Some Major Industries in India and Their Contribution
The Indian economy has been veritably indebted to the contribution by some major industries. They have played a significant part in increasing the nation's GDP, generating employment, and making India a global player in world politics. In simple terms, we can assert that an economy comprises several industries that enable it to become one single entity. Moreover, all industries, no matter their size or type, contribute to a country's economic well-being. The various compositions of sectors are services, manufacturing, engineering, agriculture, and so forth.
Before getting the nitty-gritty of contribution by some major industries in India, let us first look at a few of India's industrial sectors.
A Brief Overview of the Major Industries in India
India is currently among the top 10 industrial nations of the world. The country's industrial sector is a significant driver of economic change as it contributes immensely to the GDP. All the major industries in India are divided into three types in terms of size – small-scale industries, medium-scale industries, and large-scale industries. There are five major industries in India whose role has been prominent in making the country an industrial stalwart. Let us examine some of them in further detail.
(Image will be uploaded soon)
Top 5 Game-Changing Indian Industries
The industrial sector of India has had a profound role in strengthening the nation's overall development. Although all industries – big or small – are crucial, there are six significant industries whose part has been indispensable. So, let us glance at the list of major industries in India and their nuances.
Iron and Steel Industry – India's first iron and steel plant was established in West Bengal in 1870. After that, the Steel Authority of India became the purveyor of the development of India's steel and iron industry. Currently, India is ranked 10th in the globe in terms of the production of steel. But, it is essential to remember that India still needs to import a lot of steel despite being a global player in the steel industry.
The Cotton Textile Industry – It is one of the oldest industries in the country. Although the initial contribution of the cotton textile sector to India's economic growth was narrow, it later transformed the entire Indian economy. The first modern cotton mill of India was set up in Kolkata in 1818. Currently, the cotton textile industry accounts for 12 percent of the country's entire industrial production, approximately 12 percent of the country's export earnings. Also, it employs 35 million skilled and semi-skilled workers.
Automobile Industry – The automobile industry of India gained prominence after the liberalization policy of 1991. The standards of the automobile industry tremendously improved after 1991, and various premium technologies were brought into the country. Currently, the automobile industry contributes about 6 percent to the GDP and employs around 13 million Indians.
Information Technology – It is one of the latest members of the Indian industry, but its role has been revolutionary, to say the least. After the liberalization, privatization, and globalization policies of 1991, India took over from the European Union and the UK. The IT industry has helped globalization as massive multinational companies hire Indian employees and set up plants within their borders to earn more profits.
Banking and Insurance – These are two Indian industries that have galvanized credit and helped foster the distribution of money throughout the country. In 1969, the Indian government issued a ground-breaking ordinance and nationalized 14 of the country's largest commercial banks, which comprise 85 percent of the nation's deposits. Currently, there are three different types of banks in India – Savings banks, Commercial banks, Industrial or Development banks.
Now that we have discussed the contribution by some major industries in India, let us dive into the topic more comprehensively.
Role of Major Industries in Indian Economic Development
Needless to say, the distribution of major industries in India aptly reflects the consequent economic growth. So, let us look at some of how the Indian industrial sector has helped the country.
One of the essential roles of the industrial sector has been the economic development of the country. The industrial sector provides a base for the nation's income growth.
Secondly, the industrial sector of the country has been a significant employer of people. The broad population of the country gets gainful employment from the industrial industry itself.
The Indian industrial sector has been a significant bringer of foreign exchange. The country does not have the potential to earn enough foreign exchange from exports. The industrial sector contributes to the economy once they are added to primary products.
Needless to say, the distribution of major industries in the country also aids the agriculture sector by providing machinery, fertilizers, pesticides, and so forth.
Lastly, the role of industries is tremendous in ensuring that the economic development of India is well-balanced.
In conclusion, we can say that the distribution of major industries in India is tangential to the geographic and demographic features of the country.
FAQs on Industries in India
1. What are the major industries contributing to the Indian economy?
India has a diverse industrial sector. Some of the major industries that significantly contribute to the economy include the textile industry, iron and steel, information technology (IT) and software services, automobiles, banking and finance, and the rapidly growing telecommunications sector. Each plays a vital role in employment generation and national GDP. For more details, you can explore the contributions made by some major industries in India.
2. How are industries in India typically classified?
Industries in India are classified based on several criteria to understand their nature and scale. The main classifications are:
- Based on Raw Material: This includes agro-based industries (like sugar and cotton) and mineral-based industries (like iron and steel).
- Based on Size and Investment: Industries are categorised as large-scale, medium-scale, and small-scale (MSMEs) based on their capital investment.
- Based on Ownership: This comprises Public Sector (government-owned), Private Sector (owned by individuals or groups), and Joint Sector (jointly owned by government and private entities).
This classification helps in formulating targeted industrial policies. The NCERT Class 12 Geography book provides further details on these classifications.
3. What are some key examples of agro-based and mineral-based industries in India?
Agro-based and mineral-based industries form the foundation of India's manufacturing sector.
- Agro-based Industries: These industries use agricultural products as their raw materials. Key examples include the cotton textile industry, sugar industry, jute industry, and food processing units like vegetable oil and dairy product manufacturing.
- Mineral-based Industries: These industries use minerals and metal ores as raw materials. Prominent examples are the iron and steel industry, cement industry, aluminium smelting, and machine tool manufacturing.
These are discussed in detail in the notes on Manufacturing Industries for Class 10.
4. What is the difference between a large-scale and a small-scale industry in India?
The primary difference between large-scale and small-scale industries lies in the capital investment, volume of production, and technology used. Large-scale industries, like iron and steel plants or automobile manufacturing, require massive capital investment (typically over ₹10 crores), employ a large workforce, and use advanced technology for mass production. In contrast, small-scale industries (SSIs) or MSMEs operate with significantly lower capital, employ fewer people, and often use simpler technology, focusing on niche products or serving local markets. You can learn more about the role and importance of small-scale industries in India.
5. What is the difference between public sector, private sector, and joint sector industries? Provide examples.
The difference is based on ownership and control:
- Public Sector Industries: These are owned and operated by the government. Their main objective is public welfare. Examples include Bharat Heavy Electricals Limited (BHEL) and the Steel Authority of India Limited (SAIL).
- Private Sector Industries: These are owned and managed by private individuals or companies. Their primary motive is profit. Examples include Tata Iron and Steel Company (TISCO) and Reliance Industries Ltd.
- Joint Sector Industries: These are run through a partnership between the government and private entities. This model combines public accountability with private sector efficiency. An example is Maruti Udyog Limited (in its initial phase). You can find more examples of public and joint sector industries here.
6. Why is the iron and steel industry often called the 'backbone' of modern industrial development?
The iron and steel industry is considered the backbone of industrial development because its products are the essential raw materials for nearly all other industries. Machinery, tools, transportation equipment (trains, trucks, ships), and construction infrastructure (bridges, buildings) are all made from iron and steel. Therefore, the growth and health of this basic industry directly fuel the development and expansion of the entire manufacturing and infrastructure sector of a country. The Class 8 notes on Industries elaborate on this topic.
7. Which industries are part of India's rapidly growing service sector?
India's service sector, also known as the tertiary sector, has been the largest contributor to its GDP. The key industries driving this growth are:
- Information Technology (IT) and Business Process Outsourcing (BPO).
- Telecommunications and internet services.
- Banking, Finance, and Insurance (BFSI).
- Tourism and Hospitality.
- Retail and E-commerce.
These industries are knowledge-based and have created significant employment opportunities, as explained in the overview of the sectors of the Indian economy.
8. How did the economic reforms of 1991 (LPG) impact India's industrial landscape?
The 1991 economic reforms, centered on Liberalisation, Privatisation, and Globalisation (LPG), fundamentally transformed India's industrial sector. Liberalisation dismantled the 'License Raj,' reducing government control and making it easier to start or expand a business. Privatisation allowed private sector participation in industries previously reserved for the government, improving efficiency. Globalisation opened the Indian economy to foreign investment and competition, leading to technological upgrades and a wider variety of consumer goods. These reforms spurred industrial growth, particularly in the IT and service sectors. You can read more about the introduction to LPG here.
9. What are some major challenges faced by the manufacturing sector in India today?
Despite its potential, India's manufacturing sector faces several key challenges that hinder its growth. These include:
- Infrastructure Deficits: Inadequate power supply, transportation, and logistics networks.
- Complex Regulatory Environment: Despite reforms, bureaucratic hurdles and complex labour laws can still pose problems.
- Global Competition: Indian industries face stiff competition from cheaper imports, particularly from countries like China.
- Skill Gaps: A shortage of adequately trained and skilled labour to operate modern machinery.
- Technology Adoption: A slow pace of adopting advanced manufacturing technologies and automation.
Addressing these economic challenges in India is crucial for sustained industrial growth.
10. What is the significance of the 'Make in India' initiative for the country's industries?
The 'Make in India' initiative is a major government campaign aimed at transforming India into a global design and manufacturing hub. Its primary significance lies in attracting foreign direct investment (FDI), fostering innovation, protecting intellectual property, and building best-in-class manufacturing infrastructure. The goal is to encourage both domestic and multinational companies to manufacture their products in India, which helps in creating jobs, boosting economic growth, and reducing the country's reliance on imports. The initiative focuses on 25 key sectors, including automobiles, aviation, and electronics. The 'Make in India' essay provides a good overview of its objectives.
