India Industrial Overview

Indian economy started out as a producer of raw goods, since it was model used by the British to get maximum gains out of the Indian economy. The climb up the value chain is a painful one for all lagging economies of the world as it requires an educated populace.

Early Indian industry essentially consisted of raw and simple goods lower down in the value chain. As the populace became more literate, more complex goods showed up in the value chain. India eventually started created complex parts and become independent in the arena of two and three wheeler automobiles. That expertise has now extended to four wheelers.

Economic liberalization in the 80s and 90s allowed for more sophisticated goods to be produced. The Indian labor force has always been prized as a productive one and was the primary export for a long time. Software outsourcing and business process outsourcing has finally allowed Indian jobs move up the value chain and provide the needed expertise to most of the developed countries.

Indian industries now work at a very high quality level to produce goods for both local and international consumption. Automotive industry, food processing industry, film industry, medical and garment industry are some of the success stories. Corruption is the major impediment as it does not allow talent and skill to rise to the top, creating mediocrity in some the fields where India could have been the top producer. There is also a tendency to treat industrialists with disdain. Industrialists are working hard to avoid corrupt practices and provide maximum value; the begging bowl of politicians and bureaucrats continue to be a major impediment. Lack of well built infrastructure is also becoming a major concern. The current government is well on its way to removing hurdles faced by the common Indian businessman.

Software has become a major spoke of the Indian economy in the past few years. Indian skills and knowhow has translated itself to millions of good paying jobs being outsourced from the developed world to India. India also provides enormous amount of on-shore talent to all the countries in the world.

Manufacturing is now receiving a conscious boost via the Make in India campaign. Also the current administration is loosening up the bureaucratic environment to allow innovators and manufacturers to go to market quickly and face fewer hurdles in setting up and running a business. Focus on infrastructure development will also aid the industrial economy in the long run.

Medical tourism, biotechnology and surrogate child technology are some of the noble fields in which India will continue to have major contributions in the coming years. A reasonable ethical framework needs to be put in place to make sure that international customers and users can redress their grievances in a fair manner.