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Growth of Indian Industry |
Growth of Indian Industry
According to economic experts and various studies, the share of the US in world GDP is expected to fall (from 21 per cent to 18 per cent) and the share of India’s GDP is to rise from 6% to 18% by 2025, thereby emerging as the third power in the global economy after USA and China. The United States have been the largest economy of the world for more than a century. But with some significant development in the world economy, like decline in the share of global GDP, the focus has shifted to China and India from the US and other rich countries of Europe. Since 1990, the global share of India and China has been rising. During the seventies and the eighties, ASEAN countries and during the eighties South Korea, along with China and India, contributed to the rising share of Asia in the world GDP. India had a GDP growth of 9.0 percent during 2005-06 to 9.4 percent during 2006-07. It is predicted that by 2025, Indian economy would be about 60 per cent the size of the US economy and by 2035, though a little smaller than the US economy, Indian economy would be larger than that of Western Europe. By 2035, India is likely to be a larger growth driver than the six largest countries in the EU, though its impact will be a little over half that of the US. It is also predicted that India, which is now the fourth largest economy in terms of purchasing power parity, will overtake Japan and become third major economic power within 10 years.
Index of industrial production which measures the overall industrial growth rate was 10.1% in October 2004 as compared to 6.2% in October 2003. The double digit in IIP was aided by a robust growth of 11.3% in the manufacturing sector followed by mining and quarrying and electricity generation. But industrial production saw a decline in Dec 2004 when IIP dipped to 8 %. Thus one of the critical challenges facing Indian economic policy consists in devising strategies for sustained industrial growth. Final phase-out of the MFA and India's conformity with the International Intellectual Property system from 1st Jan 2005, have been two significant developments in the world of commerce & industry.
Textile industry is the second largest industry in terms of employment economy. Textile industry is the oldest industry of India. It contributes nearly 30 percent of the total exports and accounts for 14 percent of the total industrial production in India. By 2010, Textile industry would create12 million new jobs with a growth from the current US $37 billion to $ 85 billion and modernization & consolidation for creating a globally competitive textile industry. With the end of quota regime under MFA, from Jan 1st 2005, developing countries including India with both textile & clothing capacity may be able to prosper.
The development of textile sector was earlier governed in terms of general policies. Subsequently, in recognition of the importance of this sector, for the first time a separate Policy Statement was made in 1985 regarding the development of textile sector. The textile policy of 2000 aims to achieve the target of textile and apparel exports of US $ 50 billion by 2010 of which the share of garments will be US $ 25 billion. The main objective of the textile policy 2000 is to provide acceptable quality of cloth at reasonable prices for the vast majority of the population of the country, to facilitate sustainable employment and the economic growth of the nation; and to compete for an increasing share of the global market.
Automobile sector has demonstrated the inherent strengths of Indian labor and capital. The Pharmaceutical industry and the IT industry are two sunrise sectors for India. Among the sectors that have experienced the greatest transformation in India, the pharmaceutical is perhaps the most significant. India's WTO involvement during the last decade has encouraged our Pharmacy companies to adopt a strategy of R & D based innovative growth. Indian Pharmacy exports were 14000 Crore rupees & accounts for more than a third of the industry's turnover. Apart from manufacture of drugs, the Pharmacy industry offers huge incentive for outsourcing of clinical research. A vast pool of scientific and technical personnel & recognized expertise in medical treatment & health care are India's strength, India can take advantages of its strength once patent protection is given to the result of the researches. By participating in the international system of intellectual property protection, India opens up for vast opportunities in both exports as well as her potential to become a global hub in the area of R & D based clinical research outsourcing, particularly in the area of bio-technology.
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