business srctor in india

7/29/2019 Business Srctor in India

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CONTENTS

1. Industry Sectors of India

Major manufacturing companies of India

2. Export Sector

Major export products of India

Export Tarrifs in India

3. Financial Sector Of India

Analysis of Indian Financial Sector

Bond Market in India

Centrum Finance Limited

CIL Securities Limited

Growth of Financial Sector in India

Karvy Group

L& T Finance Limited

Major Financial Companies in India

PNB Gilts Limited

Stock Market in India

4. Private Sector of Indian Economy

Growth of Private Sector

Importance of Private Sector in Indian Economy

Major Private Companies of India

5. Public Sector

6. Agriculture Sector of Indian Economy

7. Sectorial Analysis of Indian Economy

8. Export Sector in India Economy

9. Import Sector in India Economy

10. Retail sector Of Indian Economy
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11. Service Sector Of Indian Economy

12. Tourism sector of Indian Economy

13. Sectoral Trends in Indian Economy

14. Globalization

Impact of Globalization

15. Indian Market

Industry Sectors of India

The different industry sectors of India witnessed astronomical growth over the last 15 years.

This growth of the different industry sectors of India is attributed to the Government ofIndian liberal economic policy.

Previously, the Indian economy was of closed type and the government enterprises controlledall Indian market. The post 1990 Government of India economic policy endorsed a completedifferent economic policy and opened its market for foreign investments. This saw a horde ofFII making inroads to Indian markets. As a result of which different industry sectors of Indiamade huge progress, both technologically and economically.

The main features of the important sectors of Indian economy, 2007-2008 are as follows

-

Indian industry -

162 production sharing contracts awarded in Petroleum and Natural Gas SMEs has witnessed increase in outstanding credit from ` 135,200 crore to ` 173,460

crore

Indian service sector -


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Foreign Trade and Merchandise exports expected to cross US$125 billion by the endof the current fiscal

Provision for tourist infrastructure to increase from ` 423 crore to ` 520 crore General Review of Financial sector development - Bank's differential rate of interest scheme providing finance at the rate of 4% to

weaker sections Regional Rural Banks to open at least one branch in 80 uncovered districts in 2007-08 Housing loans are extended to the weaker sections Exclusive health insurance scheme for senior citizens PAN to be made sole identification number for all participants of capital market

Indian agriculture sector -

Farm credit target of ` 225,000 crore for 2007-08 has been set with an addition of 50lakh new farmers to the banking system

35 projects have been completed in 2006-07 and additional irrigation potential of900,000 hectares to be created

Training of Farmers arranged Based on study to be conducted, a pilot programme to be implemented for delivering

subsidy directly to farmer. Loan facilitation through Agricultural Insurance, National Bank for Agriculture and

Rural Development Corpus of Rural Infrastructure Development Fund to be raised

Investments -

Gross domestic capital formation in 2005-06 grew by 23.7%; in April- January, 2006-07, foreign direct investment amounted to US$12.5 billion and outpaced portfolioinvestment of US$6.8 billion

Central Public Sector Enterprises to invest ` 165,053 crore through internal and extrabudgetary resources in 2007-08

Indian infrastructure sector -

Seven more Ultra Mega Power Projects under process Provision for National Highway Development Programme to increase from ` 9,945

crore to ` 10,667 crore

Major Manufacturing Companies of India

Major Manufacturing Companies of India

Ashok Leyland


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Bajaj Auto TVS Motors Hero Honda Motors Ltd. Apollo Tyres Asian Paints

BPL Group Videocon Group Larsen & Toubro Jindal Steel

Hindusthan Unilever Limited Moser Baer Godrej Group Bombay Dyeing Raymond Group Amul Dabur India Limited Cadila Healthcare Cipla Ranbaxy

Export Sector

EXPORT SECTOR

Export Sector of Indian Economy has improved immensely over the years and has earnedUS $ 125 billion in the current fiscal year. The goods exported from India mainly includewide variety of agricultural products, chemicals, jewelery, garments, leather goods and so on.

India has developed business relations with a number of foreign countries like the membercountries of SAARC, some Eastern European countries as well as African countries,Members of EU. The impressive list of countries includes:

Russia UAE USA Hong Kong UK Japan Germany Singapore Belgium Malaysia Netherlands Bangladesh
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Italy Thailand France Australia Belgium

The export sector of Indian economy has always delineated impressive growth in all the areasof export, like the chemical industry in the financial year 2005-06 recorded US $12677.21million from expots, whereas the export earning from gems and jewelery was US $13705.44million in the same fiscal. The engineering industry has been performingconsistently over the years in the arena of exports as it secured the second position in terms ofthe earnings from exports in 2004-05, amounting to US $ 10516.45million, which increasedto US $ 14587.37million in the next fiscal. The performance of textile industry has fluctuateda little as the earning of the textile industry from exports in the financial year 2004-05 wasUS $ 12204.71million which came down to US $ 12017.46million in 2005-06.

USA has turned out to be the most significant export partner of India and the export sector ofIndian economy earned approximately US $ 13265.60 million in 2006-07. UAE has stoodsecond only to USA as UAE contributed 9.7 out of the total Indian earnings from exports in2006-07. UK and China has exchanged their positions in the current year as China's shareamong the exports figure in India in 2006-07 has improved by 6.3 % in comparison to 2005-06. In 2004-05 Belgium and Italy contributed substantially to the earnings from exports, witha contribution of US $ 2442.09 million and US $ 2160.83 million respectively.

The major export products of India hail from the following divisions within the export

sector of Indian economy like:

Engineering Goods Agricultural Products Chemicals Marine Products Petroleum products Leather Goods Textiles Plantations

Among the agricultural exports of India include Indian rice, raw cotton, cashew, sugar,

tobacco, spices, coffee, wheat and tea have become very popular in the international marketon account of their variety and excellent quality. The engineering industry serves to exportelectronic goods , transport equipments, iron and steel, and various machineries and thetextile industry is engaged in the export of ready made garments, jute, cotton yarn, carpets,woolen yarn, coir, artificial fabrics and so on. Other significant export products include

paints, rubber, iron ore, plastic, pharmaceuticals etc.

The export barriers in India have been hampering Indian exports to a great extent and most ofsuch barriers have been announced by the European Union regarding certificationrequirements, application of pesticides, dumping of waste products. But the most significantexport barrier faced by the Indian exporters is red tapism which is mostly accompanied by

corruption. However, the government of India has considered plans to liberate the Indianexporters from the cumbersome paper works and simplify the required procedures.


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Export Tariffs in India follows the regulations of the Customs Tariff Act and a substantialnumber of export goods are subjected to tariffs presently, such as:

Manganese Ore

Chromium Ores Black Pepper Sillimanite Raw Wool Groundnut Tea and so on.

Major Export Products of India, Export from India

Exports have boosted the growth of Indian economy substantially and Indian exports in thecurrent year has earned nearly US $ 125 billion and is expected to earn US $ 160 billion forthe next fiscal year. The major export products of India include leather, medicalappliances, equipments, textiles and so on.

Leather Goods among Major Export Products of India:

India has developed over the years to become a key player in the export of leather goods andaccessories among the major export products of India.

India exports numerous leather products for daily use like leather wallets, belts, key holders,folders, pouches, leather toys, handbags etc. Gift items made of leather such as Leathernotebooks, decorated leather journals, key rings, rugs are quite popular in foreign countries.

A large number of small scale, medium scale as well as large scale companies in India areengaged in the export of leather goods, the list of such companies include:

Sharie International Islam International

Indobest Falcon International Z.N.T International Balaji Impex Private Limited Paradise Noble Creations Asian adores The Lotus Handicrafts New Era Overseas


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Medical Appliances among Major Export Products of

India:

Indian medical appliances have made their mark in the foreign countries on account ofsuperior quality and variety. Common medical appliances exported from India includeabsorbent gauze, sterile gloves, crepe bandages, gauze sponge, surgical face masks, surgicalcaps, surgical disposables. Export of specialized medical appliances have also gainedimportance among major export products of India and appliances such as baby incubator,automatic vertical autoclave, air ionisers, nelaton catheter, digital video colposcopes, digitalimaging softwares.

A large number of small scale, medium scale as well as large scale companies in India areengaged in the export of medical appliances goods, the list of such companies include:

Nidhi Meditech Systems Coral Marketing Narang Scientific Works Private Limited Relique Technologies Surya Surgical Industries Chatterjee Surgical United Surgical Industries B. L. Lifesciences Private Limited Paramount Surgical Emporium, Delhi Magnum Medicare Pvt. Ltd.

Textile goods among Major Export Products of India:

Textile goods have gained prominence among the export products of India, designergarments for ladies as well as gents manufactured by the big houses in India have createdhuge demand in the International garment industry. The popular ladies garment include

knitted tops, embroidered salwar, sequin work blouses, sarongs, floral t-shirts, beadedgarments, poplin embroidered kurta, viscose crape printed skirt.

A large number of small scale, medium scale as well as large scale companies in India areengaged in the export of textile goods, the list of such companies include:

Kshethra Exports Mirza Fabric Private Limited Kanha Designs Pvt. Ltd. Knitco Fashionns Boom Buying Private Limited Revolution Exports Flying Fashions


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The positive effect of the latest export tariffs in India can be witnessed from the

following developments -

Indian exports have an ambitious target of US 160 billion in 2007-08 and in the first

two months it grew by 20.3%. This rise was effected on account of the non-oilimports. The Government of India latest export tariff for the exporters will help instabilizing the export growth levels attained in the 1st quarter of 2007-2008. Ores andminerals exports grew moderately to 12.9% against 37.4% in 2005-06. Similar trendwas also observed in the exports of manufacturing sector. The exports ofmanufactured goods grew moderately by 15% in the first quarter of 2007-2008 ascompared to 21.2% in the last fiscal year. High value commodities like engineeringgoods and rice registered very high growth rate in the 1st quarter of this fiscal againstthe same period last year. The overall exports suggests that the Indian exports grewconsiderably across all major exporting destinations.

This is the result of the government of India meticulously structured export tariffs inIndia. Further, the Indian export tariff saw a quantum increment of Indian exports toPakistan, UAE and Italy in the first quarter of the current fiscal year. Today, Indiaranks second in the manufacture of small passenger car segment. It is the worldslargest producer of generic pharmaceutical and its Information Technology sector isregistering three figure growth consistently. As a result of which India has become theglobal export hub for goods and services.

Financial Sector of India

Financial Sector of India is intrinsically strong, operationally sundry and exhibits competenceand flexibility besides being sensitive to Indias economic aims of developing a marketoriented, industrious and viable economy.

An established financial sector assists greater standards of endowments and endorsesexpansion in the economy with its intensity and exposure. The fiscal sector in India entails

banks, financial organization, markets and services. The sector is classified as organized andconventional sector that is also recognized as unofficial finance market.

Fiscal transactions in an organized industry are executed by a number of financialorganizations which are commercial in nature and offer monetary services to the society.Further classification includes banking and non-banking enterprises, often recognized asactivities that are client specific.

The chief controller of the finance in India is the Reserve Bank of India (RBI) and is regardedas the supreme organization in the fiscal structure. Other significant fiscal organizations are

business banks, domestic rural banks, cooperative banks and development banks. Non-banking fiscal organizations entail credit and charter firms and other organizations like UnitTrust of India, Provident Funds, Life Insurance Corporation, Mutual funds, GIC, etc.

Financial Sector of India Eligibility for government autonomy


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Mentioned below are certain criterions that are required to be fulfilled for acquiringgovernment autonomy in India:

Availability of sufficient fund of up to 8%

Accessibility of total non-performing wealth of below 9% Minimum net possessed funds of more than USD 2.5 million and net revenues of

minimum past three years. Financial institutions that satisfy the abovementioned requirements will be authorized

functional independence in almost all managerial areas.

Financial Sector of India RBI guidelines for NBFC's

The Reserve Bank of India has relaxed its guidelines for the operation of non-bank finance

companies (NBFCs) in India considering the various investments from the investors. It hasalso permitted leasing of machinery and rent-buying credit firms with endowment levelrankings to avail public savings increase the maximum limit on the amount of publicinvestments on these NBFCs that may allow and expand the closing date for observance onits norms by two years.

The fiscal competitiveness of several NBFCs persists to be of importance to theadministration and reserve bank of India controllers. There is a significant merging activity inthis industry as NBFCs are regulated by stringent yardsticks that are obligatory to fulfill.

In addition, India has entered into new agreements with WTO in the area of fiscal services inGeneva on December 1997.

Financial Sector of India Chief Characteristics

Some of the major characteristics of Financial Sector of India are:

The financial sector of India allows Most Favored Nation (MFN) reputation to allinternational banks and firms offering financial facilities.

The sector has relaxed previous MFN tax exemption on banking activities. Allows 12 new financial bank division authorizations every year to international

banks, that is higher as compared to the existing 8 every year. Raises the 10% limit of reinsurance by insurance firms in India. Permits 51% foreign endowment in fiscal advisory, issuing, hiring, business

enterprise capital, business banking and non-banking credit firms.

Analysis of Indian Financial Sector


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Analysis of Indian Financial Sector reveals that it is at present going through a phase ofstable growth rate which is experiencing a upward swing. The rise can be maintained over along period by keeping the inflation down.

The financial sector in India has experienced a growth rate of 8.5% per annum. The rise in

the growth rate suggests the growth of the economy. The financial policies and the monetarypolicies are able to sustain a stable growth rate. The reforms pertaining to the monetarypolicies and the macro economic policies over the last few years has influenced the Indianeconomy to the core.

The major step towards opening up of the financial market further was the nullification of theregulations restricting the growth in the financial sector. To maintain such a growth for a longterm the inflation has to come down further. The analysis of Indian financial sector shows thegrowth of the sector was the result of the individual development of the divisions under thesector.

Analysis of the Indian Capital market

The ratio of the transaction was increased with the share ratio and deposit system The removal of the pliable but ill-used forward trading mechanism The introduction of infotech systems in the National Stock Exchange (NSE) in order

to cater to the various investors in different locations Privatization of stock exchanges

Analysis of the Indian Venture Capital market

The venture capital sector in India is one of the most active in the financial sectorinspite of the hindrances by the external set up.

Presently in India there are around 34 national and 2 international SEBI registeredventure capital funds.

Analysis of the Indian Banking sector

The banking system in India is the most extensive. The total asset value of the entirebanking sector in India is nearly US$ 270 billion. The total deposits is nearly US$ 220billion. Banking sector in India has been transformed completely. Presently the latestinclusions such as Internet banking and Core banking have made banking operationsmore user friendly and easy.

Analysis of the Indian Insurance sector


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With the opening of the market, foreign and private Indian players are keen to convertuntapped market potential into opportunities by providing tailor-made products.

The insurance market is filled up with new players which has led to the introductionof several innovative insurance based products, value add-ons, and services. Manyforeign companies have also entered the arena such as Tokio Marine, Aviva, Allianz,Lombard General, AMP, New York Life, Standard Life, AIG, and Sun Life.

The competition among the companies has led to aggressive marketing, anddistribution techniques.

The active part of the Insurance Regulatory and Development Authority (IRDA) as aregulatory body has provided to the development of the sector.

Opportunities for the financial sector of India

The distributed financial gain of the venture capital funds is not taxed. The financialgains are taxed after the investors receive as income.

The have more insurance and banking products introduced into the market to broadenthe spectrum which in turn would boost the growth of the sector.

Further nullification of the regulations have to take place in order to increase the

competition and boost the growth of the financial sector to reach the US$ 51 billionmark

Bond Market in India

The Bond Market in India with the liberalization has been transformed completely. Theopening up of the financial market at present has influenced several foreign investors holding

upto 30% of the financial in form of fixed income to invest in the bond market in India.

The bond market in India has diversified to a large extent and that is a huge contributor to thestable growth of the economy. The bond market has immense potential in raising funds tosupport the infrastructural development undertaken by the government and expansion plansof the companies.

Sometimes the unavailability of funds become one of the major problems for the largeorganization. The bond market in India plays an important role in fund raising fordevelopmental ventures. Bonds are issued and sold to the public for funds.

Bonds are interest bearing debt certificates. Bonds under the bond market in India may beissued by the large private organizations and government company. The bond market in India


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has huge opportunities for the market is still quite shallow. The equity market is more popularthan the bond market in India. At present the bond market has emerged into an importantfinancial sector.

The different types of bond market in India

Corporate Bond Market Municipal Bond Market Government and Agency Bond Market Funding Bond Market Mortgage Backed and Collateral Debt Obligation Bond Market

The major reforms in the bond market in India

The system of auction introduced to sell the government securities.

The introduction of delivery versus payment (DvP) system by the Reserve Bank ofIndia to nullify the risk of settlement in securities and assure the smooth functioningof the securities delivery and payment.

The computerization of the SGL.

The launch of innovative products such as capital indexed bonds and zero couponbonds to attract more and more investors from the wider spectrum of the populace.

Sophistication of the markets for bonds such as inflation indexed bonds.

The development of the more and more primary dealers as creators of theGovernment of India bonds market.

The establishment of the a powerful regulatory system called the trade for tradesystem by the Reserve Bank of India which stated that all deals are to be settled with

bonds and funds.

A new segment called the Wholesale Debt Market (WDM) was established at theNSE to report the trading volume of the Government of India bonds market.

Issue of ad hoc treasury bills by the Government of India as a funding instrument wasabolished with the introduction of the Ways And Means agreement.

Centrum Finance Limited

Centrum Finance Limited is registered with Bombay Stock Exchange and the ticker symbolof the the company is 501150. The registered office of Centrum Finance Limited is located inthe capital of Maharashtra.


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Management of Centrum Finance Limited:

Centrum Finance Limited is managed by an efficient board of directors, headed by Mr. BerjisM Desai, who holds the position of the Chairman. The board consists of a total of 11members who are involved in taking important decisions for the benefit of the company. Mr.Berjis M Desai is assisted by Mr. Chandir G. Gidwani, being the Vice Chairman of CentrumFinance Limited. Mr. T.R. Madhavan serves as the managing Director of the company. Theother directors include:

Ibrahim S Belselah Manmohan Shetty T R Madhavan Sonia G Gidwani

Mahakhurshid K Byramjee T R Madhavan P G Kakodkar Rishad K Byramjee Rajesh V Nanavaty K V Krishnamurthy

Facts about Centrum Finance Limited:

Centrum Finance Limited serves to fulfill it capital requirement through the issue of equityshares at the rate of ` 10 per share presently. The company has kept the amount of itsauthorized capital as ` 10crores, since the year 2000-01 together with the amount of issuedcapital as ` 4.88crore. The authorized capital in the financial year 1998-99, was ` 2crore andthe issued capital was ` 1.63crore.

Performance of Centrum Finance Limited:

the total income of Centrum Finance Limited has jumped from ` 2.42crores in the month ofSeptember 2006 to ` 14.74crores in the month of September in 2007, whereas the totalexpenses in September 2006 rose from ` 1.86crore to ` 3.61crores in September 2007,delineating an increase of 99 % in total expenses compared to 83.58 % increase in totalincome. The net profit has grown in leaps and bounds from ` 0.20crores in September 2006 to` 7.42crores in September 2007.

Offices of Centrum Finance Limited:

Centrum Finance Limited has established approximately 13 offices throughout India, with itscorporate office situated at Mumbai. The people in Tamil Nadu can access the financial


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services of Centrum Finance Limited through its branch office at Chennai, whereas thepeople residing at Haryana are aided with the office of the company at Gurgaon. CentrumFinance Limited has located one of its branch in the capital of India and the branch office ofAndra Pradesh is situated at Hyderabad.

The state of Gujarat has its own branch office of Centrum Finance Limited at Surat and thelocal people of West Bengal will find the branch office of the company at kolkata. The other

branch offices of the comapny are located at the following locations:

Nagpur Baroda Kolhapur Ahmedabad Pune

CIL Securities Limited

CIL Securities Limited is enlisted with Bombay Stock Exchange Ltd. as well as NationalStock Exchange and was established in the year 1989.CIL Securities Limited started off withstock broking and has been successful in extending its scope to include merchant banking,share transfer etc.

Management of CIL Securities Limited:

The popularity of CIL Securities Limited rests on its efficient management team who possessexperience as well as expertise to carry on the administration of the company.

The management team is headed by Mr. Sri Krishna Kumar Maheshwari, who has beenoffered the position of the chairman and serves as the Managing Director, too. Mr. PiyushModi has been appointed as the executive director of CIL Securities Limited. Other

prominent members of the company include:

Sri Satyanarian Kanchal

Sri Ramnivas Joshi Smt.Pramila Maheshwari Sri V.B. Purnaiah Sri M.P. Murthy

Facilities of CIL Securities Limited:

CIL Securities Limited assists its clients in each and every step needed to participating in the

capital market like aiding in the establishment of the new company and then designing of thepublic issues. CIL Securities Limited advises on the issue of financing of the different


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projects of its clients and has developed an equity investigation segment to discover newcompanies, who possess the capacity to improve immensely in terms of their scope andactivities, in the near future. CIL Securities Limited is engaged in the negotiation of sharetransfer for discarded shares as well as for physical shares and has developed businessrelations with NSDL to learn the procedure of proper management of dematerialized scripts.

The function of working as the registrar for its clients, ranks high among its financialoperations.

Merchant Banking Operation of CIL Securities Limited:

CIL Securities Limited has facilitated several Indian companies with the aid of its merchantbanking operations in dealing with the issue of their take overs, the list of such companiesinclude:

Valueline Securities (India) Limited Sigma Compsoft Technlogies Limited Silicon Leasing and Investments Limited Innova Health System Limited Lotus Chocolate Co. Limited Chitalia Infotech (India) Limited Vasundhara Rasayans Limited

CIL Securities Limited's Function as Registrar:

CIL Securities Limited functions as electronic registrar, depository registrar, physicalregistrar and so on. CIL Securities Limited has functioned as the electronic registrar forcompanies like:

Ashok Polymers Ltd Intensive Air Systems Ltd Karan Woosin Limited Srinivasa Hatcheries Ltd Vasundhara Rasayans Limited

Yenkey Drugs & Pharma Limited Jeevan Softech Ltd Northgate Technologies Ltd Shree Vani Sugars & Ind Ltd Granules India Ltd Bakelite Hylam Limited

CIL Securities Limited has functioned as the physical registrar for a number

of companies such as:


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MP Oil & Fats Limited Gradiente Infotainment Ltd.

CIL Securities Limited has functioned as the depository registrar for a

number of companies such as:

tej infoways limited integrated data systems ltd sanghi industries ltd allsoft corporation ltd exensys soft ware ltd. nagarjuna inst of software ltd

Growth of Financial Sector in India

The growth of financial sector in India at present is nearly 8.5% per year. The rise in thegrowth rate suggests the growth of the economy. The financial policies and the monetary

policies are able to sustain a stable growth rate.

The reforms pertaining to the monetary policies and the macro economic policies over thelast few years has influenced the Indian economy to the core. The major step towards openingup of the financial market further was the nullification of the regulations restricting thegrowth of the financial sector in India. To maintain such a growth for a long term the

inflation has to come down further.

The financial sector in India had an overall growth of 15%, which has exhibited stability overthe last few years although several other markets across the Asian region were going througha turmoil. The development of the system pertaining to the financial sector was the key to thegrowth of the same. With the opening of the financial market variety of products and serviceswere introduced to suit the need of the customer. The Reserve Bank of India (RBI) played adynamic role in the growth of the financial sector of India.

The growth of financial sector in India was due to the

development in sectors

Growth of the banking sector in India

The banking system in India is the most extensive. The total asset value of the entire bankingsector in India is nearly US$ 270 billion. The total deposits is nearly US$ 220 billion.

Banking sector in India has been transformed completely. Presently the latest inclusions such


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as Internet banking and Core banking have made banking operations more user friendly andeasy.

Growth of the Capital Market in India

The ratio of the transaction was increased with the share ratio and deposit system The removal of the pliable but ill-used forward trading mechanism The introduction of infotech systems in the National Stock Exchange (NSE) in order

to cater to the various investors in different locations Privatization of stock exchanges

Growth in the Insurance sector in India

With the opening of the market, foreign and private Indian players are keen to convertuntapped market potential into opportunities by providing tailor-made products.

The insurance market is filled up with new players which has led to the introductionof several innovative insurance based products, value add-ons, and services. Manyforeign companies have also entered the arena such as Tokio Marine, Aviva, Allianz,Lombard General, AMP, New York Life, Standard Life, AIG, and Sun Life.

The competition among the companies has led to aggressive marketing, anddistribution techniques.

The active part of the Insurance Regulatory and Development Authority (IRDA) as aregulatory body has provided to the development of the sector.

Growth of the Venture Capital market in India

The venture capital sector in India is one of the most active in the financial sectorinspite of the hindrances by the external set up.

Presently in India there are around 34 national and 2 international SEBI registeredventure capital funds

Karvy Group


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Karvy Group comprises of an association of chartered accountants who formed the KarvyComputershare Private Ltd. in the year 1982. The company started off with the view to

provide taxation as well as auditing assistance to its clients.

Scope of Karvy Group:

Karvy Group extended its scope to include registration, followed with the work of transfer ofshare and it finally entered into the financial sector. The company is facilitated with the latesttechnologies that has helped to gain a prominent position in the Indian financial sector. KarvyGroup presently offers assistance related to the capital market in India and has beenrecognized with the ISO 9002 certification for its excellent performance.

Connections of Karvy Group:

Karvy Group has been successful in creating a wide client base and involves such key

players as :-

Deutsche Mutual Fund LIC Mutual Fund Tata Mutual Fund Morgan Stanley Mutual Fund Taurus Mutual Fund Benchmark Mutual Fund UTI Mutual Fund Quantum Mutual Fund GIC Mutual Fund JM Financial Mutual Fund Sundaram Mutual Fund

Accomplishments of Karvy Group:

Karvy Group has been accredited with the leading position as a merchant banker, and MARGhas stated it as The Most Admired Registrar. Karvy Group has entered into a venture withJardine Fleming India Securities Ltd. that will enhance the scope of the company's retailsegment and provide the investors with valuable data and suggestions regarding the financialsector in India as well as abroad. It has achieved prominence in the circulation of financesaccording to the PRIME DATABASE and served as the registrar for a number of companieslike:

IndusInd Bank Ltd Hindustan Petroleum Corporation Ltd. Madras Refineries Ltd Jindal Vijayanagar Steels Ltd.


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Bank of Punjab Ltd Tamil Nadu Newsprint & Paper Ltd Nagarjuna Fertilizers & Chemicals Ltd.

Subsidiaries of Karvy Group:

Karvy Group has developed separate companies to deal with specific issues of the financialindustry as, the issues related to investment banking as well as merchant banking is dealt within Karvy Investor Services Ltd. whereas marketing of equity shares accompanied withdebentures on a number of stock exchanges in the country like National Stock Exchange,Over-The-Counter Exchange of India etc.is dealt with at Karvy Stockbroking Limited andKarvy Computershare Private Limited offers assistance related to investment and registration.

L& T Finance Limited

L& T Finance Limited was established by the Larsen and Turbo group in the year 1994 andhas turned out be one of the prominent companies in the financial sector. L& T FinanceLimited was stated off as a finance company to cater to the financial needs of variousindustries and the agricultural sector.

Funds for Agricultural Instruments by L& T Finance

Limited:

L& T Finance Limited has formulated a unique scheme exclusively for its client John DeereEquipment Private Limited in the year 2002 and named it as Kishan Gaurav. Kishan Gauravnow extends its scope to provide financial assistance to the other clients of L& T FinanceLimited to buy tractors. Kishan Gaurav offers varied plans against land mortgage, and thetenure of such plans may vary from 1 year to 5 years and also offers certain plans in absenceof land mortgage whose tenure ranges from 1 year to 3 years.

Secured Loans of L& T Finance Limited:

L& T Finance Limited has also arranged for loans extended over a long period of time andsuch loans are alloted in exchange of the valuable belongings of the client. The companyoffers the advantage to riposte this loan in a number of ways including facility fordisbursement on a monthly basis, or breaks the loan in such a way that the client is able to

pay it off at quarters. Such loans require few significant documents as Promissory Note, proofof permission granted by the board of directors for the loan.

Funds for Automobiles by L& T Finance Limited:


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The segment of L& T Finance Limited dealing with the financing of automobiles, guaranteesloan on the automobiles purchased from the prominent vehicle producers such as AshokLeyland, Bajaj Tempo etc. The company has developed automobile financing schemes for

new automobiles as well as for second hand automobiles. Automobile loans provided by L&T Finance Limited may extend at the most to 4 years at a stretch and serves to contribute 85% of the value of the automobile, deducting any insurance amount and the prices of othersupplementary components attached to the vehicle.

Administrators of L& T Finance Limited:

L& T Finance Limited is controlled by an efficient management team, that is headed by Mr.A.N. Mani who holds the position of the Senior Vice-President. Other prominent headsinclude Mr. Anil Vaidya who is the head of the Support Services segment and Mrs. DiptiAdvani who manages the Credit and Research section. Mr. G.K. Shettigar is the incharge ofthe treasury and Mr. V. Rajagopalan has been appointed as the treasurer. The legal issues arelooked after by Ms. Raji Viswanathan and Mr. V. Ramesh, heads the ConstructionEquipment Financing division and so on

Major Financial Companies in India

The major financial companies in India are a contribution to the growth of the financial sector

in India. The Financial Sector of India is presently going through a fast phase of alteration.The reforms are a part of the structural reformation directed to improve the productivity ofthe economy. The main purpose of the development of the financial sector of India is for thesustenance of the economic growth.

Some of the major financial companies in India:

SBI Capital Markets Ltd (SBICAP) is one of oldest companies in the capital markets

of India. The bank has also attained the topmost market position in the capital marketin India. SBI Capital Markets Ltd was set up in the year 1986 as a fully ownedancillary of the State Bank of India, the biggest Indian commercial bank. The SBICapital Markets Ltd is the trailblazer in the concept of securitisation and privatization.It is ranked as the 2nd in Project Advisory services in the Asia Pacific region. Thecompany also received the Outlook Money's Best Merchant Banker Award in 2004.

Bajaj Capital Limited is among the premiere financial planning and investmentadvisory companies in India. The main activity of the Bajaj Capital Limited is to

provide the corporate houses, high networth clients, institutional investors, individualinvestors, non resident Indians (NRIs) with financial planning and investment

advisory services. The company is also the biggest provider of finance based productsoffered by several government, private and public organizations, investment products


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such as life insurance, general insurance, bonds, mutual funds, post office schemes,etc.

DSP Merrill Lynch Limited is among the leading brokers and underwriters in Indiapertaining to equity and debt securities. The company also provides several

institutions and corporations with financial advices. The DSP Merrill Lynch Limitedalso provides a wide range of investment and wealth management services and

products along with customized financial advices. The DSP Merrill Lynch Limited isthe first company to establish a research facility for the research on financial servicesand products, innovations, improvements, etc. The company also deals in Governmentsecurities and is presently one of the most important companies in the equity and debtmarket in India.

SBI Capital Markets Limited Bajaj Capital Limited

DSP Merrill Lynch Limited Birla Global Finance Limited

Housing Development Finance Corporation Karvy GroupCentrum Finance Limited L& T Finance Limited

PNB Gilts Limited CIL Securities Limited

PNB Gilts Limited

PNB Gilts Limited is a Primary Dealer which was started off with an investment of

Rs.50crores and was created as a part of the plan formulated by the Reserve Bank of India, tobring about significant development in the governmental securities sector infrastructure.

Facts about PNB Gilts Limited:

PNB Gilts Limited was originally developed by Punjab national Bank and permitted by theReserve Bank Of India to function as a Non-Banking Finance company.

The company now boasts of a total capital amount of ` 485.58crores,that was made possible

on account of the plan to raise ` 3.5crore through an IPO. PNB Gilts Limited initiated theprocess of acting as a mediator between the Indian citizens and the government, by availingthe governmental securities to the general public.

Facilities offered by PNB Gilts Limited:

PNB Gilts Limited has incorporated latest advancements in information technology like theutilization of lean software and is engaged in providing consultative services to its customers

to deal with government securities. PNB Gilts Limited has developed special securities likecentral government dated securities as well as state government securities. The company
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caters to the need of unsecured loans of its clients, for the fulfillment of temporary needs withthe introduction of inter corporate deposits, reverse repo, bills re discounting, notice money.The merchant banking segment of PNB Gilts Limited has been cross-filed with SEBI andserves to provide the following facilities:

Issue Management Project Appraisal Consultancy Services Underwriting Services

Accomplishments of PNB Gilts Limited:

PNB Gilts Limited has secured P1+ ranking on account of the formulation of its temporaryfinancial schemes, and the rank was announced after conduction its survey by CISIL. PNBGilts Limited has made its mark as a Primary Dealer in the governmental securities market by

being recognized with ISO 9002:2000 certificate.

Board of Directors of PNB Gilts Limited:

PNB Gilts Limited is managed by a group of efficient members like Mr. A.K. Gupta, who is

presently commissioned to act as the managing director of PNB Gilts Limited. He had beenpreviously functioning as the deputy general manager of Punjab National Bank. Otherprominent members of the management team include Sh. R.S. Lodha, Dr. O.P. Chawla, Sh.Devinder Kumar Singla, Dr. kamal Gupta, Sh. Anand Swarup Agarwal, Sh. Arun Kaul, Sh.S.K. Soni and so on

Stock Market in India

The Stock Market in India like other stock markets across the world provide for the trade of

equity shares, and commodities pertaining to public companies in India as well as of theworld. The shares actually provide information about the performance of the company.Higher the value of the share means that the company is making profit. The Stock Market inIndia is an important part of the Indian economy and the yardstick for the growth of theeconomy of the country.

The Mumbai (Bombay) Stock Exchange is the oldest stock exchange pertaining to the stockmarket in India. It was set up in the year 1875. There are around 6000 companies shareslisted under the Mumbai (Bombay) Stock Exchange.

Presently there are about 22 stock exchanges in the stock market in India. There are other

stock exchanges in the stock market in India such as Calcutta, Bangalore, Chennai,Ahmedabad, Delhi, etc. The stock market in India also has a National Stock Exchange (NSE)


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situated in Mumbai. The stock market in India comprises of an Over The Counter Exchangeof India (OTCEI) for the listing of the medium sized and small sized organizations. TheSecurities and Exchange Board of India (SEBI), which is a regulatory organizationoverseeing the working of the stock exchanges in India.

The National Stock Exchange can be contacted at:

National Stock ExchangeMahindra Towers "A" Wing, 1st Floor,Worli, Mumbai.Tel : 022-4960525, 4932555.Fax : 022-4935631

The Stock Market in India serves as a platform for infrastructural development and expansionplans of the new companies. The companies may raise funds through the distribution of theirequity shares to the public. Transparency is a very important factor for a company to trade inthe stock market. The major fundamentals of the company which influences the investors areincome, liabilities, revenues, assets, infrastructure, etc and the company has to be verytransparent about these facts.

Opportunities for foreign investors in Stock markets in

India

Direct Investment opportunities for foreign investors in Stock markets in India: Thestock market in India now allow the foreign companies to hold majority shares of theIndia companies apart from some restricted companies. Some companies the foreignstake may be 100%.

Investment through Stock Exchanges in Stock markets in India: The ForeignInstitutional Investors (FII) may operate in the Stock markets in India being registeredwith the Reserve Bank of India (RBI) and the Securities and Exchange Board of India(SEBI)

Private Sector of Indian

Economy

The private sector of Indian economy is the past few years have delineated significantdevelopment in terms of investment and in terms of its share in the gross domestic product.The key areas in private sector of Indian economy that have surpassed the public sector are

transport, financial services etc.


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Indian government has considered plans to take concrete steps to bring affect povertyalleviation through the creation of more job opportunities in the private sector of Indianeconomy, increase in the number of financial institutions in the private sector, to provideloans for purchase of houses, equipments, education, and for infrastructural developmentalso. The private sector of Indian economy is recently showing its inclination to serve the

society through women empowerment programs, aiding the people affected by naturalcalamities, extending help to the street children and so on. The government of India is beingassisted by a number of agencies to identify the areas that are blocking the entry of the

private sector of Indian economy in the arena of infrastructural development, like regulatorypolicies, legal procedures etc.

The most interesting fact about the private sector of India economy is that though the overallpace of its development is comparatively slower than the public sector, still the investment ofprivate sector in the recent past, i.e. in the first quarter of 1990 registered approximately 56 %which rose to nearly 71 % in the next quarter, accounting for an increase of 15 %. Certainsteps taken by the Indian government are acting as the stepping stone of the private sector

continued journey to success, include industrial delicensing, devaluation that wasimplemented previously.

The private sector of Indian economy is also adversely affected by the huge number ofpermits and enormous time required for the processing of documents to initiate a firm,however the central government has decided to abolish MRTP Act and incorporate aCompetition Commission of India to bring the public sector and the private sector at the same

platform.

The participation of the private sector of Indian economy is desired by the government ofIndia for infrastructural development including specific sectors like power, development ofhighways and so on. As the contribution of public sector in these sectors have been arresteddue to the shift of the attention of the Indian government to issues like population increase,industrial growth.

The main reasons behind the low contribution of the private sector in infrastructuraldevelopment activities are that:

The small and medium scale companies in the private sector of Indian economy sufferfrom lack of finances to welcome the idea of extending their business to other statesor diversify their product range.

The private sector of Indian economy also suffer from the absence of appropriateregulatory structure, to guide the private sector and this speaks for its unorganizedframework.

The unorganized framework of the private sector is interrupting the propermanagement of this sector resulting in the slowdown of its development.

Growth of Private Sector


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As of the figures of the last decade, India has had a remarkable growth in private sectorinvestment. The liberal trade and investment policies and the country's infrastructure have

provided the environment for higher investment and growth in private sector.

Recent Trends in Private Participation

Growth in Telecom Sector

As of the figures of 2001-06, there has been an incredible increase in the investment in thetelecommunication sector in India and as a result there has been immense growth in thetelecom industry. 64% of the investment in this sector in South Asia has been in this sector.Various private telecom companies as Airtel, Reliance Communications, Tata Indicom etchave been the major investors in this field. The subscriber base has increased as a result

which is reflected in their figures:

Bharti Airtel -3,280,658 Reliance Communications 1,232,060 Tata Teleservices 1, 289, 17

Growth in Energy and Water Sectors

This sector also has attracted a large investment from the private industries. Figures as of2001-06 registered 17% investment in the sector. However in the water sector there has not

been any major investment due to political issues, weak authority etc. In India, the powerdistribution has been privatized in several cities as Delhi and states like Orissa. The westernstate of Maharashtra is also keen on having larger investment from the private sector in the

power division.

Growth in Transport Sector

This sector has also become an important area of investment by the private enterprises. As offigures of the year 2006, there has been an investment of 34% alone in the transport sector.The driving force behind this success has been India's initiatives and policies encouraging

partnerships of the private and the public sectors in transport.

Private Sector and Public Sector in India

As of the last decade, the growth and investment in the private sector has well surpassed thegrowth in the public sector. Figures suggest that the share of the private sector in the net salesof manufacturing and services industry augmented from 48.83% in 2001-01 to 68.55% in2009-10. Subsequently the share of the public sector reached to 31.45% from a higher

percentage of 51.17%.The shares of private sector in the net profit in the non-agricultural

economy rose to 63.86% from 39.17%. The share of the public sector subsequently declinedto 36.14% from 60.83%.
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This increase in the private sector's share is largely due to the higher foreign directinvestment over the last decade. Over the last decade or so, with the liberalisation of theeconomic policies, India has been able to achieve higher investment from the private sector.For instance due to modifications and changes in the economic policies the transport and

telecommunication industry witnesses a higher percentage of growth and investment in theprivate sector.

Importance of Private Sector in Indian Economy

The importance of private sector in Indian economy over the last 15 years has beentremendous. The opening up of Indian economy has led to free inflow of foreign directinvestment (FDI) along with modern cutting edge technology, which increased theimportance of private sector in Indian economy considerably.

Previously, the Indian market were ruled by the government enterprises but the scene inIndian market changed as soon as the markets were opened for investments. This saw the riseof the Indian private sector companies, which prioritized customer's need and speedy service.This further fueled competition amongst same industry players and even in governmentorganizations.

The post 1990 era witnessed total investment in favor of Indian private sector. Theinvestment quantum grew from 56% in the first half of 1990 to 71 % in the second half of1990. This trend of investment continued for over a considerable period of time. Theseinvestments were especially made in sector like financial services, transport and social

services.

The late 1990s and the period thereafter witnessed investments in sector like manufacturing,infrastructure, agriculture products and most importantly in Information technology andtelecommunication. The present trend shows a marked increase in investment in areascovering pharmaceutical, biotechnology, semiconductor, contract research and productresearch and development.

The importance of private sector in Indian economy has been very commendable ingenerating employment and thus eliminating poverty. Further, it also effected the following -

Increased quality of life Increased access to essential items Increased production opportunities Lowered prices of essential items Increased value of human capital Improved social life of the middle class Indian Decreased the percentage of people living below the poverty line in India Changed the age old perception of poor agriculture based country to a rising

manufacturing based country Effected increased research and development activity and spending Effected better higher education facilities especially in technical fields Ensured fair competition amongst market players
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Dissolved the concept of monopoly and thus neutralized market manipulationpractices

The importance of private sector in Indian economy can be witnessed from the tremendousgrowth of Indian BPOs, Indian software companies, Indian private banks and financial

service companies. The manufacturing industry of India is flooded with private Indiancompanies and in fact they dominate the said industry. Manufacturing companies coveringsectors like automobile, chemicals, textiles, agri-foods, computer hardware,telecommunication equipment, and petrochemical products were the main driver of growth.

The Indian BPO sector is more concentrated with rendering services to overseas clients. TheKPO sector is engaged in delivering knowledge based high-end services to clients. It isestimated, that out of the total US $ 15 billion KPO service business around US $ 12 billionof business would be outsourced to India by the end of 2010.

Major Private Companies of India

With an Annual GDP growth rate of 7-8 percent India is the one of the fastest growingeconomies in the world. This stable annual GDP growth rate that India is witnessing is mostlydue to the rise of the major private sector companies in the country.

Private sector companies play a very important role in theIndian economy. Over the last 15years or so the major Private companies in India have contributed more than significantly tothe growth of the Indian economy. After the liberalization policies in the 1990's India startedreceiving huge amounts of foreign direct investment (FDI) which was one of the most

important reasons behind the success of the private companies in the country. Prior to this theIndian economy was ruled mostly by the public sector enterprises which were known for theirstrict rules and regulations and bureaucratization.

The liberalization policies proved to be a boon for the Indian economy. The economywitnessed huge amounts of foreign funds and along with it came in cutting edge technologyand new ideas which started changing the functioning ofIndia business. Slowly and steadilymore and more private sector companies started coming up and establishing themselves inthis part of the globe.

Since the 1990's most of the Foreign Direct Investment that India received was in favor of the

private sector. The total amount of investment increased from 56 percent in the first fiveyears of the decade to almost 71 percent in the other five years of 1990. This became theinvestment trend and is continuing till today. Investments in private sector generally coversectors like transport, manufacturing, infrastructure, financial services, social services,agriculture, telecommunication and Information technology. However the present investmenttrends show that sectors likepharmaceutical, contract research semiconductor, biotechnologyand product research and development are also gaining immense importance.

The Major Private companies of India prioritized customer's need and speedy service, whichfurther fueled competition amongst same industry players. This healthy competition has

benefited the end consumers, since the cost of service or products has come downsubstantially. B grade companies are also offering lucrative and competitively priced

products or service, whose quality is at par with 'A' grade companies.
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In India, a public sector company or undertaking is meant to refer any corporation orcompany that is owned by government. Such a company, where the Union Government or

State Government or any Territorial Government owns a share of 51 % or more is mostly

regarded as a company belonging to the public sector.

Before the independence of India, there were a handful of public sector companies in thenation. Indian Railways, the Port Trusts, the Posts and Telegraphs, All India Radio and theOrdinance Factory are some of the major examples of the countrys public sector enterprises.However, post Indian independence, some policies for the development of the socio-economic status of the country were planned out by the then visionary leaders, where the

public sector were used as a tool for the self-reliant growth of the nations economy.

Different sectors in Public Sector in India

Presently, the public sector in this country includes sectors like the coal industry, oil andpetroleum industry, steel industry, banking industry, thermal power industry, jute industry,food industry, insurance industry, telecommunication industry, aviation industry, serviceindustry, agriculture industry, manufacturing industry, mining industry, electricity industry,engineering industry (Light and medium) etc. To name a few of the famous public sectorcompanies in India are:

Air India Limited (A. I. L.)

Airports Authority of India (A. A. I.) Limited Akaltara Power Limited Andaman and Nicobar Islands Forest and Plantation Development Corporation Balmer Lawrie and Company Limited Bank of India (B. O. I) Bengal Chemicals and Pharmaceuticals Limited (B. C. P. L.) Bharat Coking Coal Limited (B. C. C. L.) Bharat Dynamics Limited (B. D. L.) Bharat Electronics Limited (B. E. L.) Bharat Heavy Electricals Limited (B. H. E. L) Bharat Petroleum Corporation Limited (B. P. C. L.) Bharat Sanchar Nigam Limited (B. S. N. L.) Coal India Limited (C. I. L.) Electronics Corporation of Tamil Nadu Limited (E. L. C. O. T.) Hindustan Aeronautics Limited (H. A. L.) Indian Institutes of Technology (I. I. T.) Indian Oil Corporation Limited Life Insurance Corporation of India (L. I. C.) Mahanagar Telephone Nigam Limited (M. T. N. L.) Mazagon Dock Limited (M. D. L.) Modern Food Industries (India) Limited (M. F. I. L.) National Institutes of Technology (N. I. T.) N. T. P. C. Limited (Earlier National Thermal Power Corporation) Nuclear Power Corporation of India Limited (N. P. C. I. L.)


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Oil and Natural Gas Corporation (O. N. G. C.) Power Grid Corporation of India Limited State Bank of India (S. B. I.) Steel Authority of India Limited (S. A. I. L.) Tamil Nadu Electricity Board (T. N. E. B.)

Tamil Nadu State Transport Corporation (T. N. S. T. C.) The Jute Corporation of India Limited

Contribution of Indian Public Sector in the Government of India

The public sector of the country has got a significant contribution to the development ofIndian economy. Being a powerful instrument of economic growth, this sector has got thefollowing contributions towards the growth of this nations economy:

Balancing Regional Development: Public sector has even reached those regions of Indiathat lacked the primary civic as well as industrial facilities like water supply, electricity,manpower, township etc. For example, the steel plants of Durgapur, Bhilai and Rourkelahave contributed towards the growth of these regions.

Contribution towards Public Exchequer: According to the Indian Chamber of Commerce,the sector is responsible for more than 20 % of tax collections (Both direct taxes and indirecttaxes). Thus, in turn, this sector mobilizes financial funds for the requirement of the nations

planned development.

Employment: Millions of employment opportunities were being created by this public sector

that minimized the problem of unemployment in the nation. Apart from ensuring job securityto many people by taking over numerous sick units, this sector accounts for approximatelytwo third of the countrys total employment.

Filling the space in Capital Goods: During independence, there was a notable gap in Indiasindustrial structure in terms of steel, oil refining, fertilizers, chemicals and many more, whichwas filled up by the rapid industrialization in the country.

Foreign Earnings and Export Promotion: Over the years, the earnings from the foreignexchange have increased remarkably. Apart from that, public owned companies like StateTrading Corporation (S. T. C.), Hindustan Steel Limited, Bharat Electronics Limited (B. E.

L.), Minerals and Metals Trading Corporation (M. M. T. C.) etc. have worked well for thepromotion of export in India.

Import Substitution: Public sector companies like Oil and Natural Gas Commission (O. N.G. C.), Bharat Electronics Limited (B. E. L.), Indian Oil Corporation Limited etc. werestarted solely for the production of goods, which earlier needed to be imported from foreigncountries that involved huge expenses.

Enhanced Research and Development: Since majority of the public sector enterprises areinvolved in heavy industrial as well as high technological work, which necessitate theundertaking of programs related to research and development, the public sector in India has

enhanced the quality and amount of research and development.


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Besides the ones mentioned above, this sector has successfully achieved the followingconstitutional goals:

Forming a socialistic society Increasing control over India's economy

Limitation of financial power in the hands of private sector

Public Sector's Percentage of share in India G. D. P. (Gross Domestic

Products)

As per a report published by the Indian Chamber of Commerce, P. S. U.s or the Public SectorUnits account for more than 22 % of the total G. D. P. in India.

Future Prospects of Indian Public Sector

The public sector in this country has been expanding day by day. In the upcoming years, thispublic sector has got a good prospect in India as contributed by the different sectors includedin it. Following are some of the key prospects of the varied industries, which are included inIndia public sector that in turn reflects the growth prospect of public sector in India:

The increasing demand for power has made the Indian government to concentrate on theirmission of "Power for all" by the year 2012 that would require the capacity of installed powergeneration to be minimum 2, 00, 000 MW from its present capacity of around 1, 44, 565MW.

As per the latest R. N. C. O. S. report of "Indian Steel Industry Outlook to 2012", productionof crude steel in India is expected to grow at the C. A. G. R. (Compound Annual GrowthRate) of about 10 % in between the period of 2010 and 2013.

As far as the Indian aviation industry is concerned, the sector is forecasted to be amongworld's 5 best aviation sectors in the coming 10 years. According to the highlights of the I. C.A. N. (International Civil Aviation Negotiation), the national air traffic is estimated to reacharound 160 million passengers to 180 million passengers per year whereas, the internationaltraffic is expected to exceed 80 million in a year.

During the financial year 2010 2011, the country exported products of refined petroleum upto an amount of 50 million tones. By the end of the financial year 2014, owing to theincreasing refining capacity, this amount is likely to reach around 70 million tones.

The telecommunication industry in India is among the fastest growing sectors in the country.The base of mobile phones is expected to touch approximately 900 million figure by 2012and 1.25 billion by the year 2015

Agriculture Sector of Indian

Economy


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Agriculture Sector of Indian Economy is one of the most significant part of India.Agriculture is the only means of living for almost two-thirds of the employed class in India.As being stated by the economic data of financial year 2006-07, agriculture has acquired 18

percent of India's GDP.

The agriculture sector of India has occupied almost 43 percent of India's geographical area.Agriculture is still the only largest contributor to India's GDP even after a decline in the samein the agriculture share of India. Agriculture also plays a significant role in the growth ofsocio-economic sector in India.

In the earlier times, India was largely dependent upon food imports but the successive storiesof the agriculture sector of Indian economy has made it self-sufficing in grain production.The country also has substantial reserves for the same. India depends heavily on theagriculture sector, especially on the food production unit after the 1960 crisis in food sector.Since then, India has put a lot of effort to be self-sufficient in the food production and this

endeavor of India has led to the Green Revolution. The Green Revolution came into existencewith the aim to improve the agriculture in India.

The services enhanced by the Green Revolution in the agriculture sector of Indian economyare as follows:

Acquiring more area for cultivation purposes Expanding irrigation facilities Use of improved and advanced high-yielding variety of seeds Implementing better techniques that emerged from agriculture research Water management Plan protection activities through prudent use of fertilizers, pesticides, and cropping

applications

All these measures taken by the Green Revolution led to an alarming rise in the wheat andrice production of India's agriculture. Considering the quantum leap witnessed by the wheatand rice production unit of India's agriculture, a National Pulse Development Programme thatcovered almost 13 states, was set up in 1986 with the aim to introduce the improvedtechnologies to the farmers. A Technology Mission was introduced in 1986 right after thesuccess of National Pulse Development Programme to boost the oilseeds sector in Indianeconomy. Pulses too came under this programme. A new seed policy was planned to provide

entree to superior quality seeds and plant material for fruits, vegetables, oilseeds, pulses, andflowers.

The Indian government also set up Ministry of Food Processing Industries to stimulate theagriculture sector of Indian economy and make it more lucrative. India's agriculture sectorhighly depends upon the monsoon season as heavy rainfall during the time leads to a richharvest. But the entire year's agriculture cannot possibly depend upon only one season.Taking into account this fact, a second Green Revolution is likely to be formed to overcomethe such restrictions. An increase in the growth rate and irrigation area, improved watermanagement, improving the soil quality, and diversifying into high value outputs, fruits,vegetables, herbs, flowers, medicinal plants, and bio-diesel are also on the list of the services

to be taken by the Green Revolution to improve the agriculture in India.


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Sectoral Analysis of Indian

Economy

The sectoral analysis of Indian economy is a summary of the factors and industry sectorsthat were reformed or added in the economic growth report of India covering different Indianindustries. The sectoral analysis of Indian economy focuses on the key points of the latestreforms of Indian economy as made in the latest Government of India economic policystatement.

The sectoral analysis of Indian economy quantifies key parameters of Indian economy.Further, the analysis of different sectors of Indian economy facilitates the government to useit as the reference guide for the enactment of the future Indian economy policy.

The key developments as per the sectoral analysis of Indian economy, 2007-2008 are as

follows -

Gross domestic capital formation in 2005-06 grew by 23.7% FDI amounted to US$12.5 billion and outpaced portfolio investment of US$6.8

billion Central Public Sector Enterprises to invest ` 165,053 crore in 2007-08 New 162 production sharing contracts awarded to Petroleum and Natural Gas sector SMEs has witnessed increase in outstanding credit Foreign trade and merchandise exports expected to cross US$125 billion by the end of

the current fiscal Provision for tourist infrastructure increased to ` 423 crore Bank's differential rate of interest scheme providing finance at the rate of 4% to

weaker sections Regional rural banks to open at least one branch in 80 uncovered districts in 2007-08 PAN made sole identification number for all participants of capital market Seven ultra mega power projects are under process Provision for national highway development programme to be increased to ` 9,945

crore Farm credit target of ` 225,000 crore for 2007-08 has been set with an addition of 50

lakh new farmers to the banking system

35 projects have been completed in 2006-07 and additional irrigation potential of900,000 hectares to be created and training of farmers arranged

A pilot programme for delivering subsidy directly to farmers have been arranged Loan facilitation through Agricultural Insurance and NABARD has also been

facilitated Corpus of Rural Infrastructure Development Fund to be raised Defense expenditure allocation to increased to ` 96,000 crore IT allocation for e-governance to increased from ` 395 crore to ` 719 crore Exclusive health insurance scheme for senior citizens

According to reports, productivity growth rate of Indian economy is estimated to be around

8% and above until 2020 and at this rate India will become the second largest economy in theworld after China. Further, analysis of different Indian sectors suggests that India is one of


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the top economic reformers worldwide. It simplified business registration, cross-border trade,and payment of taxes, eased access to credit and strengthen investor's interest.

Export Sector in India

The export sector of Indian economy made comprehensive progress over the last decade.The exponential growth of the export sector of Indian economy can be attributed to the liberalGovernment of India economic policy. Indian exports have an ambitious target of US 160

billion in 2007-08. The achievement came to the Indian exports in the last fiscal despite theodds against the exports, minimizing the gains. In the first two months of 2007-08 exportsgrew by 20.3%, which was a little lower than the previous year over the same period a yearago.

The Government of India latest export policy for the exporters will help in stabilizing the

export growth levels attained in the 1st quarter of 2007-2008. Ores and minerals exports grewmoderately to 12.9% against 37.4% in 2005-06. Similar trend was also observed in theexports of manufacturing sector. The exports of manufactured goods from India grewmoderately by 15% in the first quarter of 2007-2008 as compared to 21.2% in the last fiscalyear. High value commodities like engineering goods and rice registered very high growthrate in the 1st quarter of this fiscal against the same period last year. The overall exportssuggests that the Indian exports grew considerably across all major exporting destinations.The Indian exports to Pakistan, UAE and Italy showed remarkable growth in the first quarterof the current fiscal year.

The astronomical growth of the Indian export sector was led by the following industry -

Information Technology Information Technology Enabled Services Telecommunications hardware Electronics and hardware Pharmaceutical and biotechnology products Consumer durables Textiles Construction machinery Power equipment

Food grains Iron and steel Chemicals and fertilizers

The robust overall growth of export sector of Indian economy led to secondary growth of thefollowing economic parameters -

India's economy grew at 9.3% in quarter April-June and it was driven bymanufacturing, construction and services sector and agriculture sector

GDP factor for the first quarter of 2007-08 was at ` 7,23,132 crore, registering agrowth rate of 9.3% over the corresponding quarter of previous year

Exports grew by 18.11% during the 1st quarter of 2007-2008 and the imports shoot upby 34.30% during the same period


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India's FOREX reserves (excluding Gold and SD` ) stood at $219.75 billion at the endof July ' 07

The annual inflation rate was 4.45% for the week ended July 28, 2007 India's Balance of Payments is expected to remain comfortable Merchandise Exports recorded strong growth

According to reports, productivity growth rate of Indian economy is estimated to bearound 8% and above until 2020

At this stupendous growth of the export sector of Indian economy, it is expected that Indiawill become the second largest economy in the world after China.

Import Sector in India

The import sector of Indian economy is one of the most important sector of India's

economic health. The performance of the import sector of Indian economy determines theExport policy of India and most importantly the export import policy of India. Further, it isone of the most important part of the India's foreign trade policy. The current EXIM policy ofIndia covers policy statements for the period covering 2002 to 2007.

The basic laws that governs the import sector of Indian economy are as follows -

Imports shall be free, except in cases where they are regulated by the provisions ofthis Policy or any other law for the time being in force

The item wise import policy shall be, as specified in published and notified by

Director General of Foreign Trade, as amended from time to time

Every importer shall comply with the provisions of the Foreign Trade (Developmentand Regulation) Act, 1992, the Rules and Orders made thereunder, the provisions ofthis Policy and the terms and conditions of any license / certificate / permissiongranted to him, as well as provisions of any other law for the time being in force

All imported goods shall also be subject to domestic Laws, Rules, Orders,Regulations, technical specifications, environmental and safety norms as applicable todomestically produced goods

No import of rough diamonds shall be permitted unless the shipment parcel isaccompanied by Kimberley Process Certificate required under the procedure specified

by the Gem & Jewelery Export Promotion Council.

Duty credit allowed for import of capital goods, spare parts, office equipment, officefurniture and consumables that are importable under ITC (HS). Such imports coversall items of the service sector

The Customs Act of India governs the process of levying of tariffs on imports andframes the rules and it also specifies the tariffs rates and provides for the impositionof anti-dumping and compensation charges

Tariff rates, excise duties, regulatory duties are revised in each annual budget of India


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Total duties on imports now consist of basic duty which ranges from zero to 65% plusadditional or countervailing duties

On manufactured "luxury" items, total import taxes may amount to whooping 150%

Import duties are product specific and can be revised in mid-year

The latest export import policy of India have led to growth of India's Import on the

following lines -

The Government of India latest export policy for the exporters will help in stabilizing theexport growth levels attained in the 1st quarter of 2007-2008. The Indian imports shoot up by34.30% during the 1st quarter of 2007-2008. Today, India ranks second in the manufacture ofsmall passenger car segment.

It is the worlds largest producer of generic pharmaceutical and its Information Technology

sector is registering three figure growth consistently. Moreover, it is the most preferreddestination for business process outsourcing. The world's knowledge process outsourcing

business is valued at US$ 15 billion out of which US$ 12.5 billion worth of business isexpected to be outsourced to India alone by 2010. According to reports, productivity growthrate of Indian economy is estimated to be around 8% and above until 2020.

Retail Sector of Indian

Economy

The Retail Sector of Indian Economy is going through the phase of tremendoustransformation. The retail sector of Indian economy is categorized into two segments such asorganized retail sector and unorganized retail sector with the latter holding the larger share ofthe retail market. At present the organized retail sector is catching up very fast. The impact ofthe alterations in the format of the retail sector changed the lifestyle of the Indian consumersdrastically. The evident increase in consumerist activity is colossal which has already chippedout a money making recess for the retail sector of Indian economy.

With the onset of a globalized economy in India, the Indian consumer's psyche has beenchanged. People have become aware of the value of money. Nowadays the Indian consumersare well versed with the concepts about quality of products and services. These demands arethe visible impacts of the Retail Sector of Indian Economy.

Since the liberalization policy of 1990, the Indian economy, and its consumers are gettingwhiff of the latest national & international products, the with help of print and electronicmedia. The social changes with the rapid economic growth due to trained personnels, fastmodernization, enhanced availableness of retail space is the positive effects of liberalization.

The growth factors of the retail sector of Indian economy:

Increase in per capita income which in turn increases the household consumption Demographical changes and improvements in the standard of living


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Change in patterns of consumption and availability of low-cost consumer credit Improvements in infrastructure and enhanced availability of retail space Entry to various sources of financing

The infrastructure of the retail sector will evolve radically. The emergence of shopping malls

are going steady in the metros and there are further plans of expansion which would lead to150 new ones coming up by the year 2008. As the count of super markets is going up muchfaster than rate of growth in retail sector, it is taking the lions share in food trade. The non-food sector, segments comprising apparel, accessories, fashion, lifestyle felt the significantchange with the emergence of new stores formats like convenience stores, mini marts, minisupermarkets, large supermarkets, and hyper marts. Even food retailing has became animportant retail business in the national arena, with large format retail stores, establishingstores all over India. With the entry of packaged foods like MTR, ITC Ashirbad, fast foodschains like McDonald's, KFC, beverage parlors like Nescafe, Tata Tea, Caf Coffee andBarista, the Indian food habits has been altered. This stores have earned the reputation of

being 'super saver locations'.

With the arrival of the Transnational Companies(TNC), the Indian retail sector will confrontthe following round of alterations. At present the Foreign Direct Investments(FDI) is notencouraged in the Indian organized retail sector but once the TNC'S get in they would try tomuscle out their Indian counterparts. This would be challenging to the retail sector in India.

The future trends of the retail sector of Indian economy:

The retail sector of Indian economy will grow up to 10% of total retailing by the year2010.

No one single format can be assumed as there is a huge difference in cultures regionally. The most encouraging format now would be the hypermarts The hypermart format would be further encouraged with the entry of the TNC's

Service Sector of Indian

Economy

Service Sector of Indian Economy contributes to around 55 percent of India's GDP during2006-07. This sector plays a leading role in the economy of India, and contributes to around68.6 percent of the overall average growth in GDP between 2002-03 and 2006-07.

There has been a 9.4 percent growth in the Indian economy during 2006-07 as against a riseof 9 percent in the same during 2006-06. During this growth in Indian economy, the servicesector witnessed a rise of 11 percent in the year 2006-07 against the 9.8 percent growth in2005-06. The service sectors of Indian economy that have grown faster than the economy areas follows:

Information Technology (the most leading service sectors in Indian economy) IT-enabled services (ITeS) Telecommunications


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Financial Services Community Services Hotels and Restaurants

There has been a 13 percent hike in the service sectors of trade, hotels, transport and

communication in India's economy as compared to the 10.4 percent rise in the previous year.The financial services that comprise of banks, real estate, insurance, and business serviceswitnessed a rise of 11.1 percent during 2006-07 against the 10.9 percent growth in the

previous year. Service sectors including community, social, and personal servicesexperienced a growth of 7.8 percent during 2006-07 as against 7.7 percent growth in the

previous year.

The service sector of India has also witnessed a remarkable rise in the global market apartfrom the Indian market. It has experienced a rise of 2.7 percent in 2006 from that of 2 percentin 2004. The broad-based services in the trade sector has undergone a large-scale rise. Astatistics concerning the growth of India's service sectors are listed below:

The software services in Indian economy increased by 33 percent which registered arevenue of USD 31.4 billion

Business services grew by 82.4 percent Engineering services and products exports grew by 23 percent and earned a revenue

of USD 4.9 billion Services concerning personal, cultural, and recreational had a growth of 96 percent Financial services had a rise of 88.5 percent Travel, transport, and insurance grew by 23 percent

The software services in Indian economy along with the export of products is growing at amassive pace and thereby witnessed an alarming rise of 35.5 percent and reached a lumpsomeamount of USD 18 billion. The IteS and BPO sectors grew by 33.5 percent and earned arevenue of USD 8.4 billion. The

business srctor in india

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