Indian Industry: Steady growth over the decades

India's emergence as one of the rapidly developing nations owes its sustainability to the due focus on the industrial progress. Coming out of the yoke of colonisation and exploitation of the Indian economy by the British, India made an upright choice of taking its industrial sector forward.
India's industrial development was rather on a sluggish side during the three decades from 1950 to 1980. The industrial policy adopted by the Indian government was supported by a centralized planning, strict regulation and control of private enterprise and a marked tendency of trade protectionism. The cautious approach towards foreign capital made it look less receptive to globalization.
The scenario took a turn for the better during the post-liberalization era with the government showing its aggressive face by implementing wide-ranging reforms. The initiatives taken since 1991 have hastened the developmental process. Major industries like textiles, telecommunications, steel, transport equipment, petroleum, chemicals, food processing and software have found a stronghold in the Indian economy.
Industrial extensions service with the help of small industries service institutes is another major factor that saw speedy development. Besides offering credit facilities at concessional rates of interest through commercial banks and State Finance Corporations the government also put due emphasis on offering subsidized power tariffs to the industries and sparing them from paying electricity duties. Government has been successful in luring more units in the backward areas and promoting new entrepreneurs by offering them entrepreneurship development.
After the oil and natural gas sector emerged as a significant part of India's future industrial growth in 1980, government gave prime focus on nurturing the same. Besides venturing into indigenous oil exploration programme, the industry identified new sources of oil. The oil and gas industry has certainly fuelled the rapid growth of the Indian economy. India presently has total reserves of 775 million metric tonnes of crude oil and 1074 billion cubic metres of natural gas as on April 1, 2009. Petroleum exports rose to an impressive level during 2008-09 with the export value touching US$ 26.2 billion.
The very fact that India's textile industry contributes about 61 percent of the world loomage is a proof enough that the sector has been on the road to prosperity for quite some time. India's exports in this sector have steadily grown at an average of 9.47% per annum in the last decade.
Comparatively a new entrant in India's industrial domain, IT industry has seen an unhindered growth over the last decade. As per the Nasscom report, the industry is now growing at 13 to 15 per cent. The industry has experienced strong demand for electronic hardware and software and that has hastened its process of expansion.
A dramatic change in the communication sector had a blessing effect on the industry. India's telecommunications industry has earned the distinction of being the fastest growing among the world. Introduction of privatization and initiating value-added services in the telecom sector have been phenomenal in reforming the sector.
Since the last decade of the twentieth century India industry has been on upward trajectory with several sectors achieving more than their set targets. India is on the verge of becoming self-sufficient in the production of manufactured goods. Industrial progress has also acted as a catalyst for the growth of industrial and scientific research.
- By Subhojit Goswami