explain what is importance of industrialisation In 2000 words
Answers
Explanation:
ROLE OF INDUSTRIALISATION IN INDIA
Industrialisation is the process of manufacturing consumer goods and capital goods and of building infrastructure in order to provide goods and services to both individuals and businesses. As such Industrialisation plays a major role in the economic development of underdeveloped countries like India with vast manpower and varied resources. Let us discuss, in detail, the role of industrialization in the Indian economy.
1. Raising Income: The first important role is that industrial development provide a secure basis for a rapid growth of income. The empirical evidence suggests a close correspondence between the high level of income and industrial development. In the industrially developed countries, for example, the GNP per capita income is very high at around $ 28,000. Whereas for the industrially backward countries it is very low at around $ 400 only.
2. Changing the Structure of the Economy: In order to develop the economy underdeveloped countries need structural change through industrialization. History shows that in the process of becoming developed economy the share of the industrial sector should rise and that of the agricultural sector decline. This is only possible through deliberate industrialization. As a result, the benefits of industrialization will ‘trickle down’ to the other sectors of the economy in the form of the development of agricultural and service sectors leading to the rise in employment, output and income.
3. Meeting High-Income Demands: Beyond certain limits, the demands of the people are usually for industrial products alone. After having met the needs of food, income of the people are spent mostly on manufactured goods. This means the income-elasticity of demand for the manufactured goods is high and that of agricultural products is low. To meet these demands and increase the economy’s output underdeveloped countries need industrialization.
4. Overcoming Deterioration in the Terms of Trade: Underdeveloped countries like India need industrialization to free themselves from the adverse effects of fluctuations in the prices of primary products and deterioration in their terms of trade. Such countries mainly export primary products and import manufactured goods. The prices of primary products have been falling or are stable whereas the prices of manufactured products have been rising. This led to deterioration in the terms of trade of the LDCs. For economic development such countries must shake off their dependence on primary products. They should adopt import substituting and export oriented industrialization.
5. Absorbing Surplus Labour (Employment Generation): Underdeveloped countries like India are characterized by surplus labour and rapidly growing population. To absorb all the surplus labour it is essential to industrialise the country rapidly. It is the establishment of industries alone that can generate employment opportunities on an accelerated rate.
6. Bringing Technological Progress: Research and Development is associated with the process of industrialization. The development of industries producing capital goods i.e., machines, equipment etc., enables a country to produce a variety of goods in large quantities and at low costs, make for technological progress and change in the outlook of the people. This results in bringing about an industrial civilization or environment for rapid progress which is necessary for any healthy economy.
Answer:
Industrialization
Industrialization has come to be regarded as synonymous with economic growth and development. No country desirous of rapid economic progress can afford to neglect industrialization.
Industrialization can help the progress of agriculture, trade, transport and all other economic activities. Industrialization is the key to economic development. All advanced countries of the world are industrialized.
It will make the best possible use of our human and physical resource. All types of goods for all types of people should be produced in large, medium, cottage and small scale industries.
Importance of Industrialization
In the interest of economy, rapid industrialization is important for generating employment opportunities, utilization of all types of resources, promotion of education, training and research, improving the productivity of labor and balanced regional development.
Industrial growth brings a rapid increase in the national income of the country.
In order to reduce the continued increasing pressure of exploding population on our developing economy, rapid industrialization is a must.
Land is limited in area but industrialization has unlimited scope.
To set up large number of industrial units we can create more employment opportunities and absorb a large number of unemployed youths.
Agriculture cannot use all resources. So, industrialization is a must to make use of our resources.
Industry can make use of waste materials.
Industrialization widens horizon of our understanding and enables us to go through education and researches. Thus it will prove the quality of our manpower.
We can use more capital and technologies.
We can have division of work and specialization in the industry.
This will result in the improvement of productivity of labor.
Industrialization is capable of removing regional disparities because barren lands can be used for this purpose.
No fertile land and means of irrigation are needed for industrialization.
Industrialization will raise the standard of living of our people.
Conclusion: The solution of our problems lies in the rapid industrialization of the economy. Every region should be industrialized. Agriculture is over burdened with population. In order to absorb the manpower rendered surplus by the agriculture, there should be industries in the rural areas. There is unlimited scope of industrialization due to continued researches, introduction of new technologies and invention.