Definition
The manufacturing sector has 17% of the share of the national GDP. The manufacturing sector is the backbone of a nation’s economic development because of the following reasons:
- Manufacturing industries provide people with jobs not only in the primary sector but also in the secondary and tertiary sectors which reduce their dependence on agricultural income. It even helps to modernize agriculture which is crucial to the economy.
- Industrial development was instrumental in the eradication of unemployment and poverty from the country. This was the main reason behind the development of public sector industries and joint sector ventures in India.
- Manufactured goods are exported which earn us overseas income.
- Indigenous production helps to reduce our dependence on imported goods thereby curbing cost at the national level.
- Countries which change the raw materials into finished products of a higher value are prosperous.
Factors influencing location of industries
- Availability of raw materials
- Labour supply
- Nearness to the market
- Power supply
- Transport and communication
- Financial support- grants and incentives available from the local government. It’s difficult to find all these factors in a single place but industries are usually located at places where the maximum number of them can be arranged at a low cost. Industries are often located near the cities; hence, urbanization and industrialization go hand in hand. Cities are able to provide markets and facilities like banking, insurance, labour, consultants, transportation and financial assistance.
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Flashcards
Why are industries called the backbone of a nation’s economy? ?
- Manufacturing industries provide people with jobs not only in the primary sector but also in the secondary and tertiary sectors which reduce their dependence on agricultural income. It even helps to modernize agriculture which is crucial to the economy.
- Industrial development was instrumental in the eradication of unemployment and poverty from the country. This was the main reason behind the development of public sector industries and joint sector ventures in India.
- Manufactured goods are exported which earn us overseas income.
- Indigenous production helps to reduce our dependence on imported goods thereby curbing cost at the national level.
- Countries which change the raw materials into finished products of a higher value are prosperous.
What are the factors influencing location of industries? ?
- Availability of raw materials
- Labour supply
- Nearness to the market
- Power supply
- Transport and communication
- Financial support- grants and incentives available from the local government. It’s difficult to find all these factors in a single place but industries are usually located at places where the maximum number of them can be arranged at a low cost. Industries are often located near the cities; hence, urbanization and industrialization go hand in hand. Cities are able to provide markets and facilities like banking, insurance, labour, consultants, transportation and financial assistance.