Like China, India is an untapped market - and one of the most exciting emerging markets in the world. A little over one quarter of the population live in urban areas. There has been rapid urbanisation in the country since 1971. The labour force has been estimated at about 315 million. The organised labour force is predominantly in the manufacturing and service sectors, while agriculture and related activities use mainly unorganised labour.
Indian industry is well diversified and is an important sector of the economy.
Besides large and medium private sector units, many small industrial units and cottage industries contribute significantly to the vibrancy of this sector and to its dispersal throughout the country. Over the last forty years, India's development programme has been based on self reliance and social equity. Industrial development was intended for import substitution and was closely guided by licensing, import controls and a high tariff regime. Infrastructure and heavy industries were reserved for the public sector, though private initiative played a significant role. The Financial sector was dominated by government-owned financial institutions that regulated credit and capital mobilisation.