The private sector in India has significantly contributed to the country's GDP and employment since independence. The opening of the Indian economy led to increased foreign investment and technology in sectors like financial services and transport. The private sector's share of investment in manufacturing rose from 80.4% in the 1980s to 93.3% in the 1990s, showing the government's reduced role. Major driving sectors were automobile, chemicals, textiles, food, computers, telecom, and petrochemicals. Additionally, the fast growing services sector increased its GDP share and importance of private companies in areas like BPOs, software, banking, and finance is evident from their growth. The private sector has improved quality of life in India by increasing

2.  Overview of Private Sectors
 Impact on GDP
 Sub sectors & their influence
 Advantages

3.  Since the time after Independence, the
private sector has been contributing a
large portion of India’s GDP & has been
a key employment generator

5.  The opening up of Indian economy has led to
free inflow of foreign direct investment (FDI)
along with modern cutting edge technology,
which increased the importance of private
sector in Indian economy considerably.
 The investment quantum grew from 56% in the
first half of 1990 to 71 % in the second half of
1990. This trend of investment continued for
over a considerable period of time. These
investments were especially made in sector
like financial services, transport and social
services.

6.  The share of private sector in investment in
the manufacturing sector increased from
80.4 percent in 1980’s to 93.3 percent in
the 1990 – an unambiguous sign of
government withdrawing from this sector.
 Manufacturing companies covering sectors
like automobile, chemicals, textiles, agri-
foods, computer hardware,
telecommunication equipment, and
petrochemical products were the main
driver of growth

7.  The fastest growing sector of the Indian
Economy.
 The services sector GDP grew at 7.8
percent per annum & increased its share in
overall GDP from 41 percent in 1990-91 to
almost 50 percent by 1990-00.
 The importance of private sector in Indian
economy can be witnessed from the
tremendous growth of Indian BPOs, Indian
software companies, Indian private banks
and financial service companies

8.  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

9. Thank You