Question

Why is the economic strength of a country measured by the development of manufacturing industries? Explain with examples.

Answer 1

The economic strength of a country is measured by the development of manufacturing industries. These industries act as the backbone of the economy in the following ways -

• Manufacturing industries help in modernizing agriculture.
• The utilization of huge volume of natural resources has become possible with the development of industries in the country.
• Increasing volume of investment in industries has led to enhancement in the rate of capital formation in the country.
• Organized and unorganized industries are jointly contributing a good portion of the total national income of the country.
  
• These modernize agriculture.
• These eradicate unemployment and poverty.
• They help in earning foreign exchange.
• They help in bringing down regional disparities.
  
• They help in reducing the pressure from agriculture by setting up of industries in rural areas.