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CONTENTS

1. Industry Sectors of India Major manufacturing companies of India

2. Export Sector Major export products of India Export Tarrifs in India

3. Financial Sector Of India Analysis of Indian Financial Sector Bond Market in India Centrum Finance Limited CIL Securities Limited Growth of Financial Sector in India Karvy Group L& T Finance Limited Major Financial Companies in India PNB Gilts Limited Stock Market in India

4. Private Sector of Indian Economy Growth of Private Sector Importance of Private Sector in Indian Economy Major Private Companies of India

5. Public Sector 6. Agriculture Sector of Indian Economy 7. Sectorial Analysis of Indian Economy 8. Export Sector in India Economy 9. Import Sector in India Economy 10. Retail sector Of Indian Economy

11. Service Sector Of Indian Economy 12. Tourism sector of Indian Economy 13. Sectoral Trends in Indian Economy 14. Globalization Impact of Globalization

15. Indian Market

Industry Sectors of India


The different industry sectors of India witnessed astronomical growth over the last 15 years. This growth of the different industry sectors of India is attributed to the Government of Indian liberal economic policy. Previously, the Indian economy was of closed type and the government enterprises controlled all Indian market. The post 1990 Government of India economic policy endorsed a complete different economic policy and opened its market for foreign investments. This saw a horde of FII making inroads to Indian markets. As a result of which different industry sectors of India made huge progress, both technologically and economically. The main features of the important sectors of Indian economy, 2007-2008 are as follows -

Indian industry

162 production sharing contracts awarded in Petroleum and Natural Gas SMEs has witnessed increase in outstanding credit from ` 135,200 crore to ` 173,460 crore

Indian service sector -

Foreign Trade and Merchandise exports expected to cross US$125 billion by the end of the current fiscal Provision for tourist infrastructure to increase from ` 423 crore to ` 520 crore General Review of Financial sector development Bank's differential rate of interest scheme providing finance at the rate of 4% to weaker sections Regional Rural Banks to open at least one branch in 80 uncovered districts in 2007-08 Housing loans are extended to the weaker sections Exclusive health insurance scheme for senior citizens PAN to be made sole identification number for all participants of capital market

Indian agriculture sector -

Farm credit target of ` 225,000 crore for 2007-08 has been set with an addition of 50 lakh new farmers to the banking system 35 projects have been completed in 2006-07 and additional irrigation potential of 900,000 hectares to be created Training of Farmers arranged Based on study to be conducted, a pilot programme to be implemented for delivering subsidy directly to farmer. Loan facilitation through Agricultural Insurance, National Bank for Agriculture and Rural Development Corpus of Rural Infrastructure Development Fund to be raised

Investments -

Gross domestic capital formation in 2005-06 grew by 23.7%; in April- January, 200607, foreign direct investment amounted to US$12.5 billion and outpaced portfolio investment of US$6.8 billion Central Public Sector Enterprises to invest ` 165,053 crore through internal and extra budgetary resources in 2007-08

Indian infrastructure sector -

Seven more Ultra Mega Power Projects under process Provision for National Highway Development Programme to increase from ` 9,945 crore to ` 10,667 crore

Major Manufacturing Companies of India


Major Manufacturing Companies of India

Ashok Leyland

Bajaj Auto TVS Motors Hero Honda Motors Ltd. Apollo Tyres Asian Paints BPL Group Videocon Group Larsen & Toubro Jindal Steel Hindusthan Unilever Limited Moser Baer Godrej Group Bombay Dyeing Raymond Group Amul Dabur India Limited Cadila Healthcare Cipla Ranbaxy

Export Sector

EXPORT SECTOR
Export Sector of Indian Economy has improved immensely over the years and has earned US $ 125 billion in the current fiscal year. The goods exported from India mainly include wide variety of agricultural products, chemicals, jewelery, garments, leather goods and so on. India has developed business relations with a number of foreign countries like the member countries of SAARC, some Eastern European countries as well as African countries, Members of EU. The impressive list of countries includes:

Russia UAE USA Hong Kong UK Japan Germany Singapore Belgium Malaysia Netherlands Bangladesh

Italy Thailand France Australia Belgium

The export sector of Indian economy has always delineated impressive growth in all the areas of export, like the chemical industry in the financial year 2005-06 recorded US $ 12677.21million from expots, whereas the export earning from gems and jewelery was US $ 13705.44million in the same fiscal. The engineering industry has been performing consistently over the years in the arena of exports as it secured the second position in terms of the earnings from exports in 2004-05, amounting to US $ 10516.45million, which increased to US $ 14587.37million in the next fiscal. The performance of textile industry has fluctuated a little as the earning of the textile industry from exports in the financial year 2004-05 was US $ 12204.71million which came down to US $ 12017.46million in 2005-06. USA has turned out to be the most significant export partner of India and the export sector of Indian economy earned approximately US $ 13265.60 million in 2006-07. UAE has stood second only to USA as UAE contributed 9.7 out of the total Indian earnings from exports in 2006-07. UK and China has exchanged their positions in the current year as China's share among the exports figure in India in 2006-07 has improved by 6.3 % in comparison to 200506. In 2004-05 Belgium and Italy contributed substantially to the earnings from exports, with a contribution of US $ 2442.09 million and US $ 2160.83 million respectively. The major export products of India hail from the following divisions within the export sector of Indian economy like:

Engineering Goods Agricultural Products Chemicals Marine Products Petroleum products Leather Goods Textiles Plantations

Among the agricultural exports of India include Indian rice, raw cotton, cashew, sugar, tobacco, spices, coffee, wheat and tea have become very popular in the international market on account of their variety and excellent quality. The engineering industry serves to export electronic goods , transport equipments, iron and steel, and various machineries and the textile industry is engaged in the export of ready made garments, jute, cotton yarn, carpets, woolen yarn, coir, artificial fabrics and so on. Other significant export products include paints, rubber, iron ore, plastic, pharmaceuticals etc. The export barriers in India have been hampering Indian exports to a great extent and most of such barriers have been announced by the European Union regarding certification requirements, application of pesticides, dumping of waste products. But the most significant export barrier faced by the Indian exporters is red tapism which is mostly accompanied by corruption. However, the government of India has considered plans to liberate the Indian exporters from the cumbersome paper works and simplify the required procedures.

Export Tariffs in India follows the regulations of the Customs Tariff Act and a substantial number of export goods are subjected to tariffs presently, such as:

Manganese Ore Chromium Ores Black Pepper Sillimanite Raw Wool Groundnut Tea and so on.

Major Export Products of India, Export from India


Exports have boosted the growth of Indian economy substantially and Indian exports in the current year has earned nearly US $ 125 billion and is expected to earn US $ 160 billion for the next fiscal year. The major export products of India include leather, medical appliances, equipments, textiles and so on.

Leather Goods among Major Export Products of India:


India has developed over the years to become a key player in the export of leather goods and accessories among the major export products of India. India exports numerous leather products for daily use like leather wallets, belts, key holders, folders, pouches, leather toys, handbags etc. Gift items made of leather such as Leather notebooks, decorated leather journals, key rings, rugs are quite popular in foreign countries. A large number of small scale, medium scale as well as large scale companies in India are engaged in the export of leather goods, the list of such companies include:

Sharie International Islam International Indobest Falcon International Z.N.T International Balaji Impex Private Limited Paradise Noble Creations Asian adores The Lotus Handicrafts New Era Overseas

Medical Appliances among Major Export Products of India:


Indian medical appliances have made their mark in the foreign countries on account of superior quality and variety. Common medical appliances exported from India include absorbent gauze, sterile gloves, crepe bandages, gauze sponge, surgical face masks, surgical caps, surgical disposables. Export of specialized medical appliances have also gained importance among major export products of India and appliances such as baby incubator, automatic vertical autoclave, air ionisers, nelaton catheter, digital video colposcopes, digital imaging softwares. A large number of small scale, medium scale as well as large scale companies in India are engaged in the export of medical appliances goods, the list of such companies include:

Nidhi Meditech Systems Coral Marketing Narang Scientific Works Private Limited Relique Technologies Surya Surgical Industries Chatterjee Surgical United Surgical Industries B. L. Lifesciences Private Limited Paramount Surgical Emporium, Delhi Magnum Medicare Pvt. Ltd.

Textile goods among Major Export Products of India:

Textile goods have gained prominence among the export products of India, designer garments for ladies as well as gents manufactured by the big houses in India have created huge demand in the International garment industry. The popular ladies garment include knitted tops, embroidered salwar, sequin work blouses, sarongs, floral t-shirts, beaded garments, poplin embroidered kurta, viscose crape printed skirt. A large number of small scale, medium scale as well as large scale companies in India are engaged in the export of textile goods, the list of such companies include:

Kshethra Exports Mirza Fabric Private Limited Kanha Designs Pvt. Ltd. Knitco Fashionns Boom Buying Private Limited Revolution Exports Flying Fashions

Subasri Textile Vipro Garments Kewal Impex Sudharshanaa Tex Macsam

Equipments among Major Export Products of India:

India caters to the need of varied equipments of the foreign countries, therefore the Indian equipment industry have grown in leaps and bounds and ranks high among the major export products of India like conveyor systems, hand pallet trucks, magnetic coolent cleaners, vibrating screens, EOT cranes, industrial magnetic conveyors, cantilever racks, steel rolling mill plants, hydraulic stackers, heavy duty pallet rack, pin pulveriser, agitator vessel, rotary vane feeders. A large number of small scale, medium scale as well as large scale companies in India are engaged in the export of equipments, the list of such companies include:

Orton Engineering Private Limited A.S. Precision Machines Pvt. Ltd. Dewas Techno Products P Ltd. Metal Storage Systems Private Limited Yagnam Pulverizer Private Limited Elegant Engineers Metro Engineering Industries Jai Gopal Engineering Works Private Limited

Export Tariffs in India


The export tariffs in India aims at doubling India's export and generate additional employment complimenting the stupendous growth of Indian economy. The export tariffs in India is formulated complimenting the export import policy of India which again forms a part of the India's foreign trade policy. The current export tariffs in India as per the EXIM policy of India covers exports tariff rates for different goods and services. The export tariffs in India as per the Indian classification on tariff items which strictly conforms to the "Harmonized Commodity Description and Coding System". The government of India adopted the "Harmonized Commodity Description and Coding System" through the "Customs Tariff Amendment Act, 1985" with some tailor made amendment to suit the Indian environment concerning excise tax rates. The customs schedule provides with all details for provisions for tariff concessions and exemptions as per government of India export policy. It has all discretionary power to offer full or partial duty exemptions in the general interest of the public. These export tax rates of India are revised every year as per the requirements.

The positive effect of the latest export tariffs in India can be witnessed from the following developments Indian exports have an ambitious target of US 160 billion in 2007-08 and in the first two months it grew by 20.3%. This rise was effected on account of the non-oil imports. The Government of India latest export tariff for the exporters will help in stabilizing the export growth levels attained in the 1st quarter of 2007-2008. Ores and minerals exports grew moderately to 12.9% against 37.4% in 2005-06. Similar trend was also observed in the exports of manufacturing sector. The exports of manufactured goods grew moderately by 15% in the first quarter of 2007-2008 as compared to 21.2% in the last fiscal year. High value commodities like engineering goods and rice registered very high growth rate in the 1st quarter of this fiscal against the same period last year. The overall exports suggests that the Indian exports grew considerably across all major exporting destinations. This is the result of the government of India meticulously structured export tariffs in India. Further, the Indian export tariff saw a quantum increment of Indian exports to Pakistan, UAE and Italy in the first quarter of the current fiscal year. Today, India ranks second in the manufacture of small passenger car segment. It is the worlds largest producer of generic pharmaceutical and its Information Technology sector is registering three figure growth consistently. As a result of which India has become the global export hub for goods and services.

Financial Sector of India


Financial Sector of India is intrinsically strong, operationally sundry and exhibits competence and flexibility besides being sensitive to Indias economic aims of developing a market oriented, industrious and viable economy. An established financial sector assists greater standards of endowments and endorses expansion in the economy with its intensity and exposure. The fiscal sector in India entails banks, financial organization, markets and services. The sector is classified as organized and conventional sector that is also recognized as unofficial finance market. Fiscal transactions in an organized industry are executed by a number of financial organizations which are commercial in nature and offer monetary services to the society. Further classification includes banking and non-banking enterprises, often recognized as activities that are client specific. The chief controller of the finance in India is the Reserve Bank of India (RBI) and is regarded as the supreme organization in the fiscal structure. Other significant fiscal organizations are business banks, domestic rural banks, cooperative banks and development banks. Nonbanking fiscal organizations entail credit and charter firms and other organizations like Unit Trust of India, Provident Funds, Life Insurance Corporation, Mutual funds, GIC, etc. Financial Sector of India Eligibility for government autonomy

Mentioned below are certain criterions that are required to be fulfilled for acquiring government autonomy in India:

Availability of sufficient fund of up to 8% Accessibility of total non-performing wealth of below 9% Minimum net possessed funds of more than USD 2.5 million and net revenues of minimum past three years. Financial institutions that satisfy the abovementioned requirements will be authorized functional independence in almost all managerial areas.

Financial Sector of India RBI guidelines for NBFC's The Reserve Bank of India has relaxed its guidelines for the operation of non-bank finance companies (NBFCs) in India considering the various investments from the investors. It has also permitted leasing of machinery and rent-buying credit firms with endowment level rankings to avail public savings increase the maximum limit on the amount of public investments on these NBFCs that may allow and expand the closing date for observance on its norms by two years. The fiscal competitiveness of several NBFCs persists to be of importance to the administration and reserve bank of India controllers. There is a significant merging activity in this industry as NBFCs are regulated by stringent yardsticks that are obligatory to fulfill. In addition, India has entered into new agreements with WTO in the area of fiscal services in Geneva on December 1997. Financial Sector of India Chief Characteristics Some of the major characteristics of Financial Sector of India are:

The financial sector of India allows Most Favored Nation (MFN) reputation to all international banks and firms offering financial facilities. The sector has relaxed previous MFN tax exemption on banking activities. Allows 12 new financial bank division authorizations every year to international banks, that is higher as compared to the existing 8 every year. Raises the 10% limit of reinsurance by insurance firms in India. Permits 51% foreign endowment in fiscal advisory, issuing, hiring, business enterprise capital, business banking and non-banking credit firms.

Analysis of Indian Financial Sector

Analysis of Indian Financial Sector reveals that it is at present going through a phase of stable growth rate which is experiencing a upward swing. The rise can be maintained over a long period by keeping the inflation down. The financial sector in India has experienced a growth rate of 8.5% per annum. The rise in the growth rate suggests the growth of the economy. The financial policies and the monetary policies are able to sustain a stable growth rate. The reforms pertaining to the monetary policies and the macro economic policies over the last few years has influenced the Indian economy to the core. The major step towards opening up of the financial market further was the nullification of the regulations restricting the growth in the financial sector. To maintain such a growth for a long term the inflation has to come down further. The analysis of Indian financial sector shows the growth of the sector was the result of the individual development of the divisions under the sector.

Analysis of the Indian Capital market

The ratio of the transaction was increased with the share ratio and deposit system The removal of the pliable but ill-used forward trading mechanism The introduction of infotech systems in the National Stock Exchange (NSE) in order to cater to the various investors in different locations Privatization of stock exchanges

Analysis of the Indian Venture Capital market

The venture capital sector in India is one of the most active in the financial sector inspite of the hindrances by the external set up. Presently in India there are around 34 national and 2 international SEBI registered venture capital funds.

Analysis of the Indian Banking sector

The banking system in India is the most extensive. The total asset value of the entire banking sector in India is nearly US$ 270 billion. The total deposits is nearly US$ 220 billion. Banking sector in India has been transformed completely. Presently the latest inclusions such as Internet banking and Core banking have made banking operations more user friendly and easy.

Analysis of the Indian Insurance sector

With the opening of the market, foreign and private Indian players are keen to convert untapped market potential into opportunities by providing tailor-made products. The insurance market is filled up with new players which has led to the introduction of several innovative insurance based products, value add-ons, and services. Many foreign companies have also entered the arena such as Tokio Marine, Aviva, Allianz, Lombard General, AMP, New York Life, Standard Life, AIG, and Sun Life. The competition among the companies has led to aggressive marketing, and distribution techniques. The active part of the Insurance Regulatory and Development Authority (IRDA) as a regulatory body has provided to the development of the sector.

Opportunities for the financial sector of India

The distributed financial gain of the venture capital funds is not taxed. The financial gains are taxed after the investors receive as income. The have more insurance and banking products introduced into the market to broaden the spectrum which in turn would boost the growth of the sector. Further nullification of the regulations have to take place in order to increase the competition and boost the growth of the financial sector to reach the US$ 51 billion mark

Bond Market in India


The Bond Market in India with the liberalization has been transformed completely. The opening up of the financial market at present has influenced several foreign investors holding upto 30% of the financial in form of fixed income to invest in the bond market in India. The bond market in India has diversified to a large extent and that is a huge contributor to the stable growth of the economy. The bond market has immense potential in raising funds to support the infrastructural development undertaken by the government and expansion plans of the companies. Sometimes the unavailability of funds become one of the major problems for the large organization. The bond market in India plays an important role in fund raising for developmental ventures. Bonds are issued and sold to the public for funds. Bonds are interest bearing debt certificates. Bonds under the bond market in India may be issued by the large private organizations and government company. The bond market in India

has huge opportunities for the market is still quite shallow. The equity market is more popular than the bond market in India. At present the bond market has emerged into an important financial sector.

The different types of bond market in India


Corporate Bond Market Municipal Bond Market Government and Agency Bond Market Funding Bond Market Mortgage Backed and Collateral Debt Obligation Bond Market

The major reforms in the bond market in India


The system of auction introduced to sell the government securities. The introduction of delivery versus payment (DvP) system by the Reserve Bank of India to nullify the risk of settlement in securities and assure the smooth functioning of the securities delivery and payment. The computerization of the SGL. The launch of innovative products such as capital indexed bonds and zero coupon bonds to attract more and more investors from the wider spectrum of the populace. Sophistication of the markets for bonds such as inflation indexed bonds. The development of the more and more primary dealers as creators of the Government of India bonds market. The establishment of the a powerful regulatory system called the trade for trade system by the Reserve Bank of India which stated that all deals are to be settled with bonds and funds. A new segment called the Wholesale Debt Market (WDM) was established at the NSE to report the trading volume of the Government of India bonds market. Issue of ad hoc treasury bills by the Government of India as a funding instrument was abolished with the introduction of the Ways And Means agreement.

Centrum Finance Limited


Centrum Finance Limited is registered with Bombay Stock Exchange and the ticker symbol of the the company is 501150. The registered office of Centrum Finance Limited is located in the capital of Maharashtra.

Management of Centrum Finance Limited:


Centrum Finance Limited is managed by an efficient board of directors, headed by Mr. Berjis M Desai, who holds the position of the Chairman. The board consists of a total of 11 members who are involved in taking important decisions for the benefit of the company. Mr. Berjis M Desai is assisted by Mr. Chandir G. Gidwani, being the Vice Chairman of Centrum Finance Limited. Mr. T.R. Madhavan serves as the managing Director of the company. The other directors include:

Ibrahim S Belselah Manmohan Shetty T R Madhavan Sonia G Gidwani Mahakhurshid K Byramjee T R Madhavan P G Kakodkar Rishad K Byramjee Rajesh V Nanavaty K V Krishnamurthy

Facts about Centrum Finance Limited:


Centrum Finance Limited serves to fulfill it capital requirement through the issue of equity shares at the rate of ` 10 per share presently. The company has kept the amount of its authorized capital as ` 10crores, since the year 2000-01 together with the amount of issued capital as ` 4.88crore. The authorized capital in the financial year 1998-99, was ` 2crore and the issued capital was ` 1.63crore.

Performance of Centrum Finance Limited:

the total income of Centrum Finance Limited has jumped from ` 2.42crores in the month of September 2006 to ` 14.74crores in the month of September in 2007, whereas the total expenses in September 2006 rose from ` 1.86crore to ` 3.61crores in September 2007, delineating an increase of 99 % in total expenses compared to 83.58 % increase in total income. The net profit has grown in leaps and bounds from ` 0.20crores in September 2006 to ` 7.42crores in September 2007.

Offices of Centrum Finance Limited:

Centrum Finance Limited has established approximately 13 offices throughout India, with its corporate office situated at Mumbai. The people in Tamil Nadu can access the financial

services of Centrum Finance Limited through its branch office at Chennai, whereas the people residing at Haryana are aided with the office of the company at Gurgaon. Centrum Finance Limited has located one of its branch in the capital of India and the branch office of Andra Pradesh is situated at Hyderabad. The state of Gujarat has its own branch office of Centrum Finance Limited at Surat and the local people of West Bengal will find the branch office of the company at kolkata. The other branch offices of the comapny are located at the following locations:

Nagpur Baroda Kolhapur Ahmedabad Pune

CIL Securities Limited


CIL Securities Limited is enlisted with Bombay Stock Exchange Ltd. as well as National Stock Exchange and was established in the year 1989.CIL Securities Limited started off with stock broking and has been successful in extending its scope to include merchant banking, share transfer etc.

Management of CIL Securities Limited:


The popularity of CIL Securities Limited rests on its efficient management team who possess experience as well as expertise to carry on the administration of the company. The management team is headed by Mr. Sri Krishna Kumar Maheshwari, who has been offered the position of the chairman and serves as the Managing Director, too. Mr. Piyush Modi has been appointed as the executive director of CIL Securities Limited. Other prominent members of the company include:

Sri Satyanarian Kanchal Sri Ramnivas Joshi Smt.Pramila Maheshwari Sri V.B. Purnaiah Sri M.P. Murthy

Facilities of CIL Securities Limited:


CIL Securities Limited assists its clients in each and every step needed to participating in the capital market like aiding in the establishment of the new company and then designing of the public issues. CIL Securities Limited advises on the issue of financing of the different

projects of its clients and has developed an equity investigation segment to discover new companies, who possess the capacity to improve immensely in terms of their scope and activities, in the near future. CIL Securities Limited is engaged in the negotiation of share transfer for discarded shares as well as for physical shares and has developed business relations with NSDL to learn the procedure of proper management of dematerialized scripts. The function of working as the registrar for its clients, ranks high among its financial operations.

Merchant Banking Operation of CIL Securities Limited:

CIL Securities Limited has facilitated several Indian companies with the aid of its merchant banking operations in dealing with the issue of their take overs, the list of such companies include:

Valueline Securities (India) Limited Sigma Compsoft Technlogies Limited Silicon Leasing and Investments Limited Innova Health System Limited Lotus Chocolate Co. Limited Chitalia Infotech (India) Limited Vasundhara Rasayans Limited

CIL Securities Limited's Function as Registrar:

CIL Securities Limited functions as electronic registrar, depository registrar, physical registrar and so on. CIL Securities Limited has functioned as the electronic registrar for companies like:

Ashok Polymers Ltd Intensive Air Systems Ltd Karan Woosin Limited Srinivasa Hatcheries Ltd Vasundhara Rasayans Limited Yenkey Drugs & Pharma Limited Jeevan Softech Ltd Northgate Technologies Ltd Shree Vani Sugars & Ind Ltd Granules India Ltd Bakelite Hylam Limited

CIL Securities Limited has functioned as the physical registrar for a number of companies such as:

MP Oil & Fats Limited Gradiente Infotainment Ltd.

CIL Securities Limited has functioned as the depository registrar for a number of companies such as:

tej infoways limited integrated data systems ltd sanghi industries ltd allsoft corporation ltd exensys soft ware ltd. nagarjuna inst of software ltd

Growth of Financial Sector in India


The growth of financial sector in India at present is nearly 8.5% per year. The rise in the growth rate suggests the growth of the economy. The financial policies and the monetary policies are able to sustain a stable growth rate. The reforms pertaining to the monetary policies and the macro economic policies over the last few years has influenced the Indian economy to the core. The major step towards opening up of the financial market further was the nullification of the regulations restricting the growth of the financial sector in India. To maintain such a growth for a long term the inflation has to come down further. The financial sector in India had an overall growth of 15%, which has exhibited stability over the last few years although several other markets across the Asian region were going through a turmoil. The development of the system pertaining to the financial sector was the key to the growth of the same. With the opening of the financial market variety of products and services were introduced to suit the need of the customer. The Reserve Bank of India (RBI) played a dynamic role in the growth of the financial sector of India.

The growth of financial sector in India was due to the development in sectors Growth of the banking sector in India
The banking system in India is the most extensive. The total asset value of the entire banking sector in India is nearly US$ 270 billion. The total deposits is nearly US$ 220 billion. Banking sector in India has been transformed completely. Presently the latest inclusions such

as Internet banking and Core banking have made banking operations more user friendly and easy.

Growth of the Capital Market in India

The ratio of the transaction was increased with the share ratio and deposit system The removal of the pliable but ill-used forward trading mechanism The introduction of infotech systems in the National Stock Exchange (NSE) in order to cater to the various investors in different locations Privatization of stock exchanges

Growth in the Insurance sector in India

With the opening of the market, foreign and private Indian players are keen to convert untapped market potential into opportunities by providing tailor-made products. The insurance market is filled up with new players which has led to the introduction of several innovative insurance based products, value add-ons, and services. Many foreign companies have also entered the arena such as Tokio Marine, Aviva, Allianz, Lombard General, AMP, New York Life, Standard Life, AIG, and Sun Life. The competition among the companies has led to aggressive marketing, and distribution techniques. The active part of the Insurance Regulatory and Development Authority (IRDA) as a regulatory body has provided to the development of the sector.

Growth of the Venture Capital market in India

The venture capital sector in India is one of the most active in the financial sector inspite of the hindrances by the external set up. Presently in India there are around 34 national and 2 international SEBI registered venture capital funds

Karvy Group

Karvy Group comprises of an association of chartered accountants who formed the Karvy Computershare Private Ltd. in the year 1982. The company started off with the view to provide taxation as well as auditing assistance to its clients.

Scope of Karvy Group:


Karvy Group extended its scope to include registration, followed with the work of transfer of share and it finally entered into the financial sector. The company is facilitated with the latest technologies that has helped to gain a prominent position in the Indian financial sector. Karvy Group presently offers assistance related to the capital market in India and has been recognized with the ISO 9002 certification for its excellent performance.

Connections of Karvy Group:


Karvy Group has been successful in creating a wide client base and involves such key players as :

Deutsche Mutual Fund LIC Mutual Fund Tata Mutual Fund Morgan Stanley Mutual Fund Taurus Mutual Fund Benchmark Mutual Fund UTI Mutual Fund Quantum Mutual Fund GIC Mutual Fund JM Financial Mutual Fund Sundaram Mutual Fund

Accomplishments of Karvy Group:

Karvy Group has been accredited with the leading position as a merchant banker, and MARG has stated it as The Most Admired Registrar. Karvy Group has entered into a venture with Jardine Fleming India Securities Ltd. that will enhance the scope of the company's retail segment and provide the investors with valuable data and suggestions regarding the financial sector in India as well as abroad. It has achieved prominence in the circulation of finances according to the PRIME DATABASE and served as the registrar for a number of companies like:

IndusInd Bank Ltd Hindustan Petroleum Corporation Ltd. Madras Refineries Ltd Jindal Vijayanagar Steels Ltd.

Bank of Punjab Ltd Tamil Nadu Newsprint & Paper Ltd Nagarjuna Fertilizers & Chemicals Ltd.

Subsidiaries of Karvy Group:

Karvy Group has developed separate companies to deal with specific issues of the financial industry as, the issues related to investment banking as well as merchant banking is dealt with in Karvy Investor Services Ltd. whereas marketing of equity shares accompanied with debentures on a number of stock exchanges in the country like National Stock Exchange, Over-The-Counter Exchange of India etc.is dealt with at Karvy Stockbroking Limited and Karvy Computershare Private Limited offers assistance related to investment and registration.

L& T Finance Limited


L& T Finance Limited was established by the Larsen and Turbo group in the year 1994 and has turned out be one of the prominent companies in the financial sector. L& T Finance Limited was stated off as a finance company to cater to the financial needs of various industries and the agricultural sector.

Funds for Agricultural Instruments by L& T Finance Limited:


L& T Finance Limited has formulated a unique scheme exclusively for its client John Deere Equipment Private Limited in the year 2002 and named it as Kishan Gaurav. Kishan Gaurav now extends its scope to provide financial assistance to the other clients of L& T Finance Limited to buy tractors. Kishan Gaurav offers varied plans against land mortgage, and the tenure of such plans may vary from 1 year to 5 years and also offers certain plans in absence of land mortgage whose tenure ranges from 1 year to 3 years.

Secured Loans of L& T Finance Limited:


L& T Finance Limited has also arranged for loans extended over a long period of time and such loans are alloted in exchange of the valuable belongings of the client. The company offers the advantage to riposte this loan in a number of ways including facility for disbursement on a monthly basis, or breaks the loan in such a way that the client is able to pay it off at quarters. Such loans require few significant documents as Promissory Note, proof of permission granted by the board of directors for the loan.

Funds for Automobiles by L& T Finance Limited:

The segment of L& T Finance Limited dealing with the financing of automobiles, guarantees loan on the automobiles purchased from the prominent vehicle producers such as Ashok Leyland, Bajaj Tempo etc. The company has developed automobile financing schemes for new automobiles as well as for second hand automobiles. Automobile loans provided by L& T Finance Limited may extend at the most to 4 years at a stretch and serves to contribute 85 % of the value of the automobile, deducting any insurance amount and the prices of other supplementary components attached to the vehicle.

Administrators of L& T Finance Limited:

L& T Finance Limited is controlled by an efficient management team, that is headed by Mr. A.N. Mani who holds the position of the Senior Vice-President. Other prominent heads include Mr. Anil Vaidya who is the head of the Support Services segment and Mrs. Dipti Advani who manages the Credit and Research section. Mr. G.K. Shettigar is the incharge of the treasury and Mr. V. Rajagopalan has been appointed as the treasurer. The legal issues are looked after by Ms. Raji Viswanathan and Mr. V. Ramesh, heads the Construction Equipment Financing division and so on

Major Financial Companies in India


The major financial companies in India are a contribution to the growth of the financial sector in India. The Financial Sector of India is presently going through a fast phase of alteration. The reforms are a part of the structural reformation directed to improve the productivity of the economy. The main purpose of the development of the financial sector of India is for the sustenance of the economic growth.

Some of the major financial companies in India:

SBI Capital Markets Ltd (SBICAP) is one of oldest companies in the capital markets of India. The bank has also attained the topmost market position in the capital market in India. SBI Capital Markets Ltd was set up in the year 1986 as a fully owned ancillary of the State Bank of India, the biggest Indian commercial bank. The SBI Capital Markets Ltd is the trailblazer in the concept of securitisation and privatization. It is ranked as the 2nd in Project Advisory services in the Asia Pacific region. The company also received the Outlook Money's Best Merchant Banker Award in 2004. Bajaj Capital Limited is among the premiere financial planning and investment advisory companies in India. The main activity of the Bajaj Capital Limited is to provide the corporate houses, high networth clients, institutional investors, individual investors, non resident Indians (NRIs) with financial planning and investment advisory services. The company is also the biggest provider of finance based products offered by several government, private and public organizations, investment products

such as life insurance, general insurance, bonds, mutual funds, post office schemes, etc.

DSP Merrill Lynch Limited is among the leading brokers and underwriters in India pertaining to equity and debt securities. The company also provides several institutions and corporations with financial advices. The DSP Merrill Lynch Limited also provides a wide range of investment and wealth management services and products along with customized financial advices. The DSP Merrill Lynch Limited is the first company to establish a research facility for the research on financial services and products, innovations, improvements, etc. The company also deals in Government securities and is presently one of the most important companies in the equity and debt market in India. Bajaj Capital Limited Birla Global Finance Limited Karvy Group L& T Finance Limited CIL Securities Limited

SBI Capital Markets Limited DSP Merrill Lynch Limited Housing Development Finance Corporation Centrum Finance Limited PNB Gilts Limited

PNB Gilts Limited


PNB Gilts Limited is a Primary Dealer which was started off with an investment of Rs.50crores and was created as a part of the plan formulated by the Reserve Bank of India, to bring about significant development in the governmental securities sector infrastructure.

Facts about PNB Gilts Limited:


PNB Gilts Limited was originally developed by Punjab national Bank and permitted by the Reserve Bank Of India to function as a Non-Banking Finance company. The company now boasts of a total capital amount of ` 485.58crores,that was made possible on account of the plan to raise ` 3.5crore through an IPO. PNB Gilts Limited initiated the process of acting as a mediator between the Indian citizens and the government, by availing the governmental securities to the general public.

Facilities offered by PNB Gilts Limited:


PNB Gilts Limited has incorporated latest advancements in information technology like the utilization of lean software and is engaged in providing consultative services to its customers to deal with government securities. PNB Gilts Limited has developed special securities like central government dated securities as well as state government securities. The company

caters to the need of unsecured loans of its clients, for the fulfillment of temporary needs with the introduction of inter corporate deposits, reverse repo, bills re discounting, notice money. The merchant banking segment of PNB Gilts Limited has been cross-filed with SEBI and serves to provide the following facilities:

Issue Management Project Appraisal Consultancy Services Underwriting Services

Accomplishments of PNB Gilts Limited:

PNB Gilts Limited has secured P1+ ranking on account of the formulation of its temporary financial schemes, and the rank was announced after conduction its survey by CISIL. PNB Gilts Limited has made its mark as a Primary Dealer in the governmental securities market by being recognized with ISO 9002:2000 certificate.

Board of Directors of PNB Gilts Limited:

PNB Gilts Limited is managed by a group of efficient members like Mr. A.K. Gupta, who is presently commissioned to act as the managing director of PNB Gilts Limited. He had been previously functioning as the deputy general manager of Punjab National Bank. Other prominent members of the management team include Sh. R.S. Lodha, Dr. O.P. Chawla, Sh. Devinder Kumar Singla, Dr. kamal Gupta, Sh. Anand Swarup Agarwal, Sh. Arun Kaul, Sh. S.K. Soni and so on

Stock Market in India


The Stock Market in India like other stock markets across the world provide for the trade of equity shares, and commodities pertaining to public companies in India as well as of the world. The shares actually provide information about the performance of the company. Higher the value of the share means that the company is making profit. The Stock Market in India is an important part of the Indian economy and the yardstick for the growth of the economy of the country. The Mumbai (Bombay) Stock Exchange is the oldest stock exchange pertaining to the stock market in India. It was set up in the year 1875. There are around 6000 companies shares listed under the Mumbai (Bombay) Stock Exchange. Presently there are about 22 stock exchanges in the stock market in India. There are other stock exchanges in the stock market in India such as Calcutta, Bangalore, Chennai, Ahmedabad, Delhi, etc. The stock market in India also has a National Stock Exchange (NSE)

situated in Mumbai. The stock market in India comprises of an Over The Counter Exchange of India (OTCEI) for the listing of the medium sized and small sized organizations. The Securities and Exchange Board of India (SEBI), which is a regulatory organization overseeing the working of the stock exchanges in India.

The National Stock Exchange can be contacted at:


National Stock Exchange Mahindra Towers "A" Wing, 1st Floor, Worli, Mumbai. Tel : 022-4960525, 4932555. Fax : 022-4935631 The Stock Market in India serves as a platform for infrastructural development and expansion plans of the new companies. The companies may raise funds through the distribution of their equity shares to the public. Transparency is a very important factor for a company to trade in the stock market. The major fundamentals of the company which influences the investors are income, liabilities, revenues, assets, infrastructure, etc and the company has to be very transparent about these facts.

Opportunities for foreign investors in Stock markets in India

Direct Investment opportunities for foreign investors in Stock markets in India: The stock market in India now allow the foreign companies to hold majority shares of the India companies apart from some restricted companies. Some companies the foreign stake may be 100%. Investment through Stock Exchanges in Stock markets in India: The Foreign Institutional Investors (FII) may operate in the Stock markets in India being registered with the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI)

Private Sector of Indian Economy


The private sector of Indian economy is the past few years have delineated significant development in terms of investment and in terms of its share in the gross domestic product. The key areas in private sector of Indian economy that have surpassed the public sector are transport, financial services etc.

Indian government has considered plans to take concrete steps to bring affect poverty alleviation through the creation of more job opportunities in the private sector of Indian economy, increase in the number of financial institutions in the private sector, to provide loans for purchase of houses, equipments, education, and for infrastructural development also. The private sector of Indian economy is recently showing its inclination to serve the society through women empowerment programs, aiding the people affected by natural calamities, extending help to the street children and so on. The government of India is being assisted by a number of agencies to identify the areas that are blocking the entry of the private sector of Indian economy in the arena of infrastructural development, like regulatory policies, legal procedures etc. The most interesting fact about the private sector of India economy is that though the overall pace of its development is comparatively slower than the public sector, still the investment of private sector in the recent past, i.e. in the first quarter of 1990 registered approximately 56 % which rose to nearly 71 % in the next quarter, accounting for an increase of 15 %. Certain steps taken by the Indian government are acting as the stepping stone of the private sector continued journey to success, include industrial delicensing, devaluation that was implemented previously. The private sector of Indian economy is also adversely affected by the huge number of permits and enormous time required for the processing of documents to initiate a firm, however the central government has decided to abolish MRTP Act and incorporate a Competition Commission of India to bring the public sector and the private sector at the same platform. The participation of the private sector of Indian economy is desired by the government of India for infrastructural development including specific sectors like power, development of highways and so on. As the contribution of public sector in these sectors have been arrested due to the shift of the attention of the Indian government to issues like population increase, industrial growth. The main reasons behind the low contribution of the private sector in infrastructural development activities are that:

The small and medium scale companies in the private sector of Indian economy suffer from lack of finances to welcome the idea of extending their business to other states or diversify their product range. The private sector of Indian economy also suffer from the absence of appropriate regulatory structure, to guide the private sector and this speaks for its unorganized framework. The unorganized framework of the private sector is interrupting the proper management of this sector resulting in the slowdown of its development.

Growth of Private Sector

As of the figures of the last decade, India has had a remarkable growth in private sector investment. The liberal trade and investment policies and the country's infrastructure have provided the environment for higher investment and growth in private sector.

Recent Trends in Private Participation


Growth in Telecom Sector As of the figures of 2001-06, there has been an incredible increase in the investment in the telecommunication sector in India and as a result there has been immense growth in the telecom industry. 64% of the investment in this sector in South Asia has been in this sector. Various private telecom companies as Airtel, Reliance Communications, Tata Indicom etc have been the major investors in this field. The subscriber base has increased as a result which is reflected in their figures:

Bharti Airtel -3,280,658 Reliance Communications 1,232,060 Tata Teleservices 1, 289, 17

Growth in Energy and Water Sectors This sector also has attracted a large investment from the private industries. Figures as of 2001-06 registered 17% investment in the sector. However in the water sector there has not been any major investment due to political issues, weak authority etc. In India, the power distribution has been privatized in several cities as Delhi and states like Orissa. The western state of Maharashtra is also keen on having larger investment from the private sector in the power division. Growth in Transport Sector This sector has also become an important area of investment by the private enterprises. As of figures of the year 2006, there has been an investment of 34% alone in the transport sector. The driving force behind this success has been India's initiatives and policies encouraging partnerships of the private and the public sectors in transport.

Private Sector and Public Sector in India


As of the last decade, the growth and investment in the private sector has well surpassed the growth in the public sector. Figures suggest that the share of the private sector in the net sales of manufacturing and services industry augmented from 48.83% in 2001-01 to 68.55% in 2009-10. Subsequently the share of the public sector reached to 31.45% from a higher percentage of 51.17%.The shares of private sector in the net profit in the non-agricultural economy rose to 63.86% from 39.17%. The share of the public sector subsequently declined to 36.14% from 60.83%.

This increase in the private sector's share is largely due to the higher foreign direct investment over the last decade. Over the last decade or so, with the liberalisation of the economic policies, India has been able to achieve higher investment from the private sector. For instance due to modifications and changes in the economic policies the transport and telecommunication industry witnesses a higher percentage of growth and investment in the private sector.

Importance of Private Sector in Indian Economy


The importance of private sector in Indian economy over the last 15 years has been tremendous. The opening up of Indian economy has led to free inflow of foreign direct investment (FDI) along with modern cutting edge technology, which increased the importance of private sector in Indian economy considerably. Previously, the Indian market were ruled by the government enterprises but the scene in Indian market changed as soon as the markets were opened for investments. This saw the rise of the Indian private sector companies, which prioritized customer's need and speedy service. This further fueled competition amongst same industry players and even in government organizations. The post 1990 era witnessed total investment in favor of Indian private sector. The investment quantum grew from 56% in the first half of 1990 to 71 % in the second half of 1990. This trend of investment continued for over a considerable period of time. These investments were especially made in sector like financial services, transport and social services. The late 1990s and the period thereafter witnessed investments in sector like manufacturing, infrastructure, agriculture products and most importantly in Information technology and telecommunication. The present trend shows a marked increase in investment in areas covering pharmaceutical, biotechnology, semiconductor, contract research and product research and development. The importance of private sector in Indian economy has been very commendable in generating employment and thus eliminating poverty. Further, it also effected the following

Increased quality of life Increased access to essential items Increased production opportunities Lowered prices of essential items Increased value of human capital Improved social life of the middle class Indian Decreased the percentage of people living below the poverty line in India Changed the age old perception of poor agriculture based country to a rising manufacturing based country Effected increased research and development activity and spending Effected better higher education facilities especially in technical fields Ensured fair competition amongst market players

Dissolved the concept of monopoly and thus neutralized market manipulation practices

The importance of private sector in Indian economy can be witnessed from the tremendous growth of Indian BPOs, Indian software companies, Indian private banks and financial service companies. The manufacturing industry of India is flooded with private Indian companies and in fact they dominate the said industry. Manufacturing companies covering sectors like automobile, chemicals, textiles, agri-foods, computer hardware, telecommunication equipment, and petrochemical products were the main driver of growth. The Indian BPO sector is more concentrated with rendering services to overseas clients. The KPO sector is engaged in delivering knowledge based high-end services to clients. It is estimated, that out of the total US $ 15 billion KPO service business around US $ 12 billion of business would be outsourced to India by the end of 2010.

Major Private Companies of India


With an Annual GDP growth rate of 7-8 percent India is the one of the fastest growing economies in the world. This stable annual GDP growth rate that India is witnessing is mostly due to the rise of the major private sector companies in the country. Private sector companies play a very important role in the Indian economy. Over the last 15 years or so the major Private companies in India have contributed more than significantly to the growth of the Indian economy. After the liberalization policies in the 1990's India started receiving huge amounts of foreign direct investment (FDI) which was one of the most important reasons behind the success of the private companies in the country. Prior to this the Indian economy was ruled mostly by the public sector enterprises which were known for their strict rules and regulations and bureaucratization. The liberalization policies proved to be a boon for the Indian economy. The economy witnessed huge amounts of foreign funds and along with it came in cutting edge technology and new ideas which started changing the functioning of India business. Slowly and steadily more and more private sector companies started coming up and establishing themselves in this part of the globe. Since the 1990's most of the Foreign Direct Investment that India received was in favor of the private sector. The total amount of investment increased from 56 percent in the first five years of the decade to almost 71 percent in the other five years of 1990. This became the investment trend and is continuing till today. Investments in private sector generally cover sectors like transport, manufacturing, infrastructure, financial services, social services, agriculture, telecommunication and Information technology. However the present investment trends show that sectors like pharmaceutical, contract research semiconductor, biotechnology and product research and development are also gaining immense importance. The Major Private companies of India prioritized customer's need and speedy service, which further fueled competition amongst same industry players. This healthy competition has benefited the end consumers, since the cost of service or products has come down substantially. B grade companies are also offering lucrative and competitively priced products or service, whose quality is at par with 'A' grade companies.

Over the last few years the country has witnessed a sea change in its economy and this is mostly due to some of the finest private sector BPOs, software companies, private banks and financial companies. India's manufacturing sector is also flooded with a number of private Indian companies that dominate the Indian industry and have also made a mark in the global forefront. The manufacturing companies in the country encompass sectors such as chemicals, textiles, petrochemical products, automobile, agri-foods, telecommunication equipment, and computer hardware.

List of Major Private Companies of India


Below is a list of some of the top Private Companies of India:

Reliance Industries Limited Tata Consultancy Services (TCS) Infosys Technologies Ltd Wipro Limited Bharti Tele-Ventures Limited ITC Limited Hindustan Lever Limited ICICI Bank Limited Housing Development Finance Corp. Ltd. TATA Steel Limited Ranbaxy Laboratories Limited HDFC Bank Ltd Tata Motors Limited Larsen & Toubro Limited (L&T) Satyam Computer Services Ltd. Maruti Udyog Limited Bajaj Auto Ltd. HCL Technologies Ltd. Hero Honda Motors Limited Hindalco Industries Ltd

Public Sector

Public sector, often regarded as "state sector", is mainly a part of individual states, which deals with the production, allocation as well as the delivery of different goods or services by its citizens or government. This sector includes administration of urban planning, delivery of social security and organization of national defense. A publicly owned company or corporation and partially or completely outsourced companies can be termed as a public sector company.

About Public Sector in India

In India, a public sector company or undertaking is meant to refer any corporation or company that is owned by government. Such a company, where the Union Government or State Government or any Territorial Government owns a share of 51 % or more is mostly regarded as a company belonging to the public sector. Before the independence of India, there were a handful of public sector companies in the nation. Indian Railways, the Port Trusts, the Posts and Telegraphs, All India Radio and the Ordinance Factory are some of the major examples of the countrys public sector enterprises. However, post Indian independence, some policies for the development of the socioeconomic status of the country were planned out by the then visionary leaders, where the public sector were used as a tool for the self-reliant growth of the nations economy.

Different sectors in Public Sector in India


Presently, the public sector in this country includes sectors like the coal industry, oil and petroleum industry, steel industry, banking industry, thermal power industry, jute industry, food industry, insurance industry, telecommunication industry, aviation industry, service industry, agriculture industry, manufacturing industry, mining industry, electricity industry, engineering industry (Light and medium) etc. To name a few of the famous public sector companies in India are:

Air India Limited (A. I. L.) Airports Authority of India (A. A. I.) Limited Akaltara Power Limited Andaman and Nicobar Islands Forest and Plantation Development Corporation Balmer Lawrie and Company Limited Bank of India (B. O. I) Bengal Chemicals and Pharmaceuticals Limited (B. C. P. L.) Bharat Coking Coal Limited (B. C. C. L.) Bharat Dynamics Limited (B. D. L.) Bharat Electronics Limited (B. E. L.) Bharat Heavy Electricals Limited (B. H. E. L) Bharat Petroleum Corporation Limited (B. P. C. L.) Bharat Sanchar Nigam Limited (B. S. N. L.) Coal India Limited (C. I. L.) Electronics Corporation of Tamil Nadu Limited (E. L. C. O. T.) Hindustan Aeronautics Limited (H. A. L.) Indian Institutes of Technology (I. I. T.) Indian Oil Corporation Limited Life Insurance Corporation of India (L. I. C.) Mahanagar Telephone Nigam Limited (M. T. N. L.) Mazagon Dock Limited (M. D. L.) Modern Food Industries (India) Limited (M. F. I. L.) National Institutes of Technology (N. I. T.) N. T. P. C. Limited (Earlier National Thermal Power Corporation) Nuclear Power Corporation of India Limited (N. P. C. I. L.)

Oil and Natural Gas Corporation (O. N. G. C.) Power Grid Corporation of India Limited State Bank of India (S. B. I.) Steel Authority of India Limited (S. A. I. L.) Tamil Nadu Electricity Board (T. N. E. B.) Tamil Nadu State Transport Corporation (T. N. S. T. C.) The Jute Corporation of India Limited

Contribution of Indian Public Sector in the Government of India


The public sector of the country has got a significant contribution to the development of Indian economy. Being a powerful instrument of economic growth, this sector has got the following contributions towards the growth of this nations economy: Balancing Regional Development: Public sector has even reached those regions of India that lacked the primary civic as well as industrial facilities like water supply, electricity, manpower, township etc. For example, the steel plants of Durgapur, Bhilai and Rourkela have contributed towards the growth of these regions. Contribution towards Public Exchequer: According to the Indian Chamber of Commerce, the sector is responsible for more than 20 % of tax collections (Both direct taxes and indirect taxes). Thus, in turn, this sector mobilizes financial funds for the requirement of the nations planned development. Employment: Millions of employment opportunities were being created by this public sector that minimized the problem of unemployment in the nation. Apart from ensuring job security to many people by taking over numerous sick units, this sector accounts for approximately two third of the countrys total employment. Filling the space in Capital Goods: During independence, there was a notable gap in Indias industrial structure in terms of steel, oil refining, fertilizers, chemicals and many more, which was filled up by the rapid industrialization in the country. Foreign Earnings and Export Promotion: Over the years, the earnings from the foreign exchange have increased remarkably. Apart from that, public owned companies like State Trading Corporation (S. T. C.), Hindustan Steel Limited, Bharat Electronics Limited (B. E. L.), Minerals and Metals Trading Corporation (M. M. T. C.) etc. have worked well for the promotion of export in India. Import Substitution: Public sector companies like Oil and Natural Gas Commission (O. N. G. C.), Bharat Electronics Limited (B. E. L.), Indian Oil Corporation Limited etc. were started solely for the production of goods, which earlier needed to be imported from foreign countries that involved huge expenses. Enhanced Research and Development: Since majority of the public sector enterprises are involved in heavy industrial as well as high technological work, which necessitate the undertaking of programs related to research and development, the public sector in India has enhanced the quality and amount of research and development.

Besides the ones mentioned above, this sector has successfully achieved the following constitutional goals:

Forming a socialistic society Increasing control over India's economy Limitation of financial power in the hands of private sector

Public Sector's Percentage of share in India G. D. P. (Gross Domestic Products)


As per a report published by the Indian Chamber of Commerce, P. S. U.s or the Public Sector Units account for more than 22 % of the total G. D. P. in India.

Future Prospects of Indian Public Sector


The public sector in this country has been expanding day by day. In the upcoming years, this public sector has got a good prospect in India as contributed by the different sectors included in it. Following are some of the key prospects of the varied industries, which are included in India public sector that in turn reflects the growth prospect of public sector in India: The increasing demand for power has made the Indian government to concentrate on their mission of "Power for all" by the year 2012 that would require the capacity of installed power generation to be minimum 2, 00, 000 MW from its present capacity of around 1, 44, 565 MW. As per the latest R. N. C. O. S. report of "Indian Steel Industry Outlook to 2012", production of crude steel in India is expected to grow at the C. A. G. R. (Compound Annual Growth Rate) of about 10 % in between the period of 2010 and 2013. As far as the Indian aviation industry is concerned, the sector is forecasted to be among world's 5 best aviation sectors in the coming 10 years. According to the highlights of the I. C. A. N. (International Civil Aviation Negotiation), the national air traffic is estimated to reach around 160 million passengers to 180 million passengers per year whereas, the international traffic is expected to exceed 80 million in a year. During the financial year 2010 2011, the country exported products of refined petroleum up to an amount of 50 million tones. By the end of the financial year 2014, owing to the increasing refining capacity, this amount is likely to reach around 70 million tones. The telecommunication industry in India is among the fastest growing sectors in the country. The base of mobile phones is expected to touch approximately 900 million figure by 2012 and 1.25 billion by the year 2015

Agriculture Sector of Indian Economy

Agriculture Sector of Indian Economy is one of the most significant part of India. Agriculture is the only means of living for almost two-thirds of the employed class in India. As being stated by the economic data of financial year 2006-07, agriculture has acquired 18 percent of India's GDP. The agriculture sector of India has occupied almost 43 percent of India's geographical area. Agriculture is still the only largest contributor to India's GDP even after a decline in the same in the agriculture share of India. Agriculture also plays a significant role in the growth of socio-economic sector in India. In the earlier times, India was largely dependent upon food imports but the successive stories of the agriculture sector of Indian economy has made it self-sufficing in grain production. The country also has substantial reserves for the same. India depends heavily on the agriculture sector, especially on the food production unit after the 1960 crisis in food sector. Since then, India has put a lot of effort to be self-sufficient in the food production and this endeavor of India has led to the Green Revolution. The Green Revolution came into existence with the aim to improve the agriculture in India. The services enhanced by the Green Revolution in the agriculture sector of Indian economy are as follows:

Acquiring more area for cultivation purposes Expanding irrigation facilities Use of improved and advanced high-yielding variety of seeds Implementing better techniques that emerged from agriculture research Water management Plan protection activities through prudent use of fertilizers, pesticides, and cropping applications

All these measures taken by the Green Revolution led to an alarming rise in the wheat and rice production of India's agriculture. Considering the quantum leap witnessed by the wheat and rice production unit of India's agriculture, a National Pulse Development Programme that covered almost 13 states, was set up in 1986 with the aim to introduce the improved technologies to the farmers. A Technology Mission was introduced in 1986 right after the success of National Pulse Development Programme to boost the oilseeds sector in Indian economy. Pulses too came under this programme. A new seed policy was planned to provide entree to superior quality seeds and plant material for fruits, vegetables, oilseeds, pulses, and flowers. The Indian government also set up Ministry of Food Processing Industries to stimulate the agriculture sector of Indian economy and make it more lucrative. India's agriculture sector highly depends upon the monsoon season as heavy rainfall during the time leads to a rich harvest. But the entire year's agriculture cannot possibly depend upon only one season. Taking into account this fact, a second Green Revolution is likely to be formed to overcome the such restrictions. An increase in the growth rate and irrigation area, improved water management, improving the soil quality, and diversifying into high value outputs, fruits, vegetables, herbs, flowers, medicinal plants, and bio-diesel are also on the list of the services to be taken by the Green Revolution to improve the agriculture in India.

Sectoral Analysis of Indian Economy


The sectoral analysis of Indian economy is a summary of the factors and industry sectors that were reformed or added in the economic growth report of India covering different Indian industries. The sectoral analysis of Indian economy focuses on the key points of the latest reforms of Indian economy as made in the latest Government of India economic policy statement. The sectoral analysis of Indian economy quantifies key parameters of Indian economy. Further, the analysis of different sectors of Indian economy facilitates the government to use it as the reference guide for the enactment of the future Indian economy policy. The key developments as per the sectoral analysis of Indian economy, 2007-2008 are as follows

Gross domestic capital formation in 2005-06 grew by 23.7% FDI amounted to US$12.5 billion and outpaced portfolio investment of US$6.8 billion Central Public Sector Enterprises to invest ` 165,053 crore in 2007-08 New 162 production sharing contracts awarded to Petroleum and Natural Gas sector SMEs has witnessed increase in outstanding credit Foreign trade and merchandise exports expected to cross US$125 billion by the end of the current fiscal Provision for tourist infrastructure increased to ` 423 crore Bank's differential rate of interest scheme providing finance at the rate of 4% to weaker sections Regional rural banks to open at least one branch in 80 uncovered districts in 2007-08 PAN made sole identification number for all participants of capital market Seven ultra mega power projects are under process Provision for national highway development programme to be increased to ` 9,945 crore Farm credit target of ` 225,000 crore for 2007-08 has been set with an addition of 50 lakh new farmers to the banking system 35 projects have been completed in 2006-07 and additional irrigation potential of 900,000 hectares to be created and training of farmers arranged A pilot programme for delivering subsidy directly to farmers have been arranged Loan facilitation through Agricultural Insurance and NABARD has also been facilitated Corpus of Rural Infrastructure Development Fund to be raised Defense expenditure allocation to increased to ` 96,000 crore IT allocation for e-governance to increased from ` 395 crore to ` 719 crore Exclusive health insurance scheme for senior citizens

According to reports, productivity growth rate of Indian economy is estimated to be around 8% and above until 2020 and at this rate India will become the second largest economy in the world after China. Further, analysis of different Indian sectors suggests that India is one of

the top economic reformers worldwide. It simplified business registration, cross-border trade, and payment of taxes, eased access to credit and strengthen investor's interest.

Export Sector in India


The export sector of Indian economy made comprehensive progress over the last decade. The exponential growth of the export sector of Indian economy can be attributed to the liberal Government of India economic policy. Indian exports have an ambitious target of US 160 billion in 2007-08. The achievement came to the Indian exports in the last fiscal despite the odds against the exports, minimizing the gains. In the first two months of 2007-08 exports grew by 20.3%, which was a little lower than the previous year over the same period a year ago. The Government of India latest export policy for the exporters will help in stabilizing the export growth levels attained in the 1st quarter of 2007-2008. Ores and minerals exports grew moderately to 12.9% against 37.4% in 2005-06. Similar trend was also observed in the exports of manufacturing sector. The exports of manufactured goods from India grew moderately by 15% in the first quarter of 2007-2008 as compared to 21.2% in the last fiscal year. High value commodities like engineering goods and rice registered very high growth rate in the 1st quarter of this fiscal against the same period last year. The overall exports suggests that the Indian exports grew considerably across all major exporting destinations. The Indian exports to Pakistan, UAE and Italy showed remarkable growth in the first quarter of the current fiscal year. The astronomical growth of the Indian export sector was led by the following industry

Information Technology Information Technology Enabled Services Telecommunications hardware Electronics and hardware Pharmaceutical and biotechnology products Consumer durables Textiles Construction machinery Power equipment Food grains Iron and steel Chemicals and fertilizers

The robust overall growth of export sector of Indian economy led to secondary growth of the following economic parameters

India's economy grew at 9.3% in quarter April-June and it was driven by manufacturing, construction and services sector and agriculture sector GDP factor for the first quarter of 2007-08 was at ` 7,23,132 crore, registering a growth rate of 9.3% over the corresponding quarter of previous year Exports grew by 18.11% during the 1st quarter of 2007-2008 and the imports shoot up by 34.30% during the same period

India's FOREX reserves (excluding Gold and SD` ) stood at $219.75 billion at the end of July ' 07 The annual inflation rate was 4.45% for the week ended July 28, 2007 India's Balance of Payments is expected to remain comfortable Merchandise Exports recorded strong growth According to reports, productivity growth rate of Indian economy is estimated to be around 8% and above until 2020

At this stupendous growth of the export sector of Indian economy, it is expected that India will become the second largest economy in the world after China.

Import Sector in India


The import sector of Indian economy is one of the most important sector of India's economic health. The performance of the import sector of Indian economy determines the Export policy of India and most importantly the export import policy of India. Further, it is one of the most important part of the India's foreign trade policy. The current EXIM policy of India covers policy statements for the period covering 2002 to 2007. The basic laws that governs the import sector of Indian economy are as follows

Imports shall be free, except in cases where they are regulated by the provisions of this Policy or any other law for the time being in force The item wise import policy shall be, as specified in published and notified by Director General of Foreign Trade, as amended from time to time Every importer shall comply with the provisions of the Foreign Trade (Development and Regulation) Act, 1992, the Rules and Orders made thereunder, the provisions of this Policy and the terms and conditions of any license / certificate / permission granted to him, as well as provisions of any other law for the time being in force All imported goods shall also be subject to domestic Laws, Rules, Orders, Regulations, technical specifications, environmental and safety norms as applicable to domestically produced goods No import of rough diamonds shall be permitted unless the shipment parcel is accompanied by Kimberley Process Certificate required under the procedure specified by the Gem & Jewelery Export Promotion Council. Duty credit allowed for import of capital goods, spare parts, office equipment, office furniture and consumables that are importable under ITC (HS). Such imports covers all items of the service sector The Customs Act of India governs the process of levying of tariffs on imports and frames the rules and it also specifies the tariffs rates and provides for the imposition of anti-dumping and compensation charges Tariff rates, excise duties, regulatory duties are revised in each annual budget of India

Total duties on imports now consist of basic duty which ranges from zero to 65% plus additional or countervailing duties On manufactured "luxury" items, total import taxes may amount to whooping 150% Import duties are product specific and can be revised in mid-year

The latest export import policy of India have led to growth of India's Import on the following lines The Government of India latest export policy for the exporters will help in stabilizing the export growth levels attained in the 1st quarter of 2007-2008. The Indian imports shoot up by 34.30% during the 1st quarter of 2007-2008. Today, India ranks second in the manufacture of small passenger car segment. It is the worlds largest producer of generic pharmaceutical and its Information Technology sector is registering three figure growth consistently. Moreover, it is the most preferred destination for business process outsourcing. The world's knowledge process outsourcing business is valued at US$ 15 billion out of which US$ 12.5 billion worth of business is expected to be outsourced to India alone by 2010. According to reports, productivity growth rate of Indian economy is estimated to be around 8% and above until 2020.

Retail Sector of Indian Economy


The Retail Sector of Indian Economy is going through the phase of tremendous transformation. The retail sector of Indian economy is categorized into two segments such as organized retail sector and unorganized retail sector with the latter holding the larger share of the retail market. At present the organized retail sector is catching up very fast. The impact of the alterations in the format of the retail sector changed the lifestyle of the Indian consumers drastically. The evident increase in consumerist activity is colossal which has already chipped out a money making recess for the retail sector of Indian economy. With the onset of a globalized economy in India, the Indian consumer's psyche has been changed. People have become aware of the value of money. Nowadays the Indian consumers are well versed with the concepts about quality of products and services. These demands are the visible impacts of the Retail Sector of Indian Economy. Since the liberalization policy of 1990, the Indian economy, and its consumers are getting whiff of the latest national & international products, the with help of print and electronic media. The social changes with the rapid economic growth due to trained personnels, fast modernization, enhanced availableness of retail space is the positive effects of liberalization. The growth factors of the retail sector of Indian economy:

Increase in per capita income which in turn increases the household consumption Demographical changes and improvements in the standard of living

Change in patterns of consumption and availability of low-cost consumer credit Improvements in infrastructure and enhanced availability of retail space Entry to various sources of financing

The infrastructure of the retail sector will evolve radically. The emergence of shopping malls are going steady in the metros and there are further plans of expansion which would lead to 150 new ones coming up by the year 2008. As the count of super markets is going up much faster than rate of growth in retail sector, it is taking the lions share in food trade. The nonfood sector, segments comprising apparel, accessories, fashion, lifestyle felt the significant change with the emergence of new stores formats like convenience stores, mini marts, mini supermarkets, large supermarkets, and hyper marts. Even food retailing has became an important retail business in the national arena, with large format retail stores, establishing stores all over India. With the entry of packaged foods like MTR, ITC Ashirbad, fast foods chains like McDonald's, KFC, beverage parlors like Nescafe, Tata Tea, Caf Coffee and Barista, the Indian food habits has been altered. This stores have earned the reputation of being 'super saver locations'. With the arrival of the Transnational Companies(TNC), the Indian retail sector will confront the following round of alterations. At present the Foreign Direct Investments(FDI) is not encouraged in the Indian organized retail sector but once the TNC'S get in they would try to muscle out their Indian counterparts. This would be challenging to the retail sector in India. The future trends of the retail sector of Indian economy:

The retail sector of Indian economy will grow up to 10% of total retailing by the year 2010. No one single format can be assumed as there is a huge difference in cultures regionally. The most encouraging format now would be the hypermarts The hypermart format would be further encouraged with the entry of the TNC's

Service Sector of Indian Economy


Service Sector of Indian Economy contributes to around 55 percent of India's GDP during 2006-07. This sector plays a leading role in the economy of India, and contributes to around 68.6 percent of the overall average growth in GDP between 2002-03 and 2006-07. There has been a 9.4 percent growth in the Indian economy during 2006-07 as against a rise of 9 percent in the same during 2006-06. During this growth in Indian economy, the service sector witnessed a rise of 11 percent in the year 2006-07 against the 9.8 percent growth in 2005-06. The service sectors of Indian economy that have grown faster than the economy are as follows:

Information Technology (the most leading service sectors in Indian economy) IT-enabled services (ITeS) Telecommunications

Financial Services Community Services Hotels and Restaurants

There has been a 13 percent hike in the service sectors of trade, hotels, transport and communication in India's economy as compared to the 10.4 percent rise in the previous year. The financial services that comprise of banks, real estate, insurance, and business services witnessed a rise of 11.1 percent during 2006-07 against the 10.9 percent growth in the previous year. Service sectors including community, social, and personal services experienced a growth of 7.8 percent during 2006-07 as against 7.7 percent growth in the previous year. The service sector of India has also witnessed a remarkable rise in the global market apart from the Indian market. It has experienced a rise of 2.7 percent in 2006 from that of 2 percent in 2004. The broad-based services in the trade sector has undergone a large-scale rise. A statistics concerning the growth of India's service sectors are listed below:

The software services in Indian economy increased by 33 percent which registered a revenue of USD 31.4 billion Business services grew by 82.4 percent Engineering services and products exports grew by 23 percent and earned a revenue of USD 4.9 billion Services concerning personal, cultural, and recreational had a growth of 96 percent Financial services had a rise of 88.5 percent Travel, transport, and insurance grew by 23 percent

The software services in Indian economy along with the export of products is growing at a massive pace and thereby witnessed an alarming rise of 35.5 percent and reached a lumpsome amount of USD 18 billion. The IteS and BPO sectors grew by 33.5 percent and earned a revenue of USD 8.4 billion. The service sector of Indian economy has been the most highpowered sector in India's economy. It has also been focusing in various investments of late. As Indian economy is looking forward for more liberalization, sectors like banking are on its way to loom large and occupy a more significant position in India's economy.

Tourism sector of Indian Economy


The Tourism sector of Indian economy is at present experiencing a huge growth. The Tourism sector of Indian economy has become one of the major industrial sectors under the Indian economy. The tourism industry earns foreign exchanges worth ` 21,828 crore. Previous year the growth rate of the tourism sector of Indian economy was recorded as 17.3% . The growth in the tourism industry is due to the rise in the arrival of more and more foreign tourists and the increase in the number of domestic tourists. Tourists from Africa, Australia, Lain America, Europe, Southeast Asia, etc are visiting India and their are growing by the thousands every year.

Indian Tourism offers a potpourri of different cultures, traditions, festivals, and places of interest. There are a lot of options for the tourists. India is a country with rich cultural and traditional diversity. This aspect is even reflected in its tourism. The different parts of the country offers wide variety of interesting places to visit. While the international tourism is experiencing a decelerated growth, the Indian counterpart is not affected. The factors for the growth of the Tourism sector of Indian economy

Increase in the general income level of the populace Aggressive advertisement campaigns on the tourist destinations Rapid growth of the Indian economy

The objectives of the National Action Plan for Tourism


Socio economic development of areas Increase in the opportunities for employment Development of the domestic tourism for the middle class segment of the society Preservation and restoration of the national heritage and environment Developing international tourism Promotion of tourism based product diversification Increasing the Indian share in global tourism

Some of the important tourist destinations in India

North India: o New Delhi: The capital city of India and has a rich cultural past o Agra: The city of the Taj Mahal and one of the greatest tourist attractions in India o Simla: A splendid hill station in the Himalayas o Dehradun: The capital of Uttaranchal and famous for its fantastic scenery East India: o Kolkata: The cultural capital of India, the city of Tagore, and Satyajit Ray o Guwahati: Important base for tourism in the region o Shillong: The capital of Meghalaya, and famous for its breathtaking lush green landscapes o Patna: One of the oldest cities in India and famous for its historical relics o Jamshedpur: An important industrial township, home of the Tata industries Central India: o Allahabad: The city of the Prayag and the Kumbha Mela o Varanasi: The holiest city for the Hindus, famous for its temples and ghats o Bhopal: The capital of Madhya Pradesh and important center of tourism West India: o Mumbai: The commercial capital of India and the city that never sleeps o Panjim: The main city in the state of Goa which is famous for its golden beaches and pristine waters o Udaipur: The city of palaces famous for its Lake Palace in the middle of Lake Pichola South India: o Chennai: The Automobile capital of India

o o o o

Bangalore: The Silicon Valley of India, famous for its software companies and a has a beautiful weather Trivandum: The city of the famous Kovalam Beach Cochin : A coastal city famous for its historical relevance Ooty: A fabulous hill station in the Nilgiris famous for its verdure valleys

Sectoral Trends of Indian Economy


The different sectoral trends of Indian economy has been encouraging for the investors. The astronomical rise of the Indian industry across all verticals have facilitated the growth of Indian economy. The main contributors for the overall rise of the different sectoral trends of Indian economy has been the manufacturing and service industry. Today, India along with china is regarded as the manufacturing hub of the world. In the service sector India still holds dominating position in the world market. Some key facts of the sectoral trends of Indian economy are discussed as below

India's economy grew at 9.3% in quarter April-June and it was driven by manufacturing, construction and services sector and agriculture sector GDP factor for the first quarter of 2007-08 was at ` 7,23,132 crore, registering a growth rate of 9.3% over the corresponding quarter of previous year Manufacturing registered 11.9% growth The passenger vehicles sector grew by 11.61% during April-May 2007 Electricity, gas & water supply performed well and recorded an impressive growth rate of 8.3% Construction growth rate rose to 10.7% Trade, hotels, transport and communication registered a growth rate of 12% Financing, insurance, real estate and business services recorded an impressive growth rate of at 11% during the 1st quarter of this fiscal Community, social and personal services maintained a decent growth rate of 7.6% The growth rate of agriculture, forestry & fishing' and 'mining & quarrying' are estimated at 3.8 per cent, and 3.2 per cent, respectively during the 1st quarter of 20072008 Exports grew by 18.11% during the 1st quarter of 2007-2008 and the imports shoot up by 34.30% during the same period India's FOREX reserves (excluding Gold and SD` ) stood at $219.75 billion at the end of July ' 07 The food sector is estimated to be of US$ 200 billion and it is expected to grow to $310 billion by 2015 Stocks of food-grains grew by 13.1% to 17.73 million tonnes The annual inflation rate was 4.45% for the week ended July 28, 2007 India's Balance of Payments is expected to remain comfortable Merchandise Exports recorded strong growth

According to reports, the productivity trends of different sectors of Indian economy and its subsequent growth is estimated to be around 8% and above until 2020. Further, at this rate,

the Indian economy will become the second largest economy in the world after China. Further, the World Bank has ranked India as one of the top economic reformers worldwide. It simplified business registration, cross-border trade, and payment of taxes, eased access to credit and strengthen investor's interest. The sectoral trends of Indian economy indicates robust growth of Indian industries especially manufacturing, construction, and service industry.

Index of Industrial Production (IIP)


About I. I. P. I. I. P. or the Index of Industrial Production refers to a kind of index, which provides details about the growth of the different sectors that forms the economy of a country. To be precise, I. I. P. is among the chief indicators of the development of an economy, which details out the trend of growth as well as the growth of the varied sectors included in that particular economy. Laspeyres formula is being used for the computation of such index which necessitates the fixation of a particular year so that the index figures can be calculated on the basis of that year. I. I. P. is often an abstract figure, whose magnitude reflects the production status of the sectoral industries in a given time period as compared to the reference time period.

Index of Industrial Production in India


I. I. P. in India mainly focuses on sectors such as mining, manufacturing, electricity as well as other general sectors. In case of the Republic of India, the base year was earlier fixed at 1993 - 1994 and was thus, equivalent to 100 points. However, the base year in India has now been changed to 2004 2005, in April 2011.

Recent Growth Rate of Industries as Projected by the IIP of India


As per the quick estimates of Indias Index of Industrial Production for September, 2011 as released by the Office of Central Statistics under the Statistics and Program Implementation Ministry of the Government of India on 11th November, 2011, I. I. P. of India was 1.80 % during September of last year on a y-o-y basis if compared to the growth rate of 3.60 % during the month of August, 2011 as well as 6.10 % during September, 2010. This office of the India Government has even revised this nations yearly industrial growth to 3.58 % for August of the year 2011 from its earlier estimate of the year on year increase of 4.04 %. In between the period of April and June in 2011, the economy of India showed a growth rate of 7.70 % that is one of the slowest rates of growth in the past 6 quarters.

The data of industrial growth shown in the new release of the series of Index of Industrial Production reveals that India, which is the 3rd largest economy in Asia, instead of undergoing a slowdown, has undergone a recession because of the financial crisis that was experienced on a global basis in between the period of December, 2008 and the month of June, 2009. During that period of 7 months, the growth rate on the year on year basis went down to the negative percentage of 7.23 % in February, 2009. It continued to remain so all through.

Trend of IIP Growth rate in 2012-13


If the trend of such higher rate of industrial growth can be maintained in the present fiscal year, then the overall growth rate of the G. D. P. (Gross Domestic Product) of the country is expected to have a thrust. The effect of this growth rate might not get reflected till the month of January in 2012 though. It is during this time that the current financial year 2011 2012s quick estimates about the Gross Domestic Product in India is supposed to be released. However, the series of new releases would get incorporated in the quick estimates of the G. D. P. of India for the financial year of 2012 2013

Globalization

Globalization means the coming together of different societies and economies via cross border flow of ideas, finances, capital, information, technologies, goods and services. The cross border assimilation can be social, economic, cultural, or political. But most of the people fear cultural and social assimilation as they believe this would have a negative impact on the existing culture of their society. Globalization therefore has mostly narrowed down to economic integration and this mainly happens through three channels; flow of finance, trade of goods and services and capital movement. Globalization is a term that includes a wide range of social and economic variations. It encompasses topics like the cultural changes, economics, finance trends, and global market expansion. There are positive and negative effects of globalization - it all comes as a package. Globalization helps in creating new markets and wealth, at the same time it is responsible for extensive suffering, disorder, and unrest. The great financial crisis that just happened is the biggest example of how negative globalization can turn. It clearly reveals the dangers of an unstable, deregulated, global economy. At the same time, this gave rise to important global initiatives, striving towards betterment. Globalization is a factor responsible for both repression and the social boom. What happens when there is a growing integration of economies across the globe? Majorly there have been positive impacts of this global phenomenon - through liberalization, privatization and globalization (LPG). Due to globalization, there has been significant flow of inward foreign direct investment. MNC companies are getting a chance to explore various different markets across economies and explore the untapped potential.

Globalization in India Globalization has had a huge impact on the Indian economy. Globalization affected the Indian economy both positively and negatively. India's economy opened up during the early nineties. The policy measures on the domestic front demanded that there was a requirement of multinational organizations to set up their offices here. The market became more open and the economy started responding to the external (global) market. The direct impact of globalization was directly seen on the GDP of the country which increased significantly. The liberalization of the Indian economy along with globalization helped the country to step up its GDP growth rate considerably. The GDP growth rate picked up instantly from 5.6 percent in 1990-91 to 77.8 percent in 1996-97. Since then the growth rate did manage to slump down due to drought and other factors but the country still managed to survive in the rat race and maintained a GDP growth of about 5 to 6 percent. Today India is regarded as being the one of the fastest developing countries just after China. Globalization has also played a major role in generating employment opportunities in India. After liberalization in the 1990s, the scenario of employment in India has witnessed a phenomenal change. Cities like Bangalore, Delhi, Mumbai and Chennai provide employment to a chunk of the Indian population since it is in these cities only that most foreign companies have set up their operations. Impact of Globalization It was in July 1991, when foreign currency reserves had tumbled down to almost $1 billion; inflation was at a soaring high of 17%, highest level of fiscal deficit, and foreign investors loosing confidence in Indian Economy. With all these coupling factors, capital was on the verge of flying out of the country and we were on the brink of become loan defaulters. It was at this time that with so many bottlenecks at bay, a complete overhauling of the economic system was required. Policies and programs changed accordingly. This was the best time for us to realize the importance of globalization. India welcomed globalization with open arms, the result of which can be seen clearly. India's Export and Imports have grown significantly over the last two decades. Quite a large number of Indian companies have made a reputation for themselves on the global scenario. India has become a one a stop destination for many services specially related to IT and IT support. Measures of Globalization
1. Devaluation: The first initiative towards globalization had been taken the moment

there was an announcement of devaluating the Indian currency by a hoping 18-19% against all the major global currencies. This was a major initiative in the international foreign exchange arena. The Balance of payment crisis could also be resolved by this measure.

2. Disinvestment: The core elements of globalization are privatization and

liberalization. Under the privatization scheme, bulk of the public sector undertakings have been/ and are still being sold to the private sector. Thus the concept of PPP (public private partnership) came up.

3. Allowing Foreign Direct Investment (FDI): Allowing FDI inflows is a major step

of globalization. The foreign investment regime has been quite transparent and thus the economy is getting boosted up. Various sectors were opened up for liberalizing the FDI regime. Disadvantages of Globalization Along with its many benefits globalization also comes with some negative effects. One of the major concerns of globalization is that it leads to unequal distribution of income within the country, the second fear is that globalization hampers the domestic policies of the country, Globalization also increases the risk of spreading of communicable diseases, monopoly can also set in with globalization and lastly outsourcing of jobs to the developing nations only results in the loss of jobs for the developed nations. Is globalization delivering all the desired results to the masses? Or only a few can feel the benefits of globalization ?Figures have out rightly proved that the global average per capita income showed a strong surge throughout the 20th century but the income gap between rich and poor countries have not been bridged for many decades now. The ultimate inference being that globalization hasn't shown positive results

Impact of Globalization Positive impacts of Globalization


Globalization is the new catchphrase in the world economy, dominating the globe since the nineties of the last century. People relied more on the market economy, had more faith in private capital and resources, international organizations started playing a vital role in the development of developing countries. The impact of globalization has been fair enough on the developing economies to a certain extent. It brought along with it varied opportunities for the developing countries. It gave a fillip for better access to the developed markets. The technology transfer promised better productivity and thus improved standard of living.

Negative impacts of Globalization


Globalization has also thrown open varied challenges such as inequality across and within different nations, volatility in financial market spurt open and there were worsening in the environmental situation. Another negative aspect of globalization was that a majority of third world countries stayed away from the entire limelight. Till the nineties, the process of globalization in the Indian economy had been guarded by trade, investment and financial barriers. Due to this, the liberalization process took time to hasten up. The pace of globalization did not start that smoothly.

Economic integration by 'globalization' enabled the cross country free flow of information, ideas, technologies, goods, services, capital, finance and people. This cross border integration had different dimensions - cultural, social, political and economic. More or less the economic integration happened through four channels 1. 2. 3. 4. Trade in goods and services Movement of capital Flow of finance Movement of people

Advantages of globalization
The gains from globalization can be cited in the context of economic globalization:

Trade in Goods and Services - From the theoretical aspect, international trade ensures allocating different resources and that has to be consistent. This specialization in the processes leads to better productivity. We all know from the economic perspective that restrictive trade barriers in emerging economies only impede growth. Emerging economies can reap the benefits of international trade if only all the resources are utilized in full potential. This is where the importance of reducing the tariff and non-tariff barriers crop up.

Movement of Capital - The production base of a developing economy gets enhanced due to capital flows across countries. It was very much true in the 19th and 20th centuries. The mobility of capital only enabled savings for the entire globe and exhibited high investment potential. A country's economic growth doesn't, however, get barred by domestic savings. Foreign capital inflow does play an important role in the development of an economy. To be specific, capital flows either can take the form of foreign direct investment or portfolio investment. Developing countries would definitely prefer foreign direct investment because portfolio investment doesn't have a direct impact on the productive capacity expansion.

Financial Flows - The capital market development is one of the major features of the process of globalization. We all know that the growth in capital and mobility of the foreign exchange markets enabled better transfer of resources cross borders and by large the global foreign exchange markets improved. It is mandatory to go in for the expansion of foreign exchange markets and thus facilitate international transfer of capital. The major example of such international transfer of funds led to the financial crisis - which has by now become a worrying phenomenon.

Thus, globalization has the fair and rough share of its impacts and thus we can surely hope for more advancement in the global economy due to this process

India Market
A market is described as a platform where buyers and sellers are allowed to trade, exchange goods, services, and information. These involvements of the goods and the parties to trade simplify the demand and supply concepts and are thus the fundamentals of an economy. Any type of trade can take place in a market. The two major dependant factors by which a market can operate are buyers and sellers. It is in an India market place that the physical meeting of the buyers and sellers take place such that they can trade. Nobody can deny the importance of physical India market places, but still there are virtual marketplaces mainly supported by IT networks such as the internet. Some India markets are really very competitive - with a large number of players (vendors) selling the same kind of products or services. On the other hand, few of the markets have very low or no competition at all (with a single player in the market). It depends on the number of buyers and sellers in the market that how much will be the price of the good or service that is sold in the market. This determines the law of demand and supply in the market. In an India market place, where there is more number of sellers than the buyers, the supply is bound to bring down the prices. On the other hand, if there are more buyers than sellers in a market place, the reciprocative action would take place - demand pushing up prices.

Types of India Market Free Markets - Usually free markets are operational under the 'laissez-faire' conditions where there is no government intervention. A free market may get distorted if there exists a monopolistic situation (seller controlling major portion of the supply) or a monopsonistic situation (a buyer having power on majority of the demand). In case of these distortions, the government or business bodies make an entry to ensure that the free markets operate smoothly. Currency Markets - Currency markets are among the largest traded markets in the globe, on a continual basis. Money flows are continuous around the globe - governments, banks, investors and consumers - all of them are involved in buying and selling currency round the clock. That is the velocity of money is huge with so many constantly changing hands. Stock Markets - Stock markets seem to be the backbone of any economy - and of late they have become the most complex structure allowing investors the scope of buying and selling shares in multitude companies. Majority of the Indian stock markets are operating on an electronic network, with a physical location being maintained for buyers separately. This is the place where the parties involved can interact with each other directly.

Types of Consumer India Markets -

Previously, India Markets originated from the center of villages and towns, where there was a sale or barter of farm produce, clothing and tools and various other products. Later on these street markets went on to become consumer-oriented markets like the specialist markets, shopping centers, supermarkets. 1.Commodity Markets - In India, with high oil and food prices, the commodity markets have again gathered all the attention. The prices of the essential commodities steer the economy to a desired level. Commodity markets deal in energy (oil, gas, coal, and biodiesel), soft commodities and grains (wheat, oat, corn, rice, soya beans, coffee, cocoa, sugar, cotton, frozen orange juice, etc), meat, and financial commodities like bonds. 2.Capital Goods & Industrial Markets - India capital goods market help businesses to buy durable goods that can be used in industrial and manufacturing methods. There are usually wholesale trades that take place with bulk goods being transacted at very cheap prices.

Importance of India market -

Markets in India after the liberalization era have been leveraged to the extent that they are well protected by legal procedures and boasts of efficient administrators. The government has always been proactive in its strategies to make the future of India market lucrative and attractive. India market has witnessed outstanding growth over past few years. The liberal and transparent financial policies have steered the economy towards free flow of FII and that is why India Market has achieved a sound place in the international arena. The returns on investments in the India market have been substantially moderate from all the listed stocks. Public Private Partnership (PPP) is the new trend in the Indian marketplace, with red tape and bribes being shed off to quite an extent. The few public enterprises like IOC, ONGC, BHEL, NTPC, SAIL, MTNL, BPCL, HPCL and GAIL, SBI, LIC etc are giving the private players a run for their money. Whereas at the same time, private players like Reliance Industries Limited, Infosys, Tata, Birla Corporation, Jet Airways, Ranbaxy, Biocon, Bajaj Auto, ICICI have been performing exponentially in all the financial years.