Role of Different Industries in the Indian Economy
An economy is made from the composition of many different industries like agriculture, service, engineering, manufacturing etc. These industries provide so many benefits to the economy i.e. employment generation, production of goods and services, equal income distribution in the whole economy. Service sector contributes 60% of the Indian GDP while agriculture gives around 14% of GDP.
Some important sectors of the Indian economies is given below:
1. Cotton and Textile Industry: Indian cotton industry is the broad based industry which accounts for about 12% of industrial production, 4% of GDP, and employment to 35 millions of skilled and semi skilled workers and 12% of total export earnings. The first modern cotton mill was established at Kolkata in 1818.
Textile industry is labour intensive industry. It provides employment to 45 million peoples. It has major presence in unorganized sector in India. India produced 48194 million kgs of cloth every year in 2014-15.
2. Iron and Steel Industry: This industry took birth in India in 1870 when Bengal iron Works Company established its plant in West Bengal. In 1974, The Steel Authority of India Limited (SAIL) was established and made responsible for the development of the steel industry in the country. Indian ranked at the 4th position in the production of crude steel (85 million tonnes) in the world during 2014 after China, Japan and USA.
3. Fertilizer Industry: India today is the 3rd largest producer of nitrogenous fertilizers in the world only behind china and USA. India is meeting 80% of its urea requirement through indigenous production but is largely import dependent for meeting the phosphorous and potassium requirement. Total domestic production is given in the picture below:-
4. Cement Industry: The production of cement was started in 1904 at the madras but the foundation of stable Indian cement industry was laid in 1914 when Indian Cement Company limited started production in Gujarat. As on March 2015 there are 185 big cement plant of installed capacity of 325 million tones are operating in the country. In the year 2015-16, India produced 289 million tones cement in the country.
5. Coal Industry: Credit to invent coal in India is given to two English men ‘Sambhar and Hatley’. They started mining coal in Raniganj district of west Bengal in 1814. Coal accounts for 67% of the country’s commercial requirements. As on 2014-15 Indian coal production was 486 million tones and import was 138 million tones. India makes 58% electricity from coal.
6. Gems and Jewellery Industry: Gems and Jewellery sector contributing about 12% of India’s total merchandise exports made it as the largest cutting and polishing centre of diamonds in the world. India’s share in this market is about 80% of the world market. Indian export of Gems and Jewellery was around $31 billion in 2015-16.
7. Petroleum Industry: According to India 2015: there are 22 refineries, 17 in the public sector, 3 in private sector and 2 in joint venture. All these refineries have refining capacity of 220 million tonnes per annum. As we now that India imports 20% of its total consumption.oil and gas constitute around 45% of the total energy consumption of India.
8. Chemical Industry: Chemical industry is the one of the oldest industry of India. It includes petrochemical, fertilizers, paints and varnishes, gases, soap, perfumes, toiletries and pharmaceuticals. This industry covers more than 70,000 commercial products. It contributes around 3% of Indian GDP. The chemical and petrochemicals sector in India constitutes 14% of the domestic industrial activity.
9. Automobile Industry: automobile industry was delicensed in 1991 after the implementation of new economic policy. However the passenger car was delicensed in 1993. At present 100% FDI is permitted in this sector under the automatic route. This industry given employment to 13 million peoples roughly and gives 6% to the GDP of India.
10. Leather Industry: Leather and its products are top 10 export earners for the country. It is one of the traditional products of India. The small scale, cottage and artisan sector accounts for more than 75% of the leather production in India. This sector provided employment to around 3 million peoples out of which 30% are women.
11. Sugar Industry: It is very crucial agriculture based industry. This industry is the second largest industry after the textile & cotton based on the agriculture. As on 2014, there were 680 installed sugar factories in the country as against 138 in 1951-52. India is the largest consumer of sugar and second largest producer of sugar with a share of 15% of the world count. Total production of sugar was around 28 million tonnes in 2015-16 in the country.