Industrialization

1. Industrialisation

2. Industrialisation is the process of manufacturing consumer goods and capital goods and of building infrastructure in order to provide goods and services to both individuals and businesses. As such Industrialisation plays a major role in the economic development of underdeveloped countries like India with vast manpower and varied resources. Let us discuss, in detail, the role of industrialization in the Indian economy. What is Industrialisation?

3. Top Industrial Nations   United States The leader of the current industrial world is the United States of America. The country has the strongest economy in the world although there has been some decline due to the crisis. The country is an avid exporter of various known brands in various fields. Mc. Donald and Coca Cola are both American brands. Its textile and fashion and cosmetic sector are largely involved in exports. It is one of the founders of the G8 and G20 nations.

4. Russia is one the leading country in today’s world. It is one of those few countries in the world which developed and progressed due to internal or domestic trade largely. The country largely exports in Timber , Oil etc. Oil is one its most profitable trade. with internal trade on the rise the countries development is booming. The standard of living of the people has risen considerably. Fishing and agriculture both are the dominating industries in Russia contributing to nation’s success. Russia

5. United Kingdom United Kingdom has been one of the leaders in the industrial market. Today it is the world’s 6th largest economy . It houses a number of major airspace parts building industry whooping net profit to the nation. Also the ship building industry is a major one here. It is near to self sufficient in terms of agriculture. It also produces essential ores like chalk, zinc etc.

6. India today is one of the most rapidly advancing nations. It has the largest developing economy and the growth rate has outdone many renowned nations. Agriculture is its dominant sector with many produced crops being exported. Textile is also India’s major field. Other than this the Pharmaceutical is recently developing sector that is bringing huge profits to the country. Apart from this the IT sector is also booming in the country. India although has a low per capita income due to inequality in the income zone. India

7. China China is the most densely populated country in the world. In spite of this it enjoys a considerable industrial development. It is a part of G20 group. The country is earning a substantial profit from its exports. The country practically exports almost in every forte. Exports in transportation and herbs is its renowned fields. The country as if now is the 2nd largest economy. It is also dealing in steel , telecommunication etc.

8. Benefits of Industrialisation Raising Income: The first important role is that industrial development provide a secure basis for a rapid growth of income. The empirical evidence suggests a close correspondence between the high level of income and industrial development. In the industrially developed countries, for example, the GNP per capita income is very high at around $ 28,000. Whereas for the industrially backward countries it is very low at around $ 400 only.

9. Changing the Structure of the Economy In order to develop the economy underdeveloped countries need structural change through industrialization. History shows that in the process of becoming developed economy the share of the industrial sector should rise and that of the agricultural sector decline. This is only possible through industrialization .

10. Meeting High-Income Demands T he demands of the people are usually for industrial products alone. After having met the needs of food, income of the people are spent mostly on manufactured goods . This means the income-elasticity of demand for the manufactured goods is high and that of agricultural products is low. To meet these demands and increase the economy’s output underdeveloped countries need industrialization.

11. Overcoming Deterioration in the Terms of Trade C ountries like India need industrialization to free themselves from the adverse effects of fluctuations in the prices of primary products. Such countries mainly export primary products and import manufactured goods. The prices of primary products have been falling whereas the prices of manufactured products have been rising.For economic development such countries must shake off their dependence on primary products.They should adopt import substituting and export oriented industrialization.

12. Absorbing Surplus Labour (Employment Generation) Underdeveloped countries like India are characterized by surplus labour and rapidly growing population. To absorb all the surplus labour it is essential to industrialize the country rapidly. It is the establishment of industries alone that can generate employment opportunities on an accelerated rate.

13. Bringing Technological Progress Research and Development is associated with the process of industrialization. The development of industries producing capital goods i.e., machines, equipment etc., enables a country to produce a variety of goods in large quantities and at low costs, make for technological progress and change in the outlook of the people. This results in bringing about an industrial civilization or environment for rapid progress which is necessary for any healthy economy.

14. Some other benefits are Gainful Employment Opportunities Development of Agriculture Sector Useful for Foreign Trade Higher Standard of living Useful for Defense of country

15. But on the other hand it also has some bad effects

16. Harmful Effects of Industries Pollutants given off by various industries and factories are often considered to be one of the prime factors contributing to air, water and soil pollution. According to the Environmental Protection Agency (EPA), it has been estimated that industrial pollution is responsible for almost 50 percent of the pollution present in the United States. There are various wide-ranging effects of industrial pollution on the ecological balance of the atmosphere . a) Global Warming b) Air Pollution c) Water Pollution d) Soil Pollution

17. It not only effects environment but also Human and other living things

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