Currently the second fastest growing economy in the world, India has developed a diverse and competitive industrial base. Plans for the various sectors are drawn up by the Planning Commission which is headed by the Prime Minister. The National Development Council, comprising the state chief ministers, is the highest decision-making body. Initially, emphasis on self-reliance led to the establishment of a strong public sector presence in areas like steel, cement, power and heavy engineering.
           The tone has altered today. Reforms ushered in during the 1990s led to much economic restructuring, holding out the promise of a strong and resurgent India. The results showed : GDP grew by 8% in 2003-2004, while inflation dropped from 12% in 1991 to the current 5% in 2003-2004. Globalization and liberalization, key aspects of the new economic order ensure that India is no longer isolated from international markets. Within India, there is a strong private sector presence and foreign investment had entered many sectors. India rated as the 7th most attractive destination for FDI in the world in 2001 has inflow of foreign investments that exceeded US$ 50 million.
           In an attempt to create a positive milieu for economic growth, the government has introduced measures like a reduction in customs duties and tax holidays in some sectors. Incentives have also been given to industries like pharmaceuticals, housing, information technology and textiles. Corporate restructuring measures are being planned and this will inevitably lead to accelerated industrial growth. Exports which now reflect an impressive product range, have shown a significant upward trend, and not surprisingly there are plans to tap new markets. Towards this end, aggressive marketing and branding strategies are now being adopted.
           The competitive environment has acted as a positive challenge to the domestic industry, which has lost no time in restructuring itself to meet the changed marketplace.
           Today, India manufactures highly sophisticated telecom equipment and computer software and has entered high-tech areas like nuclear power generation and the manufacturer of space equipment. Bangalore, which is the nucleus of such activity, is referred to as the Silicon Valley of India.