Industries and Services have acted as twin engines propelling
overall growth in an economy. They are attracting large inflow of capital
and foreign investments into the country from all over the world. They
play a vital role in accelerating socio-economic development of a nation,
thereby providing several categories of goods and services (both tangible
and intangible) and catering to the diverse needs of the masses. These
sectors are the largest generator of employment opportunities in the country
and a facilitator of trade and commerce with other countries. In other
words, besides agriculture, they are the basis of almost all the major
policy initiatives, incentives and schemes as well as programmes and plans,
both at the National and the State level.
The industrial sector majorly consisting of heavy and light
engineering, steel, automotive, biotechnology, drugs and pharmaceuticals,
food processing, mines and minerals, fertilizers, etc. provide immense
potential for developing adequate market infrastructure in the economy.
These industries are involved in production of several good quality and
skill intensive products, in bulk quantities and at much reasonable prices.
They are governed and administered by their respective Ministries/ Departments.
However, the 'Department of Industrial Policy and Promotion (DIPP)', under
the Ministry of Commerce and Industry, is the main agency for monitoring
the entire industrial growth and production in general. It plans for modernization
and technological upgradation of the Indian industry in order to keep
pace with the international developments in industrial technology on a
continuing basis. It also studies, assesses and forecasts the need for
technological development in some specific industrial sectors like cement,
light engineering sectors, etc. DIPP has been announcing industrial policy,
from time to time, to foster and facilitate the growth of Indian industry.
Such policy framework set certain limits and norms for the conduct of
business in the country.
Services sector has always been an attractive investment
option for the corporate world. It has facilitated the creation of several
infrastructural facilities in the country as well as enhanced the productivity
of various industries. It not only helps in economic upliftment of the
society, but also promote political and social well-being among the masses.
The service industry comprising of information technology (IT), education,
health, media, tourism, etc. helps to shape the people's opinion about
various national and international issues as well as increase their awareness
by giving them participative role in formulation of policies/ schemes/
programmes/ plans . In other words, a country cannot achieve a higher
growth rate without a larger proportion of services in gross domestic
product (GDP). Accordingly, the concerned authorities have been making
all efforts to strengthen the pace of development of the sector in a sustainable
manner.
An important segment of Indian industrial set up has been
the micro, small and medium enterprises (MSMEs), which have been accepted
worldwide for promoting equitable growth in the economy. The 'Ministry
of Micro, Small and Medium Enterprises' is responsible for overall development
of India's small and medium sectors. It has accorded the sectors a top
most priority and have, accordingly, undertaken several policy initiatives
for protecting their interest such as reservation of items for exclusive
manufacture by them. The major advantages of the industry are its labour
intensive nature, generating highest rates of employment growth as well
as production at low capital cost. MSMEs, constituting larger number of
total enterprises in the economy, account for a major share of industrial
production and exports.
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