Establishment of industries played a vital role in the Indian Economy. Once India become independent, the demand for the development and the growth of the Indian economy was at peak or we can say that it was the biggest challenge for the government of that time. In 1956, as per the previous data, few strategic decisions made for the growth of the Indian economy. These strategic decisions played important role in the future growth of the Indian economy and some of the decisions are still intact and giving right shape or direction to the growth story. As per the world data, Indian comes out of the seven countries of the world those have strong economic growth and in front of purchasing power parity, It is listed in the among five best countries of the world. We had seen major change into the Indian economy when in 1991 new economic policy announced by the government of that time. Now let us discuss the sectors those are playing important role in to the India growth.
Agriculture sector:
As per the reports, More than 50% of Indian population depend on the agriculture. It is clearly indicating that agriculture sector play important role in the GDP of India. Any government will come into the power; it will have focus on the Agriculture sector. Even current government had announced in the previous budgets that their government will double the income of the farmers by 2022. Few Export sectors opened for the agriculture goods & boost for the food processing industry and many more things came into the picture.
Industrial sector growth:
In Indian economy, manufacture sector is a back bone. Sectors like automobile, steel , textile etc will be in more demand in coming many years. Even Government has given many benefits to Industrial sector by offering them many tax reliefs & many more. Foreign direct investment, FDI limit has also increased in last few years in many sectors to keep in mind the growth of these sectors. If we will talk about the Automobile sector then the demand of the cars is increasing dy by day because people living standards has changed and everyone wants to have his/her own car. Even From last couple of years, due to Increase in the source of incomes, people are looking luxury cars, therefore many foreign companies had setup their manufacturing plants in India because these companies feel that Indian growth story is very good.
In the steel sector, the demand of their products will increase in the Automobile sector, infrastructure sector and in other sectors where steel products are required. Indian is a developing country & infrastructure is improving in India. Government has more focus on road infrastructure, construction sector or housing construction sector. With the increase in income, everyone wants his/her own house. Infrastructure sector is also creating more job opportunities.
Similarly, Auto ancillary sector is playing important role in the Indian economic growth and helping in the employment generation. Automobile sector is incomplete with auto ancillary sector & in similar way Automobile sector is nothing without increase in the demand of Automobile sale. Therefore steel sector is also interconnected with these sectors.
Similarly, If the infrastructure sector will be improved in India then Cement sector will also perform well. The cement sector is a back bone of the infrastructure. Even cement sector & infrastructure sector generate more skilled labour employment opportunities in India. More Engineers also work in Infrastructure sector, therefore, this sector create employment opportunities for all type of different field of candidates.
Service sector includes IT sector, investment sector, insurance sector, BPO etc. These all sectors are the future of India. It means that in coming many years youngsters will like to join this sector because of the robust growth in these sectors. As per the government data 60% of the GDP contribution comes from the service sector in India. Indian IT companies like Infosys, Tata consultancy service, Wipro & tech Mahindra have given fame to India and made their presence in the overseas. In coming many years insurance sector will also contribute to Indian economy because everyone wants to insured himself. Especially, in the healthcare insurance sector, we may see sea change in coming years. Covid pandemic has changed the mind of everyone; even many insurance companies are covering this disease into their insurance covers. We can say that this pandemic was like a eye opener for all & now everyone wants a health insurance. Recent development to make Indian digital is one of the biggest initiatives by the Indian government.
Food processing sector:
Make in India slogan has given big boost to the Food processing sector. Many new companies are also coming or setting up their units into the food processing sector because in this sector HIGH Growth & HIGH PORFIT. Number of resources is available for this sector. The availability of the raw material, favourable policies & incentives for this sector is making it more attractive for the investors. The consumption of the food & beverage is expected to grow from $369 bn to $1.14 tn in coming few years. Indian is largest producer of the food grains in the world.
Indian government expected Indian economy of $ 5 trillion & doubling the income of the farmers, major boost to “Make in India” 22% Tax to GDP ratio in coming few years. Indian government is also attracting foreign investment which is also good step. The more growth will give support to the India 1.3 Bn population of India. Youngsters of India are attracting toward new business ideas.
In nutshell, we can say that the establishment of the industries in India have more effect on the economy of India. Very sector is playing its role in the growth of India. Indian growth story is attracting the world businesses. That is why many foreign companies are setting up their manufacturing units in India. Even the policy makers are keeping this thing into their minds before making new economic policies. If the Indian industry will do well then Indian stock market will automatically perform really well.
Also read: Covid 19 impact on Hotel industry
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