India's industrial structure
India is a newly emerging economy (NEE)A country that has recently become more wealthy. found in southern Asia. It is the world's largest democracyA type of government where people govern themselves or elect representatives to govern for them., it has the second largest population and a rapidly growing economy.
Changing industry in India
There are four main types of jobs or industries in India. These are:
- primaryThe primary sector involves extracting raw materials, rearing animals and growing crops. , which involves getting raw materials from the land, eg farming or forestry
- secondaryA type of industry where raw materials are made into something. Often called 'manufacturing'., which is making products out of raw materials, eg food processing and car manufacturing industriesFactories which make goods, such as TVs, clothes and cars.
- tertiaryProviding services - includes retail, tourism, education, health and banking. , which is providing a service, eg doctors and teachers
- quaternaryThe section of employment that is knowledge-based, eg ICT and research., which means ICT and research, eg computer software designers and scientists
A country's industrial structureThe percentage of jobs in primary, secondary, tertiary and quaternary industries. 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 subsistenceFarming which produces food only for the farmer's dependents. farmers, which is not very profitable. From the late 1980s, the Indian government encouraged foreign trans-national corporation (TNC)A company that operates in many different countries. (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 multiplier effectThis occurs when a positive change happens, which then has a knock-on effect on other businesses. For example a new office may open, which leads to an increase in lunchtime sandwich sales at the local caf茅 and more bus passengers. - as one thing improves, it allows other things to improve too.