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
New Addition of Major Industries
Apart from this, there are four new industries that have joined this list, They are,
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.
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.
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.
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.
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,
Public Sector Banks.
Private Sector Banks.
Non-Scheduled Commercial Banks.
Industrial or Development Banks.
Land Mortgage or Land Development Banks.
Central or Federal or National Bank (Reserve Bank of India).
Foreign Exchange Banks.