Economy of India. Main sectors of the Indian economy

INDUSTRY

The chemical industry focuses on the production of mineral fertilizers. The importance of petrochemicals is growing. Resins, plastics, chemical fibers, and synthetic rubber are produced. Pharmaceuticals are developed. The chemical industry is represented in many cities of the country.

Light industry is a traditional sector of the Indian economy. The cotton and jute industries stand out in particular. India is one of the leading countries in the world in the production of cotton fabrics, and in the production of jute products (technical, packaging, furniture fabrics, carpets) it ranks first. The largest centers of the cotton industry are Bombay and Ahmedabad, the jute industry is Calcutta. There are textile factories in all major cities of the country. Textile and apparel products account for 25% of India's exports.

The food industry produces goods for both domestic consumption and export. Indian tea is the most widely known in the world. Its production is concentrated in Kolkata and the south of the country. India ranks first in the world in tea exports.

The leading branch of Indian agriculture is crop production (4/5 of the cost of all products). The sown area is 140 million hectares, but there is practically no land for new development. Agriculture requires irrigation (40% of the cultivated area is irrigated). Forests are being cleared (slash-and-burn agriculture still exists).

The main part of the sown area is occupied by food crops: rice, wheat, corn, etc. The main industrial crops of India are cotton, jute, tea, sugar cane, tobacco, oilseeds (rapeseed, peanuts, etc.). Rubber trees, coconut palms, bananas, pineapples, mangoes, citrus fruits, herbs and spices are also grown.

Animal husbandry is the second most important agricultural sector in India, far behind crop production. Cattle are used on peasant farms mainly as draft power. Milk, animal hide and skin are used.

In coastal areas, fishing is of considerable importance. The use of seafood can improve the food situation in the country.

INDIAN TEXTILE INDUSTRY

The exquisite quality of Indian fabrics has been known since ancient times. The mysticism of the texture and the complex pattern of the design captured the imagination of everyone from the royal nobleman to the common man. The appreciation, popularity and recognition that the Indian textile industry has earned in the world makes it one of the fastest growing industries in India. The textile industry is of great socio-economic importance in the national economy of the country. It accounts for about 5% of GNP and more than 1/3 of all exports.

The Indian textile industry is one of the oldest industries in the country and is a complex sectoral complex, at one end of the spectrum being the hand-spun and handmade fabrics, and at the other end - the main intensive modernized factory sector, and between them sectors of decentralized powerful weaving and spinning machines. It is in the organized sector that there is an "island of excellence" using equipment based on modernized information technology using EPPSAP equipment that is unmatched in the world.

The specific configuration of fibers used in the textile industry includes almost all types of textile fibers from natural ones such as cotton, jute, silk and wool, to synthetic/man-made fibers such as polyester, rayon, nylon, acrylic, polypropylene and numerous mixtures of these fibers and filaments. yarn

The diverse structure of the textile industry, closely linked to our ancient culture and traditions, provides a unique opportunity to produce using latest achievements technologies and design capabilities, a wide range of products that meet the diverse tastes and preferences of consumers, both in our country and abroad.

It is perhaps the only industry in India's diverse industry that is self-sufficient and complete in the chain of production, i.e. from raw materials to final receipt finished products, such as ready-made clothing.

The Indian textile industry occupies a significant position in both the Indian economy and the international textile economy. Its contribution to the Indian economy is reflected in the production of manufactured goods, employment and foreign exchange earnings.

According to data published by the International Textile Manufacturers Federation (ITMF) 1999, the Indian textile industry also contributes significantly to the global textile and textile fiber/yarn production. This industry produced about 21 percent of the world's yarn and 6 percent of the world's weaving products. After China dismantled 10 million of its spinning machines, India emerged as the country with the highest number of spinning machines. With nearly 5.64 million textile looms (including 3.89 million handlooms), the industry also has the highest textile loom (including handloom) deployment in the world and has about 57% of the world's loom stock. Even excluding handloom textile looms, the industry has 33% of the world's textile loom stock.

The industry also makes a significant contribution to the global production of textile fibers and yarns, including jute. In the global textile scenario, Indian textile industry is the largest producer of jute, second in silk production, third in cotton and cellulose fiber/yarn production and fifth in synthetic fiber/yarn production.

The ITMF study also showed that the Indian textile industry has advantages over other major textile producing countries in terms of raw material costs and labor costs in production. various types textile products.

India is a vibrant and diverse country whose economy is increasingly integrated with the global economy. The extensive economic reforms undertaken in the last decade have had far-reaching consequences. GE Capital calls this country unique, PepsiCo finds it the fastest growing, and Motorola is confident that it will become a global source. Operations in India have taken a central position in the global activities of these giants.

A huge and constantly growing market, developing infrastructure, sophisticated financial sector, flexible regulatory environment, incentives, stable government and good economic outlook make India an attractive investment destination. India's business environment is conducive to achieving high level and constant growth.

India is currently on the path to developing into an open market economy, but traces of the country's past policies remain. Economic liberalization, including the deregulation of industry, the privatization of state-owned enterprises, and the reduction of controls on foreign trade and investment, began in the early 1990s and served to accelerate the economic growth country, which has averaged more than 7% annually since 1997.

India's economy is diverse and spans traditional village agriculture, modern agriculture, handicrafts, a wide range of modern industries and many types of services. Slightly more than half of the workforce is in agriculture, but the service sector is the main source of economic growth. It accounts for more than half of India's GDP, but employs only one-third of the workforce.

India has benefited from having a large, educated English-speaking population and has become a major exporter of information technology services and computer programmers. In 2010, the Indian economy recovered from the global financial crisis - largely due to strong domestic demand - and grew above 8% during the year in real terms. Merchandise exports, which account for approximately 15% of GDP, have returned to pre-crisis levels. Industrial development and high food prices, which resulted from the combined effects of the weak 2009 monsoons and government inefficiencies in the food distribution system, contributed to high inflation, which peaked at approximately 11% in the first half of 2010, but then gradually decreased to single digits. values, after a series of interest rate increases by the country's Central Bank.

In 2010, the authorities reduced subsidies in the production of fuel and fertilizers, sold a small percentage of shares in some state enterprises and auctioned off the rights to use 3G telecommunications frequencies in part to reduce the budget deficit. The Indian government aims to keep its fiscal deficit at 5.5% of GDP in the 2010-11 fiscal year, lower than 6.8% in the previous year.

India's long-term challenges include widespread poverty, inadequate physical and social infrastructure, limited non-farm employment opportunities, insufficient access to quality secondary and higher education and migration rural population to the cities.

Agriculture in India

The agricultural sector, which has been the mainstay of the Indian economy for so long, now accounts for only about 20% of the gross national product, yet provides employment to 60% of the population. For several years after independence, India depended on foreign aid. The food industry has grown steadily over the past 50 years, mainly due to the increase in irrigated land and the widespread use of high-yield seeds, fertilizers and pesticides. The country has large grain reserves (about 45 million tons) and is a global grain exporter. Cash crops, especially tea and coffee, provide the main export income. India is the world's largest tea producer, producing about 470 million tons annually, of which 200 million tons are exported. India also accounts for about 30% of the world spices market, exporting about 120,000 tons per year.

There are still great contrasts in Indian agriculture - large plantations side by side with small peasant farms. Many peasants have little or no land. Most villages have no electricity at all. India ranks first in the world in terms of irrigated land area (54.8 million hectares). The share of agricultural products in India's exports is 15%.

India's main consumer crops are rice and wheat. Modern India largely meets its food needs, albeit at a very low level of about 250 kg per capita. In the southeastern part of the Indo-Gangetic Plain is the main rice-growing zone of India, where rice is cultivated during the kharif season (May-September) under monsoon rains, and artificial irrigation is used during the rabi season (October-April).

Livestock plays an important role in Indian agriculture. In terms of the number of cattle (221.9 million tons), India ranks first in the world, but in terms of meat consumption it is one of the last in the world, which is explained by the religious views of Indians - in Hinduism, the cow is a sacred animal. There are 58.8 million sheep, 18 million pigs, 9 million camels.

India ranks second in the world in terms of agricultural production. Agriculture and the sectors it is linked to, such as forestry and fisheries, accounted for 15.7% of GDP in FY2009–10. g., employed 52.1% of the total labor force, and despite a steady decline in the share of GDP, they are still the largest sector of the economy and a significant component of the socio-economic development of India. Yields of all grain crops have increased since 1950, due to the emphasis on agriculture in the Five-Year Plans and sustained improvements in technology, the application of modern agricultural methods, and the provision of agricultural credit and subsidies. However, comparisons with other countries in the world show that the average yield in India is only 30%-50% of the highest average yield among countries in the world. The Indian states of Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Andhra Pradesh, Bihar, West Bengal and Maharashtra are the key agricultural regions of India.

In India, 546,820 square kilometers of land area, or approximately 39% of all arable land, is irrigated. Domestic water resources of India including rivers, canals, reservoirs and lakes and marine resources including eastern and western coasts Indian Ocean and other bays, employ nearly six million people in the fishing industry. In 2008, India had the third largest fishing industry in the world.

India - largest producer in the world of milk, jute and pulse, and also has the second largest cattle population in the world - 175 million animals in 2008. India is the second largest producer of rice, wheat, sugarcane, cotton and groundnuts, as well as the world's second largest producer of fruits and vegetables (10.9% and 8.6% of world fruit and vegetable production respectively). India is also the second largest producer and largest consumer of silk in the world (77 million tons in 2005).

Industry of India

After a decade of reform, the manufacturing sector is preparing to meet the demands of the new millennium. Investment in Indian companies reached record levels by 1994, and many multinational corporations decided to set up shop in India to take advantage of the improved financial climate. In order to further grow the industrial manufacturing sector, foreign direct investment has been allowed through the automatic route in almost all industries with some restrictions. Structural reforms were undertaken in the excise regime to introduce a flat rate and simplify procedures and rules. Indian subsidiaries of multinational corporations were allowed to pay royalty to the parent company to register international trademarks, etc.

Growth rate of industrial production in India, % compared to the previous year

Companies in the manufacturing sector have coalesced around their core competencies, establishing links with foreign companies to acquire new technologies, management expertise and access to foreign markets. The advantageously low costs associated with manufacturing in India have established India as an attractive sector for manufacturing and a source for global markets.

India's entry into industrialization has increased the role of its fuel and raw material resources. Mineral reserves are significant. Iron ore (73.5 million tons), coal, and oil are mined. India does not fully meet its oil needs and is forced to import it. Oil consumption is about 100 million tons per year.

The main centers of Indian manufacturing industry are the cities of Bombay, Calcutta, Delhi and Madras. India is a leader in the developing world in terms of nuclear industry development. The main branch of light industry is the textile industry, which uses domestic raw materials. Our own iron ore is used for metallurgy. Developed industries include the automobile industry, bicycle assembly, production of televisions and radios, paper, fertilizers and cement. The main export manufactured goods are transport equipment, clothing and medicines.

As of 2010, Indian industry accounted for 28% of GDP and employed 14% of the working population. In absolute numbers, India is 12th in the world in terms of industrial production. The Indian industrial sector underwent significant changes as a result of the economic reforms of 1991, which removed import restrictions, introduced foreign competition, led to the privatization of certain public sector industries, improved infrastructure, and led to increased production of consumer goods. Since the reforms, the Indian private sector has faced increased domestic and foreign competition, including the threat of cheaper Chinese imports. This forced manufacturers to reduce costs, update controls, rely on cheap labor and new technologies. However, this has become a barrier to the creation of new jobs, even in small businesses that previously relied on relatively labor-intensive processes.

Textile manufacturing, India's second largest source of employment after agriculture, accounts for 20% of total manufacturing output and provides employment to more than 20 million people. According to government statements, transforming the textile industry from a deteriorating industry to a booming industry has been the greatest achievement of the central government. After the liberation of industry in 2004–2005. from many encumbrances, primarily financial, the government gave the green light to the flow of investment - both internal and external. Between 2004 and 2008, total investment amounted to $27 billion. By 2012, as the government was convinced, this figure should have reached 38 billion; investment in 2012 was expected to create more than 17 million additional jobs.

However, demand for Indian textiles on world markets began to fall in 2008. According to the Department of Trade and Industry, during the 2008-2009 fiscal year alone (which ends March 31), the textile and apparel industry was forced to cut approximately 800,000 new jobs - almost half of the 2 million jobs expected to be cut in exports. -targeted sectors of the Indian economy to mitigate the impact of the global crisis.

Indian Financial Sector

The vast financial and banking sector contributes to the rapid growth of the Indian economy. India boasts a wide and well-developed banking network. The sector also has a number of national and state financial institutions. They include foreign and institutional investors, investment funds, leasing companies, venture capital enterprises, etc. In addition, the country has a developed stock market. Indian stock markets are rapidly transforming towards a global market, which is modern in terms of infrastructure in line with global practices, such as derivative trading on futures, special trading conditions for certain stocks, online trading, etc.

Prime Minister Indira Gandhi nationalized 14 banks in 1969 and 6 more banks in 1980. It has become mandatory for banks to allocate 40% of loans to priority sectors of the economy, such as agriculture, small industry, enterprises retail, small businesses, etc., as well as guarantee the fulfillment of their social obligations and goals related to economic development. Since then, the number of bank branches has increased from 8,260 in 1969 to 72,170 in 2007, and the population per branch has decreased from 63,800 to 15,000 over the same period. The volume of household deposits in banks increased from $1.2 billion in 1970–71. to $776.91 billion in 2008-09. Despite the increase in rural branches since 1860 or 22% total number branches in 1969 to 30,590 or 42% in 2007, only 32,270 out of 500,000 villages had their own bank branch.

More than half of citizens' personal savings are invested in physical assets such as land, buildings, cattle, and gold. Public sector banks account for more than 75% of the total value of banking assets in the country, while private and foreign banks account for 18.2% and 6.5% respectively. During the period of economic liberalization, the government carried out significant banking reforms. While some of these concerned nationalized banks, mergers of companies, reduced government intervention in banking and increased profitability and competitiveness, other reforms served to open up private and foreign banks and insurance companies.

Indian Services Sector

The main impetus for industrial growth came from the services sector. Services make up 55% of the gross national product. The speed, quality and complexity of the type of services offered for sale are increasing and tend to match international standards. Financial services, software services or accounting services, this sector is highly professional and is the main incentive for economic development. Interestingly, this sector is filled with players, each occupying a specific niche in the market.

India is fast becoming a major force in the information technology sector. According to National Association Software and Services Companies (NASSCOM), more than 185 Fortune 500 companies rely on Indian software services. This potential is increasingly being tapped by global software giants such as Microsoft, Hughes, and Computer Associates, which have made significant investments in India. A number of multinational corporations are taking advantage of the relative cost advantage and highly skilled workforce available in India and have set up service centers and fulfillment centers in India to cater to the needs of their global customers.

Infrastructure development

Infrastructure development in India has traditionally been a public sector concern. Following the realization of the need for rapid growth and improvement in the quality of capital infrastructure assets, private and foreign participation was encouraged through a package of attractive incentives and incentives. India today has a large infrastructure in the form of developed civil aviation, railways, road network, shipping, data transmission, energy generation and distribution. India has one of the largest road networks in the world. The country is making great strides in the field space technology and rocket science. The first test launch of the Satellite Launch Vehicle, GSLV-D1 was successfully completed on April 18, 2001 by the SHAR Center, Sriharikota. The government gradually removed its role as the sole provider of infrastructure funds. This is reflected in the progressive incorporation of public sector system services in telecommunications and ports, deregulation of domestic long haul services, proposed disinvestment of public investment in airlines (Air India and Indian Airlines) and proposed lease of airports at Hyderabad, Ahmedabad, Goa, Kochi and Amritsar. . Following the policy of private participation in the road sector, the Ministry of Road Transport has introduced 20 projects with a total cost of Rs 10 billion. Of these 20 projects, 6 are for the construction of ring roads, and the remaining 14 are for the construction of bridges and tunnels.

Foreign Trade of India

IN last years India's foreign trade volume has increased sharply and its share in the country's GDP has increased from 16% in 1990-91. to 43% in 2005–06 India's main trading partners are European Union, China, the United States and the United Arab Emirates. In 2006–07 India's exports included technical goods, petroleum products, chemicals and pharmaceuticals, gems and jewelry, textiles and garments, agricultural products, iron ore and other minerals. Imports included crude oil and petroleum products, automobiles, electronic goods, gold and silver. In 2010, exports amounted to $225.4 billion, and imports amounted to $359.0 billion. The trade deficit during the same year amounted to $133.6 billion.

External debt and government debt of India

The ratio of external debt to GDP fell from 38.7% in 1992 to 14.6% in 2010. India's public debt in 2010 amounted to 71.84% of GDP or $1,171 billion.

Indian Economic Development Forecast

In 2007, India's GDP exceeded $1 trillion, thanks to which the country entered the club of trillionaire states, becoming its twelfth member. Such data are provided in a study conducted by the Swiss bank Credit Suisse. Overcoming the barrier was facilitated by the strengthening of India's national currency, the rupee, against the dollar.

The Indian economy may grow at 9.25% in the fiscal year 2011/12, which begins April 1, 2011. However, the government of the country needs to take measures to reduce the level of inflation in the country, said Indian Finance Minister Pranab Mukhari. “The economy is expected to return to pre-crisis levels next year,” noted an economic survey prepared by the minister’s advisers. “Inflation concerns prevail.” India needs to reduce its budget deficit along with raising policy rates to curb inflation, which has been "uncomfortably high" this fiscal year, Mukhari said, Interfax reported.

"We see signs that economic growth will remain strong and fiscal policy will be aimed at reducing the deficit and containing inflation," said lead economist at Religare Capital Markets Ltd. Jay Shankar.

Indian industry is one of the largest among developing countries. It accounts for 1.5% of global industrial output, employs 20% of the working population, and has a GDP of 29%.
The peculiarity of Indian industry lies in the rapid development of modern manufacturing industries, the predominance of extractive industries. In 2017, 28.2% of GDP came from manufacturing, construction, gas, steam and electricity.
The most significant industries in the country are ferrous metallurgy, mechanical engineering, light and chemical industries, and energy.


Metallurgical industry

The Indian steel industry has been growing steadily over the past two decades.

Ferrous metallurgy

Ferrous metallurgy plays a vital role in the Indian economy. Ore reserves are approximately 51 billion tons. The country ranks 2nd among the world leaders, after, in steel production. One of the main steel producers, Tata Steel, is organizing a merger with the German concern Thyssenkrupp. By 2025, Tata Stee plans to increase its steelmaking capacity to 30 million tons per year. The total volume of steel produced amounted to 61.1 million tons over the past 7 months. Imports of rolled metal products decreased by 4.3%, exports by 33.6%.

The centers of metallurgy in India are Bokaro, Durgapur, Jamshedpur, and Bhilai. Rich ore deposits in Orissa, western Maharashtra and Bihar. Sent for export:

- manganese;

- mica;

- bauxite;

- iron ores

Non-ferrous metallurgy

The industry exists mainly due to the smelting of aluminum, the reserves of which are located in the state of Orissa. Although the country has deposits of non-ferrous metals: tin, gold, nickel, they are not enough to cover the needs. There is a dependence on imports.

The peculiarity and problem of the metallurgical industry in India is that the deposits are located far from industrial centers and are difficult to get there.

Chemical industry

This industry contributes about 7% of India's GDP and is growing at a steady rate of 13% annually. High-tech compounds for production are imported:

— catalysts;

- medicines;

— industrial solvents;

— products of fine organic synthesis.

Produced in India:

— organic and inorganic compounds;

— agricultural chemicals and fertilizers;

— color pigments, paints, food dyes and additives;

— household detergents;

— cosmetic products;

Pharmaceuticals;

- petrochemical products.

64% of production capacity chemical industry are located in the states of Maharashta and Gujarat. Approximately 20% are concentrated in the states of Tamil Nadu and West Bengal.

Almost all areas of industrial production use products from the petrochemical sector:

- plastic;

— polymers;

— elastomers;

— synthetic fibers;

— intermediate chemical fibers.

Energy

Like most industries in India, the energy sector is in active development. Despite this, most residents use agricultural waste and firewood as fuel. Transportation costs coal are quite large, it is unprofitable to deliver it from the north-east of the country. Oil deposits are almost not processed; raw materials for processing are imported. In the center of energy there are hydroelectric power stations and nuclear power plants.

Nuclear energy began to develop rapidly. The country ranks 3rd in the world in coal production. Large volumes of fossil deposits located in West Bengal, Madhya Pradesh, Bihar do not meet the needs of metallurgical plants due to low quality. One fourth of primary energy consumption is provided by oil and petroleum products.

Import of raw materials:

— oil – 80%;

— natural gas – 28%;

— coal – 22.1%.

The country produces 5.5 times less energy than China. Consumes 3.5 times less than the USA and China - this is 3rd place in the world.

Most of the country's residents are forced to use traditional energy sources: dung, branches, dead wood, and low-quality coal. Electricity is available to 68% of households.

The country's government is investing in the development of renewable energy, the share of which was 6.68% in February 2017. There are plans to introduce additional capacity of 175 GW by 2022.

Photovoltaic solar energy. At the end of 2016, the capacity of solar energy facilities amounted to 9 GW. The government has set a target of 100 GW by 2022. For this purpose, 25 large solar energy facilities are being built. It is planned to receive 5% of the energy market from solar panels on the roofs of houses. The center of solar energy is the state of Punjab.

Wind power. In 2016-2017 wind generation facilities produced 5,502 GW.

Bioenergy capacity is 162 MW.

Hydropower – 106 MW

From April 2016 to March 2017, 24 MW was generated from recycled waste.

Nuclear power

India is in 10th place in the world in the number of nuclear reactors, there are 22 of them. This industry is extremely important for the country, since with a large population, it needs a huge amount of energy. Modest energy resources do not allow its production in sufficient quantities. Thus, the country considers industrially produced fissile isotopes – plutonium, uranium – as resources.

Light industry

Light industry in India is a traditional industry, represented mainly by the leather, textile and clothing industries.

The main products of light industry are manufactured using artisanal methods. States and cities of the country have their own craft areas:
Varanasi in the state of Benares is famous for its silk production, bronze, silver and gold products.

Aligarh and Mirzapur are famous for their utensils, metal products, and iron chests..

The largest center for the production of glass bangles is Firozabad.
In Mysore, products are made from ivory, natural silk, and sandalwood.

Leather industry

The export of leather products has increased significantly - 81%, previously the priority was leather. The industry currently ranks 8th in the country's export trade. Production centers - Chennai, Raniped, Ambur, Kolkata, Delhi, West Bengal, Dindigul, Tamil Nadu, Karnataka. The sector employs 2.5 million people, most of them women. Leather raw materials account for 10% of the world's total. From 60 to 65% are handicraft production. Compliance with government environmental regulations is of great importance in this sector.

Textile and clothing industry

A significant part is made up of cotton and jute products. The Indian government formed the Ministry of Textiles. It successfully develops and implements plans for the development of this industry.

The country ranks first in the world market in terms of the volume of jute products. Most of the carpets, packaging and technical materials, and furniture fabrics are produced in Kolkata.

Fabric production is widespread in many cities. Cotton fabrics are manufactured in mills in Jaipur, Ahmedabad and Bombay. 25% of the clothing and textile industry is exported to more than 100 countries. Two thirds of supplies go to the European Union and the United States. India is in 2nd place, after China, in the production and consumption of silk.

Food industry

IN Food Industry involved greatest number working population. Since the late 80s of the 20th century, this sector has been involved in active modernization:

— licenses were cancelled, except for the production of alcohol;

— unlimited foreign investment is allowed;

— export organizations were able to import raw materials duty-free;

— the industry has become a priority in receiving benefits;

— excise tax on fruit has been abolished.

These measures ensured product growth in the foreign and domestic markets. The main exported product is tea, grown in the southern regions of the country, Kolkata. The country is a leader in the world market for the supply of tea.

Processing industry

India's processing share in 2016 was 2.8%. Agricultural and agricultural processing companies are located near farms and fields. The industry is represented by processing factories:

- cotton;

- peanuts;

- sugar cane;

- freezing meat.

Mechanical engineering

Mechanical engineering in India plays an important role; its share in the industrial structure is 12% and continues to develop. The centers of the mechanical engineering industry are:

Bombay, Madras - carriage works;

Bangalore - Electrical Engineering, Aeronautical Engineering;

Hyderabad – precision engineering;

Hardware – power engineering.

They also manufacture diesel locomotives, aircraft, metal-cutting machines, ships, tractors and cars in India.

Automotive industry

This industry accounts for 7.1% of the country's GDP. India ranks 5th in the world in the production of passenger and commercial vehicles. The government of the country has developed a program according to which by 2020 India should become a world leader in the production of two-wheeled - 2W and four-wheeled - 4W vehicles. The segment is represented by the following companies:

Chinkara Motors, located in Maharashta, produces automobiles, marine and aeronautical equipment.

Force Motors is a manufacturer of cargo buses and agricultural equipment.

ICML - produces SUVs.

Hindustan Motors - produces only Hindustan Ambassador.

Tata Motors is a representative of the global automotive industry.

India is considered one of the most developing countries in the world today. Industry and agriculture are largely state owned. The role of these areas in the formation of GDP is significant. If the first of them accounts for 29%, then the second - 32%. The largest share of GDP (about 39%) belongs to the main industries of India - ferrous metallurgy, mechanical engineering, energy, light and chemical industries. They will be discussed further in more detail.

Metallurgy

Ferrous metallurgy is one of the key areas of the state's economy. This is not surprising, since the country is rich in ore and coal deposits. The most important center of the region was the city of Calcutta, the surrounding area of ​​which is often called the “Indian Ruhr”. The country's largest steel plants are located primarily in the eastern states. In general, the industry works to meet the internal needs of the state. Among all mined materials, only manganese, mica, bauxite and some

A well-developed area of ​​non-ferrous metallurgy can be called aluminum smelting, which relies on its own large reserves of raw materials. The need for other non-ferrous metals is met through imports.

Mechanical engineering

This industry has achieved significant success in recent years. Such areas as railcar, ship, automotive and aircraft construction can be called quite developed. The major industries of India are supported by own country produces almost all types of equipment. There are more than 40 enterprises operating in this area, they are located in largest cities states.

Textile industry

The textile industry in India has become the second largest source of employment in the country. According to analytical data, about 20 million local residents are currently employed in it. In 2005, the government abolished a number of taxes and fees in the industry, which contributed to a significant influx of foreign and domestic investment. After that, in a very short period of time, this sector of the economy was transformed from a degrading one to a rapidly developing one. Her rapid growth ceased in 2008. The reason was the global crisis and a decrease in demand in world markets for textiles from India.

This industry has ceased to be attractive to investors, which has led to the reduction of about 800 thousand of the jobs recently created in the industry. Currently, the authorities are taking a number of measures aimed at limiting the construction of weaving factories. This is done, first of all, in the interests of the development of small enterprises operating in this area.

Chemical industry

The value of the products produced annually by the Indian chemical industry is on average US$32 billion. Currently, the industry is experiencing a number of problems that are caused by high prices for raw materials and means of production, as well as competition created by imported goods.

The profitability of this area began to gradually decline back in the nineties of the last century. Now the country is gradually establishing the production of mineral fertilizers, chemical fibers, plastics and synthetic rubber. The Indian pharmaceutical industry exports compounds and products worth an average of $18 million per year. The main problem of the industry is that only a small share of manufactured products is exported. The only area that continues to grow significantly today is fine organic synthesis.

Energy

Although the energy industry in India is developing very rapidly, the household fuel needs of the population are met mainly from firewood and agricultural waste. Coal mining is established in the northeastern part of the state. Transporting it to thermal power plants is quite expensive. Be that as it may, they account for about 60% of the electricity generated.

A significant step towards the creation of a modern energy system was the construction of hydroelectric power stations and nuclear power plants. The share of the former in the volume of electricity produced is 38%, and the latter - 2%.

There is also oil in the ground, but such an industry as the Indian oil industry is very poorly developed. The processing of “black gold” is much better organized, but it is based mainly on imported raw materials. The main such enterprises are located in major ports - Bombay and Madras.

Agriculture

The agricultural structure of India is dominated by crop production. The main food crops grown are wheat and rice. Industrial varieties, which include cotton, tea, and tobacco, play an important export role.

The dominance of plant cultivation is largely due to climatic conditions. The rainy summer season provides ideal conditions for growing cotton, rice and cane, while less moisture-dependent crops (barley and wheat) are sown in dry winters. Thus, crop production in India develops throughout the year. The state is fully self-sufficient in food crops.

Largely due to Hinduism, livestock farming practically does not develop in the country. The fact is that this religion not only does not encourage the consumption of meat, but also calls even the processing of skins a “dirty” craft.

Conclusion

Industrial development in India is only gaining momentum. In terms of its absolute size, the state is among the top ten world leaders. At the same time, the level of national product per capita is extremely low. We should not forget that India is an industrial-agrarian country, which has maintained an economy with predominant agricultural production since colonial times.

Indian Industrial Structure

In terms of the structure and level of economic development, India is an agrarian-industrial country. More than $60\%$ of the country's economically active population is employed in agriculture, and $20\%$ in industry and handicraft production.

Indian industry produces approximately $1.5\%$ of global industrial output. But the structure of the industrial complex is not yet perfect enough. It is in the formative stage.

Indian industry is dominated by extractive industries. Modern manufacturing industries are developing rapidly.

Let us consider the sectoral and territorial structure of Indian industry in more detail.

Fuel and energy complex

The basis of the Indian fuel industry is the coal industry. Coal deposits are concentrated in east of the country. Oil and gas are produced at west of the country, in the Mumbai (Bombay) region. Oil refineries are located in Delhi and in seaports:

  • Calcutta,
  • Mumbai,
  • Chenai ( focused on imported oil).

The basis of the electric power industry is thermal power plants , which provide $72\%$ of electricity. A significant amount of energy in the country is obtained by burning wood, straw, and waste from sugar cane processing.

On mountain rivers The Himalayas and the rapids of the Deccan plateau are built hydroelectric power stations, producing $26\%$ of electricity. The share is growing and nuclear energy.

Metallurgy

Metallurgical centers are:

  • Bokaro,
  • Durgapur,
  • Bhilai,
  • Jamshedpur.

The main branch of non-ferrous metallurgy is aluminum (Hirakud, Rihand), which runs on its own bauxite using local electricity. Copper, lead, and zinc are also melted. The gold processing industry is developing. For the needs of mechanical engineering, India imports from $20$ to $60\%$ various non-ferrous metals.

Chemical industry

India is one of the countries with an average level of development of the chemical industry. The chemical industry occupies an important place in the country's economy. The production of amino acids, fertilizers, artificial and synthetic fibers, varnishes and paints predominates. The main centers of the industry are located in the states:

  • Gujarat,
  • Maharashtra,
  • Tamil Nadu,
  • Punjab,
  • Bihar.

Petroleum-based polymer chemistry is developing in Mumbai.

Mechanical engineering

Mechanical engineering is characterized by the development of the transport industry. Thus, locomotives are produced in Varanasi, diesel engines - in Mumbai, Kolkatpi, railway cars, airplanes - in Chennai (Madras), Bangalore, sea and river vessels - in Mumbai, Visakhapatnami. IN Lately Heavy engineering is developing in the cities of Durgapur and Ranchi.

Along with the old branches of heavy metal-intensive engineering, labor-intensive and knowledge-intensive industries are developing, using local cheap labor. These factories where they assemble motorcycles, bicycles, machine tools, household appliances, are developing computer programs, are developing in large cities:

  • Mumbai,
  • Chena,
  • Kolkata,
  • Bangalore.

Light industry

Light industry covers the cotton, leather and footwear industries. India produces the world's largest quantity of cotton fabrics in $750 mills located primarily in the states of Maharashtra and Gujarat. The products of jute mills, concentrated in Kolkata, make up a large share of the country's exports.

Food industry

The food industry is characterized by the production of oil and vegetable fat from peanuts, sesame seeds, castor beans, mustard, flax, coconuts, as well as cane sugar and tea.

Other industries

Handicraft production plays an important role in the Indian economy. It provides almost half of the cheap industrial products that satisfy the needs of the domestic market and for export. These are artistic crafts and various crafts. These include carpet weaving, jewelry making, weaving, ivory carving, artwork on metal. Oil mills, forges, carpentry, tanning, pottery, soap-making, sewing, and furniture factories are found in every locality. They satisfy the everyday needs of the population and serve to attract tourists.

Example 1

India is the only country in the world that produces small diamonds.

Mumbai is a major center for the film industry. The largest film factories in India are located there, which are popularly called "Bollywood". Popular film actors are considered by Indians to be national heroes.