Importance of Industries in Development | Essay on Industrialization
Importance of Industries in Development – Industrial sector is of great Importance of Industries in Development of a country. It is a proven fact that a country with strong industrial sector have shown more economic growth, had improved national income and promoted living standard of people. Industrialization has played an important role in improving the economic conditions of various countries like America and Japan, by removing unemployment. Advantages of Industrialization are as follows:
Importance of Industries in Development
1. Economic Stability:
A country that only depends upon agriculture sector cannot achieve stability. There is an imbalance, only the man-power i.e. labour-intensive technology is being used. Hence, industrialization provides economic stability to the country where in the country is not solely dependent on only one sector. There is a balance between the contribution of both the sectors to the economy.You are reading article on Importance of Industries in Development of country .
2. Increase in foreign exchange reserve:
With the introduction of more and more industries, there will be a rise in foreign exchange earnings. The exports will rise and imports will start falling in numbers. There would be more cash inflow, self-sufficiency will increase.
3. Utilization of Natural Resources:
There may be a lot of resources lying unused like barren lands and minerals, which can be of no use to the agricultural or financial sectors of a country. Therefore industrial development would add to the utilization of such resources, which otherwise would have been completely wasted and their contribution in monetary terms would have been NIL.
4. Supports Agricultural, Defence and other sectors of economy:
With the development of industrial sector other sectors are also benefited. Industries provide machinery like tractors and modern inputs to the agricultural sector. It improves the working and live-style of the farmers. Industries also provides arms and ammunition for the defence of a country, without these the country will become extremely vulnerable. You are reading article on Importance of Industries in Development of country . And also the country cannot rely upon other countries for it’s provision.Industrialization also improves other sectors like transport, construction, communication, finance etc , as it provides infrastructure and other supportive elements for all these sectors.
5. Improvement of Balance of Payment and government revenue:
Due to industrialization, domestic goods i.e. goods manufactured by own country increases, and so does it’s exports. It is favorable for balance of payment because value of finished goods increases as compared to the primary goods. Collection of taxes like excise duty , indirect taxes, income taxes also increases with industrialisation.
6. Improvement in Investment and Spending:
Industrialization causes the income of people to rise, and improves their standard of living. There is a rise in income, and so rate of savings, rate of investment and rate of spending also rises automatically. This is an important event for the rapid growth of a country.
And last but not the least, it provides huge employment to the people of a country. Thereby eliminates most of the social and economic problems of a country , as unemployment is the route cause that has underpinned all the drawbacks for a country.The most Importance of Industries is to reduce unemployment.