Which type of agriculture is capital intensive?

indian economy

Importantly, these are potentially high employment generating sectors especially in Tier-2 and 3 cities as well as in the rural areas. Similarly, the automotive industry can become a $600 billion industry in the next five years and the capital goods industry can touch $100 billion in the next four years. According to our study, India will require at least $8 trillion of cumulative gross capital formation, assuming we are on the fastest growth track. The leaders initially lacked knowledge about the recent reforms such as the digitisation of customs clearance and production-linked incentives for manufacturers. Advice to entrepreneurs who want to modernize their manufacturing operations, and how working with marketing and advertising teams may be the key to new customers. Not only has Dynamic Blending adopted a number of technologies to improve operations, but they look at how they can enhance the customer experience as well — not just deliver a product.


By default, insurance transaction relates to assumption of risk—that is reflected in collection of premium—and later paying off claims as and when arise and set aside some money as a residual for future servicing to policyholders. Its quality depends on a visible assurance of the ability to redeem this pledge, as much as on the intrinsic worth of the protection provided. Equity funds are expected to deploy cash holdings worth INR 63,000 crore ($8.4bn) into the Indian equity market as they await stability amid positive news on the macro front, says Pawan Bharadia, managing director at Equitree Capital. With the risk-reward scenario becoming favorable, Bharadia sees enough capital on the sidelines to be deployed that will find its way into the market as volatility stabilizes. Bharadia said Equitree was "optimistic" about equities in the mid-to-long term period with corporates expected to post better results due to the recent price corrections and continued business visibility. But with low wages and low income, a business can still remain competitive, and that is by employing more workers.

Which type of agriculture is capital intensive?

When talking about the era that was before the Industrial Revolution, almost 90% of the employed workforce was in agriculture. There are adequate new projects in the pipeline; and new ones keep getting proposed as enthusiastic governments try to attract investments to their states. Governments, in general, have not been blamed by entrepreneurs for delays in clearances. At least till before the recent rate hikes, the availability and cost of finance were not impediments.

  • Marathon canceled the release of fourth-quarter results Tuesday after saying there had been “accounting errors” in several quarters of its financial statements.
  • This is because the industrial structure and industry type require high value investments in capital assets.
  • “We attribute the paradigm shift in factor performance to the robust demand outlook in sectors such as construction, manufacturing, electricity, telecom, commodities, etc which are related to the investment cycle,” the report said.
  • Mukherjea believes the direct-to-consumer industry in India is causing erosion of moats in the FMCG market, making it a difficult industry to invest in.
  • If India is to reach its goal of becoming a developed nation by 2047, the country’s smallest businesses will need to participate in the nation’s digital ecosystem.
  • PepsiCo and Reliance Industries are among those said to have been sounded out by Goldman Sachs, the investment bank mandated to run the auction process.

Upon completion these alone could raise the steel capacity by almost 50 per cent. The government is likely to hold discussions with Vedanta informally on a possible stock market listing of Balco before a firm proposal is made to the aluminium company's board, said people aware of the development. If the worker-to-fixed-capital ratio is baised towards capital, it reflects greater preference for capital goods in the production process. In recent years, the proportion of investments leading to capital formation has been low, and India needs proactive investment in greenfield projects to become a $5 trillion economy by 2027. Upgrades from mid to large-cap category and from small to mid-cap category are primarily from industrials, real estate, financial services, banks, and auto. How do you stay competitive and differentiate yourself in an industry where many cosmetics manufacturers have been around for years?

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Marathon canceled the release of fourth-quarter results Tuesday after saying there had been “accounting errors” in several quarters of its financial statements. The US Securities and Exchange Commission raised questions about how the miner recognized the impairment of digital assets and revenue. We view risk as a permanent loss of capital and, hence, believe in investing only within our circle of competence and in companies with the highest standards of corporate governance. We minimise risk through in-depth research and diligence, which is ingrained in our DNA. "Its fate is therefore not only decisive for Switzerland, for our companies, for private clients, for its own employees, but also for the stability of the entire financial system," Swiss President Alain Berset said in unveiling the deal. With the government's blessing, Nayshtetik and his team of engineers moved to neighboring Poland where they raised initial funding from a Polish company, Air Res Aviation, to develop a new drone for the Ukrainian military.

A labor-intensive industry requires large amounts of manual labor to produce its goods or services. Labour intensive technology of production refers to the technique in which more labour per unit of output is used. On the other hand capital-intensive technology uses more capital per unit of output. • Commercial agriculture- It is a type of farming that uses modern techniques for yielding greater productivity. It involves the use of high yielding seeds, use of chemical fertilisers, insecticides and pesticides to obtain higher yield. Commercial farming is capital intensive as it involves huge capital investment and large lands.

This book assesses the attractiveness of Brazil as a location for automobile and steel production in the future. It evaluates the export performance of Brazil's motor-vehicle and steel industries in different markets and identifies the determinants of the country's current position in world markets. There are many instances around the world where insurance companies have failed following inadequacy of capital and inefficient management. The purpose of insurance operation is to service the capital adequately and appropriately. If the adequacy of servicing relates to the probability of increase in shareholder’s value, its appropriateness concerns claims paying ability for which the capital is deployed.

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Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs. In the case of ahigh level of inflation in the economy, the labor-intensive industry can suffer to some extent. Conventional power generation now competes with renewable energy sources that have seen substantial investments in recent times.

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The basic necessities of food, clothes and shelter are seeing a spike in prices and becoming difficult for the economically weaker section of the society to afford. “Extremely expensive low-volatility stocks with sub-par growth prospects unlikely to outperform,” the report said, adding this is a defensive strategy that worked well during the investment downcycle since FY11. Capital-intensive stocks are those companies which require heavy capital investments in order to produce goods. UltraTech Cement, JK Cement and other cement companies are some examples of capital-intensive stocks. Please read the scheme information and other related documents carefully before investing.

Budget 2023 will promote green growth, says renewable industry

In India, firms employing more than 100 workers require government permission for layoffs, retrenchments or closures, preventing companies from shuttering unprofitable ventures. These sectors have the potential to grow in size as well as cater to the export markets. India, according to our research, can target an additional $1 trillion of merchandise exports in the next five years by attracting higher FDI into these sectors through concerted efforts.

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Enterprises seem to be going slow in implementation of projects because of the low capacity utilisation described earlier. Gurmeet Chadha, managing partner and CIO of Complete Circle Consultants, believes China's housing market and cycle will continue to be strong despite the current correction. Additionally, he suggested the capital goods and industrials sectors will see relative strength with the Indian government's expansionary budget and focus on affordable housing.

At the same time, the appeal also reveals the somewhat desperate situation on the investments front. Umpteen green-shoots have been cited in the past but none could mushroom into the coveted animal spirits-driven investments frenzy. The central government has raised its capital spending at over 20 per cent for three years in succession and has hoped that these would “crowd-in” the private sector, but the private sector remains unimpressed.

This kind of farming is practised by a large number of farmers in the country. Based on past trends, India needs approximately $400 billion of foreign capital cumulatively over the next six years. How they differentiate themselves from their competitors by improving the customer experience through technology and their new Experience Center for clients. "We use a couple of different technology pieces a lot on the custom software side to help process improvement, and also to digitize a stale workflow process from a documentation standpoint," Jordan explains in our episode.

The stability of industry-level wage rates brings industrial reforms under the scanner for their implications on worker welfare. Wage convergence could be inhibited by the inter-industry movement of workers. Surveys by the Reserve Bank of India throw some interesting light on the possible desired levels of capacity utilisation required to spur investments. According to the RBI’s OBICUS, capacity utilisation through all of 2022 was well over 70 per cent.

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‘Capital Intensive’ industries require a greater amount of machinery to produce the product. Telecommunications, airlines, automobile manufacturing, oil production to name a few. Regulatory compliance requires an insurance company to arrange first a proper risk transfer mechanism which is known as reinsurance facility for shedding off the additional exposure beyond its limit of retention on any one risk. This is known as ‘Off-Balance Sheet Capital’ as this is a kind of capital that is not visible on the balance sheet but remains obscured that provides financial strength to the company to assume more risks to augment its business.

“The AMFI size classification list is purely based on market capitalisation cut-offs and tends to change every six months. We are more focused on earnings, cash flows and the management team of businesses. We don’t put too much emphasis on market cap," said Chandraprakash Padiyar, senior fund manager, Tata Mutual Fund.

  • While the capex revival spells boon for banks as well as investors over the longer term, returns will be determined by how well banks can deal with the problem of tightening liquidity.
  • With the government's blessing, Nayshtetik and his team of engineers moved to neighboring Poland where they raised initial funding from a Polish company, Air Res Aviation, to develop a new drone for the Ukrainian military.
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Although several capital intensive industries-intensive tasks and jobs need low levels of education or skill, however, the same doesn’t apply to every position. With the advancement in technology and the need to show productivity, there are numerous industries that have gone beyond the status of labor-intensive. However, there are some that still remain in the race, such as mining, agriculture, hotel, restaurants, etc.

It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Labor-Intensive is either a process or an entire Industry that needs a massive amount of labor to manufacture products or services. Typically, the degree of intensity is measured in proportion to the Capital amount needed to manufacture products or services. An Insurance company derives its revenue from domestic as well as overseas operations against which part of the money is paid to reinsurers towards cost of protection against catastrophe losses or routine claims during the period under review.

We consider four capital intensive industries in which the private sector is a substantial investor. These are conventional power generation, petroleum refining, steel and cement. These four industries accounted for nearly 30 per cent of the total net fixed assets of all non-finance companies in CMIE’s Prowess database.

Investors are advised to consider riding the trend in the capital goods space, says Dipan Mehta, Director, Elixir Equities. He cites a good order inflow and favourable margin management making the sector attractive. Within the pharma sector, Mehta suggests investors examine companies with a strong domestic presence and one with large revenues earned through sales within India. While the capex revival spells boon for banks as well as investors over the longer term, returns will be determined by how well banks can deal with the problem of tightening liquidity.