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1
UNIT – I
Foundation of Indian Business:
-Manufacturing and service sectors;
-Small and medium enterprises;
-India’s experience of liberalization and
globalization;
-Social responsibility and ethics
-Franchising
- Outsourcing
- E-commerce.
2
INTRODUCTION TO INDIAN
ECONOMY
3
-India is one of the seventh largest economy
in the world, with three major sectors i.e.
primary economy, secondary economy, and
tertiary economy.
-In terms of operations, the Indian economy
is divided into organized and unorganized.
-While for ownership, it is divided into the
public sector and the private sector.
Primary Sector:
4
The primary sector in In“
dia is the sector which is
largely dependent on the availability of natural
resources in order to manufacture the goods and also
to execute various processes.
One of the major problem that this sector faces is the
underemployment and the disguised employment.
Secondary Sector
5
The economy in the sector is dependent on the natural
ingredients which are used to create the services and
products offered and which at the end are used for
consumption.
This sector is responsible for the employment of almost
14 percent of the entire workforce currently working in
India.
The secondary sector also contributes to almost 28
percent of the share of GDP.
This sector is the backbone of Indian economy.
Tertiary Sector
This sector contributes the largest in terms of share in
GDP in India. The sector is also the service sector and
consider as an important factor for the development of the
other two sectors.
This sector is responsible for employing 23 percentage of
the workforce out of the total workforce currently
working in India.
This sector contributes to almost 59 percent of the total
share of GDP.
The main problem that this sector is that the jobs which
involve lower salaries do not attract much employment.
6
PRIMARY TERTIARY
SECONDARY
7
8
Introduction to Indian Manufacturing Sector
9
-Manufacturing can be defined as physical or chemical transformation of
materials into products on large scale using machinery or capital
equipment's, in contrast to production of handmade goods for personal use.
-30% of the economy is of Manufacturing Sector.
-Manufacturing sector contributes 15.24 per cent of the country’s GDP, and
provides employment to over 6 million persons.
-Major Sectors includes textiles, capital goods, metals, chemicals, tyres,
cement, electronics, automotive, leather & footwear, machine tools, Food,
Ceramics, Textiles Machinery etc.
-Deloitte's global index, 2013, for 38 nations, has ranked India the fourth
most competitive manufacturing nation, behind China, the US and Germany
Types of Manufacturing Sector In India
10
•Capital Goods refer to products that are used in the production of
other products but are not incorporated into the new product. This
industry is the “MOTHER” of all manufacturing industry.
•Consumer Goods represent final value-added products that are
distributed for consumption in mass consumption markets and which
are purchased primarily for personal, family and/or household
purposes.
-The service sector, also known as the tertiary sector, is the third tier in the
three sector economy. Instead of the product production, this sector produces
services maintenance and repairs, training, or consulting.
-The services sector is not only the dominant sector in India’s GDP, but has also
attracted significant foreign investment, has contributed significantly to export and
has provided large-scale employment.
-India’s services sector covers a wide variety of activities such as trade, hotel and
restaurants, transport, storage and communication, financing, insurance, real
estate, business services, community, social and personal services, and services
associated with construction.
- 55.39% is contributed by service sector in Indian economy and provide
employment to 61% of workforce
11
12

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manufacturing sector-210123153809.pptx

  • 1. 1
  • 2. UNIT – I Foundation of Indian Business: -Manufacturing and service sectors; -Small and medium enterprises; -India’s experience of liberalization and globalization; -Social responsibility and ethics -Franchising - Outsourcing - E-commerce. 2
  • 3. INTRODUCTION TO INDIAN ECONOMY 3 -India is one of the seventh largest economy in the world, with three major sectors i.e. primary economy, secondary economy, and tertiary economy. -In terms of operations, the Indian economy is divided into organized and unorganized. -While for ownership, it is divided into the public sector and the private sector.
  • 4. Primary Sector: 4 The primary sector in In“ dia is the sector which is largely dependent on the availability of natural resources in order to manufacture the goods and also to execute various processes. One of the major problem that this sector faces is the underemployment and the disguised employment.
  • 5. Secondary Sector 5 The economy in the sector is dependent on the natural ingredients which are used to create the services and products offered and which at the end are used for consumption. This sector is responsible for the employment of almost 14 percent of the entire workforce currently working in India. The secondary sector also contributes to almost 28 percent of the share of GDP. This sector is the backbone of Indian economy.
  • 6. Tertiary Sector This sector contributes the largest in terms of share in GDP in India. The sector is also the service sector and consider as an important factor for the development of the other two sectors. This sector is responsible for employing 23 percentage of the workforce out of the total workforce currently working in India. This sector contributes to almost 59 percent of the total share of GDP. The main problem that this sector is that the jobs which involve lower salaries do not attract much employment. 6
  • 8. 8
  • 9. Introduction to Indian Manufacturing Sector 9 -Manufacturing can be defined as physical or chemical transformation of materials into products on large scale using machinery or capital equipment's, in contrast to production of handmade goods for personal use. -30% of the economy is of Manufacturing Sector. -Manufacturing sector contributes 15.24 per cent of the country’s GDP, and provides employment to over 6 million persons. -Major Sectors includes textiles, capital goods, metals, chemicals, tyres, cement, electronics, automotive, leather & footwear, machine tools, Food, Ceramics, Textiles Machinery etc. -Deloitte's global index, 2013, for 38 nations, has ranked India the fourth most competitive manufacturing nation, behind China, the US and Germany
  • 10. Types of Manufacturing Sector In India 10 •Capital Goods refer to products that are used in the production of other products but are not incorporated into the new product. This industry is the “MOTHER” of all manufacturing industry. •Consumer Goods represent final value-added products that are distributed for consumption in mass consumption markets and which are purchased primarily for personal, family and/or household purposes.
  • 11. -The service sector, also known as the tertiary sector, is the third tier in the three sector economy. Instead of the product production, this sector produces services maintenance and repairs, training, or consulting. -The services sector is not only the dominant sector in India’s GDP, but has also attracted significant foreign investment, has contributed significantly to export and has provided large-scale employment. -India’s services sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social and personal services, and services associated with construction. - 55.39% is contributed by service sector in Indian economy and provide employment to 61% of workforce 11
  • 12. 12