Industries in India

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.

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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.

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.