Given that it is the ninth largest economy in the world, it is unsurprising to find an increasingly large number of western companies and market players looking to get involved in Indian business. The first step in this process is to understand how the country's economy works. This article can help as here we list the top 6 most important industries in India. If you want to start investing in the Indian market, consider the following information.
Large and expanding, India's transportation sector hugely important to its overall GDP, contributing 8.5% overall. The country houses one of the world's largest railways, with 17 million passengers riding it every single day, while 12 majors ports and 125 airports reflect just how essential this market is for making the country tick.
5. Information Technology
Between the IT services sector and the sector of processes outsourced from other businesses, IT makes up a huge chunk of the business done in India. In fact, so important is it, that it currently contributes 64% of all the GDP made in the country's entire services sector and 9% of the national GDP. Also, IT exports account for 25% of all national exports. For those interested in getting involved, the main hub for IT is Bangalore, which has been dubbed the Indian Silicon Valley.
4. Banks and insurance
India's financial markets are also massively influential, with insurance and banking currently make up 10% of India's GDP. The sector is made up of long established private, public and foreign owned banks, insurance providers and unorganised lenders.
3. Real estate
Not only does Indian real estate make up about 13% of its country's economy, it is one of the fastest emerging markets on the planet. This means, if you are looking to invest in the Indian market, real estate is probably where you will look. It's doesn't take a rocket scientist to figure out why this industry is booming. The nation's massive population, most of whom now live in urban areas, have recently seen a huge boost in their incomes and, so, more and more housing is an obvious outcome.
Traditionally, agriculture is the bedrock of the Indian economy and, today, it remains a huge percentage of it. As the world's second largest producer of farmed goods, plus a powerful hub for fishing and forestry, it is little wonder India still puts so much focus on agriculture. It contributes 15.7% of the national GDP and has been aided by the recent Green Revolution in the country, though in recent years its share has been dropping.
1. Retail and trade
Nowadays, India's most important industry is retail. With a 23% contribution to the Gross Domestic Product of the nation, Indian retail is one of the globe's leading retail sectors and its fastest growing. It includes everything from the handcart vendors in the nation's smallest markets to the massive superstores in its busiest city centres. The government has responded by investing more and more in retail, which looks likely to ensure it remains the country's most important industry for many years to come.