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