India Industry

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Over the years agriculture has been the major source of livelihood of the Indian population. However, after Independence the founding fathers saw the nation progressing with a decent industrial base. This triggered the formulation of programs and strategies to construct a proper infrastructure for speedy industrialization.

India has been successful in achieving autonomy in producing different basic and capital products since independence. The productivity of the major Indian industries incorporates aircraft, vessels, automobiles, steam engines, heavy electrical equipment, construction machinery, chemicals, precision equipments, communication instrument, power generation and transmission tools and computers.

Industrialization in India

Since independence to 1980: During this period there was restrictive growth of private sector and government's permission was required to set up any private enterprise in India. Despite this the GDP grew at a rate of 1.4% per annum from 1940 – 1970. Other factors such as poverty and famine lowered India's economic growth rate during this period and with the presence of very few top producers of major industrial goods the absorption of domestic productivity was greater, which lead to monopolistic pricing. India during this phrase lagged behind in terms of economic growth as the rest of world grew and flourished through overseas trade.

1980 to mid-1990s: Post 1980s India saw liberalization and achieved further impetus in Mid-1991. The nation witnessed historical upsurge in per capita GNP. In 1994-95 the industrial output-growth registered 8.4% growth and the exports rose by 27%. This resulted in a 10% drop in inflation in the mid-1990s

1990s to 2000s: Since its liberalization policy, India has opened several public sector enterprises. The exports saw a 17% rise in 1994 and 28% in 1995-96. Over 90% of India's imports are backed by export revenues. At present the current account arrears is less than 1% of GDP and foreign-exchange profits are soaring at $20 billion. The food stocks have witnessed an all-time increase of 37m tonnes.

The private sector, which was neglected by previous governments, contributes to two-thirds of India's GDP. The shift of the state's responsibility from a chief investor to a catalyst of private enterprise has paved way to a new accord on liberalization.

Industries in India

Experts believe that the contribution of India in the world GDP is estimated to increase from 6% to 11% by the year 2025, while on the flip side the contribution of US in world GDP is presumed to decline from 21% to 18%. This indicates towards the emergence of India as the third biggest global economy after US and China. The evaluation is supported by the overall development in all the sectors in India, in which the key sector is the industry sector.

Going by the past records the Industry sector in India registered a growth rate of 6.2% in October 2003 which further increased by 4% in the corresponding month of the next fiscal year.

Major Industries in India



  • Textile Industry



    This industry covers a wide range of activities ranging from generation of raw materials such as jute, wool, silk and cotton to greater value added goods such as ready made garments prepared from different types of man made or natural fibres. Textile industry provides job opportunity to over 35 million individuals thus playing a major role in the nation's economy. It has 4 per cent share in GDP and shares 35% of the gross export income besides adding 14% of value addition in merchandizing sector.

  • Food Processing Industry

    In terms of global food business, India accounts less than 1.5% inspite of being one of the key food producing nations worldwide. But this on the other hand also indicates the enormous possibilities for the growth of this industry. Supported by the GDP estimates, the approximate expansion of this sector is between 9-12% and during the tenth plan period the growth rate was around 6-8%. Food Processing Industry provides job opportunities to 1.6 mn people and it is estimated to expand by 37 mn by 2025.

  • Chemical Industry:

    Indian Chemical industry generates around 70,000 commercial goods ranging from plastic to toiletries and pesticides to beauty products. It is regarded as the oldest domestic sector in India and in terms of volume it gives a sense of pride to India by featuring as the 12 largest producer of chemicals. With an approximate cost of $28 billion, it amounts to 12.5% of the entire industrial output of India and 16.2% of its entire exports. Under Chemical industries some of the other rapidly emerging sectors are petrochemical, agrochemical, and pharmaceutical industries.

  • Cement Industry:


    India has 10 large cement plants governed by the different State governments. Besides this India have 115 cement plants and around 300 small cement plants. The big cement plans have installed competence of 148.28 million tones per annum whereas the mini cement plants have the total capacity of 11.10 million tonnes per annum. This totals the capacity of Indian cement industry at 159.38 million tonnes. Ambuja cement, J K Cement, Aditya Cement and L & T Cement are some of the major steel companies in India.

  • Steel Industry:


    Indian Steel Industry is a 400 years old sector which has a past record of registering 4% growth in 2005-06. The production during this period reached at 28.3 million tones. India steel industry is the 10th largest in the world which is evident from its Rs 9,000 crore of capital contribution and employment opportunities to more than 0.5 million people. The key players in Steel Industry are Steel Authority of India (SAIL), Bokaro Steel Plant, Rourkela Steel Plant, Durgapur Steel Plant and Bbilai Steel Plant.

  • Software Industry:


    Software Industry registered a massive expansion in the last 10 years. This industry signifies India's position as the knowledge based economy with a Compounded Annual Growth Rate (CAGR) of 42.3%. In the year 2008, the industry grew by 7% as compared to 0.59% in 1994-95.

  • Mining Industry:

    The GDP contribution of the mining industry varies from 2.2% to 2/5% only but going by the GDP of the total industrial sector it contributes around 10% to 11%. Even mining done on small scale contributes 6% to the entire cost of mineral production. Indian Mining Industry provides job opportunities to around 0.7 million individuals.

  • Petroleum Industry:

    Petroleum industry started its operations in the year 1867 and is considered as the oldest Indian industry. India is one of the most flourishing oil markets in the world and in the last few decades has witnessed the expansion of top national companies like ONGC, HPCL, BPCL and IOC.