INDIAN ECONOMY: INDUSTRY IN INDIA

INDIAN ECONOMY: INDUSTRY IN INDIA


Hi Friends,

Come On Let us dive into the ocean of Indian Economy,

AUTOMOBILE INDUSTRY

Overview

• Indian automobile industry is the ninth largest in the world
• Annual production of over 2.3 million units
• India is the 4th largest exporter of automobiles in Asia, behind Japan, South Korea and Thailand

About Maruti India

• Established as Maruti Udyog Limited in Feb 1981
• Market leader, credited for bringing an automobile revolution in India
• First Managing Direct was R.C. Bhargava
• In May 2007, the GoI sold its share in the enterprise, and no longer has a stake in the company
• Two manufacturing facilities: Gurgaon and Manesar (near New Delhi)

About REVA India

• Largest produced electric car in the world
• Introduced in India in 2001
• Manufactured in Bangalore
• Travels 80 km on a 8 hour charge for a running cost of Rs 0.40 per km

Automobile companies and their bases

Company	Headquarters	In India
Audi	Germany	Aurangabad
BMW	Germany	Madras
Chevrolet	USA	Pune
Fiat	Italy	Pune (joint with Tata Motors), Madras
Ford	USA	Madras
Honda	Japan	Noida
Hyundai	South Korea	Madras
Mercedes-Benz	Germany	Pune
Mitsubishi	Japan	Thiruvallur (TN)
Nissan	Japan	Madras
Renault	France	Nasik (with Mahindra), Madras (with Nissan)
Skoda (owned by VW)	Czech Republic	Aurangabad
Toyota	Japan	Bangalore
Volkswagen	Germany	Pune

PHARMACEUTICALS INDUSTRY

Overview

• India is in position to meet 70% of drug demand internally
• Important drugs produced in India include penicillin, flumeguine, pefloxacin, ramipiril etc
• Public sector companies in the pharmaceutical sector include Indian Drugs and Pharmaceuticals, Hindustan Antibiotics Ltd.,
• Over 60% of bulk drugs exported

History of pharmaceutical sector

• First pharmaceutical company in India was the Bengal Chemical and Pharmaceutical Works established in Calcutta in 1930
• First public sector pharma company was Hindustan Antibiotics Ltd. founded in Pimpri (Maharashtra) in 1954. It was also the first company in India to launch a recombinant DNA product, Hemax, in 1993
• Patents Act 1970 made pharmaceutical sector unsuitable for foreign companies thereby encouraging Indian companies
• In Jan 1995, government amended the Patent Act to reinstate product patents for the first time since 1972
• This was in compliance of the WTO’s Trade Related Aspects of Intellectual Property Rights (TRIPS) agreement

Biotechnology

• India’s biotech industry accounted for 2% of the $41 bn global biotech market
• India has the third largest biotech industry in the Asia-Pacific region and eleventh largest in the world
• Biotech sector is made up primarily of small startup firm
• Government established Department of Biotechnology under the Ministry of Science and Education in 1986
• Ministry of Science and Technology also launched Biotechnology Parks Society of India to provide tax breaks and dedicated infrastructure
• Government allows 100% FDI in biotechnology

Important names in the pharmaceutical sector

Company	Key people	Headquarters	Notes
Ranbaxy	Atul Sobti	Gurgaon	Largest pharmaceutical company in India
Dr. Reddy’s	Anji Reddy GV Prasad	Hyderabad	Second largest in India
Nicholas Piramal	Ajay Piramal	Bombay
Cipla	YK Hamied	Bombay	Oldest in India World’s largest producer of anti-retroviral (AIDS) drugs Pioneered AIDS treatment drug (now standard)
Biocon	Kiran Mazumdar-Shaw	Bangalore	India’s leading biotechnology company
Serum Institute of Inida	Cyrus Poonawalla	Pune	Fifth largest vaccine maker in the World World’s largest maker of measles and DTP vaccines Serum vaccines immunize 50% of world’s children Currently manufacturing vaccine for swine flu

OTHER INDUSTRIES

1. Steel industry
   • India is the 8th largest producer of steel in the world
   • It is the 2nd largest producer of sponge iron
   • However, India continues to be a heavy importer of steel from abroad
   • Tata Steel in Jamshedpur was the first steel plant in India and Asia (1907)
   • First government-established steel plant in India in Rourkela (1953) in collaboration with Germany
   • India is the fifth largest producer of steel in the world (China is the first)
   • Bhilai steel plant is the only producer of steel rails in India
2. Fertilizer industry
   • India is the 3rd largest producer of nitrogenous fertilizers in the world
   • However, India still imports substantial amounts of fertilizers
   • first fertilizer plant was a Single Super Phosphate plant at Ranipat (TN) in 1906
3. Textile Industry
   • It is the single largest industry in India
   • Employs 17% of the workforce
   • Accounts for 20% of India’s industrial output and 30% of exports
   • Indian textile industry is the second largest in the world (behind China)
   • India is one of the largest producers of cotton in world

THANKS

JOHAR..