PROBLEMS AND FUTURE PROSPECTS OF INDUSTRIES IN INDIA

PROBLEMS AND FUTURE PROSPECTS OF INDUSTRIES IN INDIA SUBMITTED BY – NIKEE ANEJA NEOG(19) NISHA GOGOI(20) RAJAT NANDI(49) ROKTIM KALITA(50) RUPAK BHARALI(51)

CONTENTS § INTRODUCTION § CLASSIFICATION OF INDUSTRIES § PROBLEMS FACED BY INDUSTRIES IN INDIA § INITIATIVES BY THE GOVERNMENT TO FACILITATE INDUSTRIAL DEVELOPMENT 1) MAKE IN INDIA 2) START UP INDIA § FUTURE PROSPECTS OF INDUSTRIES IN INDIA § ROLE OF INDUSTRIES IN ECONOMIC DEVELOPMENT § REMEDIAL MEASURES OF PROBLEMS § CONCLUSION § BIBLIOGRAPHY

INTRODUCTION What is Industry ? Ø A business activity related to the raising, producing, processing or manufacturing of products. Ø Industry is a place where production of goods and services takes place within an economy. Ø An industry consists of several different firms setting similar products. Ø An industry is a subsector of a country’s economy.

CLASSIFICATION 1. Raw material q q Agro-based industries Mineral based industries Marine-based industries Forest-based industries 2. Size q q Small-scale industries Large-scale industries 3. Ownership q q Private sector Public sector Joint sector industries Cooperative sector industries

PROBLEMS FACED BY INDUSTRIES IN INDIA v Unbalanced Industrial Structure. v Low Demand. v Loss in Public Sector Industries. v Regional Concentration. v Gap Between Targets and Achievements. v Industrial sickness.

v Deteriorating Business Environment. v Shortage of Power Resources( electricity, coal, oil ). v Insufficient Infrastructure. v Insufficient Capital. v Problems of Research and Development.

INITIATIVES BY GOVERNMENT TO FACILITATE INDUSTRIAL DEVELOPMENT MAKE IN INDIA • It is a Swadeshi movement, launched by the government of India on 24 th September 2014, to encourage companies to manufacture the products in India. • ‘Zero defect, zero effect’. OBJECTIVES : • To transform India into a manufacturing hub. • To generate employment. • It focused on 25 major sectors of the economy, like Automobile industry, IT, Renewable Energy sector, Mining, Media, etc.

ADVANTAGES OF MAKE IN INDIA • Expand GDP. • Upgradation of technology. • Development of rural areas. • Brain drain rate will decrease. • Job opportunity will increase.

STARTUP INDIA OBJECTIVES : • To generate employment. • Boost economic development. • Motivate youth for entrepreneurship. KEY PILLARS OF STARTUP INDIA : • Simplification and Handholding. • Funding & Incentives. • Incubation & Industry-Academia Partnerships.

SIGNIFICANT FEATURES OF START UP INDIA • Render 3 year tax holiday within the initial 7 year of joining. • Government allocated Rs. 10000 Cr for startups. • Also approved credit guarantee fund of Rs. 500 Cr. • Set up of startup hubs in various NITs and creating 7 research parks in IITs.

BENEFITS OF START UP INDIA • Self Certification based compliances. • No inspection done for the first 3 years. • Startup hubs act as single points of contact. • Legal support and fast tracking patent examinations. • Impetus to Motivation. • Capital gain is exempted from Income tax. • Easy exit options.

FUTURE PROSPECTS OF INDUSTRIES IN INDIA ØInfrastructure: Building A Place To Do Business. ØTechnology: Leveraging A Massive Online Population. ØDefense, Aerospace : Use Cheaper Alternatives for Space Exploration. ØTravel & Tourism: Make India a More Desirable Destination. ØTea Industry : From Stalls to Starbucks. ØTextile Industry: Leap towards affordable fashion.

INFRASTRUCTURE • Second largest economic activity in India after agriculture. • One of the highest receiver of FDI for inflows. • Opening up of the infrastructure sector through PPPs. • Initiatives like “Housing for All” and “Smart City Mission” will direct growth in this sector.

TECHNOLOGY • Attracted significant investments from major countries. • Software and hardware sector attracted cumulative FDI worth US$ 37. 23 billion. • Government announces plans to launch a national programme on AI. • National Policy on Software Products-2019 was passed by the Union.

DEFENSE AND AEROSPACE • Among the most economic producer of space technology. • ISRO has started its private arm Antrix Corporation. • ISRO to launch 5 satellites for Antrix. • India to soon look for contracts to launch heavy satellites. • Related sectors like communication and navigation. • Government plans to export Brah. Mos missiles, Tejas, air defense system.

TOURISM INDUSTRY • Emerged as one of the major contributors to India’s GDP. • India will witness 20% growth in the number of air travellers. • Biggest employment generators. • Advancements in technology makes travel comfortable and quick. • Expansion of E-visa scheme expected to double the tourist inflow.

TEA INDUSTRY • Specialty tea is the future. • Micro tea factory is a boon for small tea growers. • Growing awareness for green tea. • Online market is a concept to explore.

TEXTILE INDUSTRY • 100 percent FDI has been allowed. • Free trade with ASEAN is allowed in order to boost exports. • Indian government is making huge investments. • CCEA has approved new skill development scheme for capacity building. • The Future Group is planning to open 80 new stores. • Max Fashion, plans to expand its sales network to 400 stores.

ROLE OF INDUSTRIES IN ECONOMIC DEVELOPMENT § Utilisation of natural resources. § Balance sectoral development. § Enhanced capital formation. § Increase in National Income. § Increase in job opportunities. § Accumulation of wealth. § Development of markets.

REMEDIAL MEASURES OF PROBLEMS Ø Deploy technology to democratize education. Ø Improve relations with key neighbors. Ø Unleash innovation. Ø Easy finance should be made available to businesses engaged in largescale industries. Ø Rational Taxation Policy.

CONCLUSION Industrialization has changed India into a developing nation and today India is one of the top ten industrially advanced nation of the world. Although, the Indian Industrial System has various problems such as gap between targets and achievements, loss in public sector, insufficient capital, etc ; the Indian government is taking initiative to solve them through strategic planning and implementation of various schemes like Make in India, Start-up India facilitating foreign investments and optimal use of natural resources for the development of the industrial sector.

REFERENCES • https: //www. businesstoday. in • https: //www. ibef. org/industry • http: //www. makeinindia. com • https: //www. startupindia. gov. in • https: //skillindia. nsdcindia. org • Bhaduri, A. (2007). Alternatives in Industrialization. Economic and Political Weekly, 42(18), 1597 -1601. Retrieved from http: //www. jstor. org/stable/4419539 • Dunning, J. H. (1993) Multinational Enterprises and the Global Economy(Workingham: Addison-Wesley). • Kathuria, V. (2000) Productivity Spillovers from Technology Transfer to Indian Manufacturing Firms, Journal of International Development, 12, 343 -369. • Business Environment by Shaikh Saleem ; Pearson Publication

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