Need of industrialization in india

Geography assignment
Introduction

What Is Industrialization?
Industrialization is the process by which an economy is transformed from
primarily agricultural to one based on the manufacturing of goods. Individual
manual labor is often replaced by mechanized mass production, and craftsmen
are replaced by assembly lines. Characteristics of industrialization include
economic growth, more efficient division of labor, and the use of technological
innovation to solve problems as opposed to dependency on conditions outside
human control.

KEY TAKEAWAYS

 Industrialization is a transformation away from an agricultural- or resource-

based economy, toward an economy based on mass manufacturing.
 Industrialization is usually associated with increases in total income and
living standards in a society.
 Early industrialization occurred in Europe and North America during the
18th and 19th centuries, and later in other parts of the world.
 Numerous strategies for industrialization have been pursued in different
countries over time, with varying levels of success

Need of industrialization in india

Industrialization may be defined as a process in which change of series
of strategical and systematic production take place. It means creation
and growth of manufacturing units. For a developing country like
India industrialization plays a key role for the economic development.
Thus, from the Second Five Year Plan the Planning Commission has
given huge emphasis on industrialization in India.
The reasons behind the need of industrialization are listed
below:
(i) Increase in Per Capita Income:
The development of various industries leads to direct increase in
production and productivity within the country. Industries create an
environment where more manpower’s are utilized. Hence, the surplus
labour from agriculture can easily absorb within the industries bring
more income opportunities in the country.

All the industrially developed countries have high per capita income
compared to the countries where industrial Nourishment is low. There
is no doubt that industrial development gives rise to the per capita
income of the economy

(ii) Rise in Capital Formation:

Industrial development is positively correlated with increase in capital
formation. High level of investment is required for the establishment
of industries. According to ‘Big Push’ theory, high level investment-
injection within a country causes a suitable atmosphere for industrial
growth which eventually rise to the economic growth of the country. In
fact size of capital formation in both public and private sectors
provides a stimulus for industrial growth or vice versa. In short, more
industries lead to more capital formation or investment within the
economy.

(iii) Optimal Use of Economic Resources:

Industries can efficiently utilize various economic resources inside the
country compared to agriculture. All the locally available mineral and
natural resources, human resources water and forest resources are
successfully utilized by the industries moreover, industries can utilise
other resources which cannot be utilized by the other sectors of the
economy.

(iv) Creating More Employment:

India is an overpopulated country, a large section of working force
remains unemployed. Moreover, due to the effect of Green Revolution,
i.e. use of modern scientific technologies in agriculture, huge amount
of surplus labourers create in the primary sector.

The effect of all these enhanced the problem of unemployment within

the country. The successful implementation of industrializations can
only curb down the problem. Establishment of more and more
industries increased the employment opportunities and absorbed the
extra manpower within the country.

(v) Solving BOP Problem:

Indian economy is suffering with the problem of deficit Balance of
Payment (BOP). The export earnings in India are quite low compared
to import expenditures. Thus, to solve the problem, ‘export promotion
and import substitution’ are required.

In this case agriculture is not sufficient enough to combat the problem.

More and more industries must be established to increase exports and
decrease imports. This will not only solve the huge deficit in BOP, but
also increase the level of foreign exchange reserve within the country.
(vi) Agricultural Improvement:
India is an agro-based economy. About 67% of total working force are
engaged in agriculture. However, Indian agriculture is still following
the primitive method of cultivation, therefore, the productivity is very
low. After the introduction of New Agricultural Policy, use of scientific
tools and equipment’s like tractors, pump sets, chemical fertilizers,
insecticides and harvesters have increased a lot in the agricultural
land. All these products are the outcome of industries. Hence there is
urgent need to develop industrial sector in India.

(vi) Stable Economic Growth:

In India growth is unbalanced and biased in nature. After 1966,
agricultural sector has improved decently compared to industries.
However, the stability of an economy depends on the industrial
growth. Hence, to achieve a stable balanced growth, the country
requires a healthy industrial development in both consumer and
capital goods areas.