Importance of industries in Indian economy

Industrialization has an important role to play in the economic development of the under-developed countries like India with huge man power and large and varied resources.

Importance of Industries

i)Rapid growth of income
The first and th foremost argument in favor of industrialization is that it can provide a base for rapid growth of income.It is because of the fact that that productivity rates are higher in industry than in agriculture. Industries mainly depend on man;'s effort while agriculture is restricted by th limiting factor of the nature. It is also seen that the Industrialized nations have a high per capita income.

With the increasing population agriculture is unable to provide for employment. Hence it is very important to set up industries to absorb this surplus labor.Hence industries can solve the problem of unemployment.

iii)Exploitation of resources
Industries are capable of utilizing all the resources present in the economy. They can even make use of scraps and waste materials. Agriculture cannot make use of all the resources.

iv)Foreign exchange
India cannot earn adequate foreign exchange from the exports of its primary products. It is because of the fact that the demand for such products is very low in other countries. Industrial exports need to be added to the primary products.

v)Development of agriculture
The requirements of agriculture are met by the industries in large. Agriculture requires improved farm machinery, chemical fertilizers and pesticides. It also requires storage and transport facilities. All these are adequately provided by our own industries.

vi)Balanced development
Ours is an unbalanced economy. Our greater dependence on agriculture has made us poor. With the industrialization in the economy this disparity can be removed. If agriculture is the backbone of the economy, industry is the energy.

vii)Self-sustained growth
The rapid development of capital goods industries promote the growth of agriculture, transport and communication. It also enables the country to produce a variety of consumer goods in large quantities and at low costs.
It also eliminates our dependence on other countries for the supply of essential goods.

viii)Nation's security
Dependence on foreign countries for defense goods is always risky affair. We do not have good relations with our neighboring countries especially Pakistan and China.



Guest Author: linsa21 Aug 2014

This information helped me a lot 4 my project

Guest Author: Bhar17 Aug 2017

You have mentioned india as an under developed country! Please change it to a developing country.

Author: Gaurav20 Aug 2017 Member Level: Gold   Points : 5

I agree that industrialization is very important for our country because of the several reason as stated above in the article. But what about the side effects of industrialization. What about the pollution caused by industries and factory. Industries play a major role in increasing the carbon percentage of carbon in the air making it poisonous and unfit to inhale. Industries cause all types of pollution land pollution, air-pollution and also water pollution. Most of the wastes from industries are released into various rivers like Yamuna, Ganga, Godavari and many other rivers which are life line of people. Solid wastes from factories leave the land barren.
What is the use of this development which costs our life? We should use alternatives method of industrialization for the purpose of growth and development of our country. Cottage industry is a good alternative which causes very less pollution and also provide employment to large number of people than industries.
It's doesn't seem logical to risk the life of future generation in the name of development.

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