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w India is one of the oldest civilizations in the
world, spanning a period of more than 4000
years, and witnessing the fusion of several
customs and traditions, which are reflective of
the rich culture and heritage of the Country

w It covers an area of 32,87,263 sq. km

w extending from the snow-

snow-covered Himalayan
heights to the tropical rain forests of the south.
a|s the 7th largest country in the world, India
stands apart from the rest of |sia, marked off as
it is by mountains and the sea, which give the
country a distinct geographical entity.
aIndia is one of the oldest civilizations in the
world with a kaleidoscopic variety and rich
cultural heritage. It has achieved all-round socio-
economic progress during the last 62 years of its
Independence.
aIndia has become self-sufficient in agricultural
production and is now one of the top
industrialized countries in the world and one of
the few nations to have gone into outer space to
conquer nature for the benefit of the people.
  
 
w §stablishment of industries in India has a rich
past. Industry was and still can be called the life-
life-
blood of a developing country
w India's economic history can be broadly divided
into three eras, beginning with the pre-
pre-colonial
period lasting up to the 17th century
w The advent of British colonization started the
colonial period in the 18th century, which ended
with independence in 1947.
w The third period stretches from independence in
1947 until now.
 ñ

 

ñ
w India's economic
history can be
broadly divided
into three eras,
beginning with
the pre-
pre-colonial
period lasting up
to the 17th
century 





ñ

 

ñ
 0

 

 
w |ssessment of India's pre-
pre-colonial economy is mostly
qualitative, owing to the lack of quantitative
information. One estimate puts the revenue of |kbar 's
|kbar's
Mughal §mpire in 1600 at £17.5 million, in contrast
with the total revenue of Great Britain in 1800, which
totaled £16 million.
w |fter the decline of the Mughals, western, central and
parts of south and north India were integrated and
administered by the Maratha §mpire.
§mpire. The Maratha
§mpire's budget in 1740s, at its peak, was Rs. 100
million. |fter the loss at Panipat, the Maratha §mpire
disintegrated into confederate states of Gwalior,
Baroda, Indore, Jhansi, Nagpur, Pune and Kolhapur.
 G 


  
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British §ast India Company entered the Indian political
theatre. Until 1857, when India was firmly under the
British crown, the country remained in a state of political
instability due to internecine wars and conflicts.
 ñ  
 

 !"

 0

  
w The advent of British colonization started the colonial
period in the 18th century, which ended with
independence in 1947. The third period stretches from
independence in 1947 until now.
w The economy of India is the twelfth largest economy in
the world by nominal value and the fourth largest by
purchasing power parity (PPP). In the 1990s, following
economic reform from the socialist-
socialist-inspired economy of
post--independence India, the country began to
post
experience rapid economic growth, as markets opened
for international competition and investment.
§conomists predict that by 2020, India will be among
the leading economies of the world.
  

ñ

  
w §stablishment of Indian industries started with the
significant development of tea drinking in day to day
life. The history of beginning of tea industry in India is
thus laced with wonder and a curious story of
evolvement. Beginning in the early centuries and
coming down to collaboration of Indians and British,
tea is such an industry that received momentous
admiration from both the upper and lower stratum of
society.
w The 19th century was the prolonged era, which went
through every kind of turbulence. The period also
grounded other establishment of Indian industries, at
times with assistance of Indians too.
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 §lectrical industries:
w If one can direct his/her attention to the times of the
manufacture of radio receiving sets in private sector, in
late forties, the electronics industry has achieved very
quick progress.

w virtually a five times growth. In a single year of 1987-

1987-
88, growth was 37.7%. The industry has a very vast
range of production, like consumer electronics,
principally radio and television sets, control
instruments and industrial electronics, computer
system, communication and broadcasting equipment,
aerospace and defense equipment, and electronic
components. India has surfaced as one of the leading
exporters of electronic goods
 Cement industries:
w The inaugural cement factory built up in Chennai in
1904. |t present, there are 115 large and 310 mini
cement plants with an installed capacity of more than
110 million tones.

w In 1997-
1997-98 the total production was of the order of 83
million tones, of which 4.25 million tones were
exported to South-
South-east |sia, Middle
Middle--east and |frica.
 Paper industries:
w Machine-made paper was first manufactured in India in
Machine-
1812. There were 15 mills with a total production of
lakh tonnes. With rising population and broadening of
education, the demand for paper has been escalating
since.

w Therefore, bamboo, sabai grass and sugarcane

bagasses are being used more and more. The total
newsprint production has now reached well over
400,000 tones. However, imports of approximately
500,000 tones are still obligatory
 Petrol industries:
w The industry is located near Mumbai and
Vadodara, Now it is broadening to other parts
of the country.

w Consumption of major petrochemicals was 3

million tones in 1995-
1995-96 and by 2002 it had
risen to 6.8 million tones. Now there are as
many as 14 mineral oil refineries in India - 3 in
|ssam, 2 in Maharashtra and one each in
Gujarat, Karnataka, Kerala, Tamil Nadu, |ndhra
Pradesh, West Bengal, Bihar, Uttar Pradesh and
Haryana.
 Steel  #
w | humble beginning of the modern steel industry was
reached in India at Kulti in Bengal in 1870. But the
conception of larger production became visible with the
establishment of a steel plant in Jamshedpur in Bihar in
1907
w It started production in 1912. It was, however, only
after Independence that the steel industry was able to
find a strong foothold.
w The iron and steel industry in India is over 122 years
old.
w Private sector plants, of which the Tata Iron and Steel
Company (TISCO) is the biggest, have been allowed to
raise their capacity.
 Sugar industries:
w Placing sugar khandsari and gur or jaggery
together, India stands first in the world production.
In 1950-
1950-51 there were 138 sugar mills in the
country.
w Their number has now escalated to 460. Since it
deals with a consumable raw material, it is
extensively scattered and is fundamentally a rural-
rural-
based industry. The production of sugar has also
risen gradually, though with ample fluctuations-
fluctuations-
from 1.13 million tones to 12.8 million tones by
1997--98.
1997
w The sugar content in cane is higher i.e. about
10.5% in Maharashtra and other southern states.
The industry therefore has been amplifying
speedily in these parts.
 Chemical industries:
w It is 4th in size, next only to (me) iron and steel, (ii)
engineering, and (iii) textiles. Here too rapid growth
can be witnessed in the fields of organic and inorganic
chemicals. These heavy chemicals aid down-
down-stream
products such as drugs, dyestuffs, pesticides, plastics,
paints etc.

w Pharmaceuticals are yet another arena in which India

gives tough competition to the third world countries. It
is highly diversified and simultaneously vertically
structured. The country is nearly self-
self-reliant in basic
and bulk drugs. However, imports are still
indispensable. But these are compensated for, through
exports to a specific degree. In 1996-
1996-97 total turnover
of the industry was Rs. 12,680 crores.
 Miamond industry:
w India has always been center stage in the dramatic
history of some of the worldƍs most famous
mesmerizing diamonds. India has been the earliest
known source of diamonds. Conversely, today India is
precursor in the gem industry and a world leader in the
manufacturing of cut and refined diamonds.
w Miamonds used in jewelry worldwide, nine out of every
ten come from India the Indian diamond industry today
is a result of perseverance and hard work. |fter India
became independent in 1947, for several years, the
nationƍs economy was in the depression.
w The Indian diamond industry was a scattered cottage
industry only three decades ago. Now it gradually
evolved into a modern, mechanized, large-
large-scale
operation.
 |
 $
w Thus the owners of these managing agencies
controlled a major portion of the economy,
prior to independence.

w But things changed after independence.

Parliament enacted a legislation to curb the
powers of managing agencies. By 1971 the
government had banned the managing
agencies. The Industrial Policy Resolution
declared in 1948, clearly put forward the goal
of the Government's policy with respect to
industrialization and classified them into four
categories.
 

 
w |t the time of liberalization the Indian
industries were not competitive in the global
scenario. They could not face the stiff
competition from the foreign industries; hence
many industries sold their company to
multinational corporations or entered into joint
ventures with foreign companies or shut down
the business.
w IT and IT§'s industries flourished providing
employment to millions of graduates. Foreign
equity investment was allowed up to 40%.
 Industry

Reliance Oil & Gas,

195 26.07 2.79 30.67 89.29
Industries Petrochemicals

Oil and Natural

Oil & Gas
198 Gas 18.90 4.11 33.79 54.11
Operations
Corporation

State Bank of
219 Banking 15.77 1.47 188.56 33.29
India

Indian Oil Oil & Gas

303 42.68 1.82 25.39 16.36
Corporation Operations

374 ICICI Bank Banking 9.84 0.64 91.07 29.85

§lectricity
411 NTPC 7.84 1.60 20.34 41.57
generation

Steel |uthority
647 Steel 7.88 1.45 26.37
of India Limited

738 Tata Steel Steel 5.83 0.97 11.48 14.63

Telecommunica
826 Bharti |irtel 4.26 0.94 6.61 39.16
tions Services

Reliance
Telecommunica
846 Communication 3.13 0.65 13.08 29.63
tions Services
s
 Tata
Software &
927 Consultancy 4.32 0.97 3.03 21.38
Services
Svcs

949 HMFC Banking 1.49 0.40 16.97 19.07

Larsen &
961 Capital Goods 4.68 0.52 5.72 24.94
Toubro

Bharat Oil & Gas

967 22.77 0.50 8.67 4.16
Petroleum Operations

Bharat Heavy
1012 Capital Goods 3.99 0.56 5.17 27.92
§lectricals

Infosys Software &

1040 3.21 0.89 3.08 22.09
Technologies Services

1093 HMFC Bank Banking 1.96 0.27 21.09 12.87

Software &
1102 Wipro 3.47 0.68 3.26 15.87
Services

1111 Tata Motors Capital Goods 7.27 0.50 5.77 6.75

Hindustan Oil & Gas

1112 20.48 0.39 7.59 2.54
Petroleum Operations
1134 NMMC Materials 0.97 0.54 1.73 34.83

Food Mrink &

1159 ITC Limited 2.98 0.64 3.57 19.01
Tobacco

Punjab
1166 Banking 3.03 0.38 38.42 4.76
National Bank

MLF Universal Miversified

1185 0.61 0.45 4.19 33.26
Limited Financials

Hindalco
1205 Materials 4.41 0.62 6.43 6.22
Industries

1249 G|IL Utilities 3.83 0.59 5.03 8.93

1305 Canara Bank Banking 3.03 0.35 38.54 2.85

1361 |xis Bank Banking 1.29 0.15 16.91 9.10

1375 Bank of India Banking 2.48 0.26 32.80 4.72

Power Grid
1413 Corporation of Utilities 0.83 0.25 8.50 11.54
India
1477 Bank of Baroda Banking 2.55 0.26 33.97

1478 National |luminium Company Materials 1.37 0.55 2.20

1484 Unitech Group Construction 0.76 0.30 3.03

1527 Grasim Industries Construction 3.24 0.46 3.70

1597 Reliance Power Utilities 0.00 0.00 0.05

1737 Indian Overseas Bank Banking 1.43 0.23 19.03

1744 IMBI Bank Banking 1.70 0.14 24.51

1753 Power Finance Corporation Business Services & Supplies 0.89 0.23 10.80

1759 Union Bank of India Banking 1.90 0.20 23.76

1763 Satyam Computer Services Software & Services 1.50 0.33 1.59
1803 Central Bank of India Banking 1.58 0.12 21.44 1.05

1833 Syndicate Bank Banking 1.54 0.17 20.66 1.28

1919 Mahindra & Mahindra Consumer Murables 4.07 0.35 4.59 4.12

1919 Reliance Capital Business Services & Supplies 0.37 0.16 1.72 11.16

1935 UCO Bank Banking 1.35 0.07 17.32 1.01

1952 Oriental Bank of Commerce 1.32 0.13 17.05 1.57

1954 Suzlon §nergy Utilities 1.85 0.20 2.90 10.52

1996 |llahabad Bank Banking 1.22 0.18 15.68 1.23

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a Software Industry:
Industry: Software Industry
registered a massive expansion in the last 10
years. This industry signifies India's position as
the knowledge based economy with a
Compounded |nnual Growth Rate (C|GR) of
42.3%.

aMining Industry:
Industry: The GMP contribution of the
mining industry varies from 2.2% to 2/5% only
but going by the GMP of the total industrial sector
it contributes around 10% to 11%.
d Petroleum Industry:
Industry: Petroleum industry started its
operations in the year 1867 and is considered as the
oldest Indian industry. India is one of the most
flourishing oil markets in the world and in the last few
decades has witnessed the expansion of top national
companies like ONGC, HPCL, BPCL and IOC.