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Electricity sector in India

The electricity sector in India had an installed capacity of 245.394 GW as of end April 2014,
[1]
the
world's fourth largest.
[2]
Captive power plants generate an additional 39.375 GW. Non Renewable
Power Plants constitute 87.55% of the installed capacity, and Renewable Power Plants constitute
the remaining 12.45% of total installed Capacity.
In terms of fuel, coal-fired plants account for 59% of India's installed electricity capacity, compared to
South Africa's 92%; China's 77%; and Australia's 76%. After coal, renewable hydropower accounts
for 17%, renewable energy for 12% and natural gas for about 9%.
India currently suffers from a major shortage of electricity generation capacity, even though it is the
world's fourth largest energy consumer after United States, China and Russia.
India's electricity sector is amongst the world's most active players in renewable energy utilization,
especially wind energy.
According to some ambitious estimates, India has 10,600 MW of potential in the geothermal
provinces but it still needs to be exploited.
India's network technical losses is 23.65% in 2013, compared to world average of less than 15%.
Key implementation challenges for India's electricity sector include new project management and
execution, ensuring availability of fuel quantities and qualities, lack of initiative to develop large coal
and natural gas resources present in India, land acquisition, environmental clearances at state and
central government level, and training of skilled manpower to prevent talent shortages for operating
latest technology plants


Automotive industry in India

The automotive industry in India is one of the largest automotive markets in the world. It had
previously been one of the fastest growing markets globally, but is currently experiencing flat or
negative growth rates.
[1][2]
India's passenger car and commercial vehicle manufacturing industry is
the sixth largest in the world, with an annual production of more than 3.9 million units in 2011.
The Interim Budget 2014-15 added some incentives to the auto industry. To give relief to the
automobile industry, the excise duty has been reduced till June 30, 2014 as follows:
For small cars, motorcycle, scooters the duty has been reduced from 12 per cent to 8 per
cent.
For commercial vehicles and SUVs the duty has been reduced from 30 per cent to 24 per
cent.
For large and mid-segment cars the duty has been reduced from 27/24 per cent to 24/20
per cent.



INVESTMENT IN INDIA
German auto maker Volkswagen is planning to expand production capacity and introduce a slew of
new models. The group is looking at investing Rs 1,500 crore (US$ 248.55 million) over the next five
years to set up a diesel engine manufacturing facility.
Jaguar Land Rover (JLR) will scale up its production capacity to hit 700,000 units by FY
2017 riding on its joint ventures (JV) in China and Brazil, as per analysts. JLR's capacity for
2014 is pegged at 450,000 units.
The used cars market in India is anticipated to grow at a CAGR of 16 per cent during 201317,
highlighted the RNCOS report titled, Booming Used Car Market in India Outlook 2017

Mathur said sales of two-wheelers and small cars, which depend significantly on demand from rural
areas, would be impacted most if the monsoon is deficient.

Car sales in India are likely to rise marginally this fiscal year after two consecutive years of decline
as buyers were put off by high inflation and interest rates and slow growth in Asia's third-biggest
economy



MANUFACTURIG SECTOR:
Manufacturing is the Achilles heel of the Indian economy. The deceleration in investment
in manufacturing is particularly worrying. Manufacturing sector contributes about 15% of Indias GDP
and 50% to the countrys exports. Labour reforms have been pending in India for long.
Amendments to various laws have been awaiting parliamentary approval.

India has a plethora of labour laws dealing with trade unions, provident funds, industrial
disputes and industrial establishments.
The ' Indian Manufacturing' sector has the potential to elevate much of the Indian
population above poverty by shifting the majority of the workforce out of low-wage
agriculture.

Manufacturing sector is the backbone of any economy. It fuels growth, productivity,
employment, and strengthens agriculture and service sectors. Astronomical growth in
worldwide distribution systems and IT, coupled with opening of trade barriers, has led to
stupendous growth of global manufacturing networks, designed to take advantage of low-
waged yet efficient work force of India. 'Indian Manufacturing' sector is broadly divided into
-


Capital Goods & Engineering.
Chemicals, Petroleum, Chemicals & Fertilizers.i8[
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Packaging.
Consumer non-Durables.
Electronics , IT Hardware & peripherals.
Gems & Jewelery.
Leather & Leather Products.
Mining.
Steel & non-Ferrous Metals.
Textiles & Apparels.
Water Equipment.
Indian Manufacturing Industry is successfully competing in the global marketplace and
registering high growth on YoY basis, but large sections of ' Indian manufacturing' sector
still suffers from bottlenecks like -


Use of primitive technology or under utilization of technology.
Poor infrastructure.
Over staffed operations.
Expensive financing and bureaucracy.

Further, 'Indian Manufacturing' sector must focus on areas like improving the urban
infrastructure, ensuring fair competition and access to markets, reduction of import duties,
quality improvements in vocational and higher education, increased investment in R&D and
support of SMEs. Government leaders, experts, and researchers focusing towards making
Indian manufacturing globally competitive and to have a sustained growth, which
contributes significantly to GDP growth, employment generation and overall economic
development. It also aims to identify factors hampering industrial growth and seeks to
redress these factors.

GDP's share of 'Manufacturing Industry in India'has grown from 25.38% in 1991 to 27% in
2004. Its contribution to exports has increased from 52% in 1970 to 59% in 1980 and 71% in
1990, 77% in 2000-01. Manufacturing exports accounted for a little over 5% of the value of
output of the manufacturing sector in 1990. It is now close to 10%. India's currently exports
manufactured products worth about $50 billion. A recent study on 'Scenario of Indian
Manufacturing Industry' has forecast an annual growth of 17% and to cross the $300 billion
mark by 2015. Most of this off-shoring business would be in the auto components,
pharmaceutical, apparel, specialty chemicals, electrical and electronic equipment sectors.
- See more at: http://business.mapsofindia.com/india-
industry/manufacturing.html#sthash.toWH5Ah0.dpuf

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