The advantages of Industrialization

There have always been debates as to whether we should follow only a big industrial policy or encourage agriculture. Yet, the advantages of industrialization cannot be wished away. This article discusses some dimensions of the advantages of industrialization.


Just look around you. The fan that keeps you cool to some extent in summer is from an industrial organization. The AC comes from the industry too. The plastic chair comes from the industry too. The tiles in your house, the electrical fittings, the steel products, the car that you have or the two-wheeler that you have, are all products of what we call industrialization. Nothing is possible without it. Modern technology and mass production are two salient features of such industrialization. Yet, the spread of industrialization is so complete that it sometimes morphs the importance that should be given to agriculture and the need to harness natural resources. That there should be a good balance is not disputed.

The advantages of industrialization are a) It generates income that feeds so many industries b) It promotes mass employment c) It is a natural cushion when agriculture fails d) It promotes the rapid growth of the service sector and e) The entire society including farmers benefit through industrialization

It generates income that feeds so many industries

It is quite true that massive industries have different pay scales and benefits for those who are Managers and those who are workers. However, the different salaries do create demand for various products in the economy and the different economic classes also get to enjoy the benefits. For example, a CEO of a major company may earn one hundred thousand rupees per month. Or even much more than that. He would spend the disposable income on shopping in the most expensive shopping malls, domestic and foreign holidays with family, costly education in good schools and colleges for his children and so on. At the very low end, even the servant maid would be given a salary that is double of what she would get elsewhere. The part-time electricians, drivers, plumbers and so on would benefit too. Hence, the income creates a demand for manpower and for various products and services in the economy. The economic engine goes on rolling. Agriculture may not be able to support such incomes. The richest of farmers with land holdings of over fifty acres, do earn this income and they do spend on the same services and products. Yet, their number is very small when compared to those in industry. In a single organization, the net output in terms of salaries paid every month supports an entire economy in the local area and this includes hotels, lodges, the marriage halls, the small and big shopping centers, the various commercial shops and so on. The demand keeps on increasing.

It promotes mass employment

In total contrast with agriculture, where the farmers, the middlemen, and the retailers only benefit, the process of industrialization promotes direct and indirect employment of the tallest order. Look around and observe what goes on in and around any big factory. You can easily see anywhere between five hundred to even a thousand regular employees, who earn anywhere between Rs. 26,000 to one lakh rupees as monthly income ( post-tax, at 2019 prices). Apart from this chunk of employees, you will also notice that another one thousand employees would be employed as casual or contract laborers and they would get around Rs. 10,000 to Rs. 12, 000 per month. In some cases, they also get highly subsidized breakfast and lunch. This includes even unskilled gardeners who get trained and are used to maintain the gardens. They are employed even when they are seventy years old, by generous employers.

Now imagine what will happen to this kind of money. This money will, in turn, promote self-employment in terms of small businesses and employment in the shopping centers, beauty parlors and so on, also keeps on increasing. The servant maids, the plumbers, the motor mechanics come in too. The courier establishments employ hundreds of employees. This sort of indirect employment keeps on increasing. In the smaller towns in South India, where the young population does not stay put in the same place, it becomes very difficult to find the labor for the ancillary industries and for even the shopping centers. To quote one example, the big industries in Sriperambadur, draw their entire contract labor from the villages in Kanchipuram, Tiruvallur, and Vellore districts. Chennai district is full of highly qualified people and the supply is relatively less. At around 7 PM, it is so common to find hundreds of buses belonging to the big companies like Flextronics, picking up very young girls. The transport is free and the girls have security. The food is either free or highly subsidized. After dinner, they do the night shift. In the morning, they are back home. The buses carry so many for the day shift too. This employment has increased self-employment in the villages as well. But the manpower is always a problem. There are agents who recruit the manpower on a mass basis. The girls get married and are gone with their husbands. The new batch comes in.

It is a natural cushion when agriculture fails

It should be noted that the aforesaid employment of girls is largely from the families of farmers. They are very small farmers or agricultural laborers, and they get to employ themselves in the ancillary industries. Their daughters take up the aforesaid employment, as it gets them around Rs.10,000, thus pushing up family income. If the mother is also engaged in some sort of business like a small catering establishment from home, the family easily makes around Rs.32,000 per month, which is good money. The economic engine keeps rolling. It should be noted that there are similar industrial belts everywhere in the country. Sricity, an SEZ, just 75 kilometers from Chennai city, has reportedly generated direct and indirect employment to the tune of two hundred thousand employees. Agriculture cannot be expected to generate such mass employment. Yes, the wages have gone up here too and comes with free food. However, the going is very good only when the rains come.

It promotes the rapid growth of the service sector

Look around. Even with a population of just around 1.5 lakh people, every small town would have at least thirty cell phone guys. The number of guys offering photocopy ( called Xerox, which is the name of a huge MNC) services would be at least forty. At least seven private schools and one Government school would be there. In bigger cities, education has become an industry by itself. In Coimbatore city, the number of arts and science and engineering colleges is over two hundred. They employ thousands of teachers and support a huge stationery industry. The tuition centers mint money. The number of small establishments selling snacks throughout the day, for just Rs.5 in this city, would be around four hundred. Beauty parlors, shopping malls, and the catering establishments of different kinds simply keep the city booming every day. This second largest city of Tamil Nadu, has a huge tourist potential, as it is very near Ooty, the Queen of hill stations in India.

The entire society including farmers get benefit through industrialization

Usage of cell phones, particularly smartphones, makes everyone's life so easy. There are huge economic benefits too. The cars and buses and two-wheelers have increased transportation and made it simple. The private hospitals are costly, but they do save lives. The industrial products do help all, including farmers, lead happy lives. There is no end to the range of industrial products. Tiles are used in rural India, like never before. Such usage will only increase.


It is quite natural for the industry to evolve and support the generation of income and increase jobs everywhere. There can hardly be any doubt that the range of services will also improve when industries improve. The economy will also depend on industrial growth. This is one point that cannot be denied.


Author: Umesh21 Apr 2019 Member Level: Platinum   Points : 3

The progress of a country depends on many factors and industrialization is the major one among them. There are many advantages of industrialization as brought out in the article. So the growth of the industry is a good thing for a country. At the same time, an overproduction of items may lead to apparent decreased demand and the warehouse costs for storing the items will also go on increasing. Many times it happens that the people do not have purchasing power but the market is flooded with gadgets and accessories of all kinds. These are the times when the industries have to take a conscious decision for either switching to other products or cut down the production to requisite levels. Another downside with industrialization is that if not properly managed it has a large potential of spoiling and contaminating the environment and it is a dangerous aspect for the human race. There are many things which are to be observed with carefulness in an industrial environment lest it will create an adverse situation. Industrialization is a good thing but the peripheral issues are to be managed with business prudence and judgment.

Author: DR.N.V. Srinivasa Rao26 Apr 2019 Member Level: Platinum   Points : 3

The development of a country and its economy will mainly depend on the industrialization of the country, Today China is becoming a very rich country because of the fact the industrialization in China is very good. They are making many varieties of products at a cheaper rate and exporting to almost all the countries. That is why where ever we go across the Globe we will find Chinese products. Our country is mainly dependent on agriculture. But unfortunately agricultural is having its own inherent shortcomings. So people are suffering from lack of jobs and they will have a better chance if industries are coming. Agriculture based manufacturing industries can be started in our country which will encourage the farmers to go for higher earnings and they will also enjoy their life. At the same, the plants can be started near the villages and the village people will get jobs. Industrial growth will give good Job chances. But rapid industrialization may cause some environmental problems. These problems should be addressed properly and sorted out by the management in consultation with the concerned authorities.

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