Industrial Growth in India: An Overview

India is now covering a well diversified industrial sector - the entire range of consumer, intermediate and capital goods industries. The story of the commodity composition of India’s foreign trade narrates the progress of the industrial growth in India.

The future of Indian economy has been depending on the sea changes in the rapid industrializations in India. The growth of industries in India during the post independence has played a major role in shaping the current India economy position, which resisted the biggest global slowdown and economic crisis.

The advancement of technology and Information Technology has pushed further the industrialization progress in India especially after 1980s. The boom of Indian IT sector is the biggest bliss for the industrialization in India, as from the core industries – navaratna companies, PSUs to small scale industries made a huge progress.

India could achieve self-sufficiency in consumer goods sector too, as the FMCG companies too booming in India and have been contributing a lot to the Indian industrialization. The infrastructure including Research and Development capabilities, consultancy and design engineering services, project organization services helped too Indian industries too reach the top position.

Of late, the contribution of the mining, manufacturing and electricity has not been at the peak but these three components of industrial production might sign again. The index of production in mining was increased from 125.5 per cent in 1993-94 to 139.6 in 2002-03, which was the biggest rise.

The manufacturing moved up to 183.1 per cent from 148.8 during the same period. Another recession sort of situation across the globe would weight high on the Indian economy this time and ultimately the industrial growth rate may be affected.

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RIL – ADAG pact a positive impact on corporate world

It is the RIL – ADAG pact which is going to resolve the dispute among the two Ambani brothers and also help them to lead a healthy competition. It is to renegotiate gas supply agreement soon. It has agreed to cancel all existing non compete agreement. This agreement is approved and welcomed by the board members of the duo giant companies.

Some of the major media institution are speculating that this move will allow Reliance Industries Limited to enter into Telecom business, as they may be go for expansion moves. It will also help the company to enter into Petrochemical & Financial services business. Thus, it shows a positive impact on the growth of the corporate world. RIL has decided not to enter gas based power generation until March,2022.

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Victory for Niyamgiri Hills Tribes: Church of England sells Vedanta shares

Business News This Week: In a significant development in the Vendata's mining project in Odisha (Orissa), the Church of Egland has sold $5.9 million shares in Vendanta resources. The Church of England had invested in the shares of the Vedanta for last six months.  The bauxite mining project by the Vedanta is being protested by the tribes of the Niyamgiri Hills.

According to the media reports, the project in the Niyamgiri Hills is threat for the wildlife in the forest and moreover the tribes will loss their earning from the forest and land. Considering the protests and reportedly violation of human rights, the Church of England has decided to sell its holdings in the bauxite mining project in Orissa by the Vedanta. Even some of the tribes from state of Orissa reportedly protested against the project in Niyamgiri Hills in England. It's certainly a victory sort of thing for the tribes those have been protesting against the project. The pressue on the investors of the proejct is said to be mounting.

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Exports may reach $500 billion in five years

Good news - Indian exports are like to touch the $500 billion mark in the next five years, if every thing goes well, according to media reports. In order to reach the figure mark special attention should be given on labour oriented sectors says the Confederation of Indian Industry (CII). Currently, India's exports account for just 3.5 percent of Africa's total import demand and just 0.7 percent of import demand of Latin America and Carribbean countries. CII indicated that there was need for a combination of policy initiatives, technology infusion, infrastructure improvement, access to markets, innovation in product development in scale of production. The exports of $126 billion was recorded in the year 2006-07 and it is expected that it would rose to $155-160 billion in the current year 2008. Whereas, the Foreign Trade policy (2004-09) expects exports could touch the mark of $200 billion in the current fiscal.

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Indian herbal market's impressive growth

Indian herbal market has been registering impressive growth rate. The herbal products from India are getting recognition in international market. According to media reports the herbal market would reach to Rs. 14, 500 crores by 2012. The government of India has also been adopting measures like setting up Herbal farm clusters for improving quality of drugs and promotion of exports, focus on research and development and chalking out marketing strategies for the effective marketing of the herbal products.

There is need for the promotion of the herbal cultivation in India, as herbal medicinal plants are found in many parts of the nation. The need of the hour is proper mechanism and effective execution of plans for the better cultivation of herbal plants. The truth can not be denied that Indian Yoga and fitness moves became popular in many foreign countries. The health and fitness matra from India has been drawing attention of western countries and this time has came for Indian herbal market to mark its success in international arena.

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Infrastructure industries record high growth rate in February

The industrial sector is playing a vital role in the development of the nation and its contribution to the economy is significant. It would be interesting to know the present industrial growth in contrast to the present economic scenario. There is a boom in Indian economy but the high inflation could be concern. Government takes measures to control the inflation and the industrial sector too helps the nation in checking the inflation. The steel makers of the nation reportedly favoured the government over not to rise the price in order to check the inflation. However, the index of industiral production is lower but the growth recorded by infrastructure industries in India. According to media reports, the index of six core infrastructure industries have recorded 8.7 per cent growth rate in February 2008. Where as the growth rate of these industries was around 7.6 per cent in February 2007. The index of industrial production has recorded growth of 5.3 per cent in January 2008, which is lower than growth rate figures achieved in last year. The inflation and the rise the price of petrol and diesel would be the prime concern for the industries. An addition rise in the input cost of industry is burden for the industry and ultimately it will result inflation too.

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