Indian Industries and Economic Roles

Indian Industries and Economic Roles

India is ranked as fifth largest economy of the world in 2020. Many western companies and market players are interested and involved in Indian Business. Understanding how the economy of the country works is the first step to know and remember. The most important industries regarding to economical factors in India are Transportation, Information Technology, Banks and Insurance, Real Estate, Agriculture and Retain and Trade. Before starting Investment to the business or economic market, information about economy and important industries should be considered.

Important Industries of India:

Transportation

India's Transport system is very large and expanded. Transportation system of India is very significant in contributing to nations GDP and caters the needs of around 1.1 billion people. In 2007, the transportation sector of India contributed 5.5 percent to the nations' GDP with road transportation. Good association between rural and urban areas of a country is very essential in the economical growth. Improvements in the Transportation sectors are very important in country's economic growth and to reduce poverty.

Indian Railways are one of the largest railways with great management systems. Railways play an important role in carrying people and cargo across India's cities and areas.

Indian Roads are dominant mode of transportation because they carry 90 percent of the country's passenger traffic.

India is richer with 12 major and 187 minor ports. These ports serve the country's growing foreign rate in Petroleum products, Iron ore and Coal.

India has 125 airports, and from those 11 airports are international airports. The increase in air traffic including both passengers and cargo has played very important role in country's economy.

Information Technology:

Information Technology in India consists of two major components; IT services and Business Process Outsourcing (BPO). This Industry has led the economic transformation of the country and changed the perception of India in the Global Economy. This Industry contributes 64% of GDP from all the services and 9% of the nation's GDP.

The other major segments of Indian IT Industry are Software products, Engineering services and hardware. It also contributes to the Indian Education sector especially in Engineering and Computer Science. India is the fourth largest base for setting of new businesses.

Banks and Insurance:

There is a great connection of Insurance and Banking sectors and financial sectors of the country. Banking and Insurance sectors in India played an influential role in making up the economic growth of India.

Agriculture:

India is the world's second largest producer of farmed goods. It is also famous in Fishing and Forestry. India is the first largest producer of fresh fruits and vegetables, milk, spices, jute, castor oil seeds and second and third largest producer of several dry fruits, agriculture and textile raw materials, pulses, wheat, farmed fish, sugarcane, coconut and many vegetables and fruits. It contributes 15.7% to the nation's GDP.

Retail and Trade;

Retailing is one of the pillars of Indian economy and contributes 22 percent to its national GDP. The Retail sector of India is emerging as one of the largest retail sectors of the world.