Explain the importance of industrial sector in the economy of a country.
Explain the importance of industrial sector in the economy of a country.
Following points bring out the importance of industry in an economy:
(i) Structural Transformation: Industrial development brings about structural transformation in the economy. It means that the dependence of our economy on agriculture will be reduced.
(ii) Source of Employment: Indian economy has a very large skilled workforce which is still unemployed. establishment of industries which can generate employment opportunities on a large scale.
(iii) Enhancing further the Economic Growth: As industrialisation progresses, the capital goods industry also starts to flourish. This helps in further economic growth and fosters investment and growth.
(iv) Infrastructural Growth: With the spread of industrialisation, the need for economic infrastructures such as roads, dams, banking, insurance and communication facilities also rises and this leads to their growth. Also with the improvement in quality of life, the demand for social infrastructure i.e., facilities related to health and education, also rise and leads to their development.
(v) Share in GDP: Industries contribute to the GDP of the country. During the years, the share of the industrial sector has increased from 16.6% in 1950 - 51 to about 30% in 2011-12 (at constant prices).
(vi) Strengthening the Economy: Industries help to strengthen the economy in followings ways:
(a) With the growth of the capital goods industry, the country is able to produce a number of goods in large quantities and at low cost.
(b) It helps in the establishment of infrastructure goods like dams, railways, etc, which cannot be imported
(c) Industrialisation has helped our country to become self-reliant in defence goods.
Following points bring out the importance of industry in an economy:
(i) Structural Transformation: Industrial development brings about structural transformation in the economy. It means that the dependence of our economy on agriculture will be reduced.
(ii) Source of Employment: Indian economy has a very large skilled workforce which is still unemployed. establishment of industries which can generate employment opportunities on a large scale.
(iii) Enhancing further the Economic Growth: As industrialisation progresses, the capital goods industry also starts to flourish. This helps in further economic growth and fosters investment and growth.
(iv) Infrastructural Growth: With the spread of industrialisation, the need for economic infrastructures such as roads, dams, banking, insurance and communication facilities also rises and this leads to their growth. Also with the improvement in quality of life, the demand for social infrastructure i.e., facilities related to health and education, also rise and leads to their development.
(v) Share in GDP: Industries contribute to the GDP of the country. During the years, the share of the industrial sector has increased from 16.6% in 1950 - 51 to about 30% in 2011-12 (at constant prices).
(vi) Strengthening the Economy: Industries help to strengthen the economy in followings ways:
(a) With the growth of the capital goods industry, the country is able to produce a number of goods in large quantities and at low cost.
(b) It helps in the establishment of infrastructure goods like dams, railways, etc, which cannot be imported
(c) Industrialisation has helped our country to become self-reliant in defence goods.
