Question

why is commerce considered as backbone of industry and other business related activities?

Answer 1

Dear Neha,

Unlike industry, commerce does not involve manufacturing or production. It basically involves trading and its related activities. Commerce includes exchange of goods and services. It primarily aims at the circulation of these goods and services so as to keep them within the reach of the final consumers. The major commercial activities are transportation, advertisement, packaging, warehousing, banking, communication, etc. Hence, it can be said that commerce bridges the gap between the producers and the consumers. Industrial production is meaningless without the distribution of goods and services by commerce. Commerce provides support to industry by maintaining a smooth flow of goods from producers to consumers. Industry cannot function without commerce and trade. Commerce serves as the backbone or lifeline of industry.