Question

21. Using any three industries as examples, evaluate the importance of industries in the
economic development of India.
(3 marks​

Answer 1

Answer:

Traditionally, India had six major industries. These were Iron and Steel, Textiles, Jute, Sugar, Cement, and Paper. Further, four new industries joined this list namely, Petrochemical, Automobile, Information Technology (IT), and Banking & Insurance. These industries are important for India’s economy. Therefore, understanding the growth of these industries can offer a good insight into the relationship between their growth and government policies.

Textile Industry (Cotton and Synthetic):

This is a complex industry with two extremes – sophisticated mechanized mills on one end and hand-weaving and hand spinning on the other.

Between the two ends lies the decentralized power loom sector. Taking all three sectors into consideration, the textile industry is the largest industry in India.

It accounts for around 20 percent of the industrial output and also provides employment to over 20 million individuals. Further, it contributes around 33 percent of the total export earnings.

Jute Industry:

The jute industry has the capacity to earn foreign exchange. India accounts for around 30 percent of the world’s jute output. Further, the jute industry provides direct employment to nearly 2.5 lakh individuals.

Also, nearly 40 lakh families derive their living from jute cultivation. the industry has now started using high-speed machines and broadlooms to make carpet backing. Exports have also grown in recent years.

Paper Industry :

During the period of planned development, India’s paper industry grew at a rapid pace with the forests providing abundant raw materials for its working. In 2009-10, India produced around 49.6 lakh tonnes of paper.

However, the industry lacks modernization today. Also, the prices that the Government has fixed for various types of paper is unrealistic and does not provide reasonable returns on capital.

Explanation:

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Answer 2

1. Modernisation of Industry:

Industrial development is necessary for modernisation of agriculture. In India, agriculture is traditional and backward. The cost of production is high and productivity is low. We need tractors, threshers, pump sets and harvesters to modernise agriculture. To increase productivity, we need chemical fertilizers, pesticides and weedicides etc. These are all industrial products. Without industrial development, these goods cannot be produced. Agricultural products like jute, cotton, sugarcane etc. are raw materials. To prepare finished products like flex, textiles and sugar etc. we need industrialisation. So industrial development is necessary for modernisation of agriculture.

2. Development of Science and Technology:

Industrial development encourages the development of science and technology. The industrial enterprises conduct research and develop new products. Ethanol in the form of biofuel is an example of industrial development. Industry conducts research on its wastes and develops byproducts like biodiesel from Jatropha seeds. Due to industrialisation, we have made progress in atomic science, satellite communication and missiles etc.

3. Capital Formation:

Acute deficiency of capital is the main problem of Indian economy. In agricultural sector, the surplus is small. Its mobilisation is also very difficult. In large scale industries, the surplus is very high. By using external and internal economies, industry can get higher profit. These profits can be reinvested for expansion and development. So industrialisation helps in capital formation.

hope it was helpful