IEP Assignment PPT

8/14/2019 IEP Assignment PPT

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Industrial Environment and Policy

Assignmenton

Industrial Sector in India

Submitted to:Presented By:

Prof. D.S. Hegde SanketBaranwal (12)

HuzefaRatawala (60)

ArunChaudhary (10)


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Introduction and historical

Evolution of Indian Industry,GDP and IIP

Sanket Baranwal

Roll No 12


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Indian Industries HistoricOverview

India is basically an agrarian nation from the very beginning

In India, the concept of industries was introduced in thecountry with the coming of the British

Tea industry in India is said to be the beginning ofindustrial development of India.

In India 3 key industrial economic sectors are identified:

Primary sector, largely extract raw material and they are miningand farming industries

Secondary sector, refining, construction, and manufacturing arecategorised

Tertiary sector deals with services and distribution ofmanufactured goods.


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Indian Industry in Present times

Different programs were formulated and initiated to build up an adequate

infrastructure for rapid industrialization and improve the industry scene in

India

The number of industries in India have increased manifold in the last few

years

The industry scenario in India saw a rapid increase in the various sectors .The

most noticifiable are the Software and Telecom industry

The Indian software industry has grown at a massive rate from a mere US $

150 million in 1991-92 to a staggering US $ 5.7 billion in 1999-2000

The IT sector has helped the India Industry to develop in leaps and bounds


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Large Scale and Small ScaleIndustries

Large scale industries are those which involve huge

infrastructure, man power and a have influx of capital assets They include the Iron and steel industry, textile industry,

Indian diamond industry, Indian food industry, automobile ,heavy manufacturing industry and Petrochemicals

Indian economy is greatly dependent on these large

industries for its economic growth, generation of foreigncurrency as well as for providing job opportunities

Small-scale industries are another major contribution to theGross Domestic Product (GDP) of India

They are termed as traditional sectors and are referred to havehuge growth prospect

The primary concern of the small-scale industries is that capitalresources are invested for the development of machineries.


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The contribution of the Industrial Sector inIndia GDP

GDP of India: Statistics

The industrial sector accounts for around 27.6% of the India GDPand it employs over 17% of the total workforce in the country.

Data Shows that Industry Growth Rate in India GDP has been onthe rise over the last few years

The reasons for the rise of Industry Growth Rate

Huge amounts of investments are being made in this sector

Consumption of the industrial goods has increased a great deal

in the country

Industrial goods are being exported in huge quantities from thecountry.

GDP: $1.209trillion

GDP Growth: 6.7%(2009)GDP per capita:

$1016

Agriculture:

17.2%Industry: 29.1%Services: 53.7%

Labour force: 523.5million


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Index to measure IndustrialPerformance: IIP

IIP is an index which details out the growth of varioussectors in an economy. Indian IIP will focus on sectors likemining, electricity, Manufacturing & General

Indian IIP will focus on sectors like mining, electricity,Manufacturing & General. In case of India the base year hasbeen fixed at 1993-94 hence the same would be equivalentto 100 points

Method to Calculate IIP------ Laspeyre's formula:

I = (WiRi)/ Wi.

Where I is the index, Ri is the production relative of the ithitem for the month in question and Wi is the weight allotted

to it.


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Automobile industry

Tenth largest in the world with an annual production of

approximately 2 million units

Expected to become one of the major global automotiveindustries in the coming years

AUTOMOBILE

2 WHEELER 3 WHEELERPASSENGER

VEHICLE

COMMERCIALVEHICLE


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India is.

Largest three wheeler market in the world

2nd largest two wheeler market in the world

4th largest passenger vehicle market in Asia 4th largest tractor market in the world

5th largest commercial vehicle market in theworld


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Evolution of Automobile Industry

tial Yearsnufacturing was licensedigh Customs duty on importeep excise duties &

les taxMajor players:mier Automobiles Ltdindustan Motors

80stry of MUL, better product,

h government support

llers Market

ng Waiting Periods

Early to mid 90s

Sellers market andlong waiting periods

Delicensing in 1993

Removal of capacityrestrictions

Decrease in

customs & excise

Auto finance boom-more players (foreignbanks & non banking

companies, betterschemes.

Mid 90s Early2000s

Buyers market

Increase inIndigenization

Easy Auto finance

Manufacturesdiversifying intorelated activities:finance lease, fleetmanagement,

insurance and usedcar market


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Trends in Automobile sector


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Arun Chaudhary

Roll no - 10

Sectoral Analysis - 2

Retail Sector


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INDIAN RETAIL MARKET

CurrentScenario

t the organized sector (everything other than these small famies) accounts for only 6 to 8 percent of the total market althoug

to rise by 20 to 25 percent by 2013.


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Indian retail market is comprised of three categories. These 3-categories and their choices are represented in the given figure. Till now alarge part of upper class and a small part of themiddle class hasbeen entered into retail shopping. A bulk segment (97%) is still left

as only6-7% market is captured by organized retail in India.


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Sectoral Analysis - 3

FMCG Sector

Shwetabh Anjan

Roll no - 06


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Size, Growth& Significance ofFMCG Sector in India

The Indian FMCG sector is estimated at US$ 25billion, including tobacco.

Indias FMCG sector is fragmented and asubstantial part of the market comprises ofunbranded and unpackaged products

In the last 2-3 years, it has overcome a slowgrowth slump to grow at between 12% - 15%, and isexpected to grow at a CAGR of around 12% over thenext few years to reach a size of US$ 43 billion by2013 and US$ 74 billion by 2018.


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Growth Projections Most FMCG products are daily use products, and therefore,

their volume consumption has been largely unaffected in

the current economic slowdown.

The sector has coped well with recent challenges and grewby 15% over the last year.


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Economic Contribution Employment :The FMCG sector is one of the larger employers

in the country. The total salary outlay of the sector on direct

employment is estimated at approximately 6% of turnover, i.e.US$ 1.5 billion (Rs. 7,000 crores).

Fiscal Contribution: On an average therefore, almost 30%(and much more for liquor and tobacco categories) of therevenue of the sector goes into both direct and indirect taxes.

Social Contribution: ITC echoupal and Choupal Sagar;

HULs Shakti Amma network;

Dabur.

Contribution to other sectors: ( Agriculture, Third PartyLogistics, Ancillary Industries Manufacturing & Distribution).

Ex: Marico : 1.6 million outlets through almost 900 direct

distributors, 100+ super distributors, catering to almost 2,500small stockists and 4,600 van markets


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Growth Drivers


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Sectoral Analysis - 4Power Sector

Naresh Dhingra

Roll no - 17


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Power Sector

Power Sector involvesgeneration, transmission anddistribution.

India is the 6th largest consumerof electricity in the world.

GOAL: 100,000MW of capacity by

2012 to bridge the demandsupply gap.

This offers a US$90bnopportunity in the next 8 years.

Indian power sector is plaguedby high T&D losses.

The Renewable Energy market isgrowing at 15% per annum.

Target by 2030 is 200 GW Renewable energy is projected to

produce 10,000 MW by 2012


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Per Capita Consumption(kWh)

PUBLIC SECTOR G T D

National Hydro Electric Power Corporation

(NHPC)

P

Nuclear Power Corporation (NPC) P

National Thermal Power Corporation (NTPC) P

PRIVATE SECTOR

Reliance Energy P P

Tata Power P P P

Torrent P

P = Present, G = Generation, T = Transmission, D = Distribution

Major Players

Current Situation

To sustain the Growth rateof 8% plus per annum , thepower sector needs togrow at 1.8 - 2 times theGDP rate of growth.This would mean a YOY

capacity addition of 18,000- 20,000 MW100% Rural Electrificationwith Adequate &Qualitative Power for

irrigation purpose.Increasing the Role ofHydro & Renewable Energyin the Energy Mix.Urgent need to develop

the alternatives, both inthe Fuel & Technology


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POWER SECTOR: The pathahead

Power for All by 2012 Requirement of addition 100,000 MW by 2012 Investment of US$ 90 billion in Transmission and

Distribution infrastructure Focused strategy for distribution, 100 per cent metering

and effective MIS for monitoring New Electricity Act 2003 is now very much in place, which

permits/offers :- 100% FDI in Power sector Concessional Import duty for mega

power projects (1000MW ++) Reduced Import duty of 20% on equipment for Renewable

Energy (Wind, Solar etc.) Direct Sale of Power

Private participation in transmission and distribution sectoralso invited


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Documents

IEP Assignment PPT