Technology in Economic Development - Basic Issues in Economic Development, Indian Economy | Indian Economy - B Com PDF Download

Meaning of Technology :-
The body of knowledge which can be used to produce goods and services from economic resources is called technology. While technological progress means the increased application of new scientific knowledge in the form of inventions and innovations.

Importance of Technology :-
In the present age technology is playing very effective role in increasing the rate of economic growth. Today each country considers it is the basic tool of economic development. Only capital cannot bring development in the country. It is technical progress along with capital which can boost the rate of economic growth. The impact of technology can be judged by the following facts :

1. Use of Natural Resources :-
In the developing countries there are large number of natural resources like land and minerals which are not utilized properly. Technology helps to utilize these resources more effectively.

2. Best Use of Capital :-
Technology improves the marginal efficiency of capital. The out put rate of capital increases. It makes the capital more productive and profitable.

3. Saving of Time :-
Due to technological progress goods can be produced in a minimum time. As the demand of any commodity increases, the supply can be produced in short period of time. So it has saved the time of the producer.

4. Specialization :-
Technological progress has increased the specialization and division of labour in all the sectors of the economy. Now due to this goods are produced on large scale.

5. Improvement in Quality :-
Technology has improved the quality of goods and services. Now the goods have also been standardized. Now the goods are available in the best packing according to their quality.

6. Expansion of Industry :-
The use of technology has expanded the industry. It has reduced the cost of production. The goods are now available on lower possible prices while the profit of the producer is also normal.

7. Improvement in Labour Efficiency :-
Technology has also improved the efficiency of labour. It has increased the labour out put per hour. The labour is getting better reward. Now basic facilities like food, clothing, housing and education are improving.

8. International Trade :-
Information technology has brought great revolution in the international trade. Due to internet facility market has expanded. The business is flourishing developing countries should adopt the technology according to their stage of development and with in the frame work of their economic policy. People may purchase or sell any thing from any country.

9. Importance for Research :-
Technology has led to increases of huge investments in scientific research in various fields. Due to this high degrees of technical capabilities have been achieved by the various countries.

10. Saving of Labour :-
Technology has also reduced the burden of work from labour with the help of computers and machines now the time of labour has been saved.

11. Increase in National Income :-
Technology is very useful in getting the more out put from the same resources. It increases the production and real income of the country.

12. Development of all the sectors :-
Now developed and underdeveloped countries are trying to install improved technology in all the sectors, like agriculture, industry, education, transport, banking etc.

It stimulates the long term economic growth. Technology has pivot role in all the countries of the world.