Module 3: Sectors of Indian Economy

Chapter 1 : Agriculture Sector

Pre-Independence Phase (Before 1947)
1. Colonial Exploitation:
British land revenue systems like Zamindari exploited farmers and prioritized
rent collection over agricultural productivity. (Movie - Lagaan)
2. Low Productivity:
Traditional techniques, lack of irrigation, and poor seeds led to very low per
hectare yield.
3. Famine & Food Insecurity:
Frequent famines (e.g., Bengal Famine of 1943) highlighted the failure of
colonial policies in ensuring food supply.
4. Cash Cropping:
British focus on indigo, cotton, and opium reduced food crop cultivation,
hurting food security.
5. Neglect of Infrastructure:
Irrigation, rural roads, storage, and research were largely ignored under
colonial rule.

Post-Independence Phase (1947–1999)

1. Land Reforms Initiatives:
Abolition of zamindari, land ceiling acts, and tenancy reforms were launched
to ensure equitable land distribution (though uneven success).
2. Community Development Programs:
Introduced in the 1950s to uplift rural areas via integrated development,
though limited impact.
3. Green Revolution (1966–1980s):
Introduced HYV seeds, fertilizers, irrigation, and machinery; boosted wheat
and rice production, mainly in Punjab, Haryana, and western UP.
4. Institutional Support:
Establishment of NABARD, cooperatives, and APMCs supported credit and
research.
5. Food Security & Buffer Stocking:
Formation of Food Corporation of India (FCI) and Public Distribution
System (PDS) for procurement and distribution.
6. Crop Pattern Diversification:
Gradual move from cereals to cash crops, oilseeds (7 seeds), and
horticulture.

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Post - 2000s Phase
1. Focus on Doubling Farmer Income:
Government initiatives (e.g., PM-KISAN, soil health cards) to ensure farmer-
centric growth.
2. Agri-Tech & Digitization:
Use of AI, GIS, mobile apps, and precision farming to improve productivity
and information access.
3. Shift Towards Horticulture & Allied Sectors:
Growth in dairy, poultry, fisheries, and horticulture outpaced traditional
crop production.
4. Climate Resilience & Sustainability:
Emphasis on organic farming, water conservation, and climate-resilient
crops due to changing weather patterns.
5. Agri-Marketing Reforms:
Digital platforms for farmers to sell produce directly, bypassing middlemen
and boosting prices. (Eg – Kissan connect)
6. MSP Policy and Protests:
Growing debate around Minimum Support Prices, market liberalization,
and farmer movements.
7. Increased Role of FPOs & Private Sector:
Rise of Farmer Producer Organizations (FPOs) and corporate
investments in agri-supply chains and cold storage.

Factors influencing productivity and growth

1. Soil Quality
The fertility and health of soil determine how well crops grow. Good soil supports better
root development and nutrient uptake, while degraded or saline soils lower productivity
significantly.

2. Climate and Rainfall

Timely and adequate rainfall is essential for crop cultivation, especially in rain-fed regions.
Irregular patterns like droughts or floods due to climate change disrupt the growing cycle
and reduce yields.

3. Irrigation Facilities
Access to assured irrigation helps farmers overcome dependence on monsoons. Efficient
systems like drip or sprinkler irrigation improve water use and allow multiple cropping
cycles per year.

4. Use of Technology and Mechanisation

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Modern tools such as tractors, harvesters, and AI-based decision-support systems improve
efficiency and reduce labor costs. Mechanisation also enables timely sowing and
harvesting, which improves yield.

5. High-Yielding Variety (HYV) Seeds and Inputs

Adoption of HYV seeds, along with appropriate use of fertilizers and pesticides, enhances
output per acre. However, over-dependence on chemical inputs can harm long-term soil
health.

6. Credit and Financial Access

Farmers require timely credit to purchase seeds, fertilizers, and machinery. Lack of
affordable loans leads to underinvestment in productivity-enhancing resources and forces
reliance on informal moneylenders.

7. Government Policies and Support

Supportive policies like MSP (Minimum Support Price), subsidies, crop insurance, and
schemes like PM-KISAN create a safety net. These measures encourage investment in
farming and reduce risk for farmers.

8. Research and Extension Services

Institutions like ICAR and Krishi Vigyan Kendras (KVKs) provide scientific farming
techniques and training. When farmers adopt modern methods, their productivity
improves significantly.

9. Storage and Transport Infrastructure

Poor storage leads to high post-harvest losses, especially in perishables. Cold chains, rural
roads, and transportation facilities help farmers preserve produce and access wider
markets.

10. Market Access and Pricing

Transparent and accessible markets ensure fair prices and reduce middlemen exploitation.
Initiatives like e-NAM allow farmers to sell directly to buyers across states.

11. Landholding Size and Land Reforms

Small and fragmented landholdings hinder modern farming and mechanisation. Effective
land reforms and consolidation improve farm efficiency and output.

12. Labor Availability and Migration

Shortage of agricultural labor due to rural-urban migration raises costs and delays farming
activities. Mechanisation can help bridge the labor gap but requires capital investment.

13. Environmental Sustainability

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Overuse of groundwater, chemical inputs, and monoculture farming practices deplete
natural resources. Sustainable agriculture practices like crop rotation and organic farming
support long-term growth.

14. Climate Change and Natural Disasters

Unpredictable weather patterns, rising temperatures, and extreme events like floods or
storms negatively affect agriculture. Climate-resilient crops and adaptive farming methods
are crucial to mitigate these risks.

role of technology in agriculture:

1. Increased Productivity and Efficiency:
Precision Agriculture:
Techniques like GPS, drones, and sensors enable farmers to monitor crops, soil, and
weather conditions with high precision, leading to optimized crop yields and reduced
waste.
Automation:
Automated machinery and robotics increase productivity, reduce labor costs, and
minimize environmental impact.
Data Analytics:
Analyzing data from various sources provides valuable insights into crop growth, yields,
and disease outbreaks, helping farmers make informed decisions.

2. Improved Resource Management:

Efficient Water Use:
Sensors and weather monitoring systems help farmers optimize irrigation and reduce
water consumption.
Optimized Input Use:
Precision agriculture techniques help farmers apply fertilizers and pesticides more
effectively, minimizing waste and environmental impact.
Sustainable Farming Practices:
Technology supports the adoption of sustainable farming practices, such as crop rotation
and cover cropping, which improve soil health and reduce the need for chemicals.

3. Enhanced Supply Chain Management:

Market Access:
Technology helps farmers connect with buyers and streamline their supply chains,
reducing waste and improving profitability.
e-Market Platforms:
Electronic platforms enable farmers to sell their produce directly to consumers or
processors, eliminating middlemen and improving market access.
Smart Logistics:

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Technology helps optimize transportation and storage, reducing spoilage and ensuring
timely delivery of agricultural products.

4. Increased Resilience and Adaptability:

Crop Improvement:
Biotechnology and genetic engineering have resulted in pest-resistant and drought-
tolerant crops, enhancing resilience to environmental stresses.
Climate-Smart Agriculture:
Technology helps farmers adapt to changing climate conditions, including developing
drought-resistant crops and implementing climate-smart practices.
Early Warning Systems:
Weather forecasting and remote sensing provide early warnings about potential risks,
allowing farmers to take preventative measures.

5. Other Important Impacts:

Agricultural Education and Extension:
Technology provides access to educational resources and agricultural extension services,
helping farmers adopt new technologies and farming practices.
Financial Inclusion:
Mobile banking and digital payments help farmers access financial services and improve
their financial management.
Data-Driven Decision Making:
Technology empowers farmers with data-driven insights, enabling them to make more
informed decisions about planting, harvesting, and other farm activities.

Specific Roles of Institutions:

1. Training and Extension:
Agricultural institutions offer training to farmers on new cultivation techniques,
improved crop varieties, and post-harvest management, as well as providing technical
advice and extension services.
2. Research and Development:
Institutions conduct research on crop breeding, soil science, pest control, and other
agricultural aspects, contributing to the development of new technologies and
practices.
3. Financial Support:
Institutions like banks provide credit support for investment projects, seasonal work,
and the revival of small forms of farming.
4. Infrastructure and Services:
Institutions facilitate access to essential infrastructure like irrigation, storage facilities,
and market access, as well as providing services like credit, insurance, and marketing
support.

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5. Policy Advocacy:
Agricultural education institutions advocate for policies that support the growth and
sustainability of the agricultural sector, including research funding, infrastructure
development, and farmer welfare.
6. Market Access and Value Chain Development:
Institutions help farmers access markets, participate in value chains, and build
sustainable incomes by streamlining post-harvest activities, improving storage, and
connecting producers with consumers.
7. Sustainable Development:
Institutions play a key role in promoting sustainable agricultural practices, protecting
natural resources, and ensuring food security through training and research

Various institutions in agriculture

1. Indian Council of Agricultural Research (ICAR)
ICAR is the apex body for coordinating, guiding, and managing research and education in
agriculture and allied fields in India. It has played a crucial role in introducing high-yielding
varieties (HYVs), biotechnology applications, and climate-resilient crops. ICAR operates
through a network of research institutes and agricultural universities. It also promotes
sustainable farming and advanced agronomic practices. Its research has been pivotal in
the Green and White Revolutions. ICAR trains scientists and researchers to support the
country’s agricultural development.

2. National Bank for Agriculture and Rural Development (NABARD)

NABARD is India’s specialized financial institution dedicated to rural and agricultural
development. It provides refinance support to cooperative banks, RRBs, and other
institutions that lend to the farm sector. NABARD also promotes rural infrastructure,
warehousing, and watershed development projects. It encourages financial inclusion
through support for self-help groups and farmer producer organizations (FPOs). NABARD
plays a key role in improving credit access for small and marginal farmers. It also funds
innovations in agri-business and sustainable rural livelihoods.

3. Krishi Vigyan Kendras (KVKs)

KVKs are agricultural extension centres under the umbrella of ICAR that serve at the
district level. They bridge the gap between agricultural research and the farming
community by providing hands-on training, field demonstrations, and on-site
solutions. KVKs tailor solutions based on local conditions and farmer needs, promoting
region-specific innovations. They also conduct soil testing, input demonstrations, and
educate farmers on integrated pest management and crop diversification. KVKs ensure
that scientific advancements reach grassroots-level agriculture. This direct interaction
helps in quick adoption of new practices by farmers.

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4. State Agricultural Universities (SAUs)
SAUs are state-level institutions providing undergraduate to Ph.D. education in
agriculture, horticulture, and animal sciences. These universities also undertake
research focused on local agro-climatic conditions. They support farmers by generating
region-specific knowledge, such as drought-tolerant crop varieties or pest-resistant
strains. SAUs work closely with ICAR and state governments to implement agricultural
reforms. They serve as a talent pipeline for the agri-sector, producing skilled professionals
and researchers. Their extension wings also train farmers, agri-entrepreneurs, and rural
youth.

5. Food Corporation of India (FCI)

FCI was established to ensure food security through procurement, storage, and
distribution of food grains. It plays a major role in implementing the Minimum Support
Price (MSP) scheme to safeguard farmers from price volatility. FCI buys surplus produce
from farmers, stores it in warehouses, and supplies it through the Public Distribution
System (PDS). It stabilizes food prices across states and ensures equitable distribution of
essential grains. FCI also helps manage buffer stocks for emergency situations. Its
operations support both producers and consumers in India.

6. Agricultural and Processed Food Products Export Development Authority (APEDA)

APEDA supports the export of Indian agricultural and processed food products,
including fruits, vegetables, meat, and cereals. It provides financial assistance for
infrastructure development like cold chains and pack houses. APEDA also helps exporters
meet international standards through certifications like Organic, FSSAI, and ISO. It
facilitates participation in global trade fairs, buyer-seller meets, and provides real-time
data on global demand trends. By creating export-ready agri-businesses, APEDA enhances
income opportunities for Indian farmers and entrepreneurs. It helps position Indian
produce on the global map.

7. Cooperative Societies and Banks

Agricultural cooperatives play a key role in supplying credit, seeds, fertilizers, and
storage facilities to small and marginal farmers. These member-owned institutions
enable collective purchasing, selling, and marketing of produce. Cooperative banks
provide loans at lower interest rates and protect farmers from private moneylender
exploitation. Primary Agricultural Credit Societies (PACS) are the grassroots units that
deliver direct services. Farmer cooperatives also enable value-added processing and
branding of products. They strengthen community-based development and inclusive
agricultural growth.

8. Ministry of Agriculture & Farmers Welfare (MoAFW)

This central ministry formulates policies, implements schemes like PM-KISAN and
coordinates with states. It aims to ensure inclusive and sustainable agricultural
development.

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9. Agri-Tech Startups and Incubation Centres
New-age institutions and incubation centres support startups with funding, mentorship,
and technology for solving agricultural challenges. These institutions bridge the gap
between traditional farming and digital innovation.

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 Chapter 3.2 Industry
Pre-Independence Industrialisation (Before
1947)
a. Colonial Industrial Setup
The British focused on raw material extraction and export, while India became a market for
British goods. This limited the development of Indian industries.
b. Emergence of Indian Entrepreneurs
Indian industrialists like J.N. Tata and G.D. Birla began setting up textile mills and steel
plants in the late 19th and early 20th centuries, despite colonial restrictions.
c. Limited Infrastructure & Technology
The lack of modern infrastructure, capital, and technology hindered large-scale industrial
growth during the British era.

2. Post-Independence Industrialisation (1947–1990)

a. Planned Economic Development
The government adopted Five-Year Plans focusing on self-reliance, with the public sector
playing a major role in core industries.
b. Industrial Policy Resolution of 1956
This policy emphasized the development of heavy industries and reserved key sectors
for the public sector to drive balanced regional growth.
c. License Raj & Bureaucratic Control
Industrial growth was restricted due to excessive licensing, permits, and government
control, which led to inefficiencies and corruption.

3. Post-Liberalisation Era (1991–2000)

a. Economic Reforms of 1991
India liberalized its economy, ending the License Raj, encouraging FDI, and promoting
privatization and deregulation of industries.
b. Expansion of Private Sector
The private sector gained momentum, especially in sectors like automobiles, telecom, IT,
and consumer goods, leading to faster industrial growth.
c. Export-Oriented Growth
India focused on increasing exports, especially in textiles, pharmaceuticals, and IT services,
improving foreign exchange reserves.

4. Post-2000s Industrialisation
a. Rise of the IT & Service Industry
India emerged as a global IT hub, with cities like Bengaluru becoming centers of software
and tech-based industrial growth. (outsourcing)
b. Make in India Initiative (2014 onwards)
This initiative aimed to boost manufacturing, attract FDI, and create jobs by encouraging
global companies to produce in India.

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c. Infrastructure & Smart Manufacturing
Investment in industrial corridors, digital infrastructure, and Industry 4.0 technologies led
to modernisation and automation of industries.
d. Focus on Sustainability & Green Industry
Recent years have seen a shift towards green energy, electric vehicles, and sustainable
industrial practices aligned with global climate goals.

Factors influencing productivity and growth

Productivity and economic growth are influenced by a complex interplay of factors,
including physical and human capital, technology, and the overall environment. These
factors, when optimized, can significantly boost both individual and societal output.
Key Factors Influencing Productivity and Growth:
1. Physical Capital:
This includes the tools, equipment, and infrastructure used in production. Investing in
modern and efficient capital can significantly boost output.
2. Human Capital:
This refers to the skills, knowledge, and experience of the workforce. Education, training,
and continuous development are crucial for improving productivity.
3. Technology:
Technological advancements, including automation and innovation, drive productivity
gains by enabling more efficient production processes and the creation of new products
and services.
4. Natural Resources:
Access to and efficient utilization of natural resources are essential for many industries
and can impact overall productivity.
5. Work Environment:
A positive and supportive work environment, free from distractions and stressors,
fosters focus and collaboration, leading to increased productivity.
6. Training and Development:
Providing opportunities for employees to enhance their skills and knowledge can lead
to improved performance and efficiency.
7. Management and Leadership:
Effective leadership and management practices that motivate and guide employees play
a crucial role in productivity and growth.
8. Technology Adoption and Utilization:
Organizations that effectively leverage technology can streamline workflows, improve
communication, and automate processes, leading to increased productivity.
9. Communication and Collaboration:
Clear and open communication channels facilitate teamwork, knowledge sharing, and
problem-solving, contributing to higher productivity.
10. Work-Life Balance:

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 A healthy work-life balance helps prevent burnout and promotes employee well-being,
which in turn can improve productivity.
11. Motivation and Incentives:
Recognizing and rewarding employee contributions, offering fair compensation, and
providing opportunities for growth can motivate employees and drive productivity.
12. Policy and Regulations:
Government policies and regulations can have a significant impact on productivity and
growth by influencing factors such as trade, investment, and innovation.
13. Social and Cultural Factors:
Social norms, values, and cultural attitudes can influence work ethic, innovation, and the
willingness to adopt new technologies, all of which can impact productivity.

Small scale industries

Small scale industries are those industries in which production, manufacturing and
providing the services are executed on a small or micro scale.
In a country like India, the small scale industries play a very important role in generating
employment, improving the financial status of people, development of rural areas and
removing the regional imbalances. The small-scale sector (SSI) is a vital part of any
economy, particularly in developing countries like India, playing a crucial role in
employment generation, economic growth, and regional development. They offer
employment opportunities, utilize local resources, and contribute significantly to
exports. SSIs also promote entrepreneurship, reduce regional imbalances, and foster a
more equitable distribution of income

Importance of SSIs:
1. Employment generation: Small scale industries are one of the best sources of
employment generation in India. Employment is one of the most important factors that
determines the growth of a nation. Therefore, development of small scale industries
should be encouraged for the development of more employment opportunities in the
nation.
2. Less Capital Requirement: Small scale industries are less capital intensive than the
large scale industries. Capital is scarce in developing countries like India and therefore,
small scale industries are most suitable for maintaining the balance.
3. Use of resources and development of entrepreneurial skills: Small scale industries allow
for the development of entrepreneurial skills among the rural population which is not
having the scope of large scale industries. These industries help in the appropriate use
of the resources available in the rural areas, which leads to development of rural areas.
4. Equal income distribution: Small scale industries by generating employment
opportunities create equal income opportunities for the youth of the underdeveloped
areas. This leads to the growth of the nation in terms of employment, human
development.

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5. Maintains regional balance: It has been seen that large scale industries are mostly
concentrated in the large cities or restricted to areas which leads to migration of people
in search of employment to these cities. The result of such a migration is overcrowding
of the city and damage to the environment. For sustaining a large population, more of
natural resources need to be utilised.
6. Short production time: Small scale industries have a shorter production time than the
large scale industries which results in flow of money in the economy.
7. Supporting the large scale industries: Small scale industries help in the growth of the
large scale industries by producing ancillary products for the large industries or
producing small components that will be useful for the assembling of final products by
the large scale industries.
8. Improvement in Export: Small scale industries contribute to around 40% of the total
exports done by India, which forms a significant part of the revenue earned from the
exports. Small scale industries work towards increasing the forex reserves of the country
that reduces the load on balance of payment of the country.
9. Reduce the dependence of agriculture: Most of the rural population will be dependent
on agriculture and this creates a burden on the agricultural sector. Small scale industries
by providing employment opportunities to the rural population provides more avenues
for growth and also paves way for a more arranged distribution of occupation

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 Chapter 3.3 - Service Sector in India:
Introduction
➢ The growth of the Services Sector in India is a unique example of leap-frogging
traditional models of economic growth. Within a short span of 50 years since
independence, the contribution of the service sector in India to the country’s GDP is a
lion’s share of over 60%.
➢ However, it still employs only 25% of the labour force. Consequently, agriculture (which
is stagnant) and manufacturing (which has not yet risen to its full potential) continue to
sustain the majority of our employed population.
➢ This presents a unique challenge to future economic growth in India and requires out of
the box solutions that will help rapidly harness the potential of the service industry in
India. Invest India takes a look at the contribution of the services sector in the Indian
economy, its successes and also explores potential enablers for future equitable
economic growth.

Service Sector in India: Growth potential

IT-BPM/ Fintech
The IT & Fintech segments provide over $ 155 bn in gross value and have the potential to
grow between 10 -15% p.a. Exports form its largest component. Going forward, the IT
segment require significant upskilling to move beyond a ‘low - cost low value add service
provider’ to a ‘high value add partner’.
Indian IT companies can also leverage their skill sets to provide fintech solutions to
global financial customers. Financial risk management services, insurance, natural
disaster modelling and underwriting are examples of high value add services performed
within India for a global audience.

Healthcare & Tourism

The current contribution of the healthcare industry is over $ 110 bn and is expected to
touch $ 280 bn by 2020. Availability of world - class medical facilities, skilled doctors,
technicians and pharmaceuticals are some of our advantages. With digital
communication and interfaces, diagnostic medicine can also be tapped into as a service
for global customers.
Similarly, for tourism, India is renowned for its places of natural beauty and historical
significance. Tourism presently contributes $ 47 bn to the country’s GD, compared with $
115 bn for China. Thus, tourism has exponential possibilities to boost the Indian services
sector in the next decade.
To attract significant revenues, improved customer experience (medical or tourism) is the
key factor that will determine its future growth. In this context, government initiatives such
as e - Visas, better infrastructure facilities, safety, connectivity etc. are enablers in the right
direction.

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Space
India captured the world's attention last February when it broke the record for launching
the most number of satellites into space. Moreover, this was done at a fraction of the
cost incurred by other space powers.
Indian services in the space domain, with proven expertise in multiple launch technologies,
provide it with a significant advantage over its peers in the global space transportation
industry. Our launch capabilities have a near 100% track record. Many countries are
actively looking to piggyback on India’s launch facilities. This demonstrates great potential.
The government is actively proving its ability, but more can be done to build capacity in
military and non - military space applications. In this context, public - private participation
is key to ensure the flow of capital, as well as to strengthen competencies in this area.

Logistics & Transportation

India’s natural coastline and vast river network give it a competitive edge in
providing transportation and logistics services, both domestically and internationally.
These can be classified into ports and ports services, warehousing, trans - shipment
services, e - logistics, inland waterways for freight and passengers, expressways and
dedicated freight corridors. India’s logistics service sector itself is expected to grow from $
115 bn to $ 360 bn by 2032.
India should closely look into the development of the service industry, given the potential
and need for sustained large scale investment. Investments typically have a long gestation
period. However, once the infrastructure is created, linkages to the rest of the economy
provide significant multiplier effects. For example, the Mumbai - Pune expressway and
the development of service industries in Pune.

Other services
Media & Entertainment (animation, gaming, dubbing), Education (online platforms
such as MOOC - Massive Open Online Course), and Sports (IPL, IFL, Sports
Management), Legal/ Paralegal services, Risk management and advisory functions, etc. are
areas that can lead to an immense contribution of service industry in the Indian economy.

major factors responsible for the high

growth of the service sector
The major factors that led to the growth of service sectors in India are as follows;
1) High demand for services as final product: India was a virgin market for
service sector. So, when service sector started booming due to business outsourcing
from the developed countries to India, there was very high demand for these services
especially for banking, computer service, advertisement and communication. This high
demand in turn led to a high growth rate of service sector.

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2) Liberalisation and economic reforms: The growth of Indian service sector is
also attributable to the liberalisation and various economic reforms that were initiated
in 1991. Due to these reforms, various restrictions on the movement of international
finance were minimised. This led to huge inflow of foreign capital, foreign direct
investments and outsourcing to India. This encouraged the service sector growth.
3) Structural transformation: Indian economy is experiencing structural
transformation that implies shift of economic dependence from primary to tertiary
sector. Due to this transformation, there was increased demand of services by other
sectors which y boosted the service sector.
4) Advanced technology and growth of IT: The advancements and innovations
in the IT sector enabled the use of internet, telecommunication, mobile phone and
electronic transactions across different countries. All these contributed to the growth
of the service sector in India.
5) Increased volume of trade: Low tariff and non-tariff barriers on imports by India
are also responsible for high growth rate of service sector. The foreign trade reforms
enabled the domestic products to interact and compete in the international markets.
6) Cheap labour and reasonable degree of skill in India: Due to the
availability of cheap labour and reasonable degree of skilled man power in India,
developed countries found outsourcing to India feasible and profitable. The business
outsourcing in itself provides substantial encouragements (like development of human
capital that requires services like good coaching centers and reputed institutions, etc.)
to the growth of service sector.

Recent Investments in the service sector

Of late, the government’s efforts in improving ease of doing business and relaxing
regulatory norms have resulted in increasing FDI into the country. The following examples
demonstrate the strong linkages that FDI has in unleashing the potential, as well as
propelling the growth of the services sector in India:
1. Connecting Gujarat and Maharashtra, India’s first bullet train has potential similar
to that of the Mumbai - Pune expressway, but on a larger scale.
2. Manufacturing of Rafale jets in India.
3. Building large highway systems in India (expressways and freight corridors), inland
waterways (Jalmarg Vikas project), port modernisation and new port development
(Sagarmala project)
4. Amazon India expanding its logistics footprint
5. Creation of a Taiwanese tech park in Karnataka.
6. A dedicated fund of $ 693 mn, which will be utilized to support sectoral undertakings
under the Champion Services Sectors Initiative. These include IT and ITeS, Tourism and
Hospitality Services, Medical Value Travel, Transport and Logistics Services, Accounting
and Finance Services, Audio Visual Services, Legal Services, Communication
Services, Construction and Related Engineering Services, Environmental
Services, Financial Services and Education Services.
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7. FDI limit for insurance companies has been raised from 49% to 74% and 100% for
insurance intermediates.
8. On January 15, 2021, the third phase of Pradhan Mantri Kaushal Vikas Yojana
(PMKVY) was launched in 600 districts with 300+ skill courses.
9. In January 2021, the Department of Telecom, Government of India, signed an MoU
with the Ministry of Communications, Government of Japan, to strengthen
cooperation in the areas of 5G technologies, telecom security and submarine optical
fibre cable system.
10. Government of India has launched the National Broadband Mission with an aim to
provide Broadband access to all villages by 2022
11. In September 2020, the government announced that it may infuse Rs. 200 billion (US$
2.72 billion) in public sector banks for its growth & development.
12. In the next five years, the Ministry of Electronics and Information Technology is
working to increase the contribution of the digital economy to 20% of GDP. The
government is working to build cloud-based infrastructure for collaborative networks
that can be used for the creation of innovative solutions by AI entrepreneurs and
startups.

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