A

PROJECT WORK ON
MAJOR INDUSTRIES

SESSION 2018-2019
ECONOMICS

GUIDED BY: SUBMITTED BY:

Mr. S kispotta Snehita Shukla

ACKNOWLEDGEMENT
Apart from the efforts of myself, the success of any project depends largely on the
encouragement and guidelines of many others. I take this opportunity to express my gratitude
to the people who have been instrumental in the successful completion of this project. I
would like to show my greatest appreciation to Mr. S Kispotta sir. I can’t say thank you
enough for his tremendous support and help. I feel motivated and encouraged every time I
attend his meeting. Without his encouragement and guidance this project would not have
materialized. The guidance and support received from all the members who contributed and
who are contributing to this project, was vital for the success of the project. I am grateful for
their constant support and help.
CERTIFICATE

This is to certify that SNEHITA SHUKLA, B.Com. LLB SEM 5th, student of
GURUGHASIDAS VISHWA VIDYALAYA has done project work on the topic “MAJOR
INDUSTRIES” under the guidance of Mr. S Kispotta , during the year 2018-2019 in partial
fulfilment of the subject of ECONOMICS.
INDEX

 INTRODUCTION
 MAJOR INDUSTRIES IN DEVELOPING AND
DEVELOPED WORLD
 MAJOR INDUSTRIES
 MAJOR INDUSTRIES IN INDIA
 HISTORY
 CONCLUSION
 BIBLIOGRAPHY
INTRODUCTION

An industry is categorized as a major industry based on factors such as its contribution to the
country’s gross domestic product (GDP), the percentage of the country’s population it
employs and its gross business receipts.

A country’s economy is broadly divided into three sectors:

The Primary Sector: This sector is involved with transforming natural resources into primary
products. A large part of the output from this sector forms the raw materials for other
industries. The major industries in this sector are agriculture, fishing, forestry and mining.

The Secondary Sector: This sector creates finished products that are usable by the end
consumer. The produce of the primary sector are used by the secondary sector to manufacture
finished goods or as inputs for other businesses. A substantial portion of this sector comprises
of businesses that have large factories, use machinery to transform raw materials into
products and consume huge quantities of energy. The major industries in this sector are
aerospace, apparel, automobile, chemical, textile, consumer electronics, energy, industrial
equipment, metals and metalworking, shipbuilding and tobacco.

The Tertiary Sector: This sector is also called the services sector. This sector does not
produce products, rather it delivers intangible goods. Services are provided by this sector to
businesses as well as final consumers. These services include banking, insurance, transport,
retailing, education, news, tourism and hospitality, consulting, legal practice, healthcare and
entertainment
MAJOR INDUSTRIES IN DEVELOPING AND DEVELOPED WORLD

Most economies follow a developmental progression. As a country moves from an

underdeveloped stage to a developing and then a developed stage, the sector that engages the
largest percentage of its population moves from the primary to the secondary and then the
tertiary sector. Thus, with development, an economy’s reliance shifts away from industries
like agriculture and mining, towards manufacturing and services.

For instance, the share of the contribution of the primary sector to China’s GDP fell from
28% in 1978 to 11% in 2007. This happened against the backdrop of substantial increments
to the GDP figure through this period. In 2007, close to 50% of the GDP was contributed by
the manufacturing industry, while the services industry contributed about 40%. This
transformation was on account of the fast development and growth of consumer markets in
the country and the inflow of FDIs into the nation.

On the other hand, in the US, the industries that had the highest job postings in 2009 were (in
that order):

 Healthcare

 Information Technology

 Retail

 Accounting

 Financial Services and Banking

 Education

 Hospitality
MAJOR INDUSTRIES IN INDIA

If the industrial sector in India has to flourish, then there has to be sufficient foreign capital in
the country. However, as many foreign firms would attest, it is not that easy to invest in
India. Recently, the stock prices of some companies had taken a hit because of their issues
with the ongoing tax regime. However, the Modi government is attempting to make things
better for international companies interested in investing in India. Foreign Direct Investment
(FDI) rules have been amended significantly so as to allow interested Non-Resident Indians
(NRIs) to invest in India.

It also stated recently that in sectors where there is provision for automatic rules for FDI,
foreign companies need not to get permission from the Foreign Investment Promotion Board
(FIPB) if they want to merge with a company in India or just acquire it. This information has
been revealed by a circular emanating from the Department of Industrial Policy and
Promotion. The same circular has also stated that in cases where automatic rules are
applicable, one does not need to take the government’s permission for issuing employee stock
options. It is expected that such initiatives will increase the levels of credibility of the FDI
policy and make India a far more attractive business destination for international investors.

Imports and Exports- Success Rate

India has not been doing well in its Balance of Trade as can be gauged from the fact that
April 2015 was the 5th straight month that its exports took a hit and imports went up by some
margin. In that month, its gold imports increased by a whopping 78 percent, while its exports
plunged at a rate of 14 percent. The total worth of goods exported by India in April 2015 was
US$ 22 billion. Much of this can be blamed on the fact that the prices of gems and jewellery
and petroleum had fallen in the international markets.

The decrease of international prices of crude oil is one reason India’s imports came down.
The aggregate worth of crude oil imported in India was US$ 33 billion and it marked a
decrease of 7.5 percent. However, the fall in petroleum exports has been even higher and this
is why the trade deficit ran up to almost US$ 11 billion. A year back, this deficit was
calculated at US$ 10 billion. There was a reduction of 42.6 percent in oil imports in April and
the present figure reads US$ 7.4 billion. Non-oil imports during that period were measured at
US$ 25.6 billion, an increase of 12.6 percent.

The entire amount of gold imported during April 2015 was estimated at US$ 3.1 billion and
this further increased the trade deficit. Of late, in May, oil prices have been increasing
somewhat. However, their present price is still below the 100-dollar-per-barrel mark and this
is why the exports have gone down a lot as well. During March, India’s exports reduced by
21 percent, which was the highest rate of contraction in the last six years. November 2014
was the last occasion when exports showed some growth with an increase of 7.3 percent.
The Federation of Indian Export Organisations has said that the prime reason for the fall in
exports continues to be the fall in the prices of commodities like crude oil, metals and other
necessary commodities. The growth rate of prices of products such as gems and jewellery,
plastic goods and electronics is also a matter of great worry for the economic policymakers of
India.

Major Industries in India

Textile Industry

This industry covers a wide range of activities ranging from generation of raw materials such
as jute, wool, silk and cotton to greater value added goods such as ready made garments
prepared from different types of man-made or natural fibres. Textile industry provides job
opportunity to over 35 million individuals thus playing a major role in the nation's economy.
It has 4 per cent share in GDP and shares 35% of the gross export income besides adding
14% of value addition in merchandizing sector.

Food Processing Industry

In terms of global food business, India accounts less than 1.5% inspite of being one of the
key food producing nations worldwide. But this on the other hand also indicates the
enormous possibilities for the growth of this industry. Supported by the GDP estimates, the
approximate expansion of this sector is between 9-12% and during the tenth plan period the
growth rate was around 6-8%. Food Processing Industry provides job opportunities to 1.6 mn
people and it is estimated to expand by 37 mn by 2025.

Chemical Industry:

Indian Chemical industry generates around 70,000 commercial goods ranging from plastic to
toiletries and pesticides to beauty products. It is regarded as the oldest domestic sector in
India and in terms of volume it gives a sense of pride to India by featuring as the 12 largest
producer of chemicals. With an approximate cost of $28 billion, it amounts to 12.5% of the
entire industrial output of India and 16.2% of its entire exports. Under Chemical industries
some of the other rapidly emerging sectors are petrochemical, agrochemical, and
pharmaceutical industries.

Cement Industry:

India has 10 large cement plants governed by the different State governments. Besides this
India have 115 cement plants and around 300 small cement plants. The big cement plans have
installed competence of 148.28 million tones per annum whereas the mini cement plants have
the total capacity of 11.10 million tonnes per annum. This totals the capacity of Indian
cement industry at 159.38 million tonnes. Ambuja cement, J K Cement, Aditya Cement and L
& T Cement are some of the major steel companies in India.
Steel Industry:
Indian Steel Industry is a 400 years old sector which has a past record of registering 4%
growth in 2005-06. The production during this period reached at 28.3 million tones. India
steel industry is the 10th largest in the world which is evident from its Rs 9,000 crore of
capital contribution and employment opportunities to more than 0.5 million people. The key
players in Steel Industry are Steel Authority of India (SAIL), Bokaro Steel Plant, Rourkela
Steel Plant, Durgapur Steel Plant and Bhilai Steel Plant.

Software Industry:

Software Industry registered a massive expansion in the last 10 years. This industry signifies
India's position as the knowledge based economy with a Compounded Annual Growth Rate
(CAGR) of 42.3%. In the year 2008, the industry grew by 7% as compared to 0.59% in 1994-
95.

Mining Industry:

The GDP contribution of the mining industry varies from 2.2% to 2/5% only but going by the
GDP of the total industrial sector it contributes around 10% to 11%. Even mining done on
small scale contributes 6% to the entire cost of mineral production. Indian Mining Industry
provides job opportunities to around 0.7 million individuals.

Petroleum Industry:

Petroleum industry started its operations in the year 1867 and is considered as the oldest
Indian industry. India is one of the most flourishing oil markets in the world and in the last
few decades has witnessed the expansion of top national companies like ONGC, HPCL,
BPCL and IOC.
HISTORY

History of Industry in India dates back to the history of mankind. India’s handicrafts
manufactured in village huts and houses all over the country were prized in foreign countries.

Indian Industries
Working on the locally available raw materials and with the skills and tools handed over to
them by their forefathers, the village artisans produced products of high aesthetic quality with
ease and efficiency.
Generations of such workers provided India with a long and glorious tradition of artistic
handicrafts of a varied nature. Among all the industries of early times, the textiles, especially
the cotton textile industry, had the place of pride both in India and in the outside world.
There is enough evidence to show that the Indians knew weaving some 1,500 years before
Christ, when the Europeans were still covering themselves with animal skins. Pyrard, the
17th century Portuguese writer has recorded that everyone from the Cape of Good Hope to
China was clothed from head to foot in Indian made garments.

The fine Dhaka muslin was the envy of the world for centuries together. Iron and Steel
industry was also in advanced stage at that time. The iron column near Qutab Minar in Delhi
is standing in the open and is exposed to sun, rain and weathering over 1,500 years old and it
still looks fresh. It seems that this column will continue to stand there till eternity.

This rare monument is a testimony to the forging and fabricating ingenuity of ancient India. It
is believed that the famous Damascus swords were made from steel imported from India. In
addition to cotton textiles and steel industries; wood, stone and ivory carvings, silk textiles,
pottery, bronze, brass, silver and copper works, dyeing and calico printing were also famous
throughout the world.
Industrial Revolution in Europe resulted in modem factories. With this the scale of
manufacturing goods increased tremendously leading to mechanisation. As a result migration
of workers occurred from villages to cities. The barter system of goods with goods came to
an end, exchange of goods with money started.

It is correct that a revolution occurred in the manufacturing sphere but the traditional village
handicrafts and cottage industries witnessed their death toll. Thousands of artisans were
rendered jobless as their manufacturers could not compete with the fine and low cost goods
manufactured in modem industries. A near chaos prevailed in villages. Goldsmiths,
blacksmiths and weavers began to starve. Thus, modem industry eroded the strong traditional
industrial base.
CONCLUSION

During the second term of the UPA regime, as per experts, the industrial growth of India was
hampered to a significant extent. On one hand, the GDP sharply declined from 9.4 in 2010 to
4.5 in 2013, which shows a drop of nearly 50 percent. On the other hand, the Index of
Industrial Production (IIP) was flat in January 2014 after steady decline. However, as of the
present scenario, experts suggest that right now defence is one area that can significantly
revive the stalled industrial scene of India, especially the manufacturing sector. If the ‘Make
in India’ programme of Modi is to materialise, then this is the most obvious bet.

Experts suggest that Manohar Parrikar has to use the national defence budget in such a way
that it enables the manufacturing of more arms and armaments in India. If weapons such as
guns, fighter planes, tanks, warships, howitzer and submarines can be made in India, it will
give a significant boost to the Indian economy. The problems with manufacturing are plenty
– competition, issue of profits and the vexing question of land. The last one can be a really
expensive proposition. There is only one thing that authorities need to be sure of with defence
equipment – can they be used for national security?
BIBLIOGRAPHY

 Industry | Define Industry at Dictionary.com Archived 2014-02-04 at the Way back

Machine.
 "'Definition of Industry' Investopedia". Archived from the original on 2017-07-24.
 "Slavery in the 21st Century". Newint.org. Archived from the original on 8 May
2002. Retrieved 2018-07-15.
 Compare: Lagerlöf, Nils-Petter (2006-08-30). "Slavery and other property rights"
(PDF). Some argue that slavery died out due to the rise of industrial production
modes, involving a larger number of work tasks, thus making slavery more costly in
terms of supervision.
 United Nations. "Universal Declaration on Human Rights." General Assembly of the
United Nations. 1948.
 Epstein, S.A. (1991). Wage Labor and Guilds in Medieval Europe. University of
North Carolina Press. pp. 10–49.
 Centre international de synthèse (1971). L'Encyclopedie et les encyclopedistes. B.
Franklin. p. 336. ISBN 9780833711571.
 Sarfatti Larson, Magali (1979).