Importance of industries in Indian economy
Posted Date: 07-Oct-2010
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
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.
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.
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.
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.
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.
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.
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.
IN SHORT, WE MAY SAY THAT IT IS ONLY THROUGH RAPID INDUSTRIALIZATION THAT THE INDIAN ECONOMY CAN FIGHT AGAINST WIDESPREAD POVERTY AND BACKWARDNESS.
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Hafeezur Rahman P
ISC Technologies, Kochi - India. Copyright © All Rights Reserved.