More advanced methods of pollution controlling technologies should be adopted and should be strictly followed by the industries. The number of respondents who are exposed to medical hazards is only 36%. The major benefit of industrialization is employment opportunities, economic development and improved in standard of living. The government still has to take serious action towards the demerits of industrialization. Agriculture is affected because of industrialization but

industrialization also assists the agriculture in the way of modern methods for the production of agricultural commodities. The major disadvantages of industrialization are pollution, urbanization and changes in natural environment. The major advantages of industrialization are employment opportunities and increase in foreign trade and rural development.

48

The chi-square analysis reveals that there is a significant relationship between income level of the respondents and their opinion about benefits of industrialization shared equally in the economy. It is found from the chi-square analysis that there is a significant relationship between the type of respondents and their opinion on the role of government in industrialization.

49

4.2 CONCLUSION No gain without pain. If we want to have the merits of industrialization we should also face the demerits. Industrialization is generally accompanied by social and economic changes. The advantages of industrialization are given more importance by the people of Chennai and developing the industries is encourageable. Some more new technologies and modern methods could be introduced to overcome the problems of industrialization. The industries should be separated from that of the residential areas in order to safeguard the human society. The most pressing problems of economic development could be solved only on the basis of industrialization.

50

BIBLIOGRAPHY BOOKS:

C.R.

Kothari

Research

Methodology

Methods

and

Techniques, New Age International Publishers, 1996 Gupta C.B. & Vijay Gupta, An Introduction To Statistical Methods, Vikas Publishing House Private Ltd, New Delhi.

N Narayana Rural Industrialization In India Strategies & Policies, National Publishing House, 2001.

Rama Shankar Singh, Industrialization In India: Structure And Pattern, Government Policy And Regulation, Present Problems And Future Prospects , Deep & Deep Publications,1992.

Jomo, Southeast Asia's Industrialization, 2001.

Thorstein Veblen, Imperial germany and industrial revoution.

Alan B. Mountjoy, Industrialization and under developed countries.

Sidney Pollard, Typology of Industrialization processes in the nineteenth century Harwood Academic Publishers GmbH, 1990.

Rajesh Chandra, Industrialization and Development in the Third World 1992.

WEBSITES:

http://agecon.lib.umn.edu/ndsu/aem www.toxiclinks.org http://www.e-waste.in/about/ www.googlesearch.com www.livesearch.com www.yahoo.com

APPENDIX Questionnaire to know the impact of industrialization 1. Name:

2. Age: Below 21 years 21-30 years

31-40 years

Above 40 years

3. Gender: Male Female

4. Type of respondents: School level House wife Businessman

Professional 5. Monthly income:

Employee

Others.

Below Rs.10001

Rs.10001-20000

Rs.20001-30000

Above Rs.30000

6. You have been staying at Chennai for how many years? Below 10 years 21 30 years 10 20 years Above 30 years

7. Does the main problem of industrialization is pollution? Yes No

7a. If yes, which form of pollution is more common in Chennai due to industrialization? Air pollution Water pollution Noise pollution

8. Do you think moral evils increase due to industrialization? Yes No

9. Is industrialization of this extent really necessary for an agricultural economy like India? Yes No

9a. If yes, mention the reason behind its necessity-----------------------------------------------------------------------------------------------. 10. Are you/ your family members exposed to any potential health hazard due to industrialization? Yes No 10a. If Yes, mention the type of health hazard or occupational disease_________________________.

11. Give your opinion for the following questions: SA) Strongly Agree A) Agree D) Disagree
S.No FACTORS

SD) Strongly Disagree

SA A D SD

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

Industrialization decreases the problem of unemployment. The major problem of industrialization is Pollution. The problem of urbanization is only due to industrialization. Transportation is affected due to industrialization. Industries are depleting the non-renewable resources. Industries contribute to the economic development of the country. Agriculture is affected because of increase in the number of industries. Industries are taking necessary steps to overcome the problem of pollution The Corporate Social Responsibility activity of the companies really benefits the public. The role of Government in developing the industries and assisting those in overcoming the problem of pollution is effective. Industrialization helps to produce the agricultural commodities in Cost-effective manner. Due to industrialization, people are shifting from agriculture as an occupation. The benefits of industrialization is shared equally in the economy. Food scarcity in India is an impact of industrialization. Your standard of living has improved due to industrialization.

12. Rank the factors based on their severity due to industrialization. S.No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Affects agriculture Pollution Urbanization Depletion of resources Transportation problem Affects natural environment Importing high technology machines at high cost Dangerous machinery. Medical hazards Electricity problems FACTORS RANK

13. Rank these advantages of industries based on their importance. S.No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. FACTORS Employment opportunities Increases foreign trade Economic development Corporate social responsibility Rural development Foreign Direct Investment Increase in standard of living Development in infrastructure Production is increased Goods became cheaper RANK

14. Give your own opinion about the impact of industrialization---------------------------------------------------------------------------------------------------------------. THANKS FOR YOUR RESPONSE