Today the whole world looks at India with great reverence, the country which got independence a few decades back has now achieved sustainable economic independence and is known as one of the fastest developing country with higher GDP. Most noticeable are the expansion and diversification of production in the agricultural and industrial area. Latest technologies are introduced in various sectors bringing better result.
The growth and progress of Indian industries is due to its healthy policy and motivation to local industry. To provide the financial infrastructure necessary for industry, the Government set up a number of development banks.
Investment Infrastructure: Energy-Transport -Communications facilities are extremely essential for smooth and accelerated industrial growth. The government made huge investments in providing infrastructure facilities and facilitated the growth of the industries.
With this objective the government of India established several banks and financial organization like the Industrial Finance Corporation of India (IFCI, 1948), Industrial Credit and Investment Corporation of India (ICICI, 1955), Industrial Development Bank of India (IDBI, 1964), Industrial Reconstruction Corporation of India (1971). Unit Trust of India (UTI, 1963) and Life Insurance Corporation of India (LIC 1956). After a few years some of the institutions mentioned above started doing retail business meaning dealing with common individuals also.
India has always been agricultural country and most of the industries in India are agricultural based. Though the process of industrialization was started at the time of the British government, but the right direction was given to the industrialization process after independence. To achieve economic stability and prosperity the government planned and designed various strategies. Plans like “five year plans” and various other commissions and committees were formulated to guide the economic path of India.
Today India is self-sufficient in producing different basic and capital products. The country is not only manufacturing products for the home market, but it is also involved in export business.
The Indian economy is playing a crucial role in the world economy as well. It is believed that India’s contribution will increase from 6% to 11% by the year 2025, on the contrary the contribution of US in world GDP is supposed to decline from 21% to 18%.
Small scale industries:
Small scale industries are the vein of Indian economy, rooted in Indian rural areas small scale industry skills are passed from one generation to another. Skills like textile handicraft, woodcarving, stone carving, metal ware etc. Small scale industrial factories are also present in urban areas and usually they account for the maximum volume of production for that particular good in the country.
Industrial growth especially small scale industries gets a boost after post-liberalization. The government policies like the investment ceiling for the SSI sector and priority lending has infused new life in small industry. By implementing latest technology and IT services these SSI could make their prospect secure and better.
Major industries in India:
Textile Industry: The backbone of the Indian economy from centuries, India still owes a large part of its economic growth to the textile industry. Famous for finest cotton, jute, wool and silk along with readymade garments it has 4% share in GDP and share 35% export income along with 14%of value addition in merchandizing sector.
Food processing industry: Though India is one of the key producers of food items yet India accounts less than 1.5% in global food business. The sector has enormous potential for growth.
Sectors like chemical industry, cement industry, steel industry, software industry and petroleum industry are playing a prominent role in improving the Indian economy. India again starting from Maruti Udyog has poised to become the Automobile hub of the world if not South East Asia. India tends to become leaders in Pharma industry and is easily able to compete in the world including U.S and U.K. In chemicals they have become self-sufficient. Reliance, L & T, and Aditya Birla Group are a few examples with World capacities.
Though the industrial and economic growth of India is remarkable after independence, but when we compare the resources that we have and the potential then this growth seems underrated. India is rising as the next super power with a little bit of sound and transparent polices India could lead the world in the right direction.