Pattern of industrialization in india
Further, as industrialization grows, the economies of scale and inter-industrial linkages get more pronounced. The growth rate of capital goods industry declined to 7.
This results in bringing about an industrial civilization or environment for rapid progress which is necessary for any healthy economy. Fourth Phase: Industrial Retrogression followed by an Upturn and Downturn Nineties to : The fourth phase of industrial growth covers the early part of nineties, i.
Further, the public sector includes governmental departmental enterprises. Over the years, the share of imports of manufactured goods has steadily declined. Further, industrial producers receive an economic surplus which they can invest in the industry itself.
The industrial growth rates by use-based industrial classification again showed downward trend from April to Feb. Corporate Sector — This is further sub-divided into two sectors: Private Corporate Sector — which includes public and private limited companies Public Corporate Sector — which includes Governmental Departmental Enterprises and Public Corporations Others — which includes khadi and village industrial units like sugar mills which the cooperative societies run in Maharashtra.
Need for industrialization in india and its impact on economy of india
Infrastructural bottlenecks and high costs. Import-substitution industry strengthens the economic independence of the country, while export-oriented project, on the contrary, increases its dependence on the fluctuations of prices and volume of trade in foreign markets. Therefore, it is very safe, in general, that import substitution project should be preferred to an export-oriented project. Meeting High-Income Demands: Beyond certain limits, the demands of the people are usually for industrial products alone. Causes of Industrial Recovery: The main factors which were responsible for the industrial recovery during eighties are described as under: a Introduction of new industrial policy and liberal fiscal period. Role of Industrialization Source: Pixabay Industrialization offers greater scope for both internal and external economies as compared to other sectors, especially agriculture. For example, petroleum exporting countries like Saudi Arabia, Kuwait, etc. It is only through industrial development in a big way that the national objective of self-reliance in defence materials can be achieved. During the period , the average annual rate of growth of industrial production was accelerated to 7. Let us discuss, in detail, the role of industrialization in the Indian economy. They should adopt import substituting and export oriented industrialization. First Phase : Strong Industrial Base: The first phase of industrial growth consists of the first three plan periods which had build a strong industrial base in India. The growth rate of capital goods industry declined to 7. Further, the public sector includes governmental departmental enterprises.
This led to deterioration in the terms of trade of the LDCs. In fact, the growth rate of the industrial sector during the first nine months of is considered as the lowest during the last ten years.
These skills along with the other attributes of a modern society lead to the growth of productivity in agriculture, trade, distribution, and several other areas of the economy.
Pattern of industrialisation in economics
During , the country had a bitter experience of negative growth rate of — 0. Absorbing Surplus Labour Employment Generation : Underdeveloped countries like India are characterized by surplus labour and rapidly growing population. The growth rate of capital goods was In such situation, dependence of foreign sources for defence materials is a risky affair. The growth rate for consumer durable goods increased to The industrial sector faced a structural retrogression during the second phase. However, following are some of the major indicators of industrial recovery in recent years: a Overall industrial output of the country i. Unreliable supply of services in transport, communications and power sector. This, eventually, contributes to the achievement of a self-sustaining economy.
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