Question

Why is the economic strength of a country measured by the development of manufacturing industries? Explain with examples.

Answer 1

The economic development of a country is measured by the development of manufacturing industries by the following waysi – 

(i) Manufacturing industries help in modernizing agriculture which forms the backbone of our economy. 

(ii) They reduce the heavy dependence of people on agricultural income by providing them jobs in secondary and tertiary sectors. 

(iii) Industrial development is pre-condition for eradication of unemployment and poverty from our country. 

(iv) Manufacturing goods expand trade and commerce 

(v) Export brings in much needed foreign exchange. 

(vi) Manufacturing is the process of value addition. 

(vii) It also brings down regional disparities by establishing industries in tribal and backward areas. 

(viii) It increases the GDP/ National Income of the country. 

(ix) Any other relevant point. 

Any five points to be explained.

Detailed Answer : 

The economic strength of a country lies in the development of manufacturing industries because : 

(i) Manufacturing industries help in modernizing agriculture. 

(ii) This sector transforms raw materials into finished products creating more choices for the consumers and making it more prosperous. 

(iii) It reduces the heavy dependence of people on agriculture sector and creates jobs in secondary and tertiary sectors. 

(iv) This sector helps in reducing poverty, creates employment opportunities and helps in bridging regional disparities. 

(v) Export of manufactured goods expands trade and commerce and enhances prosperity. 

(vi) It brings much needed foreign exchange.

Answer 2

The manufacturing sector is considered as the backbone of economic development in particular and development in general mainly because–

1. Manufacturing industries help to modernize the agriculture sector, which is the backbone of our economy. By providing jobs in secondary and tertiary sectors, these industries help to reduce the heavy dependence of people only on agricultural income.

2. Industrial development is considered a precondition for the eradication of poverty and unemployment in our country. In India, this was the main philosophy behind joint sector ventures and public sector industries. It was also aimed to bring down the regional disparities by establishing industries in the backward and tribal areas.

3. Exporting the manufactured goods expands commerce and trade, and also brings much needed foreign exchange.

4. Countries become prosperous when they transform raw materials into a variety of furnished goods of higher value. Our country’s prosperity lies in diversifying and increasing its manufacturing industries as fast as possible.

Out of a total of 27 percent GDP, for the industry that includes 10 percent for quarrying, mining, gas, and electricity, over the last two decades, the share of the manufacturing sector has stagnated at 17 percent. This is much lower in comparison to some of the East Asian economies, where it is 25 to 35 percent. The trend of growth rate in the manufacturing industry over the last decade has been about 7 percentages per annum. The desired growth rate over the next decade is 12 percentages. Since 2003, per annum, the manufacturing is again growing at the rate of 9 to 10 percent.