Economy of India
Industry accounts for 26 Percent of GDP and employs 22 Percent of the total workforce. According to the World Bank, India s industrial manufacturing GDP output in 2012 was 10th largest in the world on current US dollar basis $239.5 billion , and 9th largest on inflation adjusted constant 2005 US dollar basis $197.1 billion . The Indian industrial sector underwent significant changes as a result of the economic liberalisation in India economic reforms of 1991, which removed import restrictions, brought in foreign competition, led to the privatisation of certain government owned public sector industries, liberalised the FDI regime, improved infrastructure and led to an expansion in the production of fast moving consumer goods. Post liberalisation, the Indian private sector was faced with increasing domestic as well as foreign competition, including the threat of cheaper Chinese imports. It has since handled the change by squeezing costs, revamping management, and relying on cheap labour and new technology. However, this has also reduced employment generation even by smaller manufacturers who earlier relied on relatively labour intensive processes.