IMPORTANCE OF INDUSTRY IN THE INDIAN ECONOMY
Industries play an important role in the economic development of any nation .without industries, economic development is impossible. Again, in a backward and developing economy like INDIA , industries are indispensable.
Development of industries is not only indispensable for India, but there is also good scope for the development of industries in our country. India has many favourable factors for the development of industries. The various favourable factors present in the country for the development of industries are:
- The country is rich in natural resources, such as minerals, forests, fisheries, etc. required for the development of industries.
- The country is rich in commercial crops, such as sugar-cane, raw cotton, raw jute, tobacco, oil seeds, etc. required for the development of agro-based industries.
- The country is fairly rich in power resources, such as coal, hydro-electricity, atomic energy, etc. required for turning the wheels of industries.
- India is rich in human resources. As such, cheap labour required for the development of industries is also available in the country.
- As the country has vast population, wide market required for the development of industries is also available in the country.
Industries offer several benefits to the country. They are:
- When there is development of industries in the country, there will be the investment of large capital, use of modern machineries, high degree of specialisation and large-scale operations. As a result, there will be greater productivity and higher national income. Higher national income, in turn, will contribute to increase in per capital income. Thus, development of industries will contribute to the growth of national and in per capital income in the country.
- Industrialisation creates more and varied employment opportunities, and thereby, reduce the problem of unemployment and under-employment in the country. Further it can absorb the surplus agricultural labour, and thereby, reduce the problem of disguised unemployment in rural areas. Again it can contribute to the development of cottage and small industries in rural areas.
- Industries will promote agricultural development in the country in many ways. First, with the development of agro-based industries (i.e. industries based agriculture), such as sugar-cane, raw cotton, raw jute, tobacco, oil seeds etc. there will be more demand for these materials. This, in turn will encourage the development of agriculture.
- Industries will contribute to the development of tertiary sector, i.e. trade, transport & communication , banking insurance, etc.
- Development of industries will be helpful in maintaining a proper balance between agriculture, industry and the tertiary sector, which is essential for the all-round economic progress of any nation.
- Development of industries will contribute to the expansion of existing industrial areas and growth of new industrial areas.
- Agriculture in India is not stable, as it is largely dependent on the vagaries of monsoons. On the other hand, industries are relativity more stable.
- Industrialisation contributes to better utilisation of natural resources like minerals, forests, fisheries, etc. which the country has in abundance
- Industrialisation will contribute to the expansion of the markets for agricultural crops, minerals, forest products etc. Further, industrialisation will contribute to the expansion of the markets for capital goods or producer goods like plant & machinery.
- Industries contribute to increase in the income and purchasing power of the people. Further, they make available to the people a wide variety of goods for consumption.
- Industries are indispensable for national defence. Arms and ammunitions, ships, aircrafts, tankers, etc.