Analysis of Sectors in India

PERFORMANCE ANALYSIS: SECTORS OF INDIAN ECONOMY

INTRODUCTION

The pace of India’s economic growth currently at its slowest in a decade will speed up with the new government coming into position. The gross domestic product expectations are as high as 6.5 % which is a difficult trade-off considering the high inflation and high current account deficit. However there is also positive sentiment wave across the country which hopes partial recovery due to opening up of foreign investments in sectors like retail and aviation and deregulation of the price of subsidized fuel. The key obstacles which the country has faced in last decade has been poor infrastructure, low growth in agriculture and industrial activities and the energy deficit.

In this paper, different major sectors of Indian Economy are studied on factors of growth and performance. These industries are then analysed through the Porter’s Five Forces to understand the profitability of the sectors and the dynamics of the companies present in each sector. The sectors undertaken for the study are:

* Automobile Sector

* Pharmaceutical Sector

* Power Sector

* IT Sector

AUTOMOBILE SECTOR:

India represents one of the world’s largest car markets. Easy availability of finance and rising income levels are encouraging the middle class population to choose from the vast range of passenger vehicles. The Indian auto industry has been recording tremendous growth over the years and has emerged as a major contributor to India’s gross domestic product (GDP). The industry currently accounts for almost 7 per cent of the country’s GDP and employs about 19 million people both directly and indirectly. In addition, with Government’s backing and a special focus on exports of small cars, multi-utility vehicles (MUVs), two and three wheelers and auto components, the automotive sector’s contribution to the GDP is expected to double reaching a turnover worth US$ 145 billion in 2016,

Market share of Indian...