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Industrial structure in India

There are four main types of jobs or industries in India. These are:

  • , which involves getting raw materials from the land, eg farming or forestry
  • , which is making products out of raw materials, eg food processing and car
  • , which is providing a service, eg doctors and teachers
  • , which means ICT and research, eg computer software designers and scientists

A country's is the percentage of people working in each job type. Changing the balance between these four sectors of industry can help a country to develop.

Up until the 1980s, India's main type of industry was primary. Many people were farmers, which is not very profitable. From the late 1980s, the Indian government encouraged foreign (TNCs) to set up within the country. Factories were built and secondary jobs in manufacturing were created. Factory workers earn more money, which means that they can afford to pay people for services, such as entertainment and healthcare. Workers in the tertiary (service) sector are paid more than in primary and secondary.

The additional wealth generated from the changing industrial structure in India has created a - as one thing improves, it allows other things to improve too.

The multiplier effect: TNCs set up factories, factory workers spend money locally, local services have more trade, government receives more tax, government invests in infrastructure.
Figure caption,
The multiplier effect