Automobile Industry

1. Discuss the reason behind rapid growth of Automobile Industry in India?

a. Rapid Urbanization: As cities are growing, demand for two, three and four wheelers
have increased. Besides, low cost cars for urban people, the demand for modern
agricultural equipment such as tractor, trucks is also rising.
b. Availability of raw materials: 9 large-scale and three allow steel plant supply high quality
steel to automobile industry. Apart from these, the industrial region of Maharashtra,
Gujrat, Tamil Nadu and West Bengal meet the need of Copper, Aluminium, plastic, tyre,
tube, PVC, paints, etc.
c. Demography: India is a large market for Automobile Industry. Increased affordability has
attracted many towards buying car.
d. Affordable Vehicles’ Loan: Banks are providing vehicle loans at lower interest rates and
affordable EMI options to facilitate buyers.
e. Improved Infrastructure: Development and expansion of roads, highway (Golden
Quadrilateral, Pradhan Mantri Gramin Smarak Yojana) and express way promote heavy
vehicle industry.
f. Capital: Tata, Mahindra, Bajaj, Maruti Suzuki General Motors invest huge amount of
capitals to establish and develop automobile factories.
g. Government Policies: The Industrial Policy of 1991 has encouraged multinational
companies to establish automobile industry in India. The production is Increasing by
activating automotive mission plan (2006-16)
h. Market: The GDP of India is about 7-10%. Apart from international market, there is a
great demand for cheap Indian cars in neighboring countries and Africa.

IT Industry
1. What is outsourcing?
Outsourcing is a business practice used by companies to reduce cost or improve efficiency by
shifting tasks, operations, jobs, or processes to an external contracted third party for a
significant period of time. Outsourcing is also known as off-shore outsourcing or off-sourcing
when manufacturers have outsourced jobs overseas to countries like China, India and
Bangladesh to save labor cost. At present, 80% of Europeans and US outsourcing farms rank
India as their number 1 outsourcing destination. Outsourcing is most pronounced in IT industry.
2. Why is Bengaluru called “Silicon Valley of India”?
Bengaluru is often called the Silicon Valley of India. The name signifies Bengaluru’s status as a
hub for IT companies in India, and is a comparative reference to the original Silicone Valley [San
Francisco Bay Area(California)], USA, the major hub for IT companies in USA as well as the world.
This nickname began in 1990’s when R.K. Balinga proposed a concept of developing the
electronic city adjacent to Bengaluru. The project grew extraordinarily within 20 years, showing
growth of Internet based technology in and around the city.
3. What are the reasons behind the development of IT industry in India?
a. Skilled human resource: The cheap resource for IT industry is the skill and intellect of
human beings. Contemporary syllabus including computer, software and hardware has
contributed to the development of the Industry in India.
b. Technical education: Different engineering college such as IIT, ITI as well as science
research organization supply skilled and professional human resource for this industry.
c. Government Policy: In last two decades, state and central government has given more
importance to land bank, IT hub, banking, insurance, telecommunication and so on.
d. Demand: IT knowledges are indispensable in agriculture, industries, mining, transport
and communication, trade and commerce, education, health, etc.
e. Cheap outsourcing: India supplies cheap outsourcing facilities to multinational
companies.
f. Capital: Large integrated multinational organization are investing huge amount of
capital to IT industry of India.