INTRODUCTION

The progress of a country is measured by its industrial development. To be a

strong power in the world, a country needs to be industrially advanced too.
Although agriculture has its own importance and provides the basic necessities
of life, but it alone cannot take a country forward. Even to modernize and
improve agriculture, industrialization is necessary. The modern equipments that
are used by farmers is produced by industries. Industry accounts for 28 percent
of the GDP and employ 14percent of the total workforce. In absolute terms, India
is 12th in the world in terms of nominal factory output. The Indian industrial
sector underwent significant changes as a result of the economic reforms of
1991, which removed import restrictions, brought in foreign competition, led to
privatisation of certain public sector industries, liberalised the FDI regime,
improved infrastructure and led to an expansion in the production of fast moving
consumer goods. The population of India is so large that we need many such
industries to produce enough material so that things are available in plenty and
at reasonable prices.Goods can be exported after they are manufactured in
various industries. If quality is maintained by the manufacturers, the reputation
of Indian industries would be high. Goods should be highly sophisticated so that
they capture world market. To survive in the world, every country needs to be
noticed and respected for what it produces and contributes to the world market.
Cars and electronics manufactured in Japan have created uproar in the world.
Their high quality is greatly applauded and Japan has almost become a super
power in the world because of its advanced industrial development.
VARIOUS FACTORS FOR THE DEVELOPMENT OF INDUSTRIES
The various favourable factors present in the country for the development of
industries are:
1) India is wealthy in natural resources, such as minerals, forests, fisheries, etc.
required for the development of industries. 2) India is diversified in commercial
crops, such as sugar-cane, raw cotton, raw jute, tobacco, oil seeds, etc. required
for the development of agro-based industries. 3) India is fairly rich in power
resources, such as coal, hydro-electricity, atomic energy, etc. required for the
power generation for the industries. 4) India is rich in human resources. As such,
cheap and technical labour required for the development of industries is also
available in the country. 5) As India has vast population, wide market required for
the development of industries is also available in the country.
BENEFITS FROM INDUSTRIES
Industries give many benefits to the country. In a developing country like India,
industrial development is paramount importance for overall development. Some
benefits are highlighted here,
1. When there is development of industries in the country, there will be the
investment of large capital, use of modern machineries, high degree of
specialisation and large-scale operations. As a result, there will be greater
productivity and higher national income. Higher national income, in turn, will
contribute to increase in per capital income. Thus, development of industries will
contribute to the growth of national and in per capital income in the country. 2.
Industrialisations create more and varied employment opportunities, and

thereby, reduce the problem of unemployment and under-employment in the

country. Further it can absorb the surplus agricultural labour, and thereby,
reduce the problem of disguised unemployment in rural areas. It can contribute
to the development of cottage and small industries in rural areas. 3. Industries
will promote agricultural development in the country in many ways. First, with
the development of agro-based industries (i.e. industries based agriculture), such
as sugar-cane, raw cotton, raw jute, tobacco, oil seeds etc. there will be more
demand for these materials. This, in turn will encourage the development of
agriculture. 4. Industries will contribute to the development of tertiary sector, i.e.
trade, transport & communication, banking insurance, etc. 5.Development of
industries will be helpful in maintaining a proper balance between agriculture,
industry and the tertiary sector, which is essential for the all-round economic
progress of any nation. 6.Development of industries will contribute to the
expansion of existing industrial areas and growth of new industrial areas.
7.Agriculture in India is not stable, as it is largely dependent on the vagaries of
monsoons. On the other hand, industries are relativity more stable.
8.Industrialisation contributes to better utilisation of natural resources like
minerals, forests, fisheries, etc. which the country has in abundance
9.Industrialisation will contribute to the expansion of the markets for agricultural
crops, minerals, forest products etc. Further, industrialisation will contribute to
the expansion of the markets for capital goods or producer goods like plant &
machinery. 10.Industries contribute to increase in the income and purchasing
power of the people. Further, they make available to the people a wide variety of
goods for consumption. 11.Industries are indispensable for national defence such
as arms and ammunitions, ships, aircrafts, tankers etc.
MAJOR INDUSTRIES IN INDIA
Indian industries are the major aspects for the rapid growth in modern India.
Industries play a vital role in shaping the economy of a society. After
independence, the nation has successfully achieved sovereignty in
manufacturing products. In India four key industrial economic sectors are
identified. The primary sector, largely extract raw material and they are mining
and farming industries. In the secondary sector, refining, construction and
manufacturing are categorized. The tertiary sector deals with services and
distribution of manufactured goods. Here, the leading market industries and
industrial products are being considered. The major industries are textiles
industry, chemicals industry, food processing industry, steel industry, cement
industry, mining, petroleum and software.
According to some experts, it is said that the share of the US in the world GDP is
expected to fall, from 21percent to 18percent, and the share of India in the world
GDP is going to rise from 6percent to 11percentby 2025. Hence, India is to
emerge as a third pole, after the US and China, in the global economy. The
expectation is based upon the growth in all the sectors in India. One of them is
the industry sector. It measured a growth rate of 6.2percent in October 2003 with
a sharp increase of nearly 4percent in October 2004, marking 10.1percent.
Textile industry is the largest industry in terms of employment.
TEXTILE INDUSTRY The Indian textile industry covers a wide scale of activities. Its
production ranges from raw materials such as cotton, jute, silk and wool to high
value-added products like fabrics and garments to consumers. The industry

makes use of different varieties of fibres, be it natural fibres, manmade fibres or

blends of such fibres. In Indian economy, the textile industry plays a significant
role. It provides direct employment to approximately 35 million people and
contributes 4 percent of GDP. It fetches 35 percent of gross export earnings and
contributes 14 percent of the value-addition in the manufacturing sector.
CHEMICAL INDUSTRY The chemical industry in India is one of the oldest domestic
industries and it currently produces nearly 70,000 commercial products, from
cosmetics and toiletries, to plastics and pesticides. The country is the 13th
largest exporter of pesticides and disinfectants globally. In terms of volume, it
figures 12th largest producer of chemicals. The petrochemical, agrochemical,
and pharmaceutical industries are some of the fastest growing sectors in the
Indian economy. The estimated worth of chemical industry is $28 billion and it
accounts for 12.5 percent of the total industrial production of India and 16.2
percent of its total exports.
FOOD PROCESSING INDUSTRY
India is one of the major food producing country in the world but accounts less
than 1.5 percent of international food trade. Hence, there is a vast scope for the
expansion of this industry. The food processing industry is estimated (2004) at Rs
3,150 bn (US$ 70 bn), including value added products of Rs 990 bn (US$ 22bn).
The estimated growth of this industry is 9-12 percent and on the basis of
estimated GDP, the growth rate is 6-8 percent, during the tenth plan period. The
industry employs 1.6 mn workers and it is projected to grow to 37 mn, direct and
indirect, by 2025.
STEEL INDUSTRY
The 4000 years Indian steel industry is on the upswing. During April-December
2004-05, the production of the finished steed recorded a growth of 4 percent and
reached 28.3 million tonnes. In the world scenario, Indian steel industry ranks
tenth. It represents approximately Rs. 9,000 crore of capital and provides direct
employment to more than 0.5 million people.
CEMENT INDUSTRY
Cement industry in India comprises of 125 large cement plants and over 300
mini cement plants having total installed capacity of 148.28 million tonnes and
11.10 million tonnes per annum respectively. In addition to this, there are 10
large cement plants owned by various State Governments. So, the total installed
capacity of the country as a whole stands at 159.38 million tonnes. The export of
cement in 2003- 04 was 6.92 million tonnes.
MINING INDUSTRY
The mining industries share in India's GDP is from 2.2 percent to 2.5 percent only
but it contributes to 10-11 percent in industrial sector's GDP. The organized
mining sector employs nearly 0.7 million people. Small scale mining
approximately contributes to 6 percent of the total value of mineral production.
PETROLEUM INDUSTRY
The petroleum industry in India is one of the oldest industry in the world, with oil
being struck as early as 1867 at Makum near Margherita in Assam, nine years

after Col. Drake's discovery in Titusville. Since then the industry has come a long
way. Today, after over fifty years of independence, the oil sector, has seen the
growth of giant national companies, like ONGC. India represents one of the most
exciting oil markets in the world today.
SOFTWARE INDUSTRY
The software industry in India symbolizes India's strength in the knowledge
based economy. It has witnessed a phenomenal growth in last decade. The
Compounded Annual Growth Rate (CAGR) is 42.3 percent. According to
NASSCOM's projection, the software industries contribution is expected to grow
to 7 percentby 2008 which started with 0.59 percent in 1994-95 and reached to
2.87 percent by 2001-02.
INDIA'S INDUSTRIAL PRODUCTION
Industrial Production in India increased 2.7 percent in August of 2012.
Historically, from 1994 until 2012, India Industrial Production averaged 7.26
percent reaching an all time high of 20.00 percent in November of 2006 and a
record low of -7.20 percent in February of 2009. Industrial production measures
changes in output for the industrial sector of the economy which includes
manufacturing, mining, and utilities. Industrial Production is an important
indicator for economic forecasting and is often used to measure inflation
pressures as high levels of industrial production can lead to sudden changes in
prices. India's industrial production edged higher in May 2012 after contracting in
the previous month, as output in Manufacturing and Mining sectors picked up
pace while Electricity growth remained solid.
CONCLUSION
.A well-developed industrial sector, covering various different areas is vital to the
economic development of a country. With a variety of different industrial sectors
that feed off each other, a well-balanced industrial sector is at the centre of
economic development. India's large service industry accounts for 57.2 percent
of the country's GDP while the industrial and agricultural sectors contribute 28.6
percent and 14.6 percent respectively. Major industries include
telecommunications, textiles, chemicals, food processing, steel, transportation
equipment, cement, mining, petroleum, machinery, software and
pharmaceuticals. The labour force totals 500 million workers. Providing
encouragement and support to industry is essential if it is to grow and develop,
supporting start-up industries and encouraging diversity all contribute towards a
positive economic climate. Any economic development plan must have industry
at the core. By encouraging and providing for industry, an economy will grow in
tandem which in turn encourages further industrial development.