Industry-an-introduction/”>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 inthe 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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India is a land of contrasts. It is a country with a rich history and culture, but it is also a country that is rapidly developing. This rapid development is evident in the country’s economy, which is one of the fastest growing in the world.
India’s economy is driven by a number of different sectors, including agriculture, automobile, Banking, Biotechnology, chemical, construction, consumer goods, defence, electronics, energy, finance, Food Processing, healthcare, IT and ITES, media and entertainment, mining, oil and gas, pharmaceuticals, power, real estate, retail, textiles, tourism, transportation, and utilities.
Each of these sectors plays an important role in the Indian economy. Agriculture is the backbone of the Indian economy, employing more than half of the country’s workforce. The automobile sector is one of the fastest growing sectors in the Indian economy, and it is expected to continue to grow in the coming years. The banking sector is another important sector of the Indian economy, and it is playing a key role in the country’s Economic Development.
Biotechnology is a rapidly growing sector in the Indian economy, and it is expected to play a major role in the country’s future. The chemical sector is another important sector of the Indian economy, and it is playing a key role in the country’s industrialization. The construction sector is one of the largest sectors of the Indian economy, and it is playing a major role in the country’s Infrastructure Development.
Consumer goods is a major sector of the Indian economy, and it is expected to continue to grow in the coming years. Defence is another important sector of the Indian economy, and it is playing a key role in the country’s security. Electronics is a rapidly growing sector in the Indian economy, and it is expected to play a major role in the country’s future.
Energy is a critical sector of the Indian economy, and it is playing a key role in the country’s development. Finance is another important sector of the Indian economy, and it is playing a key role in the country’s economic development. Food processing is a major sector of the Indian economy, and it is expected to continue to grow in the coming years.
Healthcare is a major sector of the Indian economy, and it is expected to continue to grow in the coming years. IT and ITES is a major sector of the Indian economy, and it is playing a key role in the country’s economic development. Media and entertainment is a rapidly growing sector in the Indian economy, and it is expected to play a major role in the country’s future.
Mining is a major sector of the Indian economy, and it is playing a key role in the country’s development. Oil and gas is a critical sector of the Indian economy, and it is playing a key role in the country’s development. Pharmaceuticals is a major sector of the Indian economy, and it is expected to continue to grow in the coming years.
Power is a critical sector of the Indian economy, and it is playing a key role in the country’s development. Real estate is a major sector of the Indian economy, and it is expected to continue to grow in the coming years. Retail is a major sector of the Indian economy, and it is expected to continue to grow in the coming years.
Textiles is a major sector of the Indian economy, and it is expected to continue to grow in the coming years. Tourism is a major sector of the Indian economy, and it is expected to continue to grow in the coming years. Transportation is a critical sector of the Indian economy, and it is playing a key role in the country’s development.
Utilities is a critical sector of the Indian economy, and it is playing a key role in the country’s development.
The Indian economy is a complex and diverse one, and it is constantly evolving. The sectors discussed above are just some of the many that contribute to the country’s economic growth. As India continues to develop, these sectors will continue to play an important role in the country’s future.
What is the difference between a business and an industry?
A business is a specific organization that provides goods or Services, while an industry is a group of businesses that share a common purpose or function. For example, the automotive industry is made up of all the businesses that produce cars, while the banking industry is made up of all the businesses that provide financial services.
What are the different types of industries?
There are many different ways to classify industries, but some common categories include:
Manufacturing: Industries that produce goods, such as cars, computers, and food.
Retail: Industries that sell goods to consumers, such as grocery stores, clothing stores, and electronics stores.
Service: Industries that provide services to consumers or businesses, such as restaurants, hotels, and banks.
Technology: Industries that develop and produce new technologies, such as Software, hardware, and telecommunications.
Healthcare: Industries that provide medical care, such as hospitals, clinics, and pharmacies.
Education: Industries that provide educational services, such as schools, colleges, and universities.
Government: Industries that provide government services, such as law enforcement, fire protection, and sanitation.
What are the factors that affect the success of an industry?
The success of an industry is affected by a number of factors, including:
The demand for the industry’s products or services
The Industrial Revolution began in:
(A) Great Britain in the late 18th century.
(B) The United States in the early 19th century.
(C) China in the 20th century.
(D) Japan in the 21st century.
The Industrial Revolution was characterized by:
(A) The development of new technologies, such as the steam engine and the cotton gin.
(B) The rise of factories and mass production.
(C) The growth of cities and the decline of rural areas.
(D) All of the above.
The Industrial Revolution had a number of positive effects, including:
(A) Increased economic growth.
(B) Improved living standards.
(C) New technologies that made life easier.
(D) All of the above.
The Industrial Revolution also had a number of negative effects, including:
(A) Pollution and environmental damage.
(B) Dangerous working conditions for factory workers.
(C) Social unrest and conflict.
(D) All of the above.
The Information Age
The Information Age began in:
(A) The late 20th century.
(B) The early 21st century.
(C) The mid-21st century.
(D) The late 21st century.
The Information Age is characterized by:
(A) The development of new technologies, such as the personal computer and the Internet.
(B) The rise of information and Communication technologies (ICTs).
(C) The growth of the knowledge economy.
(D) All of the above.
The Information Age has had a number of positive effects, including:
(A) Increased access to information and knowledge.
(B) Improved communication and collaboration.
(C) New opportunities for education and employment.
(D) All of the above.
The Information Age has also had a number of negative effects, including:
(A) Information overload and the spread of misinformation.
(B) The erosion of privacy and the rise of surveillance.
(C) The digital divide and the marginalization of some groups.
(D) All of the above.
The Future of Work
The future of work is likely to be characterized by:
(A) The rise of automation and artificial intelligence.
(B) The decline of traditional jobs and the growth of new, emerging jobs.
(C) The need for lifelong Learning and upskilling.
(D) All of the above.
The future of work will pose a number of challenges, including:
(A) The need to retrain and reskill workers.
(B) The need to address the issue of job displacement.
(C) The need to ensure that workers have the skills and knowledge they need to succeed in the new economy.
(D) All of the above.
I hope these MCQs were helpful. Please let me know if you have any other questions.