This contains basic knowledge of Sectors of Indian Economy Prepared by- Ms. Neetu Kushwaha Research Scholar Department of Commerce

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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.

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INTRODUCTION TO INDIAN
ECONOMY
-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.

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Primary Sector:
The primary sector in India 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.

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Secondary Sector
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.

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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.

7. PRIMARY TERTIARY
SECONDARY
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Introduction to Indian Manufacturing Sector
-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

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Types of Manufacturing Sector In India
• 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.

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-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

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