INDUSTRIES IN INDIA
The primary industrial ministries of Government of India are the Ministry of Commerce and Industry, the Ministry of Heavy Industries and the Ministry of Micro, Small and Medium Enterprises (MSME).
■ Ministry of Commerce and Industry
It oversees general industrial policy, manufacturing, promotion, and internal trade. The Ministry of Commerce and Industry manages two departments, the Department of Commerce and the Department for Promotion of Industry & Internal Trade. The Ministry is headed by a Cabinet-rank minister.
■ Ministry of Heavy Industries
It focuses on automotive and heavy engineering sectors. The Ministry of Heavy Industries is responsible for the development of the heavy engineering and machine tools industry, the heavy electrical engineering industry, the automotive industry, and for the supervision of the Central Public Sector Enterprises (CPSEs), their subsidiaries and four autonomous bodies.
■ Ministry of Micro, Small and Medium Enterprises (MSME)
It promotes and develops smaller-scale industrial units and businesses across the country. To promote the growth and development of micro, small and medium enterprises, including khadi, village and coir industries, to create new enterprises and more employment opportunities. The long-term objective of the Ministry is to enhance the productive base of the country by improving the performance of MSMEs through skill and entrepreneurship development.
Industrial Policy means rules, regulations, principles, policies and procedures laid down by government for regulating, developing and controlling industries in India. Government of India announced its first Industrial Policy Resolution on 6th April 1948.
Industrial Policy of 1948
The first industrial policy of free india is Industrial Policy of 1948. It was launched on April 6, 1948 by then Union Industry Minister M.Shyama Prasad Mukherjee (First Union Industry Minister of Free India). This policy established a base for mixed and controlled economy in India. Industrial activities were divided into four broad categories.
(a) Items under Central Government control - Manufacture of arms and ammunition production and control of atomic energy and the ownership and management of railway transport.
(b) Items under State Government control - Coal, Iron and Steel, Aircraft manufacture, ship building, manufacture of telephone, telegraphs and wireless apparatus and mineral oils.
(c) Items of basic importance (planned and regulated by Central Government) - Machine tools, chemicals, fertilizers, non-ferrous metals, rubber manufactures, cement, paper, newsprint, automobiles, electric engineering etc.
(d) Items of Private Sector - The rest of the industrial field will be open to private enterprise.
Industrial Policy Resolution of 1956
The Industrial Policy of year 1956 was regarded as the economic constitution of the country.
Objectives - To develop public sector, co-operative sector and control on private monopoly. It was first comprehensive statement on industrial development of india.
Industrial Policy of 1973 (February 2, 1973)
It provided closer interaction between the agricultural and industrial sector. Higher priority was given to the generation and transmission of power. Special legislation to protect cottage and household industries was also introduced.
Industrial Policy of 1977 (December 23, 1977)
Exploitation of alternative sources of energy were given special assistance including finance on concessional terms.
Industrial Policy of 1980
Through the Industrial Policy of 1980, the policy of giving concession to agriculture based industries was implemented.
Industrial Policy 1991
Industrial Policy of 1991 was declared on 24th July 1991. Privatisation and Liberalisation were the main thrust areas in the New Industrial Policy. The New Industrial Policy 1991 abolished all industrial licensing except for certain industries related to security and strategic concerns. For the promotion of exports of indian products in world markets, the government encourages foreign trading companies to assist indian exporters in export activities.
Types of Industries
Based on Size of Capital, the industries are classified into four as, Cottage Industries, Small Scale Industries, Medium Scale Industries and Large Scale Industries.
Cottage Industries
The most decentralized and small industrial units as compared to other industries. The type of work is primarily household or run by family members. They employ a minimal workforce. The investment and infrastructure was very low. They primarily depend on locally available raw materials and traditional - simple tools. Examples of cottage industries are pottery, handloom weaving, handcrafted jewelry, basket making, leather work etc.
Small Scale Industries
The industries in which the maximum investment is Rs 1 crore is called Small Scale Industries. Small Scale Industries include Traditional Small Scale Industries and modern small scale industries. Traditional small scale industries include Khadi and Handloom, handicrafts, sericulture, coir etc. Modern Small Scale Industries include Television sets, electronics, various engineering products etc. Abid Hussain Committee is related to reforms in small industries. Small Industries Development Bank of India (SIDBI) was established in 1990 on the recommendations of Abid Hussain Committee.
To help the Small Scale Industries in meeting the challenges of globalisation, the government has taken several initiatives. Primarily among them is the enactment of Micro, Small and Medium Enterprise Development Act, 2006. It has became effective from October 2, 2006. Its aim is to facilitate the promotion and development of SSI's and enhance the competitiveness of MSMEs.
Medium Scale Industries
A transitional category between the small and large scale industries. They employ a larger workforce than Small Scale Industries and require more advanced technology and specialized labour. Computer hardware assembly, electronic hardware assembly, consumer durable goods, and light engineering tools are examples of Medium Scale Industries.
Large Scale Industries
They are big industrial organizations that operate on a massive scale of production with larger workforce. Large Scale industries should have minimum investment of above Rs 10 crore. They require high financial support and have more skilled labours. The leading industrial states in India are Maharashtra, Gujarat and Tamil Nadu and the backward industrial states in india are Kerala, Rajasthan, Himachal Pradesh, Odisha and Haryana. Mumbai is the leading industrial centre in the country. Other major industrial centres of India are Bengaluru, Kolkata, Ahmedabad, Chennai, Coimbatore etc.
Public Sector Undertaking (PSU)
PSU is a government owned corporation. The majority equity must be owned by the government to be a PSU. Federally owned PSUs are termed Central Public Sector Enterprises (CPSEs) and are administered by the Ministry of Heavy Industries. There are more than 270 PSU companies in India. Various PSUs have been awarded additional financial autonomy. The level of financial autonomy is currently divided into three categories: Maharatna, Navratna and Miniratna CPSEs (itself divided into Category 1 and Category II).
Maharatna - The major criteria of awarding Maharatna status are,
• Three years with an annual net profit of over Rs 5000 crore after tax.
• Average annual Net worth of more than Rs 15,000 crore the last 3 years.
• Average annual turnover of more than Rs 25,000 crore during the last 3 years.
Navaratna - The major criteria of awarding Navaratna status are, A score of 60 or above (out of 100), based on six parameters which include net profit to net worth, total manpower cost to total cost of production or cost of services, Gross margin as capital employed, Gross profit at turnover, Earnings per share and inter sectoral comparison. A company must first be a Miniratna and have four independent directors on its board before it can be made a Navaratna.
Mini Navaratna Category I - Criteria, Have made profits continuously for the last three years or earned a net profit of Rs.30 crore or more in one of the three years.
Mini Navaratna Category II - Criteria, Have made profits for the last three years continuously and should have a positive net worth.
Export Processing Zone (EPZ)
India was one of the first in Asia to recognise Export Processing Zone models in promoting exports. Kandla in 1965 became Asia's first EPZ. Seven more zones were setup thereafter. But EPZ had many shortcomings. The shortcomings of the EPZ model were corrected and some new features were added to form the Special Economic Zones in April 2000.
Special Economic Zone (SEZ)
The SEZ policy was first announced in India on April 2000, as a part of the Export-Import (EXIM) policy of India. India passed Special Economic Zone Act in 2005. The SEZ Act, 2005, came into effect on February 10, 2006. Kandla, Surat, Santa Cruz (Maharashtra), Kochi, Chennai, Visakhapatnam, Faeta (West Bengal) and Noida (UP) have been converted into Special Economic Zones.
A SEZ is a geographical region that has economic laws that are more liberal than a country's domestic economic laws. As to these policies, the Government has setup SEZ's in the public, private, joint sector or by State Governments. In this regard some of the existing Export Processing Zones were converted in to Special Economics Zones.
Specific Economic Zone types
• Free Trade Zones (FTZ)
• Export Processing Zones (EPZ)
• Free Zones (FZ)
• Industrial Estates (IE) or Industrial Parks
• Free Ports
• Urban Enterprise Zones and others
The important thing is that everything that they produce is exported. SEZs would be allowed duty free import of capital goods and raw materials. The main objectives of SEZs are generation of additional economic activity, promotion of exports of goods and services, promotion of investment from domestic and foreign sources, creation of employment opportunities and development of infrastructure facilities.
Confederation of Indian Industry (CII)
It is an association of indian businesses. CII is non-government, not-for-profit, industry-led and industry-managed organization, playing a leading role in India's International and Business Development. It is founded in 1895. Its Headquarters is at New Delhi.
ASSOCHOM
ASSOCHOM is Associated Chambers of Commerce and Industry of India. ASSOCHOM is an apex trade associations of India. It is founded in 1920. Its headquarters is at New Delhi. The aim of ASSOCHOM is to promote both domestic and international trade and reduce trade barriers for the growth of trade and industry in India.
Board for Industrial and Financial Reconstruction (BIFR)
It is an agency of Government of India to determine sickness of industrial companies and to assist in reviving those that may be viable and shutting down the others.
Sunrise and Sun Set Industries
An Industry growing quickly and expected to be increasingly important in future is termed as sunrise industry. The sunrise industries consists of high technology manufacturing industries featuring automated and computerised processes. The industry growing slowly or declining is called sunset industry.
Major Industries in India
India is the second leading producer of garments, typically its high quality apparels for men. India’s apparel industry is a gainful business and is amid the top in the world. Industry includes designers, producers, exporters, dealers, sellers, and wholesalers. Most of the apparel manufacturers are in minor and medium scale industry. Indian Apparel Industry has a benefit as it manufactures and exports trendy garments for men at inexpensive prices due to cheap labour rates. The apparel industry plays a chief role in the nation’s economic growth. It allowed around 14% to business production, 4% to GDP and 17% to nation’s export earnings. The apparel industry provides direct job to more than 35 million people and indirect service to 47 million people.
2. Automobile Industry in India
Automobile manufacturing is one of the fastest growing industries in India. India is the world's third largest in terms of sales of cars and commercial vehicles. The automotive industry in India is the world's fourth-largest by production and valuation as per 2022 statistics. India is the second largest in the world in the manufacture of passenger vehicles, behind only China. Until 1940, vehicles were imported to India. Hindustan Motors started India's first car factory in 1942. Later, Premier started in 1944. Hindustan General Motors and Premier Fiat cars were produced in India. In 1945, the Mahindra brothers also started producing other vehicles, including the Jeep. Although India tried to move forward by including private companies in vehicle manufacturing, it was not able to make significant progress in the 1950s and 1970s. In the 1980s, the production of Maruti cars under the central government's ownership in collaboration with Japan's Suzuki Motor Corporation was a crucial step in the Indian automobile sector. Until then, India had only Hindustan's Ambassador and Premier's Fiat. Meanwhile, the production of two major trucks was also started in India. In 1954, the Tata Group launched Tata Trucks and in 1948, the Hinduja Group launched Ashok Leyland Trucks. The economic liberalization measures that began in the 1990s made India a major power in the world automobile market. Today, all the major automobile manufacturers in the world have started production units in India. India is currently trying to become the center of automobile manufacturing in Asia. Most of the automobile companies in India operate in Chennai, Noida, Pune, and Kolkata. According to 2011 figures, there are about 3700 automobile component manufacturing factories operating in India. Tata Motors Limited is the largest automobile manufacturer in India. Two-wheeler automobile, Three-wheeler automobile, cars, trucks, vans, buses etc are the segments of Indian Automobile Market.
3. Biotechnology Industry in India
Indian biotechnology sector is one of the quickest developing areas in India. There are in excess of 350 biotechnology organizations in India. Most of the companies are situated in the major cities of Delhi, Mumbai, Pune, Chennai, Bangalore, Hyderabad and Ahmedabad. It has a potential to take the nation to the major class of national and global investment. The nation has developed the biotech sector over the most recent decade. India has done well in pharmaceutical area. The biotechnology segment of India is on a solid development direction and is a very innovative area. As a manufacturing hub the sector, with its enormous development potential, will keep on playing a huge part. The segment improves India's worldwide profile and also adding to the development of the economy. India is one among the main 12 biotech destinations in the world and positions third in the Asia-Pacific area. Biotechnology have touched every corner of the world laying major stress on applications to nature, drugs, immunizations including a scope of biopharmaceuticals, diagnostics, transgenic crops, enhanced instruments for upgrading animal reproduction and quality, valuable organisms and food ingredients. The term 'Biotechnology' depends on innovation that incorporates disciplines likes sub-atomic modelling, genomic, bio – informatics, bio – reproduction, clinical data and some more. Transgenic rice and a few hereditarily adjusted (GM) or engineered vegetables are created by the biotechnology thus helping to become a major producer.
Sectors in Biotechnology
Biotechnology industry in India is considered as a rising divisions in India. It can be grouped into five unique sections. Biopharma, Agri-biotech, Bioinformatics, Bio-industrial and Bio services each focusing on a different particular area.
• Bio pharma primarily deals with the production of antibodies, therapeutics and diagnostics.
• Agri-biotech area primarily manages hybrid seeds, biopesticides, biofertilizers, transgenic crops, and so on.
• Bio informatics keeps up and makes the broad electronic database on different biological systems.
• Bioservices manages clinical trial, contract research and manufacturing exercises.
• Bio Industrial industry comprises of catalyst manufacturing and promoting organizations. These created catalysts are utilized in detergent, textile, nourishment, leather, paper and pharmaceutical industry.
4. Chemical Industry in India
The word chemical is a material which made up of some certain composition of chemical elements. Based on their molecular structure they are recognised as organic, inorganic or metallic elements. Components of chemical structures are certainly occurred in raw forms. These naturally occurring composites/elements through succeeding processes is changed to functioning elements by the use of chain of chemical process. Chemicals are a valuable part of social life, right from the diet we eat to the clothes we dress to the cars we travel all consist of chemical constituents. Chemical industry pays considerably to refining the value of life through advance innovations allowing clean drinking water, quicker medical cure, stronger families and greener fuels. The chemical industry is serious for the economic growth of the country.
India is the sixth leading manufacturer of chemicals in the world and third major industrialist in Asia, as of 2022. The country ranks third in the world based on the making of agro chemicals and pays around 16% to the universal dyestuff and dye intermediates manufacture. Basic chemicals and their related products (petrochemicals, manures, dyes, lacquers, glass, fragrances, toiletries, medicines, etc.) constitute an important part of the Indian economy. Certain important tests for the future are certifying development of viable, green solutions in the area of water treatment; food manufacture and healthcare. They are powered by a growing focus of business on taming its image; these movements are shaping the significances for R&D in the area of chemistry.
SIGNIFICANCE OF CHEMICAL PRODUCTION IN INDIA
Chemical industry is one among the quickest rising industries, which adds about 13% of the Indian GDP. It is rising yearly at a rate of 10% to 12%. Chemical Industry is a multi-product industry based on the impression of modification. It can be divided into following sectors.
• Inorganic chemicals: The progress rate in this sector is about 9% and the chemicals made in this kind are used in cleaners, manures, alkalis and crystal.
• Drugs and Medicines: This sector holds 4th place in the terms of size in the world. Growth in this sector is mainly due to exports.
• Plastics and Petrochemicals: This is the quickest growing segment in the Indian chemical manufacturing.
Based on their configuration and end use properties, chemicals are divided into seven broad segments.
1. Pharmaceuticals and bulk chemicals - Indian medicinal industry ranks about 4th and 13th correspondingly in terms of capacity and worth. The industry can be distributed into bulk drugs segment and preparations. They produce around 60,000 broad medicines and around 400 bulk drugs that are used in preparations. Majority chemicals include simple organic chemicals (methanol, acetic acid etc.) and simple inorganic chemicals (caustic soda, soda ash and Liquid chlorine are also categorized as alkali chemicals).
2. Specialty chemicals - Specialty chemicals contains fine chemicals and performance chemicals. The production chiefly caters to the medical industry. Specialty chemicals, also known as performance chemicals, are low-volume but high value compounds. These chemicals are resulting from straight forward chemicals and are sold on the source of their function. Paint, cements, electronic chemicals, oilfield chemicals are some examples of specialty chemicals.
3. Agro chemicals - One of the best dynamic insecticide producers in the world, India is the second major producer of agrochemicals in Asia. Among 145 pesticides registered in the country, 85 of a practical grade are locally manufactured. The country has recognized itself as a worldwide sourcing base for common agrochemicals. Chemicals basically intended for caring agriculture crops against insecticides and pesticides are enclosed under this sub-group.
4. Petrochemicals and organic chemicals - The petrochemical segment that mainly contains polymers, artificial fibres, fibre intermediates and plastic treating. Petrochemicals are chemical products resulting from petroleum. The two most common petrochemical modules are olefins (containing ethylene and propylene) and aromatics (containing benzene, toluene and xylene isomers).
5. Fertilizers - Fertilizer is an organic or inorganic material which deliveries chemical fundamentals required for plant growth. Fertilizer segment produces raw materials for agriculture which is a chief occupation of the country.
6. Dyes - The Indian dye industry is extremely disorganized with 50 players in systematized sector and 900 in disorganized sector. The trade has undertaken fabulous changes over the years, beginning as a middle industrial industry to a complete industry with huge export potential.
7. Inorganic Chemicals - Categorized by high grade of disintegration even across high volume product areas, Indian inorganic chemicals industry comprises for less than 4.5 % of worldwide market. The sector contains of production of chemicals, such as sulphuric acid, phosphoric acid, titanium dioxide, carbon black and chloralkali industry, which forms a major part of inorganic sector.
The Indian Chemical Industry contains both minor and large-scale units, and currently, there are around 70,000 chemical industrial units situated in the country. The major constituent (in numbers) is enclosed in the small scale sector.
5. Fertilizer Industry in India
Fertilizer manufacturing is an industry that has supported our agricultural growth. Fertilizer is an organic or inorganic material which delivers chemical fundamentals required for plant growth. Fertilizer segment produces raw materials for agriculture which is a chief occupation of the country. This is one of the sectors that India has given great importance to since the first five-year plan. Food shortage was the biggest challenge faced India at the time of independence. The only solution to this situation was to develop agriculture. Considering the role of fertilizers in agricultural growth, significant consideration was given to it in industrial policies. Fertilizer manufacturing had started in India since 1906. The first fertilizer manufacturing plant in India was started at Ranipet in Tamil Nadu. It is also the first Super Phosphate chemical plant in India. F.A.C.T., which was started in 1947 at Udyogamandal near Aluva in Kerala, was one of the earlier formed large fertilizer manufacturing plants in India. It was also the first nitrogen fertilizer manufacturing plant in India. In 1951, another large fertilizer manufacturing plant was started in the public sector at Sindri (Jharkhand). Sindri is one of the largest producer of nitrogenous fertilizers in the world. Fertilizer Corporation of India (FCI) Ltd was established in 1961 with its headquarters at Noida. After this, private companies and cooperatives like the Indian Farmers Fertilizer Cooperative started fertilizer manufacturing plants. Today, there are private fertilizer manufacturing plants in places like Kanpur, Goa, Visakhapatnam, Mangalore, and Varanasi. Recently, the use of natural gas for fertilizer production has reduced costs and increased production. India is aiming to start large-scale fertilizer manufacturing plants using natural gas. National Fertilizer Ltd, Tata Chemicals Ltd, Rashtriya Chemicals & Fertilizers Ltd. are the fertilizer companies with the highest sales.
6. Insurance Industry in India
Insurance companies are institutions that provide financial protection for the lives and property of individuals. Insurance industry includes two sectors - Life Insurance and General Insurance. The indian insurance sector has 60 insurance companies of which 33 are in non-life insurance business, 26 in life insurance and one Reinsurance company. Insurance sector is listed in the seventh schedule of the Constitution. It can only be legislated by the central government. The Oriental Life Insurance Company, which was started by the British in Kolkata in 1818, was the first life insurance company in India. However, this company was started mainly for foreigners in India. It charged a high premium to provide insurance protection to the locals. Triton Insurance Company started by British in 1850 was the first general insurance company in India. The first to provide insurance protection to Indians at a normal premium was the Bombay Mutual Life Assurance Society, which was started in Mumbai in 1870. The Mutual Life Assurance Society was also the first insurance company for Indians. Life Insurance Companies Act and the Provident Fund Act was implemented in 1912 to regulate the insurance business. On January 19, 1956, the life insurance sector in India was nationalized. Then, on June 19, 1956, the Parliament passed the Life Insurance Corporation Act. Accordingly, the Life Insurance Corporation of India came into existence on September 1, 1956. LIC, which is headquartered in Mumbai, is today the largest insurance company in India. Nationalisation of General Insurance is based on General Insurance Business Act 1972. Union Cabinet in July 2014 approved a proposal to relax Foreign Direct Investment (FDI) limit in the domestic insurance sector to 49 percent from the previous 26 percent to bring capital and investment. Currently, 100% FDI is allowed in the insurance sector.
Insurance Regulatory and Development Authority of India (IRDAI)
The Insurance Regulatory and Development Authority of India (IRDAI), was established on April 19, 2000. Its headquarters is at Hyderabad. IRDAI Act came into effect on the basis of Malhothra Committee. IRDAI was established in place of Insurance Regulatory Authority. IRDAI protect the interest of the insurance policy holders and regulate, promote and ensure orderly growth of the Insurance Industry. Insurance companies operating in the private sector operate under IRDAI. Life Insurance, Non Life Insurance and Reinsurance are the insurances regulated by IRDAI. Following is the list of insurance companies in India which have been approved by the Insurance Regulatory and Development Authority of India (IRDAI)
Nationalized (Government) Insurance Companies
1. Life Insurance Corporation of India
Life insurance companies are institutions that provide financial protection for the life and property of individuals. The largest state-owned life insurance company in India is Life Insurance Corporation of India and also the country's largest investor. It was set up in September 1, 1956. It's headquarters is at Mumbai. Life Insurance Corporation of India is the largest insurance company in the world in terms of number of policies covered. The company has about 36 crore policies.
2. General Insurance Corporation of India
General insurance provides any type of coverage other than life. General insurance provides protection for immovable and movable assets such as houses, agricultural crops, vehicles, commercial establishments, livestock, and jobs. General Insurance Corporation of India (GIC) is the sole reinsurance company in the Indian insurance market. It was formed on 22nd November 1972 and nationalised on January 1, 1973. It is headquartered in Mumbai. The general insurance sector in India was nationalized through the General Insurance Business Act of 1972. It came into effect on January 1, 1973. 107 insurers were grouped and amalgamated into four Companies. These four companies became General Insurance Corporation of India's subsidiaries. These four public sector general insurance companies are,
1. National India Assurance Company Limited
2. The New India Assurance Company Limited
3. The United India Insurance Company Limited
4. The Oriental India Insurance Company Limited
With effect from 2000 December, these subsidiaries delinked from the parent company and were set up as independent insurance companies.
3. New India Assurance Company Limited
New India Assurance Company Limited was founded by Sir Dorabji Tata in 1919. It was nationalised in 1973. The company provides insurance coverage to the customers for over 170 products catering to almost all types of general insurance business.
4. National Insurance Company Limited
National Insurance Company Limited is the oldest existing insurance company in india which is still in business. National Insurance Company Limited was established in 1906 based in Mumbai and was nationalised in 1972. After nationalization the company was merged with 21 foreign and 11 native companies to form the National Insurance Company Ltd. The company provides insurance coverage to the customers catering to almost all types of general insurance business.
5. The Oriental Insurance Company Limited
Oriental Insurance Company Limited is incorporated at Bombay on 12th September 1947. The company was a subsidiary of life insurance corporation of india from 1956 to 1973 till the General Insurance Business was nationalized in the country. In 2003 all the shares of this general insurance company that was held by the General Insurance Corporation of India were transferred to the Indian Government. The company provides insurance coverage to the customers catering to almost all types of general insurance business.
6. United India Insurance Company Limited
United India Insurance Company Limited was founded in 1938. Its Headquarters is at Chennai. After the nationalization of General Insurance business in the country, 12 native insurance Companies, 4 cooperative insurance societies, 5 foreign indian insurers and general insurance operations of southern region of LIC of india were merged with United India Insurance Company Limited. The company provides insurance coverage to the customers catering to almost all types of general insurance business.
7. Agriculture Insurance Company of India
Agriculture Insurance Company of India Limited (AICIL) was founded in 20th December 2002. Its aim is to cater the insurance needs of the individuals working in agriculture and allied fields in India. General Insurance Corporation of India (GIC), National Bank for Agriculture and Rural Development (NABARD) and other four public sector general insurance companies have contributed towards the share capital of the Company. The Agriculture Insurance Company received approval from Insurance Regulatory and Development Authority of India (IRDAI) and started its business operations from 1st April, 2003. It's headquarters is in New Delhi.
7. Information Technology (IT) Industry in India
The Indian IT industry began with the acquisition of computers from the USSR in the late 1960s. The National Informatics Centre and the Computer Maintenance Company, which were established in 1975, are government institutions that have played a crucial role in the development of IT. National Association of Software and Services Companies (NASSCOM) is established in 1988 for trade association of IT and Business Processs Outsourcing (BPO) Industry. In the financial year 1997-98, the share of the IT sector in India's gross domestic product was only 1.2 percent. However, by 2011-12, this had increased to 7.5 percent.
Information technology has been one of the fastest growing industries since India began its economic liberalization process in 1991. It has contributed significantly to India's gross domestic product (GDP) and employment generation. The IT sector has also contributed significantly to India's export earnings. The Indian IT industry is mainly focused on two sectors: IT services and Business Process Outsourcing (BPO). India's IT industries are mainly concentrated in the cities of Bengaluru, Chennai, Hyderabad, Thiruvananthapuram, Delhi, Mumbai and Kolkata. Most of India's IT exports originate from Bengaluru. It is known as the 'Silicon Valley of India'.
SOFTWARE INDUSTRY
A software company is an organisation owned by public or private establishment for making the profit from various forms of software, software technology, distribution, and software product development. They are one of the component of IT industry. Major centres of Software Industry in India are Bangalore, Hyderabad, Kolkata, Chennai, Trivandrum, Noida, Mumbai and Pune. Bangalore is known as the Silicon Valley of India, because it is the leading IT exporter. India's second and third largest software companies are headquartered in Bangalore.
Here are a list of services offered by software companies in India
1. Application Development
2. Collaborative Commerce
3. Collaborative Content Management
4. Consulting
5. Custom Business solutions
6. Customization Services
7. Database Migration services
8. Digital Marketing/Search Engine Optimization
9. ERP solutions
10. iphone Apps development
11. Multimedia offering
12. Outsourcing
13. Programming Services
14. Quality assurance and testing services
15. Web Branding Services
BUSINESS PROCESS OUTSOURCING (BPO) INDUSTRY
Business process outsourcing (BPO) is a method of subcontracting different business-related operations to third-party vendors. It involves contracting with an outside service provider to handle a number of tasks, including data entry, accounting, customer support, customer satisfaction, and human resources. BPO has played a huge role in India's economic growth, particularly in recent years. BPOs' contribution to India's economic growth demonstrates how the IT and ITeS industries have been a major factor in the country's economic expansion. IT Services and BPO together contributes 7.5% of India GDP. The growth in the contribution of BPOs to India's GDP has shown a steady rise from 1.2% to 5.4%. Currently, Business process outsourcing in the country are focused on the domestic segments and offshoring. India is the largest country in the world for outsourcing. Clients worldwide hire Indian Business process outsourcing and IT companies for a number of different demands.
Here are a list of most outsourcing BPO services in India
1. Back-office Support
2. Call Center Services
3. IT Outsourcing
4. Knowledge Process Outsourcing (KPO)
5. Software and App Development
8. Paper Industry in India
Paper is a widely used commodity with a consistent demand among various sectors like packaging, printing, stationery, publishing etc. It is a very large industry in India. The First mechanised paper mill in India was established in Serampore of West Bengal in 1812. Also the first modern paper mill in India was established in Serampore (West Bengal, 1832). However, the first successful paper mill is Royal Bengal Paper Mills at Ballyganj near Kolkata. It was set up in 1870. Today, paper is made by scientifically processing plant fibers containing cellulose. Artificial fibers such as poly-propylene and polyethylene are also added to it. The tree called 'pulp wood' is mainly used to make paper. Paper Products are made from sustainable and recyclable materials. India is ranked among the 15 top global paper industries. Maharashtra, Andhra Pradesh, Gujarat, Uttar Pradesh and West Bengal are the leading states in the paper industry in India. The important centers for paper products are Lucknow, Titagarh, Raniganj, Pune and Naihati. Uttar Pradesh has the largest number of paper mills and West Bengal is the leading state in Paper Manufacturing. The first newsprint industry in India is National News Print & Paper Mills Limited of Nepa Nagar, Madhya Pradesh.
9. Petrochemical Industry in India
Petrochemicals are chemicals made from petroleum products. As the chemistry of petroleum was understood, the petrochemical industry flourished. About half a million chemicals are made from petroleum products. These include plastics, medicines, dyes, various polymers, detergents, synthetic fibers, and chemicals used to make fertilizers.
The petrochemical segment that mainly contains polymers, artificial fibres, fibre intermediates and plastic treating is rising at a yearly proportion of 14%. India is estimated to be the 3rd leading consumer of polymers after China and US. Petrochemicals are chemical products resulting from petroleum. The two most common petrochemical modules are olefins (containing ethylene and propylene) and aromatics (containing benzene, toluene and xylene isomers). In the petrochemicals, polymers comprises 70% of end crops of petrochemical market in India. Indian petrochemical manufacturing companies is oligopolistic in nature.
10. Pharmaceutical Industry in India
Pharmaceutical industry is the leading and highly formulated sector in India. It is one of the fastest growing sector in indian economy. The Indian Government has started to encourage the growth of drug manufacturing by Indian companies in the early 1960s and with the Patents Act in 1970. This industry practices in terms of technology, quality and series of medicines fabricated. India has achieved enormous attention and sculpted a slot for itself in the pharmaceutical realm and the product includes simple headache pills to refined antibiotics and also complicated cardiac compounds. Pharma industry encourages the possible improvement in the crucial field of medicines by endorsing the quality producers and many units allowed by administrative authorities in USA and UK. Pharmaceutical market was established in 1970’s but it was tenous. Indian companies are domineering in the market place which was consistently guarded by MNC’s. As of 2023, the Indian pharmaceutical industry is the world's 13th largest by value and third largest in the world by volume.
11. Synthetic Fiber Industry in India
The synthetic fiber industry is an industry that has emerged by breaking the dominance of natural fibers in the textile industry in India. This is an industry that has grown rapidly in India in the last three decades. The change in India has also been in step with the changes that have taken place globally. The inability of cotton clothes to meet the increasing demand of the people paved the way for the growth of synthetic fibers. Their ease of use and durability have increased their influence. However, synthetic fibers have not experienced the growth that they have experienced in other parts of the world. Their growth has been controlled to some extent by imposing strict restrictions on imports and levying excise duty on domestic producers. The government took this step to protect our traditional cotton farmers. Polyester, rayon, nylon, and acrylic fibers are examples of synthetic fibers.
12. Telecom Industry in India
India's first telegraph line connecting Kolkata and Diamond Harbour was commissioned in 1851. Telephone service was also first started in India in Kolkata (1881–82). The first telephone exchange in India was set up in Mumbai. The country's first automatic exchange was commissioned in Shimla in 1913–14. It had a capacity of 700 lines. The postal and telecommunications sectors in India were under the same department. In 1985, telecommunications came under the Department of Telecom. In 2000, the functions of the Department of Telecom came under the control of a public sector undertaking, Bharat Sanchar Nigam Limited. India is the world's second largest telecommunications market based on the total number of telephone users (both fixed and mobile phone) with 1,190.66 million as of September 2024. India has the world's third largest internet user-base. The wireless technologies currently in use in Indian Telecom Industry are Global System for Mobile Communications (GSM) and Code Multiple Access (CDMA). The Indian Telecom Industry services is not confined to basis telephone but it also extends to internet broadband, cable TV, SMS, IP TV, soft switches etc. VSNL (Videsh Sanchaar Nigam Limited) established in 1986 is the first company that provided internet service in India. VSNL provided Internet Service in the year, 1995.
Telecom Regulatory Authority of India(TRAI)
Telecom Industry in India is regulated by the Telecom Regulatory Authority of India(TRAI). It is the independent regulator of the telecomunication business in India. The Telecom Regulatory Authority of India (TRAI) is a regulatory body established in 1997 by the Indian Government under section 3 of the Telecom Regulatory Authority of India Act, 1997. New Delhi is its headquarters. On January 9, 2004, a notification issued by the central government brought broadcasting and cable services under the control of TRAI. The following are the telecom services providing companies regulated by the Department of Telecommunications and TRAI under Ministry of Communications, Government of India.
Direct-to-home (DTH) operators
Direct-to-home service or DTH is a satellite television service that can be received directly in homes. 'DD Direct Plus' is the world's first free DTH service. DD Direct Plus was launched on 16 December 2004. DD Direct Plus is now called DD Free Dish. As of 2017, 210 channels are available through this service, including 22 channels of Doordarshan, two channels of Lok Sabha and Rajya Sabha, and private channels. ASC Enterprises is the first DTH service provider in India. INSAT 4A is a satellite launched by India on 22 December 2005 to improve DTH broadcasting. There are four pay-for-use Direct-to-home (DTH) operators and one free-to-air operator (DD Free Dish) in India.
Multiple-System operators (MSOs)
An MSO is an operator of multiple cable television systems. The Cable Television Network Rules, 1994, permits Multi-System Operators (MSOs) to transmit their own programmes either directly to their own subscribers or through one or more local cable operators. As of 2024 September 30, there are 845 Multiple-System operators in India, where some of them have ISP license.
WIRELESS OPERATORS IN INDIA
The first mobile phone service in India was launched in Delhi in 1995. Airtel was the service provider. According to the TRAI report, 89.21 percent of the country's wireless subscribers rely on private companies. Public sector companies like BSNL and MTNL together have only 10.79 percent of wireless subscribers. Airtel, BSNL Mobile, MTNL, Jio and Vodafone Idea (Vi) are the leading mobile companies. As of January 2025, 16 mobile operators have stopped its services in India. The longest operating ceased operator is Aircel and the oldest operater is Modi Telestra's Mobilenet, which is the first mobile operator in the country. Most recently, Reliance Communications stopped its services citing bankruptcy. As of 30th November 2024 there are around 1148.65 million wireless subscribers in the country as per the report by the Telecom Regulatory Authority of India (TRAI).
WIRELINE OPERATORS IN INDIA
Seven operators run significant retail fixed-line networks in India. JioFiber, Airtel, BSNL, Tata Teleservices, Vi, Quadrant and Reliance Communications are the fixed-line operators in India. Fixed-line coverage is largely provided by state-owned operators - Bharat Sanchar Nigam Ltd. (BSNL) and Mahanagar Telephone Nigam Ltd. (MTNL). As of 30 November 2024, there are 38.50 million wireline subscribers in India according to Telecom Regulatory Authority of India (TRAI).
INTERNET SERVICE PROVIDERS (ISPs)
An Internet service provider (ISP) is an organization that provides broadband (wired + wireless) services. Internet services offered by Internet Service Provider can include internet access and transit, domain name registration, web hosting, and colocation. The total number of broadband subscribers in india is 941.47 million as of 2024 November 30. Total wireless broadband subscribers is 903.79 million and the wireline broadband subscribers is 40.97 million. As of 2024 November 30, top five Wireless Broadband Service providers in India are JioFiber, Airtel, Vi, BSNL and Intech Online. And as of 2024 November 30, top five Wired Broadband Service providers in India are JioFiber, Airtel, BSNL, ACT and KVBL. Other notable Internet Service Providers are APSFL, Asianet Broadband, DEN Networks, Hathway, RailTel, Sify, Tata Play, Excitel etc. Some of the Internet Service Providers in india for enterprise/wholesale only are ERNET, GAILTEL, National Knowledge Network (for educational institutions only), PowerTel and Tulip Telecom.
13. Iron and Steel Industry in India
14. Cotton Textile Industry in India
15. Jute Industry in India
16. Silk Industry in India
17. Fibre Industry in India
18. Aluminium Industry in India
19. Zinc Industry in India
20. Heavy and Light Engineering Goods Industry in India
21. Locomotives Industry in India
22. Ship Building Industry in India
23. Aircraft Industry in India
24. Bicycle Industry in India
25. Petroleum and Natural Gas Industry in India
26. Cement Industry in India
27. Leather Industry in India
28. Glass Industry in India
29. Rubber Industry in India
30. Lac Industry in India
31. Sugar Industry in India
32. Retail Market in India
33. Online Retail in India
To be Continued.
