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An Analysis of industrial Growth in India
Abstract Since independence, India has achieved a good measure of selfsufficiency in manufacturing a variety of basic and capital goods. The output of the major industries includes aircraft, ships, cars, locomotives, heavy electrical machinery, construction equipment, power generation and transmission equipment, chemicals, precision instruments, communication equipment and computers. Early planners in free India had to keep in mind two aims: all-round development and generation of large-scale job opportunities. Economic development strategies were evolved with an eye on these twin objectives.

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I. An Overview ;
India has been one of the best performers in the world economy in recent years, but rapidly rising inflation and the complexities of running the world’s biggest democracy are proving challenging. Like most of the world, however, India is facing testing economic times in 2008. The Reserve Bank of India had set an inflation target of 4%, but by the middle of the year it was running at 11%, the highest level seen for a decade. The rising costs of oil, food and the resources needed for India’s construction boom are all playing a part. India has to compete ever harder in the energy market place in

particular and has not been as adept at securing new fossil fuel sources as the Chinese. The Indian Government is looking at alternatives, and has signed a wide-ranging nuclear treaty with the US, in part to gain access to nuclear power plant technology that can reduce its oil thirst. This has proved contentious though, leading to leftist members of the ruling coalition pulling out of the government.

II. Methodology

Methodology includes a philosophically coherent collection of theories, concepts or ideas as they relate to a particular discipline or field of inquiry Methodology refers to more than a simple set of methods rather it refers to the rationale and the philosophical assumptions that underlie a particular study relative to the scientific method with in the industry. This is why scholarly literature often includes a section on the methodology of the researchers. Methodology can be "the analysis of the principles of methods, rules, and postulates employed by a discipline, the systematic study of methods that are, can be, or have been applied within a discipline" methodology tells you what you have to do, to manage your projects from start to finish. It describes every step in the project life cycle in depth, so you know exactly which tasks to complete, when and how. Whether you're an expert or a novice, it helps you complete tasks faster than before growth standards


The Growth Scenario

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

A. The investment industry in India

India's equity market has doubled since March 2009, with ADRs like Dr. Reddy's Laboratories and Tata Motors only getting doubled and tripled. So, do we say that the Indian investment industry is overheated at the moment or may we infer that the stocks are fairly valued? Warren Buffett has always mentioned that investment in India should always be a long-term story - as the industry has been growing from an emerging market to a developed one. The next 10 years in India will surely give good returns. India's GDP growth would be around 6.5% to 7% in 2010. The sustainable growth rate of India would however hover around 7%. Before becoming a mature economy, India has another 20 to 40 years to spare

B. Trends in Automobile Industry in India
Potential of the Automobile industry In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011. Similar plans are for General Motors.
Turnover of Automobile Manufacturers(In USD Million)

Year 2002-03 2003-04 2004-05 2005-06 2006-07

In USD Million 14,880 16,544 20,896 27,011 34,285

The figures show that the automobile sector in India has been growing robustly. The market shares of the different types of vehicles will clearly depict the demand pattern in this sector.

C. Trends in Cement Industry
India, being the second largest cement producer in the world after China with a total capacity of 151.2 Million Tones (MT), has got a huge cement industry. With the government of India giving boost to various infrastructure projects, housing facilities and road networks, the cement industry in India is currently growing at an enviable pace. More growth in the Indian cement industry is expected in the coming years. It is also predicted that the cement production in India would rise to 236.16 MT in FY11. It's also expected to rise to 262.61 MT in FY12. The cement industry in India is dominated by around 20 companies, which account for almost 70% of the total cement production in India. In the present year, the Indian cement companies have produced 11 MT cement during April-September 2009. It took the total cement production in FY09 to 231 M

D. Infrastructure Industry in India
In view of their crucial importance, power, transport and other infrastructure industries are owned by the State. As a result of special attention given to the area in recent years, the infrastructure industries have been growing at the rate of 9 to 10 per cent annually.

Power: The generation of power has increased impressively in recent years. In 1990-51, India generated 6.6 billion-kilowatt hour of electricity, in 1995-96 the figure was 380.1 billion-kilowatt hour. The installed capacity, which was 1400 MW at Independence in 1947, has crossed 83,288 MW The policy of inviting private sector has been well received; about 140 offers that can generate over 60,000 MW of power have came in. Coal: Coal is the primary source for power generation in India. The country has huge reserves of coal approximately 197 billion tons. A sufficient amount of lignite (brown coal used in thermal power stations) is also available.

India produced about 270 million tons of coal in 1995-96. The government now welcomes private investment in the coal sector, allowing companies to operate captive mines.

Petroleum and Natural Gas: The recent exploration and production activities in the country have led to a dramatic increase in the output of oil. The country currently produces 35 million tons of crude oil, two thirds of which is from offshore areas, and imports another 27 million tons. Refinery production in terms of crude throughput of the existing refineries is about 54 million tons. Natural gas production has also increased substantially in recent years, with the country producing over 22,000 million cubic meters. Natural gas is rapidly becoming an important source of energy and feedstock for major industries. By the end of the Eighth Five-Year Plan, production was likely to reach 30 billion cubic meters.

IV. Analysis and Interpretation Sectoral Trends of Indian Economy

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India's economy grew at 9.3% in quarter April 2007-June 2008 and it was driven by manufacturing, construction and services sector and agriculture sector GDP factor for the first quarter of 2007-08 was at Rs 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% ,and Construction growth rate rose to 10.7%

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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 2007-2008 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 SDRs) 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

V . References

o Industrial growth in www.business.maoofindia.com/investments-industry o Sustainable economy www.siemen.com/wef o On line traders www.sherkhantradetiger.com o Indian Accounting Review,


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