ANALYSIS OF SECTORS

Presented By,

Abhirama.A

S1 MBA

The sectoral analysis of Indian

economy is a summary of the factors and

industry sectors that were reformed or

added in the economic growth report of

India covering different Indian industries.

DIFFERENT SECTORS…

External Sector

Industrial Sector

Agricultural Sector

Infrastructural Sector

Social Sector

Service Sector

Portion of country’s economy that

interacts with economies of other

countries

Goods market – Exports & Imports

Financial market – Capital Flow

Image of India from the land of farmer has

changed to technology hub

Contributes only 27% of country’s GDP

2003-04 & 2004-05, IIP grew by 6.9 & 8.4%

- manufacturing sector with a contribution

of 80%

Highest growth of IIP in 1995-96 with 13%

& lowest being 2.7% in 2001-02

Different industries which come under

this sector:

In 2003-08, growth rate of 15 to 20%

Improved quality & performance driven

the export & acceptance in global market

Reasons :*Foreign collaboration & tie ups

*Excise duties reduced

*Improvement in retail credits

*Reduction of tariff

India, largest consumer of gold in the

world

Imports raw material, add value & export

them

India’s Gems & Jewellery Promotion

Council aims at transforming India into a

global diamond trading center

Before liberalisation smuggling of gold in

large quantities

Main export destination : UK &

Switzerland

Major source of foreign exchange

earnings

Major producer of fabrics in the world

Low cost skilled labour, growing domestic

market.

Drawbacks are historical government

regulation, lack of adequate economy, low

productivity of workers

Good opportunity due to WTO agreement

Fundamental industry in India

Steel industry has been strong due to

strong growth of demand for China &

domestic market

Improved technology & thrust given for

exporting

More than 65% of population depends on this sector

45% of total land is cultivated

India’s total milk production is highest in world

Largest producer of many fresh fruits, vegetables, milk, spices, jute etc

India tops the list of total irrigated land in the world

Dairy farming, fishing & forestry are important part of this sector

Infrastructure comprising transportation, communication, water supply & sanitation

Important factor for high & sustained growth

Engaged in promoting private sector to invest

Several fiscal incentives were announced

Ten year tax holidays offered in core sectors in initial 20 years

Projects in airports, ports, industrial parks, generation & distribution of power can avail tax holidays in initial 15 years

Country’s power generation has increased

Today, power generation is 583.8 billion

kilowatt hour, i.e; increase of 7-8% each year

Projects executed based on public-private

partnership agreement

One of the world’s largest railway network

Total route length 65,436 km, about 7,172 stations, fleet of more than 7,000 passengers & more than 4,000 goods train

Carriers more than 8,425 million passengers & transport over 1050.18 million tons of freight per year

In 2013-14 had revenues of 1441.67 billion

Started scheme to privatise several services

Second largest road network in world

spanning a total of 4.7 million kms

Carry 85% of passengers & 70% of all

goods

Private sector emerging as a key player in

development of road infrastructure

Manufactures most of its motorized

vehicles- cars, jeeps, trucks, buses & two

wheelers of various capacities

Hindustan Aeronautics Limited(HAL)- India’s gigantic aeronautical organisation & major aerospace complexes in the world

Public airlines: Air India, Indian Airlines, Alliance Air

Private airlines: Jet Airways, Air Sahara, Spice Jet, Kingfisher etc

24 International airports & more than 88 other airports

India’s Telecommunication network- Second largest in the world

Uses digital technology

Focus of present strategy- balanced growth of network, rapid modernisation, increased productivity etc

Besides R&D in digital technology, India established manufacturing capabilities

Backbone of industrial & economic development

Concerns about the development of

society which includes healthcare,

elementary education etc

Ongoing economic reforms & the National

Common Minimal Program attach high

priority to the development of this sector.

Social sector programs & their

implementation come under the state

govt.

Definite growth in the overall healthcare

resources & health related manpower in last

decade

India has morethan 1.25 million doctors &

morethan o.8 million nurses

Increasing demand for high level medical

services, increased awareness, growth in

infrastructure, income, insurance & polices

are leading to growth of this sector

Moreover shift from infectious to lifestyle

diseases

Accounts more than half of GDP

Employment rate is high

Rise in service sector’s share in GDP-

structural shift of Indian economy

It’s share has grown from 43.69% in 1990-

1991 to 55 % by 2009-2010

If the service sector bypasses the

industrial sector, economic growth can be

distorted