Traditionally, there were six major industries in India. They are iron and steel, textiles, jute, sugar, cement and paper. In addition, the list included four new industries, petrochemicals, automobiles, information technology (IT) and banking and insurance. These industries are important for the Indian economy, therefore, understanding the growth of these industries can provide a good idea of ​​the relationship between their growth and government policies.


Role of major industries in the development of Indian economic development

   Iron and steel industry

   Iron and steel industry is an important industry in terms of total investment. These are usually public plants. In addition, the industry provides direct employment to about 2.5 million workers.

   According to the World Steel Association, India is among the top 10 steel producers in the world.  However, despite the importance of this industry, we import large quantities of steel every year.


 Textile Industries (Cotton and Synthetic)

   It is a complex industry with two extremes - state-of-the-art mechanical mills on one side and hand-woven and hand-woven on the other.

   There is a decentralized power loom sector between the two provinces. The textile industry is the largest in India, taking into account all three sectors.

   It accounts for about 20 percent of industrial production and employs more than 20 million people. In addition, it contributes about 33 percent to the total export income.

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  •    Economic Systems and Regions of India
  •    Indian Economy and Development
  •    Jat industry

   The jat industry has the potential to earn foreign exchange. India accounts for about 30 percent of the world's jute production. In addition, the pet industry provides direct employment to about 2.5 million people.

   In addition, about 4 million households live on Jat farming. The industry is now using high-speed machines and bradlums to back up carpets. In recent times, exports have also picked up.


   Learn more about infrastructure development in India


  1. Sugar industry

   India is the world's largest sugar producer.Also, sugar industry is the second largest agro-based industry in India.

   It employs about 3.25 lakh workers and generates indirect employment for about 45 million sugarcane farmers, distribution trade agencies and ancillary industries.  In addition, there are about 400–500 sugar factories in India.


 2. Cement industry

   In 2009-10, there were 148 largest cement units and 365 mini cement units in India.  Their total capacity is around 230 million tonnes and annual production is about 200.7 million tonnes.

   The cement industry employs over 200,000 people.  India is also one of the largest cement producing countries in the world


 3. Paper industry

   During the planned development period, India's paper industry grew rapidly and forests provided sufficient raw material for their work.  In 2009-10, India produced about 49.6 lakh tonnes of paper.

   However, the industry lacks modernization. Moreover, the price fixed by the government for various types of papers is unrealistic and does not provide a reasonable return on capital.


  4. Petrochemical industry 

   In the late 1970s, the government established the Indian Petrochemicals Corporation Limited (IPCL) in Baroda, which gave a good impetus to the petrochemical industry.

   In addition, the discovery of crude oil and natural gas in coastal areas off the west coast of India has given a new direction to the possibility of proliferation of petrochemicals.


  5. automobile industry

   The automobile industry has seen tremendous growth since the liberalization of the economy.  New producers quickly replaced traditional producers with cutting-edge technology.  Competitive competition in this market has improved in terms of emission regulations.


   6. Information Technology (IT) Industry

   Among the latest entrants in the list, the IT industry in India is the fastest growing.  In addition, outsourcing has reached an international level with many US and EU agencies working with contracting agencies for IT software and services in India and China.

   The local economy benefits the US economy as American companies outsource to India / China and save about 58% of their costs.


   7. Banking and insurance industry

   Banking

   In 1969, the Government of India enacted a law to nationalize 14 major commercial banks with 85 percent deposits in the country.

   Furthermore, over the years, as technology has improved, the banking industry has openly adopted change.  It was a new era for the industry, from the transfer of electronic funds to online banking.  Currently there are different types of banks in India:

  •    savings Bank
  •    Commercial banks are as follows:
  •    Scheduled bank
  •    Public sector banks
  •    Private sector banks
  •    Foreign bank
  •    Non-scheduled commercial bank
  •    Industrial or development bank
  •    Land mortgage or land development bank
  •    Swadeshi Bank
  •    Central or Federal or National Bank (Reserve Bank of India)
  •    Cooperative bank
  •    Foreign currency bank
  •    Consumer bank
  •    Insurance

   According to Article VII of the Constitution of India, only the Central Insurance Act can be made.  There are many private companies that claim insurance with up to 26 percent foreign direct investment, the largest life insurance company in India which is government owned.

   In 2009–10, the insurance industry in India was worth $ 41 billion. However, very few people are covered by medical claims. In comparison, more than 75 percent of the population in the United States is covered by a rough insurance scheme with the advent of private companies.  , The situation is likely to change


   Solved questions

   Q1.  What are the major industries in the Indian economy?

   Answer: The major industries in the Indian economy are iron and steel, textiles, jute, sugar, cement, paper, petrochemical, automobile, information technology (IT) and banking and insurance.