Industrialization is extremely important in order to develop agriculture sector, to increase employment opportunities, to attain optimum utilization of internal resources, to have quick increase in income and to improve living standard of people.
Following points discuss in detail the importance of industrialization in various areas:
1. Contribution in national income:
- At the time of independence, agriculture sector dominated in India because India was an agriculture oriented country from the very beginning.
- After the development of industries, the agriculture economy was reduced and the contribution of industries increased in comparison with agriculture.
- Government has put various systematically planned efforts to boost the economy which in turn has increased share of industries in national income.
- In the year 1951, industrial sector had contributed 16.6% in national income. This rose to 27% (at constant prices) in the year 2013-14.
2. Employment:
- India is a highly populated nation. The country is not able to provide employment to its entire labour force. However, India has increased employment opportunities with the planned efforts in the development of industrial sectors.
- Through the planned effort in industrial sector, India has increased employment opportunities.
- In the year 1951, 10.6% labourers were employed in industries. It rose to 24.3% in 2011-12.
- There was a rapid increase in small scale industries which mainly work on labour intensive methods. With increase in small scale industries employment problem has been solved to a great extent. This can be further increased by proper planning.
3. Export income:
- As agriculture sector increased it also led to the development of industrial sector. When the volume of industrial production increased, the surplus started getting exported. This earned us export income. Foreign exchange also helps to import products that are scarce.
- In 2013-2014, about 2/3rd of export income was earned through industries.
4. Balanced economic development:
- Industries pay a very important role to attain speedy and balanced economic growth.
- Government establishes several public sector enterprises in less developed or backward areas to increase employment opportunities and to raise iiie standard of living of that area.
- When the basic needs of people are satisfied, they move towards savings and buying luxurious products. This gives rise to industries involved in such services and products.
- Thus, along with the industries for primary commodities the demand of industries related to luxury and entertainment increases.
5. Modernization of agriculture:
- It becomes extremely important to modernize agriculture in order to increase development of agriculture sector and to increase land and labor productivity.
- Industries can provide technology to help in the development of agriculture sector. Some of the commonly used modern machines in agriculture are tractor, thresher, submersible pumps, equipment to spray pesticides, etc.
- Chemical based fertilizer, pesticides, etc. are also produced by industries.
- Hence, it can be said that by the use of modern technology, development of agriculture sector become possible.
6. Strengthens the structure of economy:
- Industries produce products like iron and steel, cement, etc. which are useful to build infrastructure such as dams, roads, bridges, etc.
- These industries also produce vehicles such as buses, trucks, railway, plane, car, two wheelers, etc. used for transportation.
- Instruments of safety-protection i.e. arms and ammunition such as rifles, bullets, tanks, etc. are also produced by industries. This reduces dependency on other nations and makes our nation much stronger.
- So, industries form a base for strengthening the structure of our economy.
7. Change in social structure:
- Industrialization also brings certain important changes in the social set-up.
- Industrialization develops feeling of discipline, hard work, competition, team work, self-dependency, co-operation, understanding and innovation among people.
- With development of such positive traits, negative traits like blind beliefs, fatalism, narrow psychology, orthodox behaviour, etc.
- These types of social changes inspire people to attain economic development.
