The Automobile Industry

The automobile industry manufactures vehicles for the quick transport of goods, services and passengers — trucks, buses, cars, motorcycles, scooters, three-wheelers and multi-utility vehicles.

  • After the economic liberalisation, the arrival of new and modern models stimulated demand and led to healthy growth of the industry, including passenger cars and two- and three-wheelers.
  • The industry is located mainly around Delhi, Gurugram, Mumbai, Pune, Chennai, Kolkata, Lucknow, Indore, Hyderabad, Jamshedpur and Bengaluru.

Automobile and information-technology industries compared

Information Technology and Electronics Industry

The electronics industry covers a wide range of products — from transistor sets and televisions to telephones, cellular telecom, telephone exchanges, radars and computers.

  • Bengaluru has emerged as the electronic capital of India.
  • Other important centres are Mumbai, Delhi, Hyderabad, Pune, Chennai, Kolkata, Lucknow and Coimbatore; major concentrations are at Bengaluru, Noida, Mumbai, Chennai, Hyderabad and Pune.
  • A major impact of this industry has been on employment generation — including a large number of women — and the growth of software and Business Process Outsourcing (BPO) has brought India foreign exchange.

Exam tip: Remember — Bengaluru = electronic capital of India; the IT industry's biggest impact = employment and foreign exchange.

Questions and Answers

Q1. What does the automobile industry manufacture, and what boosted its growth?

Answer: The automobile industry manufactures trucks, buses, cars, motorcycles, scooters, three-wheelers and multi-utility vehicles for the quick transport of goods and passengers. Its growth was boosted after economic liberalisation, when new and modern models stimulated demand for vehicles.

Q2. Which city is called the electronic capital of India, and name two other IT centres.

Answer: Bengaluru is called the electronic capital of India. Two other important IT/electronics centres are Hyderabad and Pune (also Mumbai, Delhi, Chennai, Noida).

Q3. What has been the major impact of the IT and electronics industry in India?

Answer: The major impact of the IT and electronics industry has been on employment generation — providing jobs to a large number of people, including many women — and on the growth of software and BPO, which brings India a large amount of foreign exchange.