Relation of Economy and Industry
An economy consists of various industries that help make it a whole and it is important to understand that all these industries no matter how small still contribute a lot not just in terms of the GDP but also other facts like employment. The different compositions of an economy include industries like service, manufacturing, engineering, agriculture, etc. These industries have benefited the economy in so many ways by providing production of goods and services, employment generation, and equal distribution of income in the entire economy. The service sector itself contributes the most to the economy around 60 percent to the Indian GDP whereas the Agriculture sector only provides 14%.
Major Industries of India
Generally, India has six major industries which contribute to the growth of the country in various ways. They are,
Iron and Steel
Textiles
Jute
Sugar
Cement
Paper
New Addition of Major Industries
Apart from this, there are four new industries that have joined this list, They are,
Petrochemical
Automobile
Information Technology (IT)
Banking & Insurance.
All these industries play a major role in the Indian economy. Therefore, to understand the growth of these industries one should have a good knowledge of the relationship between growth and government policies.
Role of Major Industries in the Development of India
Iron and Steel Industry
One of the most important industries in India is the iron and Steel industry which has a large capital investment. It offers employment opportunities to around 2.5 lakh workers across the country. According to the World Steel Association, India is considered one of the top 10 manufacturers of steel around the world. Despite the industrial importance of steel, it also imports large quantities of steel from foreign countries every year.
Textile Industry (Cotton and Synthetic)
This industry is a bit complicated. These industries have two extreme ends. One is the well-sophisticated and mechanized mills, whereas the other is based on hand-looming, weaving, and spinning. In between both ends, there is the decentralized loom sector. Considering all these three as a whole, It has become the largest industry in India. It contributes around 20% of the industrial output, 33% of the total export earnings, and provides employment opportunities for around 20 million people.
Jute Industry
In India, Jute Industry contributes around 30% of the jute output around the world. It has the capacity to earn foreign exchange as most of them are exported to various parts of the world. It also provides employment opportunities for around 2.5 lakh individuals. In India, around 40 lakh families depend on jute cultivation.
Sugar Industry
India is considered one of the largest sugar-producing countries around the world. It is the second largest agro-based industry in India. It provides direct employment opportunities to approximately 3.25 lakh people and also gives indirect employment opportunities to 45 million people such as farmers, traders, etc.
Information Technology (IT) Industry
The IT industry is one of the newest entrants to this list. The growth of IT in India is increasing rapidly day by day. Many foreign clients from the US and EU have a strong bond with India for IT software development and outsourcing services.
Automobile Industry
The liberalization of the Indian economy results in the tremendous growth of the automobile industry. New manufacturers from foreign countries with emerging technologies had replaced the traditional manufacturers. There is a big competition in this market followed by certain regulations from the Indian government regarding the emissions that have led to an improvement in standards.
Banking Industry
The Indian banking industry is one of the largest industries across India. The updated technology in this firm over the years has made transactions easy for the people. At present, there are different types of banks in India such as,
Savings Banks.
Commercial Banks.
Scheduled Banks.
Public Sector Banks.
Private Sector Banks.
Foreign Banks.
Non-Scheduled Commercial Banks.
Industrial or Development Banks.
Land Mortgage or Land Development Banks.
Indigenous Banks.
Central or Federal or National Bank (Reserve Bank of India).
Cooperative Banks.
Foreign Exchange Banks.
Consumer Banks.
FAQs on Contribution by Major Industries to Economic Growth
1. What is the Contribution of Textile Industries to the Indian Economy?
The textile industry is a bit complicated when compared to other industries. These industries have two extreme ends. One is the well-sophisticated and mechanized mills, whereas the other is based on hand-looming, weaving, and spinning. In between both ends, there is the decentralized loom sector. Considering all these three as a whole, It has become the largest industry in India. It contributes around 20% of the industrial output, 33% of the total export earnings, and provides employment opportunities for around 20 million people.
2. What is the contribution of the sugarcane industry to the economy?
India is considered one of the largest sugar-producing countries around the world. It is the second-largest agro-based industry in India. It provides direct employment opportunities to approximately 3.25 lakh people and also gives indirect employment opportunities to 45 million people such as farmers, traders, etc.
3. What are the major industries that contribute to the Indian Economy?
Generally, India has six major industries which contribute to the growth of the country in various ways
Iron and Steel
Textiles
Jute
Sugar
Cement
Paper
Apart from this, there are four new industries that have joined this list, They are,
Petrochemical
Automobile
Information Technology (IT)
Banking & Insurance.
4. How vast is the banking sector? What are the types of banks?
The Indian banking industry is one of the largest industries across India. The updated technology in this firm over the years has made transactions easy for the people. At present, there are different types of banks in India such as,
Savings Banks.
Commercial Banks.
Scheduled Banks.
Public Sector Banks.
Private Sector Banks.
Foreign Banks.
Non-Scheduled Commercial Banks.
Industrial or Development Banks.
Land Mortgage or Land Development Banks.
Indigenous Banks.
Central or Federal or National Bank (Reserve Bank of India).
Cooperative Banks.
Foreign Exchange Banks.
Consumer Banks.
5. How has the IT and Automobile Industry changed the economy of India?
The IT industry is one of the newest entrants to this list. The growth of IT in India is increasing rapidly day by day. Many foreign clients from the US and EU have a strong bond with India for IT software development and outsourcing services.
The liberalization of the Indian economy results in the tremendous growth of the automobile industry. New manufacturers from foreign countries with emerging technologies had replaced the traditional manufacturers. There is a big competition in this market followed by certain regulations from the Indian government regarding the emissions that have led to an improvement in standards.
6. What are the major industries in the country?
The major industries in the country are those industries that have contributed the most in the last three decades and these are steel, textiles, iron, cement, jute, sugar, paper, petrochemicals, Information technology, banking automobile and insurance These industries contribute a significant amount to the GDP as explained in the paper and play a crucial role in the development of the economy. Over the last few years, the IT industry and automobile industry has helped the country gain global recognition all over the world and has made India a significant player in it as well.
7. What is the role of the sugar industry in India?
This is one of the most important industries in the country as it is agriculturally based. It comes second after the textile and cotton industry in terms of size that is based on agriculture. In the year 2014 around 680 sugar factories were installed and before that, there were only around 138. India is one of the largest consumers of sugar. India is the second-largest producer of Sugar in the country with a total share of 15%.
