reasons and role of industrilization

8/8/2019 reasons and role of industrilization

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The process which accelerates economic

growth, causes structural changes in the

economy, particularly in respect of resource

utilization. i.e. Production functions, income

generation, occupational pattern, population

distribution, foreign trade and industrialization

induce social change.


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1. The country was industrially

backward.

2. For raising national income.

3. To reduce the burden of population

on agricultural sector.

4. For the development of other

sectors. Like cotton, jute, sugar.


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provide a secure basis for a rapid growth of income

Objective of producing more economic good

Close relation between high level income and industrialdevelopment.

Example industrial developed country the GNP percapita is very high at $35,131in 2005.


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Example Dairy production


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Provide job at a rate commensurate.

Generate employment opportunity as

an accelerate.


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Development of industries producing capital

good. Ex. Machinery.

Potentialities of manpower.

Requirement for the development of

agriculture.

Diversify economic structure


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Self reliance in defense material can

be achieved


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1. Largely IndustryManufacturing Mining and quarrying

Electricity, gas, water supply.


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Jute mats Nursery chocolate

StitchingNoodlesPlastic bottles


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Compound Rates of growth in

different industries.

1stphase till mid-sixties

2nd phase 1965 to1975

3rd phase from since1991


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1. Processing of primary products.

2. Comprises the transformation ofmaterials making goods.

3. Manufacture of the machines and

other capital equipments.


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- Followed since independence

A. Functional Pattern of Industries.

B. Ownership pattern of Industries.


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1. Basic Goods industries

2. Capital Goods Industries

3. Intermediate Goods industries

4. Consumer Goods industries.


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Sr.

no

Industry

Group

1951-

55

1955-

60

1960-

65

1966-

80

1980-

92

1992-

97

1997-

2002

2006-

2007

1. Basic Goods 4.7 12.1 10.4 5.9 7.4 6.8 4.1 10.3

2. Capital

Goods

9.8 13.1 19.6 6.6 9.4 8.9 4.7 18.2

3. Intermediat

e Goods

7.8 6.3 6.9 4.5 4.9 8.5 5.8 12.0

4. Consumer

Goods

4.8 4.4 4.9 5.0 6.0 6.6 5.5 10.1

a) Durables- - -

10.8 10.8 13.4 10.7 9.2b) Non-

Durables

- - - 5.0 5.3 4.8 3.8 10.4


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1st plan-Public sector expanded fast.

3rd plan-Public sector began to slow down.

Mid nineties going upto 4.5% in no. offactories,27.4%-employment, 55%-productive

capital,34.3%-emoluments,25.5%- value of

output &30.1% value added.


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Pattern No. of

factories

Productive

capital

(Rs. Crores)

Employee

s

(000)

Net value

added

(Rs crores)

Wages per

worker

(Rs)

Public

sector

9516

(7.0)

188032

(32.1)

1387

(24.0)

44358

(28.4)

62936

Joint

sector

2479

(1.8)

71637

(12.2)

669

(6.7)

18819

(12.1)

66644

Private

sector

123106

(90.8)

325889

(55.5)

6838

(68.9)

92503

(59.3)

32342

Uspecifi

e-d

450

(0.3)

972

(0.2)

31

(0.3)

267

(0.2)

-

Total 135551

(100)

586530

(100)

9925

(100)

155947

(100)

-


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Datta & Sundaram, Indian economy, S.Chand

Publication, New Delhi, 55th revised edition,

2007, Page No.628

Government of India.

Ministry of industry.

CentralS

tatistical organization.

reasons and role of industrilization

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