Industrial development is the key to any country’s progress and development. India’s has achieved great success in the field of industrial world like Automobiles, Biotechnology, Manufacturing, Technology, Dairy, Health, Power or Tourism ‘or’ any other field, India is understood to have adopted the right path of development in all the industrial sectors since independence. The 2nd largest country in terms of population is now the 3rd largest in terms of PPP (Purchasing Power Parity). It is also the most speedy emerging economy presently at the 10th rank with the hope to be the 3rd in the recent times. It is also a matter of pride for India that it is not only maintaining the successful status of the world’s largest democracy, after a long period of colonization, which shows its commitment to emerge the probable leading country of the world a day, as reflected by various world survey data. Yes, the nation has overcome a lot of challenges in the field of industrial development, but to examine the issue, we need to go through the history of rise of industrial development in the world and its simultaneous effect on Indian policies.

The world is rapidly changing in all aspects of life and the start was the industrial revolution in Europe, especially in England. Started in 1760s and well acknowledge during 1820 to 1840, the world was put in to adopt another direction in the way of living. The machine era had started and when Europe was busy in the process of awakening and development. India was put under colonization rule of England and still there was no sense among us, if we really needed to be independent from the colonization rule. The world leader of this revolution has many challenges before them, because of the social, religious and other obstacles and the hard core member and religious head of society had made the life of those intellectuals toughest. One example to this: the great astronomic of era Galileo had to revert to his theory where he stated Sun is the Centre of universe, instead of the Earth, because of the religious pressure of Catholic Church. Without going in depth in the history of the world industrial development, it should be noticed here that when the western world was developing, India was fighting against the slavery and when it got freedom, the long colonization rule had left a week, poor and divided India with all its wealth and resource looted during the colonization rule.

Start of Development after Independence

During the colonization rule and attack by the Arab and West Asia during the medieval period, the ‘Wealthiest ‘Country India was looted so many times and finally when the English left the country, it was a weak, poor and helpless India in the hands of the freedom fighters, with negative rate in literacy, urban hood and health facilitates. Our leaders accepted the challenge and 1st step taken by the democratic government was to save the Indian own industry, its businessmen from the rapid competition from the world, and this was done till 1991, before the 1st major economic liberalization or reform was put in place. Industries (Development and Control) Bill 1949 and Act 1951 were placed to optimum utilization of existing capacity in producer goods industries, then expansion of capacity with completion of industrial units and establishment of new plants which would lend strength to the industrial structure by rectifying as far as resources permit the existing lacunae and drawbacks To save the developing economy of the country from the world competition proved to be the best approach adopted and result was well reflected when it opened up in the competitive world after the 1991 reform. Let’s examine the development in few important sectors.

Auto Industry

One of the key drivers of the national economy, also providing large scale employment, the industry has impressive growth during the last two decades. Riding factors to this effect are rising industrial and agricultural output, rising per capita income, easy finance schemes and favourable demographic distribution that have placed India as the 2nd largest manufacturer of two wheelers. 5th largest of commercial vehicles, largest in terms of tractors and 9th in car manufacturing. With 100% FDI and liberalization of the sector since 1991, the manufacturing facilities in India have grown up progressively.

Food Processing

One of the largest industries in terms of production, consumption, export and growth prospects and the government has accorded it a high propriety. Recognized as upcoming industry having huge potential for uplifting agricultural economy, creation of large scale processing food manufacturing and food chain facilities with employment generation and export earnings. One of the largest food producer of milk, 2nd largest producer of fruits and vegetables and 3rd of food grains and fish. It has wide scope for Mega food parks, integrated cold chain and food safety management systems. Two nodal agencies Agricultural and Processing Food Products Export Development Authority (APEDA) and Marine Products Export Development Authority (MPEDA), were formed for promoting exports from India.



Development of this industry can be best understood with the fact that when we got freedom, the literacy rate was 18% (male 27% and female 8%) and now as per 2011 census, it is 74% in person. The reason behind the poor and weak India is illiteracy and the government here has well overcome the situation providing the best in the sector. To consider it as an Industry, there is large scope for development and with the new policies viz., providing compulsory education to 6-14 years old children, Mid-Day Meal etc. The industry also proved to be a major part of India economy. It has the 3rd largest higher education system in the world with 431 universities and 20677 colleges.


This sector accounts for 6-7% of global employment and is pivotal in social progress. Hotel industry, Service apartments, Highways, Health, Amusement Parks and Wildlife tourism are the investment opportunities of this industry. This industry does not only

Provide economic development but also gives us an opportunity to access our tradition and historic treasures. India is projected to be number one for growth globally in the wellness of tourism sector in the next five years, for which the credit goes to the government policies. Viz., its campaign ‘clean India’, public delivery system and many such initiatives.

Besides, Telecom industry is among one of the fastest industries, with India now 2nd largest telephone network in the work, after China. India also holds 2nd largest producers status of quality cement, 1st in Milk production with Dairy Industry and booming Fashion, Media and entertainment industry. Similar achievement and development are there in various other industries viz., Civil Aviation, Biotechnology, Jewellery, Leather, Music, Mining, Pharmaceutical, Printing, Shipping, Real estate, Steel and Sugar industry. IT sector may also be linked to services sector where India’s performance is best in the world. It is right that despite the above mentioned achievement and development in our country, there are various challenges, which are very essentially required to cope with immediately, if India really wants to look ahead to lead the world in economic forum. To mention a few there are:


  • Unbalances Industrial structure that reflects import substitution a distant goal for the country.
  • Low Demand for industrial products due to low consumption level, weak purchasing power and poor standard of living.
  • Regional concentration, as most of the industries are located in few selected areas leaving out vast expanse of the country devoid of industrial establishment. While states like Maharashtra, Gujrat, and Tamil Nadu are well ahead in the sector, Meghalaya, Manipur, J&K, Himachal Pradesh, Tripura, Odisha, Assam are far behind.
  • Every year, the government has to afford large expenditure in order to cover up the loss due to socialistic patter of development investment under public sector industries.
  • Even the private industrial sectors are growing sick due to deficient management, under-utilization of existing resources due to unavailability of raw materials, diseconomies of scale of production, etc.
  • The sector also lacks infrastructure facility, energy crisis and telecommunication facilities, short term and long term loan facilities, although FDIs allowed after liberalization are trying to cover up the monetary problems and insufficiency of capital flows.
  • Indian Agricore, the major source of industrial raw material, still depends on the monsoon; and drought, flood like natural calamities badly affect agricultural production as well as the supply of industrial raw materials.
  • India industries survive on home demands, and major work is done manually using obsolete machines, that increases the cost of production as well as the supply of industrial raw materials.
  • India industries survive on home demands and major work is done manually using obsolete machines that increases the cost of production and also produces low quality of goods.

Even after the liberalization era, when the license policy has been smooth, but there is some problem still and required to be removed. Further lack of institutional organization and poor performance of available institutions are also the reason or obstacles. But it should also be noticed that the process of industrial development started more than one century later than in the developed nations and if country stands behind them or feel competitive, it should be considered fair growth and be looked positively. The Indian economy is 10th largest by nominal GDP and 3rd in PP and a member of major economic groups, viz., G20, BRICS etc. the GDP growth in industrial sector is 21.5% which makes 26% of country’s GDP and employs 22% of the total workforce. The post liberalization era is very promising and it can be hoped that industrial growth of the country will take it on the top in the coming years considering its recent achievements and removal of major obstacle.


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