Image Credits - Fortune India
Nestled in the heart of South Asia, India stands as a testament to the symbiotic relationship between its diverse industrial sectors, economic progress, and social welfare. With a rich tapestry of traditions, landscapes, and cultures, India’s economic prowess is intricately woven into the fabric of its industrial landscape. This article delves into the core of India’s economic engine, spotlighting key industries that not only drive industrial strength but also contribute significantly to the nation’s overall development. From the bustling textile hubs to the resilient metal sector, each industry weaves a unique narrative in the vibrant tapestry of India’s industrial prowess.
India’s Top 5 Industries
India’s Food Processing Industry is an essential part of the Indian economy, and it has witnessed an impressive Average Annual Growth Rate (AAGR) of 8.3% over the last five years. Projections indicate that by 2025, the industry will attain a value of $535 billion, with a compound annual growth rate of 15.2%. This sector encompasses various sub-sectors such as fruits and vegetables, poultry and meat processing, fisheries, food retail, and the dairy industry. India is presently the second-largest producer of fruits and vegetables globally, highlighting immense potential for processing these commodities into a wide range of products including frozen, canned, pulp, puree, paste, sauces, snacks, dressings, flakes, dice, dehydration, pickles, juices, slices, chips, jams, and jelly.
In terms of poultry and meat processing, India sits at the top as the largest buffalo meat producer and the second-largest goat meat producer, contributing significantly to the industry by processing 6% of poultry and 21% of meat. Additionally, the fisheries sector holds considerable importance in India’s economy, as the country ranks third in fish production and second in aquaculture production worldwide. These sectors not only make notable contributions to the GDP but also create job opportunities for millions of people, thus playing a vital role in the socio-economic development of the nation.
The Indian textile industry, which has a long history dating back to the Indus Valley Civilization, plays a significant role in the country’s economy. It contributes 7% to India’s industrial output and 2% to its GDP, providing employment opportunities for more than 45 million individuals. This industry produces a wide range of textiles, including traditional handloom and handcrafted textiles as well as modern, technologically advanced textiles. India holds the title of being the largest producer of cotton and jute globally, and the second largest producer of silk. Other fibers produced in India include wool and man-made fibers. In terms of global trade, India holds a 4% share in textiles and apparel, with textiles and apparel accounting for 10.33% of India’s total exports in the 2021-22 period. During the same period, the production of Eri and Muga silks increased by 6% and 6.7% respectively. The Indian textile industry is a major source of employment, directly employing 45 million people and indirectly supporting 100 million individuals in related industries. In terms of value, the domestic apparel and textile industry contributes 2% to India’s GDP and 7% to its industrial output. India has set ambitious goals for the future, aiming to achieve $250 billion in textiles production and $100 billion in exports by 2030. Furthermore, India has emerged as the second-largest manufacturer of Personal Protective Equipment (PPE) globally, with over 600 certified companies producing PPEs. The global market value of PPEs is projected to exceed $92.5 billion by 2025, compared to $52.7 billion in 2019.
The Indian Apparel Industry, which contributes 2.3% to the country’s GDP, plays a crucial role in the economy. It is expected to experience strong growth in the coming years, with a projected Compound Annual Growth Rate (CAGR) of 10%. By 2025-26, it is predicted to reach an impressive US$ 190 billion. India is the second-largest producer of textiles and garments worldwide. In the fiscal year 2022, the online fashion and accessories sector in India saw a remarkable increase in order volumes, surpassing the previous year with a growth rate of 20.9%. Sustainable fashion, also known as eco-fashion or ethical fashion, is an emerging trend in the apparel industry. Brands are increasingly using organic cotton, bamboo, and linen, which are grown without synthetic pesticides and fertilizers. Recycled materials like polyester and nylon are also gaining popularity due to their ability to reduce waste and pollution. Sustainable production methods, such as minimizing water and energy consumption, using low-impact dyes, and implementing fair labor practices, are also essential aspects of sustainable fashion. The textiles and apparel industry in India is the second-largest employer in the country, providing direct employment to 45 million people and indirectly supporting 100 million people in related industries. Additionally, India has become the second-largest manufacturer of Personal Protective Equipment (PPE) globally. Currently, over 600 companies in India are certified to produce PPEs, and the global market for PPEs is expected to exceed $92.5 billion by 2025, a significant increase from $52.7 billion in 2019.
The Basic Metals Industry holds great significance in the Indian economy and encompasses various operations such as mining, refining, casting, alloying, sheet production, and rolling into foils. In India, this industry is categorized into two main segments: Ferrous metals and Non-ferrous metals. Ferrous metals, such as iron and steel, are the most commonly produced, while non-ferrous metals consist of aluminum, copper, zinc, lead, nickel, and tin. Further, the Indian basic metals industry can be classified into three major groups: basic iron and steel, basic precious and other non-ferrous metals, and casting of metals. Each of these groups has several important subgroups. Notably, India ranks as the fourth largest producer of iron and steel worldwide. This industry boasts prominent players like Tata Steel, IISCO, Concast, Electrotherm steel division, Jindal, Acme Impex, Electro steel castings, Sage Metals Limited, Deccan Gold Mines, JSW Steel, Hindalco Industries Ltd, S C Shah Enterprises, India Brass, Madras Aluminium Company, Angles Aluminium Corporation, and Steel, among others. These companies significantly contribute to the growth and development of the basic metals industry in India.
The Indian Motor Vehicles, Trailers, and Semi-trailers market holds a substantial position within the Indian economy, anticipated to reach a value of US$22.21bn by 2023. It is projected that there will be around 7.24k enterprises operating in this market by 2023, employing approximately 1.35m individuals. India’s automotive industry stands as one of the largest globally, boasting renowned manufacturers such as Tata Motors, an esteemed member of the USD128 billion Tata group. Despite encountering various obstacles in recent years, including geopolitical uncertainties, disruptions in the supply chain, evolving consumer preferences, and augmented regulatory scrutiny, the market remains influenced by positive factors. These include the escalating global demand, incessant technological advancements, and increasing investments in automation and digitalization. Manufacturing prospects hold promise, particularly for those manufacturers capable of effectively managing cost pressures while maintaining an unwavering commitment to quality. Such resilience is expected to lead them to emerge stronger from the current crisis.