Describe the importance of industries in the economic development of a country.

The economic strength of a country is directly related to the condition of its manufacturing industries. In India, the share of the manufacturing sector in the GDP has stagnated at 17%, which is lower compared to other East Asian economies. The sector is growing since 2003 and with appropriate policy intervention by the Government and renewed efforts by the industry to improve productivity, the sector can achieve its target of 12% growth rate in the coming decade.

The importance of Manufacturing has many other benefits for the economic development of the country.

a) Manufacturing industries help in modernising agriculture, as well as to reduce the heavy dependence of people on agricultural income by providing them jobs in secondary and tertiary sectors.

b) Industrial development is a precondition for the eradication of unemployment and poverty from our country.

c) Industries help bring down regional disparities by establishing industries in tribal and backward areas.

d) Export of manufactured goods expands trade and commerce, and brings in much needed foreign exchange.

e) Countries that have the capability to transform their raw materials into a wide variety of finished goods of a higher value are prosperous.

Manufacturing industries, thus, have the potential to not just fish India out of unemployment and poverty but also to improve India’s standing as a noteworthy export economy in the world stage.