Analysis of different sectors of Indian economy

1. ANALYSIS OF SECTORS
Presented By,
Abhirama.A
S1 MBA

2.  The sectoral analysis of Indian
economy is a summary of the factors and
industry sectors that were reformed or
added in the economic growth report of
India covering different Indian industries.

3. DIFFERENT SECTORS…
 External Sector
 Industrial Sector
 Agricultural Sector
 Infrastructural Sector
 Social Sector
 Service Sector

4.  Portion of country’s economy that
interacts with economies of other
countries
 Goods market – Exports & Imports
 Financial market – Capital Flow
 Image of India from the land of farmer has
changed to technology hub

5.  Contributes only 27% of country’s GDP
 2003-04 & 2004-05, IIP grew by 6.9 & 8.4%
- manufacturing sector with a contribution
of 80%
 Highest growth of IIP in 1995-96 with 13%
& lowest being 2.7% in 2001-02
 Different industries which come under
this sector:

6.  In 2003-08, growth rate of 15 to 20%
 Improved quality & performance driven
the export & acceptance in global market
 Reasons :*Foreign collaboration & tie ups
*Excise duties reduced
*Improvement in retail credits
*Reduction of tariff

7.  India, largest consumer of gold in the
world
 Imports raw material, add value & export
them
 India’s Gems & Jewellery Promotion
Council aims at transforming India into a
global diamond trading center
 Before liberalisation smuggling of gold in
large quantities
 Main export destination : UK &

8.  Major source of foreign exchange
earnings
 Major producer of fabrics in the world
 Low cost skilled labour, growing domestic
market.
 Drawbacks are historical government
regulation, lack of adequate economy, low
productivity of workers
 Good opportunity due to WTO agreement

9.  Fundamental industry in India
 Steel industry has been strong due to
strong growth of demand for China &
domestic market
 Improved technology & thrust given for
exporting

10.  More than 65% of population depends on
this sector
 45% of total land is cultivated
 India’s total milk production is highest in
world
 Largest producer of many fresh fruits,
vegetables, milk, spices, jute etc
 India tops the list of total irrigated land in the
world
 Dairy farming, fishing & forestry are
important part of this sector

11.  Infrastructure comprising transportation,
communication, water supply & sanitation
 Important factor for high & sustained growth
 Engaged in promoting private sector to
invest
 Several fiscal incentives were announced
 Ten year tax holidays offered in core sectors
in initial 20 years
 Projects in airports, ports, industrial parks,
generation & distribution of power can avail
tax holidays in initial 15 years

12.  Country’s power generation has increased
 Today, power generation is 583.8 billion
kilowatt hour, i.e; increase of 7-8% each year
 Projects executed based on public-private
partnership agreement

13.  One of the world’s largest railway network
 Total route length 65,436 km, about 7,172
stations, fleet of more than 7,000 passengers
& more than 4,000 goods train
 Carriers more than 8,425 million passengers
& transport over 1050.18 million tons of
freight per year
 In 2013-14 had revenues of 1441.67 billion
 Started scheme to privatise several services

14.  Second largest road network in world
spanning a total of 4.7 million kms
 Carry 85% of passengers & 70% of all
goods
 Private sector emerging as a key player in
development of road infrastructure
 Manufactures most of its motorized
vehicles- cars, jeeps, trucks, buses & two
wheelers of various capacities

15.  Hindustan Aeronautics Limited(HAL)- India’s
gigantic aeronautical organisation & major
aerospace complexes in the world
 Public airlines: Air India, Indian Airlines,
Alliance Air
 Private airlines: Jet Airways, Air Sahara,
Spice Jet, Kingfisher etc
 24 International airports & more than 88
other airports

16.  India’s Telecommunication network- Second
largest in the world
 Uses digital technology
 Focus of present strategy- balanced growth
of network, rapid modernisation, increased
productivity etc
 Besides R&D in digital technology, India
established manufacturing capabilities
 Backbone of industrial & economic
development

17.  Concerns about the development of
society which includes healthcare,
elementary education etc
 Ongoing economic reforms & the National
Common Minimal Program attach high
priority to the development of this sector.
 Social sector programs & their
implementation come under the state
govt.

18.  Definite growth in the overall healthcare
resources & health related manpower in last
decade
 India has morethan 1.25 million doctors &
morethan o.8 million nurses
 Increasing demand for high level medical
services, increased awareness, growth in
infrastructure, income, insurance & polices
are leading to growth of this sector
 Moreover shift from infectious to lifestyle
diseases

19.  Accounts more than half of GDP
 Employment rate is high
 Rise in service sector’s share in GDP-
structural shift of Indian economy
 It’s share has grown from 43.69% in 1990-
1991 to 55 % by 2009-2010
 If the service sector bypasses the
industrial sector, economic growth can be
distorted