Economic Geography, Definition and Types

Economic Geography is a branch of geography that studies the location, distribution, and spatial organisation of economic activities across the world. It deals with how regions and places are interconnected through economic systems. It includes the study of natural resources, industries, employment, and the economic activities of regions and countries. 

Economic geography often employs concepts from diverse fields such as sociology, economics, and geography to provide insight into the economic phenomena and spatial patterns that exist across various scales (local, regional, national, and global).

Economic Activities

Economic Activities refer to the activities that are aimed at the production, distribution, exchange, and consumption of goods and services within an economy. These activities are essential for the sustenance and growth of human societies. 

Types of Economic Activities

Economic Activities are broadly classified into the following categories:

• Primary activities involve the extraction of raw materials from natural resources.
• Secondary activities process and manufacture raw materials.
• Tertiary activities provide services to facilitate various activities.
• Quaternary activities involve the production and distribution of knowledge and information and are often associated with research, development, and innovation.

Factors Affecting the Economic Activities

Economic Activities are influenced by various factors such as: 

• Physical geography influences agricultural and mining activities, while topography affects transportation routes and land use. 
• Resource distribution influences industries' clustering around mining areas. Accessibility and infrastructure also impact economic efficiency. 
• Industry clustering strengthens knowledge sharing and innovation. 
• Other factors: Include accessibility, infrastructure, market proximity, agglomeration economies, environmental considerations, government policies, and social factors.

Resources

Resources are the means or assets that can be utilised to produce goods and services. They are essential for sustaining economic activities and human life. Resources can be classified into various categories such as:-

• Land and soil resources: They are essential for agriculture, forestry, and human settlements. India's diverse soil types, influenced by climate, topography, and rock material, vary across regions. 
• Agriculture: It is a crucial economic activity, contributing significantly to GDP and employment. Major crops include food grains, cash crops, horticulture, and plantation crops. 
  • Green Revolution, mechanisation, extension services, and crop diversification have been adopted to enhance productivity and sustainability measures like irrigation development.
• Water resources: These include rivers, lakes, and coastal waters that are essential for agriculture, industry, and domestic use. Effective water resource management is crucial for sustainable economic development. 
  • Measures include irrigation infrastructure, groundwater management, water conservation, wastewater treatment, and river interlinking projects. 
• Livestock Resources: They are crucial for agricultural production, income generation, and employment. With diverse species like cattle, buffaloes, sheep, goats, pigs, and poultry, currently India is the world's largest milk producer. 
• Marine Resources: India's 7,500-kilometer coastline provides abundant marine resources, including fish, crustaceans, molluscs, and oil and gas reserves.
• Forest Resources: Forests offer numerous economic, environmental, and socio-cultural benefits. They provide timber, non-timber forest products (NTFPs), fuelwood, charcoal, ecosystem services, carbon sequestration, and economic opportunities. 
• Mineral Resources: Mineral resources, including coal, iron ore, bauxite, mica, limestone, and dolomite, are crucial for various industries and economic development. 
• Energy Resources: Energy resources are essential for economic activities and human development. Major sources include coal, crude oil and natural gas, hydroelectric power, nuclear energy, and renewable energy. 
  • India is enhancing its energy mix by developing hydroelectric projects, nuclear power, and renewable technologies, promoting exploration, production enhancement, infrastructure development, regional cooperation, and energy trade.

Major Industries 

India has a diverse industrial sector, ranging from small-scale industries to large-scale industrial complexes. These industries have a crucial role in the country's economic growth, employment generation, and export earnings.

• India's major industries include agro-based, iron and steel, textile, automobile, IT, pharmaceutical, petrochemical, and industrial corridors. 
• The iron and steel industry is well-established in states like Jharkhand, Chhattisgarh, Odisha, and West Bengal. 
• The textile industry produces natural and synthetic fibres, while the automotive industry is a significant producer and exporter. 
• Information Technology and IT-enabled Services are global hubs, driving economic growth and global competitiveness. It is largely concentrated in Banglore, Pune and the National Capital Region. 
• The pharmaceutical industry produces generic drugs and contributes to affordable healthcare. The petrochemical industry produces various products for various industries. 

Transport and Communication

India has made significant progress in developing its transport and communication infrastructure, facilitating the movement of goods, services, and people for smooth economic activities and market integration.

• Transport:
  • The country's extensive road network and Railways connect various parts of the country. 
  • The growing aviation sector connects major cities, while India's vast coastline and numerous rivers facilitate international trade through shipping. 
  • Pipeline transport transports crude oil, refined petroleum products, and natural gas. 
  • The government is working on improving transport infrastructure through inland waterways, dedicated freight corridors, high-speed rail networks, and airport modernisation.
• Communication: India has made significant progress in its communication infrastructure, enhancing economic activities and social connectivity. 
  • The Internet and broadband penetration have enabled digital transformation in sectors like e-governance, e-commerce, and online education. The postal system plays a crucial role in rural areas.

International Trade

International trade plays a crucial role in the economic development of a country, facilitating the exchange of goods and services, promoting specialisation, and enabling access to global markets. India has actively engaged in international trade, both as an exporter and importer of various commodities and services.

• Exports: India's major export commodities include-
  • Petroleum products, gemstones, jewellery, textiles, engineering goods, pharmaceuticals, agricultural commodities, and IT and IT-enabled services. 
  • It is a major hub for diamond processing, jewelry manufacturing, textiles, and apparel, and a leading producer of generic drugs and pharmaceutical products. 
  • India's IT sector also significantly exports software, services, and solutions to global markets.
• Imports: India's major import commodities include-
  • Energy, capital goods, machinery, gold and precious stones, electronic goods, chemicals, and edible oils. 
    • Crude oil and petroleum products make up a significant portion of its import basket. 
  • India also imports capital goods and machinery for industrial development, infrastructure projects, and technological upgrades.

Economic Geography UPSC PYQs 

Question 1: Account for the present location of iron and steel industries away from the source of raw material, by giving examples. (UPSC Mains 2020)

FAQs on the Economic Geography

Q1. What is economic geography?

Ans. Economic geography is a branch of human geography that studies the spatial distribution of economic activities and their relationships with the physical environment, human resources, and socio-cultural factors.

Q2. What are the main factors influencing the location of economic activities?

Ans. The main factors influencing the location of economic activities include natural resources, transportation and infrastructure, labour and markets, agglomeration economies, and government policies and incentives.

Q3. What are primary economic activities?

Ans. Primary economic activities are directly related to the exploitation and utilisation of natural resources. These include agriculture, mining, fishing, and forestry.

Q4. What are secondary economic activities?

Ans. Secondary economic activities involve the processing and manufacturing of raw materials obtained from primary activities. Examples include manufacturing industries, heavy industries, and agro-based industries.

Q5. What are tertiary economic activities?

Ans. Tertiary economic activities, also known as the service sector, involve the provision of services to businesses and consumers. These include transportation, trade, tourism, finance, and information technology.

Q6. What are Special Economic Zones (SEZs) and Export Processing Zones (EPZs)?

Ans. SEZs and EPZs are designated areas established by governments to attract foreign investment, promote exports, and facilitate economic development. These zones offer incentives such as tax exemptions, streamlined regulations, and improved infrastructure.