Importance of industries

Importance of industries (Development Economics)

#Junior_Economist

1. Junior Economist Salman KHan University of Balochistan, Quetta.
Importance of Industries :-
Industrial development has played very important role in the improving the economic condition of the
various countries like America and Japan. Every country also wants to remove the poverty by
improving the industrial sector. Following are the main advantages of industrial development :

1. Increase in Employment :-
When the development of industrial sector the employment opportunities can increase and rate of
unemployment can reduce.

2. Increase in GNP :-
Due to the industrialization the production of the country increases. The resources of the country are
properly utilized. In other words the national income of the country increases. Now the share of
industrial sector is increasing day by day in the GNP.

3. Raise in Standard of Living :-
Industrialization increases the efficiency of the worker. A rise in income of the worker raises the
standard of living of the people.

4. Increase in Government Revenue :-
With the expansion of industries the collection of taxes like excise duty and income tax increases.

5. Increase in Social Welfare :-
Industrial development increases the revenue of the government which is spent on the welfare of the
people. New roads, dams, buildings and parks are constructed.

6. Increase in Investment :-
Industrialization will increase the income of the people. With the rise in income, rate of savings and
rate of investment will rise which is compulsory for achieving the rapid growth rate.

7. Development of Other Sectors :-
Industrial development is useful in improving the other sectors like transport, construction, agriculture
and communication.

8. Improvement in the Balance of Payment :-
Now due to industrialization the share of manufactured goods is increasing in exports day by day. It is
favorable trend for balance of payment. Because the value of finished goods is increasing as
compared to the primary goods.

9. Specialization :-
Industrialization promotes the specialization which increases the quality and quantity of product.

10. Importance for Defence :-
Industrially developed country can make arms and ammunition for the defence of the country. Today
we can not depend upon other countries.

11. Expansion of Market :-
Industries will increase the demand of various goods. So the market of various gods will expand.

12. Agricultural Development :-
Industrialization provides the machinery like tractor and modern inputs to the agricultural sector. It
improves the economic condition of the farmers.

2. Junior Economist Salman KHan University of Balochistan, Quetta.
13. Use of Raw Material :-
Due to industrialization we can use cotton and sugarcane in the domestic industries. It has increased
the income of the people and there is no need of export raw material.

14. Utilization of Natural Resources :-
In some countries are lot of barren land and minerals. There is a need of industrial development to
utilize the resources. Coal, gas, oil resources are available but it sir in lack of industrialization we
cannot use it.

15. Increase in Foreign Exchange Reserve :-
Due to industrial development, there will be a rise in foreign exchange earnings. The exports will rise
and imports will fall. Self sufficiency increases with the industrialization.

16. Economic Stability :-
A country which depends upon agriculture sector only can not achieve economic stability. While
industrialization provides economic stability to the country.