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Introduction
The welfare of the public, advancement of the economies and the growth of the enterprises are majorly conditional on the proximate productivity in the industrial sector. Differences in the ideologies and economic system are where the distinction arises. In general terms, productivity refers to the ratio between the output produced and the inputs used in the production activity. The conversion efficiency of a nation determines the productivity that can be made within an economy. Productivity improvements have an extensive impact on economic, human, and social reflections. Interestingly, transformation is through three important sectors of the economy namely, primary, secondary and tertiary sectors.
Productivity in the industrial sector of India
The industrial sector of India has undergone numerous phases of shifts and changeovers since independence. Low productivity is what the Indian industries experienced during the late 1970s and 1980s. The reason behind such a situation was the use of obsolete technology, which led to a lower quality of production. But soon things took a good turn and the Productivity in the industrial sector growled with the process of deregulations during the 1980s. Soon thereafter, various reforms were made which is popularly known as the Industrial Policy of 1991.
Different types of Industries in India
Development in an economy is largely dependent on the industries it has. The economic transformation in an economy puts up with a place with the help of three classifications under the head of Industries namely, primary, secondary and tertiary sectors.
1. Primary Sector
Being the initial in the categories of production, this is concerned with the extraction of natural resources from the earth. Nature is the main aspect of this sector, through which the raw materials are provided to the general public and for further process of production.
Further, the Primary sector is also split up into genetic and extractive industries that help an economy in emerging and standing out. Genetics is concerned with agriculture, forestry and fisheries. On the other hand, extracting is into the mining of mineral ores and fuels.
2. Secondary Sector
After the primary sector, the secondary sector comes into the picture in productivity in the industrial sector. The major inclusions in this are the construction and the manufacturing industries which assist in the processing of raw materials from the primary into finished items.
Massive machinery is a characteristic feature of the secondary sector where human labour is even employed to operate these production plants. Further, human labour is also employed to reach out to these finished products to the ultimate ends of use.
3. Tertiary Sector
The tertiary sector is the final one in the categorization that is responsible for marketing the goods generated in the secondary sector to the final consumers for their consumption. The most notable features of this sector include access, discussion, and experiences that help one in climbing the ladder of growth.
Under the tertiary sector, we have retail, finance, resale trade, investment, legal, tourism, repair and outlay services, police, consulting, health, social welfare, restaurants, transportation, real estate services, defence services, etc. Notably, this sector is currently the largest sector of the entire world economy.
Primary, secondary and tertiary sectors are interdependent. Each of them relies on the other for one or the other services for the. Primary being the base of all the sectors, secondary helps in the processing and tertiary sector is responsible for reaching out the goods of the primary and secondary sectors to end locations.
Index of Industrial production
The index of industrial production or IIP is an indicator that attributes the level of growth in various areas of the economy. This measures the differences and changes that arise in the volume of production of industrial products during a given period, in comparison with the base year taken by a nation. The duty of the compilation and publication of the index of industrial production (IIP) in India lies in the manuals of the National Statistics Office (NSO).
Initially, the country had a base year fixed at 1993-94 which was accorded an index level of 100. But now, the nation has accepted 2011-12 as the base year for the calculation of the Index of Industrial Production in our country. Eight core industries are considered in the calculation of IIP namely, steel, crude oil, electricity, natural gas, coal, refinery products and cement.
FMCG Sector
The fast-moving consumer goods (FMCG) sector is the fourth largest sector of the Indian economy making about 50% of exchanges from the household and the personal care area. The FMCG sector has strengthened productivity in the Industrial sector. Recent years have seen some rapid pace changes in the FMCG sector where the growth has been more in rural India, in comparison with the urban areas. The pivotal drivers of this sector encompass easier access, thriving perception among the people and the change in lifestyle of the people of India. At present, this sector has given employment recourse to about 3 million people of the Indian population.
The major characteristic features of the FMCG sector are high initial launch cost, the trend towards natural products, marketing drive and exploration, technology, and high initial launch cost. In the past few years, there has been an increasing trend in the growth of the FMCG sector due to an increase in the number of government initiatives, rising advertisement costs by the FMCG companies, changes in policies and regulations and alterations in the lifestyle and culture of the people. Even if that’s so, still, FMCGs in India are filled up with the darknesses of traditional conventions where street shops are still on the run and it has some halts.
Conclusion
Productivity in the industrial sector has been driving the economic growth of India for the last three decades. Still, some gaps can be filled up by their industrial sectors, which means the country still has the potential to work on its efficiencies. Better technologies and managerial strategies should be undertaken by the government and private corporations so that the country doesn’t lag behind the process of development. Proactive regulations can boost efficient reallocation of the resources and there are chances that spillover effects can also be generated. New digital technology, termed Industry 4.0 will surely bring wonders to us.
