Industrial growth and its role in inclusive growth

1. Agriculture must be modernized, which necessitates industrial development.
2. Science and technology development is aided by industrial development.
3. Urbanization follows industrialization. Industrialization increases transportation and communication in a specific region.
4. Industrialization is required to achieve self-sufficiency in defense manufacturing.
5. Trade promotion is aided significantly by industrialization.
6. Rapid industrialization can soon eliminate poverty and unemployment.
7. The industry is regarded as the most important industry for economic development. The rapid expansion of national and per capita income is aided by industrial development.

Most of the industrialized nations shift from the primary sector to the secondary sector to the tertiary sector, but India jumped from the primary to the tertiary sector skipping the secondary sector. The reasons are

1. The typical economic path of a country is from agrarian to industrial to service economy, however, India has raced ahead of the curve from agrarian to service economy.
2. Diversification toward services has been a significant component of India’s recent prosperity, with the services sector accounting for the bulk of GDP.
3. Because of its success in software and IT-enabled services (ITeS), India has become a notable services exporter, with its proportion of global services exports increasing from 0.6 percent in 1990 to 3.3 percent in 2013.
4. Despite its low per capita income, India’s service sector’s share of GDP is approaching the global average. However, in comparison to the global average, the contribution of services to employment was significantly lower.
5. Because the manufacturing sector is labor-intensive, greater emphasis on manufacturing through initiatives such as ‘Make in India’ will aid in correcting this anomaly and increasing employment in line with GDP growth.

Manufacturing is the process of mass-creating objects after they have been transformed from raw ingredients to more attractive products. People who work in secondary activities transform raw resources into completed products. Workers at steel mills, car factories, breweries, textile mills, bakeries, and other sectors come into this category. Some people work in the service industry. Manufacturing industry development is used to assess a country’s economic strength.