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 per cent to the Indian GDP whereas the Agriculture sector only provides 14%.
If we were to generally point out how many industries we have in India it would be around 6 major industries. These used to be steel, textiles, iron, cement, jut, sugar and paper. But in the last few decades, we have seen new industries like petrochemicals, Information technology, Banking Automobile and insurance which have become important industries in India. For the Indian Economies development and relevance to the rest of the world, these industries played a major role. So to oversee the growth of the industries the government made sure that they created good relationships with the industry and would oversee their operations to help incentivise their growth.
The Role of Major Industries in Indian Economic Development Are as Follows
Textile and Cotton Industry
The Indian cotton industry was the first of the few industries that were properly set up. It initially didn't help in India's growth but later did. The first cotton mill (modern) was set up in Kolkata in the year 1818. The industry accounts for 12 percent of the entire industrial production and also, 12 percent of the total export earnings, percent of the GDP and it employs around thirty-five million skilled or semi-skilled workers The textile industry is one the largest industry in the country as it employs over 45 million people. Within the unorganized sector in the country, it has a huge presence. It contributes to 35 percent of the total exports.
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Steel and Iron Industry
In West Bengal, in the year 1870, this industry started when the Bengal Iron Works company made its first plant. The SAIL (Steel Authority of India Limited) was made responsible for the various development of steel within the country. Around 2.5 lakh employees are hired directly by this industry. India is ranked number 10 in the entire world in terms of productions of steel according to the world association of steel. Even though these numbers might seem significant our country still imports a lot of steel.
After the liberalization of the Indian Economy in 1991, the automobile industry thrived and experienced a significant amount of growth. Soon traditional manufacturers were replaced with state of the art technology which was introduced by new manufacturers. Standards were improved with the introduction of emission norms and this led to a tremendous amount of competition in the market. The industry was delicensed in 1991 but after that, the industry saw a lot of growth. This industry contributes to about 6 percent of the GDP and employs around 13 million people in the country.
Information Technology (IT)
The IT industry came through as one of the latest entrants in the country and provided for globalization within the country. Here, huge Multinational Corporations were able to make a significant impact on its growth by hiring employees at a lower rate than their respective countries. This was also possible since the introduction of the internet. Different agencies within India took up firms from the EU and the UK for IT different software services. India became an outsourcing hub for all these international companies and this had helped contribute to the Indian GDP significantly.
Banking and Insurance
These two industries have helped facilitate credit and helped in the distribution of money throughout the country. Without the establishment of these two sectors, the Indian economy would be in a lot of trouble. We have a lot of Indian Banks like SBI and PNB and also international banks like Citibank and HSBC which provide for a lot in the country. Insurance companies are different non-banking financial institutions and one the most common and familiar is insurance companies. These companies offer services to different corporations or individuals by providing insurance