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INDUSTRIAL SECTOR — Economics STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsINDUSTRIAL SECTOR5 Marks
Question
Discuss Importance of Industries.
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Answer

$1.$ Introduction: India is a developing country.
  • Day by day along with the process of economic development, national income is declined and contribution of industrial sector is increasing.
  • Industrial development in India is inevitable for fast economic sector very fast, to create employment opportunities, to increase export incomes, for balanced development of economy, to provide strong structure to economy, to improve people's standard of living, and for social and political development.
  • Looking to the experience of today's developed countries it appears that industrial development is inevitable to make India's economy strong and developed economy.
$2.$ Importance of Industries:
$(1)$ Contribution in National Income:
  • During the time of independence, agriculture sector dominated over economy but planning with a view to attaining speedy growth and development, the contribution of industrial sector has been increased in national income.
  • However due to tremendous progress in service holes $2nd$ rank in national income.
  • The indirect contribution of industrial sector is noticeable in development of service sector. For E.g., In $1951,$ the contribution of industrial sector in national income of India was $16.6\%$ which rose to $27\%$ in $2013-14 ($at constant prices$).$
$(2)$ Employment:
  • India is a densed and highly populated nation.
  • It is very difficult to create employment opportunities forever.
  • In these circumstances problem of unemployment can be reduced by creating employment on large scale through industrialization.
  • Problem of seasonal unemployed in rural area can be solved by small and cottage industry.
  • During planning the Share of industry in employment has increased.
  • For E.g., In $1951\ 10.6\%$ labourers Obtained employment from industrial sector which rose to $24.3\%$ in $2011-12.$
  • If Small Scale Industries used labour intensive Production technique, then in comparison to investment, more employment opportunity can be created and Problem of unemployment can be reduced to some extent.
$(3)$ Export Income $($Exchange$):$
  • Along with development, demand of industrial products is higher than the demand of agriculture produce.
  • The prices of industrial products raise higher than agriculture produce and profitability also is higher.
  • If industrial sector develops, after satisfying internal demand remaining surplus items can be exported and foreign exchange can be earned.
  • Required items can be imported and with export of various items income can be generated, which is necessary for nation‘s economic progress and stability.
  • It is indirectly supporting to satisfy the requirements which have already started in India since last certain years.
  • Export income has increased significantly.
  • As per estimate, industries earned about $2/3$ share of income from export which is the outcome of its direct or indirect efforts.
$(4)$ Balanced Economic Development:
  • Development of industrial sector is inevitable to attain regional and economic development in nation.
  • Along with the development it develops agriculture and service sector also.
  • Market is creator for the demand of service sector.
  • Surplus income creates market for luxuries and entertainment products.
  • People spend their savings on luxurious items.
  • It is satisfied through industries only.
  • Government starts industries in economically backward areas and creates employment and income and reduces inequality of the class through development.
  • Manmade factors are important in industrial sector.
  • With its support it is most possible to attain balanced development in economy.
$(5)$ Modernization of Agriculture:
  • It is necessary to increase speedy development and productivity of land and labour.
  • Modernization is required today.
  • Agriculture and industries are compliments to each other.
  • Development of agriculture sector is maintained by industries and industrial progress is maintained by agriculture in two ways.
  • Along with the development of industries necessary modern instruments for agriculture is necessary such as tractor, thrasher, submersible pump, pump to spray pesticides etc. Chemical fertilizers insecticides etc are accessible.
  • Agricultural development has been possible with the help of new technology.
  • Many industries utilize agro products as a raw-material.
  • Thus industries provide market to agriculture produce.
  • In brief, Industrialization provides necessary things to agriculture sector and becomes complement to agriculture.
  • Industrial sector indirectly supports agro sector for modernization.
  • In agriculture sector, there is a large scale of unemployment arise through industrialization.
  • This unemployed class can be shifted without any harm to agro production.
  • As surplus laboures are shifted from agriculture mechanization is introduced in agriculture and production can be increased and components of ploughing can be made economic.
$(6)$ Strengthens Economic Structure $($Strong Economic Structure$):$​​​​​​​
  • Industrial sector is required to strengthen economic structure to make the nation self-sufficient.
  • With the development of industrial sector, the demands of cement and iron for building the bridges can be satisfied to create infrastructure facilities.
  • Transformation, communication, electricity, industrialization is inevitable. E.g., To create infrastructure transportation facility such as bus, truck, railway, car, aeroplane, two wheelers, etc are required which are provided by industries only.
  • Giant electric plants can produce electricity.
  • Not only for development but also for sovereignty and self-sufficiency, the instruments are manufactured for defense.
  • So we became self sufficient and dependent of other countries can be minimize.
$(7)$ Change in Social Structure:
  • Along with industrialization many economic and social benefits are attained.
  • Industrialization creates new industrial culture.
  • People have developed new values like discipline, hard work, competition, team work, self-sufficiency, Co-operation, understanding, innovation skills, research etc.
  • On the other hand, Factors obstructing development like blind belief, superstition, fatalism, reduce and social structure motivating economic progress is created.
  • Increases with industrialization, urbanization also increase and services like education, hygiene, transportation, contact people with outside and psychology of adopting new changes also increases.
  • People come out from blind belief and false traditional customs and attempt to adjust development.
  • In short, due to industrialization dynamic and alert society is created.
$(8)$ Others:
  • Owing to industrialization, political status is obtained in the world.
  • Today, India and China are emerging as great economic power due to industrialization only.
  • Industrialization in India is inevitable to reduce poverty.
  • In agriculture sector of India, agriculture is depended on monsoon and marginalised and small farmers are so many.
  • In these circumstances income from agro sector is not sufficient to reduce poverty.
  • Compare to this, industries employs higher number of people and pay higher wages in industrialization.
  • If efficiency of the labourer increases then income will also increases which reduces the level of poverty.

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