Manufacturing is industry is considered the backbone of economic devel...
The manufacturing sector is considered as the backbone of the economic development of the country because of the following reasons:
(1) Manufacturing sector helps in modernising agriculture which increases agricultural productivity.
(2) The export of manufactured goods expands trade and commerce.
(3)They have helped in reduction of unemployment and poverty in the country by giving them many job opportunities.
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Manufacturing is industry is considered the backbone of economic devel...
Manufacturing is considered the backbone of economic development in India due to several reasons. Some of the key reasons are:
1. Employment Generation:
Manufacturing industries provide employment to a large number of people, including skilled and unskilled labor. This sector also boosts employment opportunities in other sectors such as transportation, logistics, and retail. The growth of the manufacturing sector leads to a reduction in unemployment and underemployment rates, which ultimately improves the standard of living of people.
2. Increase in GDP:
The manufacturing sector contributes significantly to the Gross Domestic Product (GDP) of India. It accounts for nearly 16-18% of the country's GDP. The growth of this sector leads to an increase in the production of goods and services, which, in turn, contributes to the growth of the economy.
3. Export Earnings:
Manufacturing sector also plays a vital role in the country's exports earnings. India has become a hub for manufacturing goods such as textiles, pharmaceuticals, automobiles, and electronic goods. The growth of these sectors leads to an increase in exports, which ultimately leads to an increase in foreign exchange earnings for the country.
Other reasons why manufacturing is considered the backbone of economic development in India include:
- Development of Infrastructure:
The growth of the manufacturing sector leads to the development of infrastructure such as roads, ports, and airports, which ultimately benefits other sectors of the economy.
- Technological Advancements:
The manufacturing sector is known to be an innovator and is at the forefront of technological advancements. This sector leads to the development and implementation of new technologies, which ultimately benefits other sectors of the economy.
- Foreign Investments:
The growth of the manufacturing sector attracts foreign investments, which leads to an increase in the country's foreign exchange reserves.
In conclusion, the manufacturing sector is considered the backbone of economic development in India due to its significant contribution to employment generation, GDP, and export earnings. The growth of this sector leads to the development of infrastructure, technological advancements, and foreign investments, which ultimately benefits the overall growth of the economy.
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