Role of industry in economic development of colonial india
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Industrialization and Economic Development
Industrialization plays a vital role in the economic development of underdeveloped countries. As the historical record shows, the developed countries of the world broke the vicious cycle of poverty by industrializing, rather than focusing on agricultural or the production of national resources.
Industrialization and Economic Development
Industrialization plays a vital role in the economic development of underdeveloped countries. As the historical record shows, the developed countries of the world broke the vicious cycle of poverty by industrializing, rather than focusing on agricultural or the production of national resources.
Currently, Pakistan, as a developing country, wants to achieve a higher standard of living for its people. For this reason, it is pursuing policies that support privatization and deregulation of the economy.
Industry plays a complex role in economic development, but these are some of its most important effects.
1. Increase in National Income
Industrialization allows countries to make optimal use of their scarce resources. It increases the quantity and quality of goods manufactured in that company, which makes a larger contribution to gross national product (GNP).
2. Higher Standard of Living
In an industrialized society, workers' labor is worth more. In addition, because of higher productivity, individual income increases. This rise in income raises the standard of living for ordinary people.
3. Economic Stability
4. Improvement in Balance of Payments
Industrialization changes the pattern of foreign trade in the country. It increases the export of manufactured goods, which are more profitable in foreign exchange. But at the same time, processing the raw material at home curtails the import of goods, thereby helping to conserve foreign exchange.
5. Stimulated Progress in Other Sectors
Industrialization stimulates progress in other sectors of the economy. A development in one industry leads to the development and expansion of related industries.
6. Increased Employment Opportunities
Industrialization provides increased employment opportunities in small- and large-scale industries. In an industrial economy, industry absorbs underemployed and unemployed workers from the agricultural lands
7. Greater Specialization of Labor
Industrialization promotes specialized labor. This division of work increases the marginal value product of labor. In other words, specialized labor is more profitable. The income of a worker in the industrial sector will be higher on average than that of a worker in the agricultural sector.
8. Rise in Agricultural Production
Industrialization provides machinery to the farm sectors, including technologies like tractors, thrashers, harvesters, bulldozers, transport, and aerial spray. The increased use of modern technologies has increased the yield of crops per hectare. The increase in farmers' income boosts economic development more generally.