Contribution of Industry to National Economy

Over the last two decades, the manufacturing sector’s proportion of GDP has remained unchanged at 17% of GDP. Out of a total of 27 percent of the industry, mining, quarrying, power, and gas account for 10%. This is far lower than the rates in certain East Asian economies, which range from 25 to 35 percent. Manufacturing has expanded at a 7 percent annual rate on average over the last decade. A growth rate of 12% is expected during the next ten years. Since 2003, manufacturing has grown at a rate of 9 to 10% per year. Economists predict that manufacturing will accomplish its target over the next decade if the government implements appropriate policy interventions and the industry redoubles its efforts to improve productivity. The National Manufacturing Competitiveness Council (NMCC) was established with this purpose in mind.

India’s major industry is the service sector. In 2018-19, the Services sector’s Gross Value Added (GVA) is anticipated to be 92.26 lakh crore INR at current prices. The services sector generates 54.40 percent of India’s total GVA of 169.61 lakh billion rupees. The industry provides 29.73 percent of GDP, with a GVA of Rs. 50.43 lakh crore. Agriculture and associated sectors account for 15.87 percent of the total. It’s worth noting that the agriculture sector employs the most people, accounting for over 53% of the workforce, while the services and secondary industries employ just around 29% and 18% of the workforce, respectively.

Sunrise industries are another sort of industry that is predicted to be a mainstay of the Indian economy in the future. The term “sunrise industry” refers to a sector that is still in its infancy but has the potential for significant growth. The industry is typically characterized by high growth rates, a high level of innovation, and a high level of public awareness, with investors attracted to the sector’s long-term growth possibilities. 

On the other hand, the quick expansion of the Sunrise industry may pose a danger to a competing industry sector that is currently in decline. Such an industry is known as a sunset industry because of its bleak long-term prospects. Information Technology, Telecom Sector, and Healthcare are examples of existing Indian sectors that can be classified as Sunrise sectors and are likely to hold us in good stead in the future in terms of job creation and company growth.

Secondary Sector

• It includes industries that produce finished commodities from natural materials derived from the primary sector. This industry covers activities such as industrial production, cotton fabric manufacturing, sugar cane production, and so on.
• As a result, rather than generating raw materials, the manufacturing sector of a country’s economy produces goods.
• Because it is involved in a variety of industries, this sector is commonly referred to as the industrial sector.
• Blue-collar workers are individuals who perform auxiliary tasks.
• Small workshops making pots, artisan production, and food production such as brewing plants, food processing, and oil refinery are examples of the manufacturing sector.
• Core Industries

The eight Core Industries include electricity, steel, refinery products, crude oil, coal, cement, natural gas, and fertilizers. 

The Index of Eight Core Industries is a monthly production index that is also used to predict monthly industrial performance. The monthly production data obtained from the Source Agencies is used to build the Index of Eight Core Industries.

Manufacturing is the process of mass-creating objects after they have been transformed from raw ingredients to more attractive products. People who work in secondary activities transform raw resources into completed products. Workers at steel mills, car factories, breweries, textile mills, bakeries, and other sectors come into this category. Some people work in the service industry. Manufacturing industry development is used to assess a country’s economic strength.