Industry/”>Indian Industry : An introduction
Industry accounts for 26% of GDP and employs 22% of the total workforce. According to the World Bank, India’s industrial manufacturing GDP output in 2015 was 6th largest in the world on current US dollar basis ($559 billion), and 9th largest on Inflation-adjusted constant 2005 US dollar basis ($197.1 billion). The Industrial Sector underwent significant changes due to the 1991 Economic Reforms, which removed import restrictions, brought in foreign competition, led to the privatisation of certain government-owned public-sector industries, liberalised the Investment/”>Foreign Direct Investment (FDI) regime, improved Infrastructure-2/”>INFRASTRUCTURE and led to an expansion in the production of fast-moving consumer goods. Post-liberalisation, the Indian private sector was faced with increasing domestic and foreign competition, including the threat of cheaper Chinese imports. It has since handled the change by squeezing costs, revamping management, and relying on cheap labour and new technology. However, this has also reduced EMPLOYMENT generation, even among smaller manufacturers who previously relied on labour-intensive processes.
Electricity sector
Primary energy consumption of India is the third-largest after China and the US with 5.3% global share in the year 2015. Coal and crude oil together account for 85% of the primary energy consumption of India. India’s oil reserves meet 25% of the country’s domestic oil demand. As of April 2015, India’s total proven crude oil reserves are 763.476 million metric tons, while gas reserves stood at 1,490 billion cubic metres (53 trillion cubic feet). Oil and natural gas fields are located offshore at Bombay High, Krishna Godavari Basin and the Cauvery Delta, and onshore mainly in the states of Assam, Gujarat and Rajasthan. India is the fourth-largest consumer of oil and net oil imports were nearly ₹820,000 crore (US$110 billion) in 2014–15, which had an adverse effect on the country’s Current Account deficit. The petroleum industry in India mostly consists of public sector companies such as Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation Limited (IOCL). There are some major private Indian companies in the oil sector such as Reliance Industries Limited (RIL) which operates the world’s largest oil refining complex.
Engineering
Engineering is the largest sub-sector of India’s industrial sector, by GDP, and the third-largest by exports. It includes transport equipment, machine tools, Capital Goods, transformers, switchgears, furnaces, and cast and forged parts for turbines, automobiles and railways. The industry employs about four million workers. On a value-added basis, India’s engineering subsector exported $67 billion worth of engineering goods in the 2013–14 fiscal year, and served part of the domestic demand for engineering goods.
The engineering industry of India includes its growing car, motorcycle and scooters industry, and productivity machinery such as tractors. India manufactured and assembled about 18 million passenger and utility vehicles in 2011, of which 2.3 million were exported. India is the largest producer and the largest market for tractors, accounting for 29% of global tractor production in 2013 India is the 12th-largest producer and 7th-largest consumer of machine tools.
Defence industry
The Defence industry of India is a strategically important sector in India. With strength of over 1.39 million active personnel, it is world’s 2nd largest military force and has the world’s largest volunteer army. The total budget sanctioned for the Indian military for the financial year 2018 is $62.8 billion, about five times what it spends on Education and welfare. Despite having a modest internal defence industry, India is the largest arms importer in the world, with most of its arms purchases coming in from Russia. 12% of worldwide arms exports (by value) reach India.
Gems and jewellery
India is one of the largest centres for polishing diamonds and gems and manufacturing jewellery; it is also one of the two largest consumers of gold. After crude oil and petroleum products, the export and import of gold, precious metals, precious stones, gems and jewellery accounts for the largest portion of India’s global trade. The industry contributes about 7% of India’s GDP, employs millions, and is a major source of its foreign-exchange earnings. The gems and jewellery industry created $60 billion in economic output on value-added basis in 2017, and is projected to grow to $110 billion by 2022.
The gems and jewellery industry has been economically active in India for several thousand years. Until the 18th century, India was the only major reliable source of diamonds. Now, South Africa and Australia are the major sources of diamonds and precious metals, but along with Antwerp, New York, and Ramat Gan, Indian cities such as Surat and Mumbai are the hubs of world’s jewellery polishing, cutting, precision finishing, supply and trade. Unlike other centres, the gems and jewellery industry in India is primarily artisan-driven; the sector is manual, highly fragmented, and almost entirely served by family-owned operations.
Petroleum products and Chemicals
Petroleum products and chemicals are a major contributor to India’s industrial GDP, and together they contribute over 34% of its export earnings. India hosts many oil refinery and petrochemical operations, including the world’s largest refinery complex in Jamnagar that processes 1.24 million barrels of crude per day. By volume, the Indian chemical industry was the third-largest producer in Asia, and contributed 5% of the country’s GDP. India is one of the five-largest producers of agrochemicals, polymers and plastics, dyes and various organic and inorganic chemicals. Despite being a large producer and exporter, India is a net importer of chemicals due to domestic demands. The chemicals manufacturing industry contributed $141 billion (6% of GDP) and employed 17.33 million people (4% of the workforce) in 2016.
Pharmaceuticals
The Indian pharmaceutical industry has grown in recent years to become a major manufacturer of Health care products to the world. India produced about 8% of the global pharmaceutical supply in 2011 by value, including over 60,000 generic brands of medicines.The industry grew from $6 billion in 2005 to $36.7 billion in 2016, a compound annual Growth rate (CAGR) of 17.46%. It is expected to grow at a CAGR of 15.92% to reach $55 billion in 2020. India is expected to become the sixth-largest pharmaceutical market in the world by 2020. It is one of the fastest-growing industrial sub-sectors and a significant contributor of India’s export earnings. The state of Gujarat has become a hub for the manufacture and export of pharmaceuticals and active pharmaceutical ingredients (APIs).
Textile
The textile and apparel market in India was estimated to be $108.5 billion in 2015. It is expected to reach a size of $226 billion by 2023. The industry employees over 35 million people. By value, the textile industry accounts for 7% of India’s industrial, 2% of GDP and 15% of the country’s export earnings. India exported $ 39.2 billion worth of textiles in the 2017-18 fiscal year. India’s textile industry has transformed in recent years from a declining sector to a rapidly developing one. After freeing the industry in 2004–2005 from a number of limitations, primarily financial, the government permitted massive investment inflows, both domestic and foreign. From 2004 to 2008, total investment into the textile sector increased by 27 billion dollars. Ludhiana produces 90% of woollens in India and is known as the Manchester of India. Tirupur has gained universal recognition as the leading source of hosiery, knitted garments, casual wear and sportswear. Expanding textile centres such as Ichalkaranji enjoy one of the highest per-capita incomes in the country. India’s Cotton farms, fibre and textile industry provides employment to 45 million people in India, including some Child Labour (1%). The sector is estimated to employ around 400,000 children under the age of 18.
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Indian Industry: An Introduction
India is a rapidly developing country with a diverse economy. The industrial sector is a major contributor to the country’s GDP and employs a large number of people. The history of Indian industry can be traced back to the early days of the British Raj, when the country was a major producer of textiles and other manufactured goods. After independence, the Indian government adopted a policy of import substitution, which led to the development of a number of heavy industries, such as steel, coal, and power. In recent years, the Indian government has adopted a more liberal economic policy, which has led to an increase in foreign investment and the growth of the private sector.
The structure of Indian industry is complex and fragmented. There are a number of large, multinational companies operating in India, as well as a large number of small and medium-sized enterprises. The major industries in India include textiles, chemicals, pharmaceuticals, automobiles, and information technology.
The Indian textile industry is one of the largest in the world, employing over 45 million people. The industry is dominated by small and medium-sized enterprises, which account for over 90% of all textile production. The Indian chemical industry is also a major employer, with over 10 million people working in the sector. The industry is dominated by a few large companies, such as Reliance Industries and Indian Oil Corporation. The Indian pharmaceutical industry is one of the fastest growing in the world, with a compound annual growth rate of over 15%. The industry is dominated by a few large companies, such as Ranbaxy Laboratories and Dr. Reddy’s Laboratories. The Indian automobile industry is the fourth largest in the world, with annual production of over 2.5 million vehicles. The industry is dominated by a few large companies, such as Maruti Suzuki and Tata Motors. The Indian information technology industry is one of the largest in the world, with over 4 million people employed in the sector. The industry is dominated by a few large companies, such as Infosys and Tata Consultancy Services.
The Indian industry faces a number of challenges, including infrastructure bottlenecks, high levels of Bureaucracy, and a shortage of skilled workers. However, the industry also has a number of opportunities, such as a large and growing domestic market, a young and educated workforce, and a favorable government policy Environment. The future of Indian industry looks bright, with the potential for continued growth and development.
One of the biggest challenges facing Indian industry is the lack of infrastructure. The country’s roads, railways, and Ports are in need of repair and expansion. This lack of infrastructure makes it difficult for businesses to transport goods and services, which can lead to higher costs and delays.
Another challenge facing Indian industry is the high level of bureaucracy. The country’s complex regulatory system can make it difficult for businesses to get started and operate. This can lead to delays and increased costs.
The Indian industry also faces a shortage of skilled workers. The country’s education system is not producing enough graduates with the skills that businesses need. This shortage of skilled workers can lead to higher costs and productivity problems.
Despite these challenges, the Indian industry has a number of opportunities. The country has a large and growing domestic market. The Indian Population is expected to reach 1.5 billion by 2030. This large and growing population provides a huge market for businesses to sell their products and services.
India also has a young and educated workforce. The Median age in India is 28 years old. This young workforce is eager to work and can be a valuable asset for businesses.
The Indian government is also supportive of the industry. The government has implemented a number of policies to promote investment and growth in the sector. These policies include tax breaks, subsidies, and access to credit.
The future of Indian industry looks bright. The country has a number of advantages, including a large domestic market, a young and educated workforce, and a supportive government. These advantages should help the Indian industry to continue to grow and develop in the years to come.
What are the major industries in India?
The major industries in India are:
- agriculture
- Manufacturing
- Services
- Mining
- Construction
What is the contribution of each industry to the Indian economy?
The contribution of each industry to the Indian economy is as follows:
- Agriculture: 17%
- Manufacturing: 16%
- Services: 53%
- Mining: 2%
- Construction: 10%
What are the challenges facing the Indian industry?
The challenges facing the Indian industry are:
- Low productivity
- High cost of production
- Lack of infrastructure
- Inefficient bureaucracy
- Corruption
What are the opportunities for the Indian industry?
The opportunities for the Indian industry are:
- Large domestic market
- Growing middle class
- Rising disposable income
- Increasing Urbanization
- Globalization/”>Globalization-3/”>Globalization
What are the government’s initiatives to promote the Indian industry?
The government’s initiatives to promote the Indian industry are:
- Providing tax breaks
- Investing in infrastructure
- Facilitating trade
- Promoting exports
- Attracting foreign investment
What is the future outlook for the Indian industry?
The future outlook for the Indian industry is positive. The industry is expected to grow at a rate of 7-8% per annum in the next few years. This growth will be driven by the following factors:
- Increasing domestic demand
- Rising investment
- Improving infrastructure
- Growing exports
- Accelerating globalization
Question 1
Which of the following is not a major industry in India?
(A) Agriculture
(B) Manufacturing
(C) Services
(D) Mining
Answer (D)
Question 2
Which of the following is the largest sector of the Indian economy?
(A) Agriculture
(B) Manufacturing
(C) Services
(D) Mining
Answer (C)
Question 3
What is the share of the services sector in India’s GDP?
(A) 50%
(B) 60%
(C) 70%
(D) 80%
Answer (C)
Question 4
Which of the following is the largest Manufacturing Sector in India?
(A) Textiles
(B) Chemicals
(C) Engineering
(D) Pharmaceuticals
Answer (A)
Question 5
Which of the following is the largest export sector in India?
(A) Gems and jewelry
(B) Engineering goods
(C) Pharmaceuticals
(D) Software
Answer (A)
Question 6
Which of the following is the largest import sector in India?
(A) Crude oil
(B) Gold
(C) Iron and steel
(D) Electronics
Answer (A)
Question 7
What is the Current Account Deficit of India?
(A) $50 billion
(B) $60 billion
(C) $70 billion
(D) $80 billion
Answer (C)
Question 8
What is the Foreign Exchange reserve of India?
(A) $300 billion
(B) $400 billion
(C) $500 billion
(D) $600 billion
Answer (C)
Question 9
What is the inflation rate in India?
(A) 4%
(B) 5%
(C) 6%
(D) 7%
Answer (B)
Question 10
What is the Unemployment rate in India?
(A) 6%
(B) 7%
(C) 8%
(D) 9%
Answer (C)