Industries in India

1. Historical Aspects

1.1 Early Industrial Development

• Pre-Industrial Era: India had a strong handicraft industry, especially in textiles and handicrafts, which were exported to Europe.
• Colonial Impact: British colonial rule disrupted traditional industries, leading to deindustrialization. Textile mills in India were destroyed, and British industries dominated the market.
• First Industrial Policy (1948): Post-independence, India adopted a planned economy with a focus on self-reliance and industrialization.

1.2 Major Industrial Centres in Early Years

1.3 Industrial Policy of 1956

• Objective: To promote heavy industries and self-reliance.
• Five-Year Plans: Industrial growth was prioritized in the first two Five-Year Plans (1951–1956, 1956–1961).
• Public Sector Expansion: Heavy industries were nationalized and placed under public sector control.

1.4 Post-1991 Economic Reforms

• Liberalization, Privatization, and Globalization (LPG): Initiated in 1991 to attract foreign investment and modernize industries.
• Impact: Led to rapid industrial growth, especially in the private sector and service industries.

2. Current Stage

2.1 Industrial Structure

2.2 Major Industrial Sectors

• Textile Industry: Largest employer, contributes ~4% to GDP.
• Automobile Industry: Fastest-growing sector, with companies like Tata, Maruti, and Mahindra.
• Information Technology (IT): India is a global leader in IT services, with major companies like TCS, Infosys, and Wipro.
• Pharmaceuticals: India is the “pharmacy of the world,” with major players like Ranbaxy and Cipla.

2.3 Industrial Growth Indicators

• GDP Contribution: Manufacturing sector contributes ~17.5% to GDP.
• Employment: Provides employment to over 35 million people.
• Export Contribution: Industrial exports account for ~25% of total exports.

2.4 Emerging Sectors

• Renewable Energy: India is the world’s third-largest producer of solar energy.
• Biotechnology: Rapid growth in pharmaceuticals and biotech startups.
• Green Energy: Government initiatives like the National Solar Mission (2010) and Production Linked Incentive (PLI) scheme (2020).

3. Policies

3.1 Industrial Policy of 1956

• Objective: To promote heavy industries and self-reliance.
• Key Features:
  • Emphasis on public sector.
  • Focus on steel, machinery, and power.
  • Establishment of the Planning Commission.

3.2 Industrial Policy of 1991

• Objective: To liberalize the economy and attract foreign investment.
• Key Features:
  • Deregulation of industries.
  • Reduction of licensing requirements.
  • Encouragement of private sector participation.

3.3 Industrial Policy of 2017

• Objective: To promote manufacturing and ease of doing business.
• Key Features:
  • Focus on “Make in India” initiative.
  • Simplification of procedures.
  • Incentives for MSMEs and startups.

3.4 Major Policies and Schemes

3.5 Key Acts and Regulations

• Industrial Disputes Act, 1947: Regulates labor relations.
• Factories Act, 1948: Ensures safety and working conditions.
• Foreign Exchange Management Act (FEMA), 1999: Regulates foreign investment and exchange.
• Goods and Services Tax (GST), 2017: Unified tax system for goods and services.

3.6 Important Dates

• 1854: First textile mill established in Mumbai.
• 1919: TISCO established in Jamshedpur.
• 1956: Industrial Policy Resolution passed.
• 1991: Economic liberalization initiated.
• 2014: “Make in India” initiative launched.
• 2020: Production Linked Incentive (PLI) Scheme launched.

3.7 Key Terms and Definitions

• Public Sector: Industries owned and controlled by the government.
• Private Sector: Industries owned and controlled by individuals or companies.
• MSMEs: Micro, Small, and Medium Enterprises.
• Make in India: Government initiative to boost manufacturing.
• PLI Scheme: Production Linked Incentive to boost manufacturing and exports.

3.8 Frequently Asked Questions (SSC, RRB)

• Q: Which is the largest industry in India?
  A: Textile industry.

• Q: When was the first textile mill established in India?
  A: 1854 in Mumbai.

• Q: What is the objective of the “Make in India” initiative?
  A: To boost manufacturing and attract global investment.

• Q: Which act regulates labor relations in India?
  A: Industrial Disputes Act, 1947.

• Q: What is the current contribution of the manufacturing sector to India’s GDP?
  A: ~17.5% (2022).