Business & Industry

India has been one of the fastest growing free-market democracies in the world even in the wake of one of the worst economic crises in six decades. Its $1.2 trillion economy is expected to have grown 6-7 percent during the fiscal year ended March 31, 2009. This growth has come on the back of nearly 9 percent expansion over the past four years. 

Much of this economic expansion has come about because of the massive industrial development that has come to play a crucial role in the country's overall development strategy. Industries, including the growing services sector, are thelargest generator of employment opportunities in the country and a facilitator of trade and commerce with other countries. 

India is also attracting large inflow of capital and foreign investments into the country from all over the world. The government estimates to have attracted $35 billion in foreign direct investment during 2008-09. Overseas capital also plays a vital role in accelerating socio-economic development of a nation, thereby providing several categories of goods and services that cater to the diverse needs of the masses. India also has emerged as a major exporter - its merchandise exports top $155 billion, while export of services, including that from its globally recognised software and outsourcing industries, add another $50 billion. 

The industrial sector consisting of heavy and light engineering, steel, automotive, biotechnology, drugs and pharmaceuticals, food processing, mines and minerals, fertilizers, provide immense potential for developing adequate market infrastructure in the economy. These industries are involved in production of several good quality and skill intensive products, in bulk quantities and at very reasonable prices. 

The industrial base has been widely expanded, covering broadly the entire range of consumer, intermediate and capital goods. It has made considerable achievement in terms of output and employment. The Government of India has been undertaking several policy measures and incentives, from time to time, in order to promote rapid industrialization in the country. The major step in this direction has been the announcement of the Industrial Policy Resolution, initially passed in 1948 and then in 1956 and thereafter in 1991. 
India is fast emerging as a global manufacturing hub. Be it automobiles or computer hardware, consumer durables or engineering products, all are being manufactured by multinationals in India. Moreover, according to a report by the leading industry chamber, the Federation of Indian Chambers of Commerce and Industry (FICCI), India is poised to become the global manufacturing hub for luxury brands over the next five years with manufacturing of such items becoming a $500 million industry during this period. 
According to a report by global consultancy KPMG, Indian manufacturing should aim for a 5 percent global share by 2022. The report envisions India at the forefront of the global manufacturing and trade of goods, a leader in skill-intensive sectors and a global hub of research, development and design. 

India's vast domestic market and availability of low-cost workers with advanced technical skills has been instrumental in attracting an ever expanding number of multinationals who are setting up their manufacturing base in the country. The country has also a unique demographic advantage, as its working population will soon be the largest in the world. 
The sheer size of the Indian market has obvious appeal. The rapid growth of the Indian economy is likely to make India the 5th largest consumer market in the world by 2025 from 12th in 2005, according to a study by another consultancy, McKinsey. Aggregate Indian consumer spending is likewise estimated to more than quadruple to approximately $1.5 trillion by 2025, on the back of a 10-fold increase in middle class population and a three-fold jump in household income. 
This apart, it also has an impressive rural market today, which grew at an impressive rate of 25 percent I 2008, compared with the 7-10 percent growth rate of its urban consumer retail market, according to a study by international consultancy firm Celent. It said the rural market would grow to a potential of $1.9 billion by 2015 from $487 million. Along with this, India offers abundant engineering and technical manpower, producing annually about 400,000 graduate engineers. 
Among the various sectors that are making rapid strides, the automotive industry has grown by leaps and bounds in recent years. Policy incentives like implementation of auto policy and automotive mission plan, along with establishment of world class testing, homologation and certification facilities, have made India the world's 2nd largest manufacturer of two wheelers, 5th largest manufacturer of commercial vehicles as well as the largest manufacturer of tractors. 
Over the years, the country's engineering industries, both light and heavy engineering, have also registered an impressive growth, and are having a strong base in production of various capital and consumer durable products. 

Cement is one of the core infrastructure industries showing impressive growth over the years and has found ready markets in South Asia, East Asia, Africa and South East Asian countries. India is the 2nd largest manufacturer of cement in the world. Similarly, due to globalisation and rising demands of infrastructure, real estate and auto sectors, Indian steel has become one of the fastest growing industries. 

In the emerging knowledge-based society, the Indian biotechnology industry is also among the fast growing industrial sectors with immense potential to revolutionize agriculture, healthcare, industrial processing and environmental sustainability. 

Drugs and pharmaceuticals is another significant industry showing considerable progress over the years. India holds fourth position in terms of volume and thirteenth position in terms of value of production in pharmaceuticals. 
Indian manufacturers, with the tremendous expertise gained in the domestic market, are spreading their wings to reach out to global markets. Indian corporate houses have been busy taking aggressive steps through both acquisitions and Greenfield investments abroad. All these initiatives are likely to boost brand India in the global arena. 
Bharat Forge after multiple acquisitions has emerged as the world's 2nd largest producer of axle beams, crankshafts, and other forged auto components. Tata Steel is the 5th largest producer of steel after the acquisition of Anglo-Dutch Corus. Suzlon is the world's largest wind turbine manufacturer.