Sectors

This user page needs to be updated. Please help update this user page to reflect recent events or newly available information. (August 2022)

Historically, India has classified and tracked its economy and GDP in three sectors: agriculture, industry, and services. Agriculture includes crops, horticulture, milk and animal husbandry, aquaculture, fishing, sericulture, aviculture, forestry, and related activities. Industry includes various manufacturing sub-sectors. India's definition of services sector includes its construction, retail, software, IT, communications, hospitality, infrastructure operations, education, healthcare, banking and insurance, and many other economic activities. ^{[1] [2]}

Agriculture

This user page needs to be updated. Please help update this user page to reflect recent events or newly available information. (June 2023)

Agriculture and allied sectors like forestry, logging and fishing accounted for 17% of the GDP, the sector employed 49% of its total workforce in 2014. ^[3] Agriculture accounted for 23% of GDP, and employed 59% of the country's total workforce in 2016. ^[4] India ranks second globally in food and agricultural production, while agricultural exports were $35.09 billion. ^{[5] [6]} As the Indian economy has diversified and grown, agriculture's contribution to GDP has steadily declined from 1951 to 2011, yet it is still the country's largest employment source and a significant piece of its overall socio-economic development. ^[7] Crop-yield-per-unit-area of all crops has grown since 1950, due to the special emphasis placed on agriculture in the five-year plans and steady improvements in irrigation, technology, application of modern agricultural practices and provision of agricultural credit and subsidies since the Green Revolution in India. However, international comparisons reveal the average yield in India is generally 30% to 50% of the highest average yield in the world. ^[8] The states of Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Andhra Pradesh, Telangana, Bihar, West Bengal, Gujarat and Maharashtra are key contributors to Indian agriculture.

India receives an average annual rainfall of 1,208 millimetres (47.6 in) and a total annual precipitation of 4,000 billion cubic metres, with the total utilisable water resources, including surface and groundwater, amounting to 1,123 billion cubic metres. ^[9] 546,820 square kilometres (211,130 sq mi) of the land area, or about 39% of the total cultivated area, is irrigated. ^[10] India's inland water resources and marine resources provide employment to nearly 6 million people in the fisheries sector. In 2010, India had the world's sixth-largest fishing industry. ^[11]

India is the largest producer of milk, jute and pulses, and has the world's second-largest cattle population with 170 million animals in 2011. ^[13] It is the second-largest producer of rice, wheat, sugarcane, cotton and groundnuts, as well as the second-largest fruit and vegetable producer, accounting for 10.9% and 8.6% of the world fruit and vegetable production, respectively. India is also the second-largest producer and the largest consumer of silk, producing 77,000 tonnes (76,000 long tons; 85,000 short tons) in 2005. ^[14] India is the largest exporter of cashew kernels and cashew nut shell liquid (CNSL). Foreign exchange earned by the country through the export of cashew kernels during 2011–12 reached ₹43.9 billion (equivalent to ₹83 billion or US$1.0 billion in 2023) based on statistics from the Cashew Export Promotion Council of India (CEPCI). 131,000 tonnes (129,000 long tons; 144,000 short tons) of kernels were exported during 2011–12. ^[15] There are about 600 cashew processing units in Kollam, Kerala. ^[12]

India's foodgrain production remained stagnant at approximately 252 megatonnes (248 million long tons; 278 million short tons) during both the 2015–16 and 2014–15 crop years (July–June). ^[16] India exports several agriculture products, such as Basmati rice, wheat, cereals, spices, fresh fruits, dry fruits, buffalo beef meat, cotton, tea, coffee and other cash crops particularly to the Middle East, Southeast and East Asian countries. About 10 percent of its export earnings come from this trade. ^[17]

At around 1,530,000 square kilometres (590,000 sq mi), India has the second-largest amount of arable land, after US, with 52% of total land under cultivation. Although the total land area of the country is only slightly more than one-third of China or US, India's arable land is marginally smaller than that of US, and marginally larger than that of China. However, agricultural output lags far behind its potential. ^[18] The low productivity in India is a result of several factors.Over-regulation of agriculture has increased costs, price risks and uncertainty, and governmental intervention in labour, land, and credit are hurting the market. Infrastructure such as rural roads, electricity, ports, food storage, retail markets and services remain inadequate. ^[19] The average size of land holdings is very small, with 70% of holdings being less than one hectare (2.5 acres) in size. ^[20] Irrigation facilities are inadequate, as revealed by the fact that only 46% of the total cultivable land was irrigated as of 2016, ^{[update] [10]} resulting in farmers still being dependent on rainfall, specifically the monsoon season, which is often inconsistent and unevenly distributed across the country. ^[21] In an effort to bring an additional 20,000,000 hectares (49,000,000 acres) of land under irrigation, various schemes have been attempted, including the Accelerated Irrigation Benefit Programme (AIBP) which was provided ₹800 billion (equivalent to ₹1.2 trillion or US$14 billion in 2023) in the Union Budget. ^[22] Farming incomes are also hampered by lack of food storage and distribution infrastructure; a third of India's agricultural production is lost from spoilage. ^[23]

Manufacturing and industry

This user page needs to be updated. Please help update this user page to reflect recent events or newly available information. (June 2023)

Industry accounts for 26% of GDP and employs 22% of the total workforce, and Mumbai is generally considered the industrial capital. ^[24] According to the World Bank, India's industrial manufacturing GDP output in 2015 was 6th largest in the world on current US dollar basis ($559 billion), ^[25] and 9th largest on inflation-adjusted constant 2005 US dollar basis ($197.1 billion). ^[26] The industrial sector underwent significant changes due to the 1991 economic reforms, which removed import restrictions, brought in foreign competition, led to the privatisation of certain government-owned public-sector industries, liberalised the foreign direct investment (FDI) regime, ^[27] improved infrastructure and led to an expansion in the production of fast-moving consumer goods. ^[28] Post-liberalisation, the Indian private sector was faced with increasing domestic and foreign competition, including the threat of cheaper Chinese imports. It has since handled the change by squeezing costs, revamping management, and relying on cheap labour and new technology. However, this has also reduced employment generation, even among smaller manufacturers who previously relied on labour-intensive processes. ^[29] Manufacturing and tech industries are geographically located in industrial regions in India, ^[30] It is also the world's second-largest coal producer, the second-largest agrochemical producer, the second-largest cement producer, the second-largest steel producer, and the third-largest electricity producer. ^{[31] [32]}

Agrochemicals and Fertilizers

At present, 57 large fertilizer units are manufacturing a wide number of nitrogen fertilizers. These include 29 urea-producing units and 9 ammonia sulfate-producing units as a by-product. Besides, there are 64 small-scale producing units of single super phosphate. ^[33]

According to the latest data released by the WTO, India has emerged as the second largest exporter of agrochemicals in the world. The rank was sixth, 10 years ago.The Indian agrochemical industry fetches valuable trade surplus every year. The trade surplus sharply increased from Rs. 8,030 crores in 2017–18 to Rs. 28,908 crores in the last fiscal. India's agrochemicals export has doubled in the last 6 years from $2.6 bn in 2017–18 to $5.4 bn in the last financial year according to the data recently released by Ministry of Commerce. It has grown at an impressive CAGR of 13% which is among the highest in the manufacturing sector. ^[34]

Millions of farmers in over 130 countries trust Indian agrochemicals for their high quality and affordable prices, said an industry observer. With the global agrochemicals market estimated at $78 billion, predominantly comprising post-patent products, India is rapidly becoming a preferred global hub for sourcing such agrochemicals. To bolster domestic production and reduce imports, the Crop Care Federation of India (CCFI) has recommended specific measures to the Government of India. ^[35]

Defence sector

With strength of over 1.3 million active personnel, Indian Army is the third-largest military force and the largest volunteer army. Defence expenditure was pegged at US$70.12 billion for fiscal year 2022–23 and, increased 9.8% than previous fiscal year. ^[36] India is the world's second largest arms importer; between 2016 and 2020, it accounted for 9.5% of the total global arms imports. ^[37] India exported military hardware worth ₹159.2 billion (US$2.0 billion) in the financial year 2022–23, the highest ever and a notable tenfold increase since 2016–17. ^[38]

Energy sector

Primary energy consumption of India is the third-largest after China and US with 5.3% global share in the year 2015. ^[39] Coal and crude oil together account for 85% of the primary energy consumption of India. India's oil reserves meet 25% of the country's domestic oil demand. ^{[40] [41]} As of April 2015, ^[update] India's total proven crude oil reserves are 763.476 megatonnes (751.418 million long tons; 841.588 million short tons), while gas reserves stood at 1,490 billion cubic metres (53 trillion cubic feet). ^[42] Oil and natural gas fields are located offshore at Ashoknagar Oil Field, Bombay High, Krishna Godavari Basin, Mangala Area and the Cauvery Delta, and onshore mainly in the states of West Bengal, Assam, Gujarat and Rajasthan. India is the fourth-largest consumer of oil and net oil imports were nearly ₹8.2 trillion (US$100 billion) in 2014–15, ^[42] which had an adverse effect on the country's current account deficit. The petroleum industry in India mostly consists of public sector companies such as Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation Limited (IOCL). There are some major private Indian companies in the oil sector such as Reliance Industries Limited (RIL) which operates the world's largest oil refining complex. ^[43]

India became the world's third-largest producer of electricity in 2013 with a 4.8% global share in electricity generation, surpassing Japan and Russia. ^[44] By the end of calendar year 2015, India had an electricity surplus with many power stations idling for want of demand. ^[45] The utility electricity sector had an installed capacity of 303 GW as of May 2016 ^[update] of which thermal power contributed 69.8%, hydroelectricity 15.2%, other sources of renewable energy 13.0%, and nuclear power 2.1%. ^[46] India meets most of its domestic electricity demand through its 106 gigatonnes (104 billion long tons; 117 billion short tons) of proven coal reserves. ^[47] India is also rich in certain alternative sources of energy with significant future potential such as solar, wind and biofuels ( jatropha, sugarcane). India's dwindling uranium reserves stagnated the growth of nuclear energy in the country for many years. ^[48] Recent discoveries in the Tummalapalle belt may be among the top 20 natural uranium reserves worldwide, ^{[49] [50] [51][ needs update]} and an estimated reserve of 846,477 tonnes (833,108 long tons; 933,081 short tons) of thorium ^[52] – about 25% of world's reserves – are expected to fuel the country's ambitious nuclear energy program in the long-run. The Indo-US nuclear deal has also paved the way for India to import uranium from other countries. ^[53]

Transport sector

The Indian Railways contributes to ~3% of the country's gross domestic product (GDP) and has social obligations pegged at $5.3 Billion annually. Indian Railways revenue has grown at 5% CAGR in the past 5 years but profitability has reduced drastically in the past 4 years, due to growing infrastructure and modernization expenses. With a workforce of 1.31 million people, the IR is also one of the country's largest employers. The railways is a major contributor to jobs, GDP, and mobility.

Indian Railways has decided to revise its 2022–23 rolling stock production plan upwards. The Ministry's new plan targets the production of 8,429 units for the coming financial year. Production for 2022–23 has been raised by 878 units from the earlier planned 7,551, according to the revised targets. ^[54] Indian Railways has targeted to manufacture 475 new Vande Bharat trainsets for the next four years as a part of its modernization plan. ^[55] It is about Rs 40,000 crore(5 billion $) business opportunity that would also create 15,000 jobs and several spin -off benefits. ^[56] Indian Railway's CORE aims to electrify all of its broad gauge network by 31 March 2024. ^[57] The entire electrified mainline rail network in India uses 25 kV AC; DC is used only for metros.As of July 2023, India currently has 90% of total train tracks fully electrified. ^[58]

Under the eleventh Five Year Plan of India (2007–12), the Ministry of Railways started constructing a new Dedicated Freight Corridor (DFC) in two long routes, namely the Eastern and Western freight corridors. ^[59] The two routes cover a total length of 3,260 kilometres (2,030 mi), with the Eastern Dedicated Freight Corridor stretching from Ludhiana in Punjab to Dankuni in West Bengal and the Western Dedicated Freight Corridor from Jawaharlal Nehru Port in Mumbai ( Maharashtra) to Dadri in Uttar Pradesh. ^[60] The DFC will generate around 42,000 jobs and provide long term employment to many people in public sector and private sector.

India is developing modern mass rapid transit systems to meet present and future urban requirements. A modern metro rail system is already in place in the cities of Navi Mumbai, Delhi, Mumbai, Bangalore, Kolkata, Hyderabad, Kochi, Gurgaon, Jaipur, Noida, Pune, Nagpur, Kanpur, Ahmedabad and Lucknow. Similar mass transit systems are intended for Agra, Bhopal, Indore, Surat, Patna, Bhubaneswar Tri-city , Chandigarh Tri-city, Gwalior, Mysore, Nashik, Prayagraj, Varanasi, Ranchi, Thane and Trivandrum. Former Prime Minister Atal Bihari Vajpayee has been credited with success of the metro systems in India and every metro has followed Delhi Metro model generating lot of real estate wealth in India specially in smaller cities like Gurgaon and Noida. For Elevated corridor, there is no need for land acquisition as pillars are built above Median strip of a road. ^[61] Land prices in tier-II cities such as Lucknow, Patna, Jaipur, Ahmedabad, Pune, Kochi, and Coimbatore have gone up by almost 8-10 percent following the introduction of a metro corridor in these cities, an assessment by JLL has said. ^[62]

India is also developing modern RRTS system to replace the old MRTS system which will provide connectivity in Delhi Metropolitan Area and Mumbai Metropolitan Region which will serve the suburbs of these big cities at 80–100 km of distance from city center.

Engineering

Engineering is the largest sub-sector of India's industrial sector, by GDP, and the third-largest by exports. ^[63] It includes transport equipment, machine tools, capital goods, transformers, switchgear, furnaces, and cast and forged parts for turbines, automobiles, and railways. The industry employs about 4 million workers. On a value-added basis, India's engineering subsector exported $67 billion worth of engineering goods in the 2013–14 fiscal year, and served part of the domestic demand for engineering goods. ^[64] As of 2023, India is the 3rd largest automotive market in the world in terms of sales. ^[65] The Indian automobile industry is the world's fourth-largest by production. ^{[66] [67]}

The engineering industry of India includes its growing car, trainsets, rail wagons, motorcycle and scooters industry, and productivity machinery such as steel equipment, nuclear equipment, shovel, dump trucks, tractors. India manufactured and assembled about 18 million passenger and utility vehicles in 2011, of which 2.3 million were exported. ^[68] Indian Railways has made a new record of manufacturing 10,000 coaches for both domestic and export purposes. ^[69] India is the largest producer and the largest market for tractors, accounting for 29% of global tractor production in 2013. ^{[68] [70]} India is the 12th-largest producer and 7th-largest consumer of machine tools. ^[68]

The rolling stock market in India will be worth 4 billion $ approx. in 2023 will reach 5 billion $ in 2025.The automotive manufacturing industry contributed $79 billion (4% of GDP) and employed 6.76 million people (2% of the workforce) in 2016. ^[4]

Iron and steel

India surpassed Japan as the second largest steel producer in January 2019. ^[71] As per worldsteel, India's crude steel production in 2018 was at 106.5 tonnes (104.8 long tons; 117.4 short tons), 4.9% increase from 101.5 tonnes (99.9 long tons; 111.9 short tons) in 2017, which means that India overtook Japan as the world's second largest steel production country.

According to data presented by PIB(FY2021-22), there are more than 900 steel plants in India that produce crude steel. These are owned by PSUs, large-scale companies as well as small and medium enterprises (SMEs). In the year 2021-22, the total capacity of these plants stood at 154.06 million tonnes. ^[72]

India plans to build 12 new steel plants with a capacity of 60 megatonnes (59 million long tons; 66 million short tons) per year. Indian Ministry of Steel instructed public sector integrated steel plants to increase capacity by at least 80%, to 45 megatonnes (44 million long tons; 50 million short tons) per year by 2030. The current capacity is 25 megatonnes (25 million long tons; 28 million short tons) per year. ^[73]

Steel products produced by large and well established companies such as JSW Group, Jindal Steel and Power, Tata Steel, RINL and SAIL have extremely diversified steel product lines such as TMT Bars, steel pipes, railway tracks, rail wheels etc.

The total market value of the Indian steel sector stood at US$57.8 billion in 2011 and is predicted to touch US$95.3 billion by 2016.Growth of crude steel production in India has not kept pace with the growth in capacity of production, according to the report. As per this report, steel sector contributes 2 per cent to India's GDP and employs half a million people directly and 2 million people indirectly. The Indian steel sector has been vibrant, growing at a compounded rate of 6% year-on-year. ^[74]

Business-to-Business commerce

Business-to-Business (B2B) marketplaces are likely to hit gross merchandise value (GMV) of $125 billion in the next five years, growing at a compound annual growth rate (CAGR) of 45%, according to a report by Avendus Capital. ^[75]

India's B2B e-commerce startups sees 3-6x growth, India's B2B (business-to-business) market is twice the size of B2C (business-to-consumer) and contributes roughly two-thirds to India $3 trillion economy.India has seen the rise of several B2B unicorns too and, they are going after what's potentially a $2 trillion opportunity.These companies are fuelling the engines of Indian economy — the micro-, small- and medium-sized enterprises (MSMEs). The addressable market is big with over 65 million MSMEs all ready to go digital, but only about six to 10 million of them actively buy and sell online. ^[76]

As per Airtel, 5G will make more B2B Revenues than B2C. ^[77]

Many of the manufacturing companies are tying-up with Grocery, Transport & Food delivery companies such as Grofers, Dunzo, Swiggy Instamart, Rapido, Ola Cabs, Zomato etc. for logistics and delivery. ^[78]

Government e Marketplace is an online platform for public procurement within Government departments/organizations in India under Government of India also knows as G2G commerce, The initiative was launched on August 9, 2016, by the Ministry of Commerce and Industry. GeM's B2B procurement crosses Rs 2 lakh-crore mark($30.76 Billion).The business through GeM has grown from around Rs 35,000 crore two years ago and tripled last year to Rs 1 lakh 6 thousand crores. ^[79]

Gems and jewellery

India is one of the largest centres for polishing diamonds and gems and manufacturing jewellery; it is also one of the two largest consumers of gold. ^{[80] [81]} After crude oil and petroleum products, the export and import of gold, precious metals, precious stones, gems and jewellery accounts for the largest portion of India's global trade. The industry contributes about 7% of India's GDP, employs hundreds of thousands, and is a major source of its foreign-exchange earnings. ^[82] The gems and jewellery industry created $80.84 billion in economic output on value-added basis in 2023. ^[83]

The gems and jewellery industry has been economically active in India for several thousand years. ^[84] Until the 18th century, India was the only major reliable source of diamonds. ^[80] Now, South Africa and Australia are the major sources of diamonds and precious metals, but along with Antwerp, New York City, and Ramat Gan, Indian cities such as Surat and Mumbai are the hubs of world's jewellery polishing, cutting, precision finishing, supply and trade. Unlike other centres, the gems and jewellery industry in India is primarily artisan-driven; the sector is manual, highly fragmented, and almost entirely served by family-owned operations.

The particular strength of this sub-sector is in precision cutting, polishing and processing small diamonds (below one carat). ^[80] India is also a hub for processing of larger diamonds, pearls, and other precious stones. Statistically, 11 out of 12 diamonds set in any jewellery in the world are cut and polished in India. ^[85]

Infrastructure

This user page needs to be updated. Please help update this user page to reflect recent events or newly available information. (June 2023)

India's infrastructure and transport sector contributes about 5% of its GDP. India has a road network of over 5,472,144 kilometres (3,400,233 mi) as of 31 March 2015, ^[update] the second-largest road network in the world only behind United States. At 1.66 km of roads per square kilometre of land (2.68 miles per square mile), the quantitative density of India's road network is higher than that of Japan (0.91) and United States (0.67), and far higher than that of China (0.46), Brazil (0.18) or Russia (0.08). ^[86] Qualitatively, India's roads are a mix of modern highways and narrow, unpaved roads, and are being improved. ^[87] As of 31 March 2015, ^[update] 87.05% of Indian roads were paved. ^[86] It is upgrading its infrastructure. As of May 2014, ^[update] India had completed over 22,600 kilometres (14,000 mi) of 4- or 6-lane highways, connecting most of its major manufacturing, commercial and cultural centres. ^[88] India's road infrastructure carries 60% of freight and 87% of passenger traffic. ^[89]

India has a coastline of 7,500 kilometres (4,700 mi) with 13 major ports, 15 big private ports and 60 operational non-major ports, which together handle 95% of the country's external trade by volume and 70% by value (most of the remainder handled by air). ^[90] Kandla Port, New Kandla is the largest public port established in early 1960's, while Mundra is the largest private sea port. ^[91] The airport infrastructure of India includes 125 airports, ^[92] of which 66 airports are licensed to handle both passengers and cargo. ^[93] India has multiple global infrastructure companies such as Adani Group, JSW Infrastructure, Larsen & Toubro etc.

Petroleum products and chemicals

Petroleum products and chemicals are a major contributor to India's industrial GDP, and together they contribute over 34% of its export earnings. India hosts many oil refinery and petrochemical operations developed with help of Soviet technology such as Barauni Refinery and Gujarat Refinery , it also includes the world's largest refinery complex in Jamnagar that processes 1.24 million barrels of crude per day. ^[94] By volume, the Indian chemical industry was the third-largest producer in Asia, and contributed 5% of the country's GDP. India is one of the five-largest producers of agrochemicals, polymers and plastics, dyes and various organic and inorganic chemicals. ^[95] Despite being a large producer and exporter, India is a net importer of chemicals due to domestic demands. ^[96] India's chemical industry is extremely diversified and estimated at $178 billion. ^[97]

The chemical industry contributed $163 billion to the economy in FY18 and is expected to reach $300–400 billion by 2025. ^{[98] [99]} The industry employed 17.33 million people (4% of the workforce) in 2016. ^[4]

Engineers India, a consulting firm which designs refinery and other petrochemical complex is currently executing the construction of Barmer Refinery to be completed by 2024.

Pharmaceuticals

The Indian pharmaceutical industry has grown in recent years to become a major manufacturer of health care products for the world. India holds a 20% market share in the global supply of generics by volume. ^[100] The Indian pharmaceutical sector also supplies over 62% of the global demand for various vaccines. ^[101] India's pharmaceutical exports stood at $17.27 billion in 2017–18 and are expected to reach $20 billion by 2020. ^[100] The industry grew from $6 billion in 2005 to $36.7 billion in 2016, a compound annual growth rate (CAGR) of 17.46%. It is expected to grow at a CAGR of 15.92% to reach $55 billion in 2020. India is expected to become the sixth-largest pharmaceutical market in the world by 2020. ^[102] India is the world's largest manufacturer of generic drugs, and its pharmaceutical sector fulfills over 50% of the global demand for vaccines. ^[103] It is one of the fastest-growing industrial sub-sectors and a significant contributor to India's export earnings. The state of Gujarat has become a hub for the manufacture and export of pharmaceuticals and active pharmaceutical ingredients (APIs). ^[104]

New Economy

India is steadily transitioning from IT & Services to new Manufacturing-oriented industries like Alloys, Battery manufacturing, Electric vehicles, Biogas & Ethanol, Cryogenics, Rare Earth, Medical Devices, Semiconductor, Optronic, Robotics, High Performance & Cloud computing etc. based on Industry 4.0 standards using computer technology and digitalization.

Hyderabad-based software company Cyient has acquired a 74% stake in Mysuru-based Rangsons Electronics to focus on electronics manufacturing. ^[105] Ola Cabs has started to manufacture EVs through its subsidiary Ola Electric to move away from services to manufacturing sector. ^[106]Tata Motors has laid out an aggressive plan to expand its presence in the Electric Vehicles space. ^[107]

Exide Industries is setting up a new battery plant in Bangalore. ^[108] Log 9 Materials another battery company has opened a new Li-Ion Battery manufacturing facility in Jakkur. ^[109] KPIT Technologies unveils India's 1st sodium-ion battery technology, it will start manufacturing within a year. ^[110]Netweb Technologies, a supercomputer & cloud computing manufacturer is designing, manufacturing and exporting server designs to customers abroad. ^[111] Exicom Tele-Systems is investing Rs 100 crore in a manufacturing facility for EV chargers in Hyderabad, which will more than double its production capacity. ^[112] NTPC is setting up a Methanol plant with help of Jakson Group. ^[113]

INOXCVA, a 30-year-old INOX Group company has started building India’s largest cryogenic equipment facility in Vadodara. The new facility will also produce more than 2500 cryogenic equipment every year, doubling the cryogenic equipment manufacturing capacities of the entire cryogenic industry in the country. ^[114] PTC Industries has inaugurated a furnace for making titanium alloy for aerospace industry. ^[115]

Skanray Technologies (previously known as L&T Medical Equipment and Systems), a Medtronics company founded in 1987 has set up a manufacturing facility at Mysore and is also setting up assembly plants in Brazil (along with a local investor) and West Asia. ^[116] SS Innovations has delivered first surgical robots and completed an operation procedure in Continental Hospital. ^[117] Holmarc Opto-Mechatronics has made a breakthroughs optical instrument that can detect cancer. ^[118]

Textile

The textile and apparel market in India was estimated to be $108.5 billion in 2015. It is expected to reach a size of $226 billion by 2023. The industry employees over 35 million people. By value, the textile industry accounts for 7% of India's industrial, 2% of GDP and 15% of the country's export earnings. India exported $39.2 billion worth of textiles in the 2017–18 fiscal year. ^[119] The Indian textiles industry is estimated at $100 billion and contributes 13% of industrial output and 2.3% of India's GDP while employs over 45 million people directly. ^[120]

India's textile industry has transformed in recent years from a declining sector to a rapidly developing one. After freeing the industry in 2004–2005 from a number of limitations, primarily financial, the government permitted massive investment inflows, both domestic and foreign. From 2004 to 2008, total investment into the textile sector increased by $27 billion. Ludhiana produces 90% of woollens in India and is known as the Manchester of India. Tirupur has gained universal recognition as the leading source of hosiery, knitted garments, casual wear, and sportswear. Expanding textile centres such as Ichalkaranji enjoy one of the highest per-capita incomes in the country. ^[121] India's cotton farms, fibre and textile industry provides employment to 45 million people in India, ^[122] including some child labour (1%). The sector is estimated to employ around 400,000 children under the age of 18. ^[123]

Pulp and paper

The pulp and paper industry in India is one of the major producers of paper in the world and has adopted new manufacturing technology. ^[124] The paper market in India was estimated to be worth ₹600 billion (US$7.5 billion) in 2017–18 recording a CAGR of 6–7%. Domestic demand for paper almost doubled from around 9 megatonnes (8.9 million long tons; 9.9 million short tons) in the 2007–08 fiscal to over 17 megatonnes (17 million long tons; 19 million short tons) in 2017–18. The per capita consumption of paper in India is around 13–14 kg annually, lower than the global average of 57 kg. ^[125]

Mining

Mining contributed $63 billion (3% of GDP) and employed 20.14 million people (5% of the workforce) in 2016. ^[4] India's mining industry was the fourth-largest producer of minerals in the world by volume, and eighth-largest producer by value in 2009. ^[126] In 2013, it mined and processed 89 minerals, of which four were fuel, three were atomic energy minerals, and 80 non-fuel. ^[127] The public sector accounted for 68% of mineral production by volume in 2011–12. ^[128] India has the world's fourth-largest natural resources, with the mining sector contributing 11% of the country's industrial GDP and 2.5% of total GDP.

Nearly 50% of India's mining industry, by output value, is concentrated in eight states: Odisha, Rajasthan, Chhattisgarh, Andhra Pradesh, Telangana, Jharkhand, Madhya Pradesh and Karnataka. Another 25% of the output by value comes from offshore oil and gas resources. ^[128] India operated about 3,000 mines in 2010, half of which were coal, limestone and iron ore. ^[129] On output-value basis, India was one of the five largest producers of mica, chromite, coal, lignite, iron ore, bauxite, barite, zinc and manganese; while being one of the ten largest global producers of many other minerals. ^{[126] [128]} India was the fourth-largest producer of steel in 2013, ^[130] and the seventh-largest producer of aluminium. ^[131]

India's mineral resources are vast. ^[132] However, its mining industry has declined – contributing 2.3% of its GDP in 2010 compared to 3% in 2000, and employed 2.9 million people – a decreasing percentage of its total labour. India is a net importer of many minerals including coal. India's mining sector decline is because of complex permit, regulatory and administrative procedures, inadequate infrastructure, shortage of capital resources, and slow adoption of environmentally sustainable technologies. ^{[128] [133]}

Construction

The construction industry contributed $288 billion (13% of GDP) and employed 60.42 million people (14% of the workforce) in 2016. ^[4] The construction and real estate sector ranks third among the 14 major sectors in terms of direct, indirect, and induced effects in all sectors of the economy. ^[134]

The real estate sector will provide huge business opportunities, employment and big avenues for startup ecosystem. The 2023 Union budget of India also focused significantly on infrastructure with nearly ₹10 trillion direct investment of central government. ^[135]

Services and Consulting industry

The services sector has the largest share of India's GDP, accounting for 57% in 2012, up from 15% in 1950. ^[24] It is the seventh-largest services sector by nominal GDP, and third largest when purchasing power is taken into account. The services sector provides employment to 27% of the workforce. Information technology and business process outsourcing are among the fastest-growing sectors, having a cumulative growth rate of revenue 33.6% between fiscal years 1997–98 and 2002–03, and contributing to 25% of the country's total exports in 2007–08. ^{[136][ needs update]}

Aviation

India is the fourth-largest civil aviation market in the world recording an air traffic of 158 million passengers in 2017. ^{[137] [138]} The market is estimated to have 800 aircraft by 2020, which would account for 4.3% of global volumes, ^[139] and is expected to record annual passenger traffic of 520 million by 2037. ^[138] IATA estimated that aviation contributed $30 billion to India's GDP in 2017, and supported 7.5 million jobs – 390,000 directly, 570,000 in the value chain, and 6.2 million through tourism. ^[138]

Civil aviation in India traces its beginnings to 18 February 1911, when Henri Pequet, a French aviator, carried 6,500 pieces of mail on a Humber biplane from Allahabad (present-day Prayagraj) to Naini. ^[140] Later on 15 October 1932, J.R.D. Tata flew a consignment of mail from Karachi to Juhu Airport. His airline later became Air India and was the first Asian airline to cross the Atlantic Ocean as well as first Asian airline to fly jets. ^[141]

Banking and financial services

The financial services industry contributed $809 billion (37% of GDP) and employed 14.17 million people (3% of the workforce) in 2016, and the banking sector contributed $407 billion (19% of GDP) and employed 5.5 million people (1% of the workforce) in 2016. ^[4] The Indian money market is classified into the organised sector, comprising private, public and foreign-owned commercial banks and cooperative banks, together known as 'scheduled banks'; and the unorganised sector, which includes individual or family-owned indigenous bankers or money lenders and non-banking financial companies. ^[142] The unorganised sector and microcredit are preferred over traditional banks in rural and sub-urban areas, especially for non-productive purposes such as short-term loans for ceremonies. ^[143]

Prime Minister Indira Gandhi nationalised 14 banks in 1969, followed by six others in 1980, and made it mandatory for banks to provide 40% of their net credit to priority sectors including agriculture, small-scale industry, retail trade and small business, to ensure that the banks fulfilled their social and developmental goals. Since then, the number of bank branches has increased from 8,260 in 1969 to 72,170 in 2007 and the population covered by a branch decreased from 63,800 to 15,000 during the same period. The total bank deposits increased from ₹59.1 billion (equivalent to ₹2.8 trillion or US$35 billion in 2023) in 1970–71 to ₹38.31 trillion (equivalent to ₹96 trillion or US$1.2 trillion in 2023) in 2008–09. Despite an increase of rural branches – from 1,860 or 22% of the total in 1969 to 30,590 or 42% in 2007 – only 32,270 of 500,000 villages are served by a scheduled bank. ^{[144] [145]}

India's gross domestic savings in 2006–07 as a percentage of GDP stood at a high 32.8%. ^[146] More than half of personal savings are invested in physical assets such as land, houses, cattle, and gold. ^[147] The government-owned public-sector banks hold over 75% of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. ^[148] Since liberalisation, the government has approved significant banking reforms. While some of these relate to nationalised banks – such as reforms encouraging mergers, reducing government interference and increasing profitability and competitiveness – other reforms have opened the banking and insurance sectors to private and foreign companies. ^{[40] [149]}

Financial technology

According to the report of The National Association of Software and Services Companies ( NASSCOM), India has a presence of around 400 companies in the fintech space, with an investment of about $420 million in 2015. ^[150] The Indian fintech landscape is segmented as follows – 34% in payment processing, followed by 32% in banking and 12% in the trading, public and private markets. ^[151]

The Fintech growing at a compound annual growth rate (CAGR) of 22 percent during 2022 and 2030. The overall fintech market in estimated to grow to about 2.1 trillion dollars.

Information technology

The information technology (IT) industry in India consists of two major components: IT Services and business process outsourcing (BPO). The sector has increased its contribution to India's GDP from 1.2% in 1998 to 7.5% in 2012. ^[152] According to NASSCOM, the sector aggregated revenues of US$147 billion in 2015, where export revenue stood at US$99 billion and domestic at US$48 billion, growing by over 13%. ^[152] The Indian IT industry is a major exporter of IT services with $227 billion in revenue and employs over 5 million people. ^[153]

The growth in the IT sector is attributed to increased specialisation, and an availability of a large pool of low-cost, highly skilled, fluent English-speaking workers – matched by increased demand from foreign consumers interested in India's service exports, or looking to outsource their operations. The share of the Indian IT industry in the country's GDP increased from 4.8% in 2005–06 to 7% in 2008. ^[154] In 2009, seven Indian firms were listed among the top 15 technology outsourcing companies in the world. ^[155]

The business process outsourcing services in the outsourcing industry in India caters mainly to Western operations of multinational corporations. As of 2012, ^[update] around 2.8 million people work in the outsourcing sector. ^[156] Annual revenues are around $11 billion, ^[156] around 1% of GDP. Around 2.5 million people graduate in India every year. Wages are rising by 10–15 percent as a result of skill shortages. ^[156]

Insurance

India became the tenth-largest insurance market in the world in 2013, rising from 15th in 2011. ^{[157] [158]} At a total market size of US$66.4 billion in 2013, it remains small compared to world's major economies, ^[159] and the Indian insurance market accounted for just 2% of the world's insurance business in 2017. India's life and non-life insurance industry collected ₹6.1 trillion (US$76 billion) in total gross insurance premiums in 2018. Life insurance accounts for 75.41% of the insurance market and the rest is general insurance. ^[160] Of the 52 insurance companies in India, 24 are active in life-insurance business. ^[159]

Specialised insurers Export Credit Guarantee Corporation and Agriculture Insurance Company (AIC) offer credit guarantee and crop insurance. It has introduced several innovative products such as weather insurance and insurance related to specific crops. The premium underwritten by the non-life insurers during 2010–11 was ₹425 billion (equivalent to ₹880 billion or US$11 billion in 2023) against ₹346 billion (equivalent to ₹780 billion or US$9.7 billion in 2023) in 2009–10. The growth was satisfactory,^{[ according to whom?]} particularly given across-the-broad cuts in the tariff rates. The private insurers underwrote premiums of ₹174 billion (equivalent to ₹360 billion or US$4.5 billion in 2023) against ₹140 billion (equivalent to ₹310 billion or US$3.9 billion in 2023) in 2009–10.

Life Insurance Corporation, a Government owned Public sector company has an asset of US$570 billion which greater than Apple Inc.'s US$332.16 billion.

Retail

The retail industry, excluding wholesale, contributed $793 billion (10% of GDP) and employed 35 million people (8% of the workforce) in 2020. The industry is the second largest employer in India, after agriculture. ^{[161] [162] [163] [164]} The Indian retail market is estimated to be US$600 billion and one of the top-five retail markets in the world by economic value. India has one of the fastest-growing retail markets in the world, ^{[165] [166]} and is projected to reach $1.3 trillion by 2020. ^{[167] [168]} India has retail market worth $1.17 trillion, which contributes over 10% of India's GDP. It also has one of the world's fastest growing e-commerce markets. ^[169] The e-commerce retail market in India was valued at $32.7 billion in 2018, and is expected to reach $71.9 billion by 2022. ^[170]

India's retail industry mostly consists of local mom-and-pop stores, owner-staffed shops and street vendors. Retail supermarkets are expanding, with a market share of 4% in 2008. ^[171] In 2012, the government permitted 51% FDI in multi-brand retail and 100% FDI in single-brand retail. However, a lack of back-end warehouse infrastructure and state-level permits and red tape continue to limit growth of organised retail. ^[172] Compliance with over thirty regulations such as "signboard licences" and "anti-hoarding measures" must be made before a store can open for business. There are taxes for moving goods from state to state, and even within states. ^[171] According to The Wall Street Journal, the lack of infrastructure and efficient retail networks cause a third of India's agriculture produce to be lost from spoilage. ^[23]

Tourism

The World Travel & Tourism Council calculated that tourism generated ₹15.24 trillion (US$190 billion) or 9.4% of the nation's GDP in 2017 and supported 41.622 million jobs, 8% of its total employment. The sector is predicted to grow at an annual rate of 6.9% to ₹32.05 trillion (US$400 billion) by 2028 (9.9% of GDP). ^[173] Over 10 million foreign tourists arrived in India in 2017 compared to 8.89 million in 2016, recording a growth of 15.6%. ^[174] The tourism industry contributes about 9.2% of India's GDP and employs over 42 million people. ^[175] India earned $21.07 billion in foreign exchange from tourism receipts in 2015. ^[176] International tourism to India has seen a steady growth from 2.37 million arrivals in 1997 to 8.03 million arrivals in 2015. Bangladesh is the largest source of international tourists to India, while European Union nations and Japan are other major sources of international tourists. ^{[177] [178]} Less than 10% of international tourists visit the Taj Mahal, with the majority visiting other cultural, thematic and holiday circuits. ^[179] Over 12 million Indian citizens take international trips each year for tourism, while domestic tourism within India adds about 740 million Indian travellers. ^[177] India has a fast-growing medical tourism sector of its health care economy, offering low-cost health services and long-term care. ^{[180] [181]} In October 2015, the medical tourism sector was estimated to be worth US$3 billion. It is projected to grow to $7–8 billion by 2020. ^[182] In 2014, 184,298 foreign patients traveled to India to seek medical treatment. ^[183]

Healthcare and Travel Healthcare

India's healthcare sector is expected to grow at a CAGR of 29% between 2015 and 2020, to reach US$280 billion, buoyed by rising incomes, greater health awareness, increased precedence of lifestyle diseases, and improved access to health insurance. ^[102] The India hospital market size was valued at USD 93.6 billion in 2022, driven by the rise in the prevalence of chronic and infectious diseases across India. The market size is anticipated to grow at a CAGR of 5.75% during the forecast period of 2023-2031 to achieve a value of USD 154.8 billion by 2031. ^{[184] [185] [186]}

Travel Healthcare is a growing sector in India. In 2022,According to Federation of Indian Chambers of Commerce and Industry (FICCI) report, India's travel healthcare sector was estimated to be worth US$9 billion. ^{[187] [188]} Approximately 2 million patients visit India each year from 78 countries for medical, wellness and IVF treatments, generating $6 billion for the industry which is expected to reach $13 billion by 2026 backed by the government’s Heal in India initiative. ^[189]

The ayurveda industry in India recorded a market size of $4.4 billion in 2018. The Confederation of Indian Industry estimates that the industry will grow at a CAGR 16% until 2025. Nearly 75% of the market comprises over-the-counter personal care and beauty products, while ayurvedic well-being or ayurvedic tourism services accounted for 15% of the market. ^[190]

Logistics

The logistics industry in India was worth over $160 billion in 2016, and grew at a CAGR of 7.8% in the previous five-year period. The industry employs about 22 million people. ^{[191] [192]} It is expected to reach of a size of $215 billion by 2020. ^[193] India was ranked 35th out of 160 countries in the World Bank's 2016 Logistics Performance Index. ^[194]

Media and Press

An ASSOCHAM- PwC joint study projected that the Indian media and entertainment industry would grow from a size of $30.364 billion in 2017 to $52.683 billion by 2022, recording a CAGR of 11.7%. The study also predicted that television, satellite dish, over-the-top services would account for nearly half of the overall industry growth during the period. ^[195]

India has very popular newspaper and media outlets such as The Times of India, Hindustan Times and Zee TV.

Films, entertainment and music industry

The Indian cinema industry is expected to garner a revenue of around Rs 16,198 crore by 2026, of which Rs 15,849 would be Box office revenue and the rest Rs 349 crore from advertising, the report added. ^[196] India's Recorded Music industry (which is a key sub-segment) is making steady progress at a CAGR of 13.6 percent, thanks to streaming models. ^[196]

India has many popular music recording houses such as T-series.

Telecommunications

The telecommunication sector generated ₹2.20 trillion (US$28 billion) in revenue in 2014–15, accounting for 1.94% of total GDP. ^[197] India is the second-largest market in the world by number of telephone users (both fixed and mobile phones) with 1.053 billion subscribers as of 31 August 2016. ^[update] It has one of the lowest call-tariffs in the world, due to fierce competition among telecom operators. India has the world's third-largest Internet user-base. As of 31 March 2016, ^[update] there were 342.65 million Internet subscribers in the country. ^[198] India's telecommunication industry is the world's second largest by the number of mobile phone, smartphone, and internet users. It is the world's 24th-largest oil producer and the third-largest oil consumer. ^[199]

Industry estimates indicate that there are over 554 million TV consumers in India as of 2012. ^{[update] [200]} India is the largest direct-to-home (DTH) television market in the world by number of subscribers. As of May 2016, ^[update] there were 84.80 million DTH subscribers in the country. ^[201]