Role of industrial sector in economic growth from "summary" of Oswaal NCERT One For All for UPSC & State PSC's Indian Economy Classes-9 to 12 (Old & New NCERT Edition) (For 2023 Exam) by Oswaal Editorial Board
The industrial sector plays a crucial role in the economic growth of a country. It is often considered the backbone of the economy as it contributes significantly to the Gross Domestic Product (GDP) and generates employment opportunities for a large number of people. The industrial sector consists of manufacturing industries that produce goods and services for consumption and investment. Industrial growth leads to an increase in the overall productivity of the economy. It helps in the efficient utilization of resources and promotes technological advancements. The industrial sector is responsible for transforming raw materials into finished goods, which are then sold in the market. This process not only adds value to the products but also generates revenue for the government through taxes. Additionally, industrial development leads to the diversification of the economy. It reduces the dependence on agriculture and promotes a more balanced economic structure. The industrial sector also encourages foreign investment and promotes international trade. Countries with a strong industrial base are better equipped to compete in the global market and attract foreign capital. Moreover, the industrial sector plays a crucial role in poverty alleviation and social development. It creates job opportunities for both skilled and unskilled workers, thereby reducing unemployment rates. Industrial growth also leads to an increase in income levels, which ultimately improves the standard of living of the people.- The industrial sector is a key driver of economic growth and development. It not only contributes to the GDP but also fosters technological innovation, diversifies the economy, promotes international trade, and creates employment opportunities. Therefore, it is essential for policymakers to focus on promoting industrial growth to ensure sustainable economic development.
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