Importance of Manufacturing and Economy- Manufacturing industries Class 10th

 Importance of Manufacturing and Economy

  • The manufacturing sector is considered the backbone of development in general and economic development in particular.
  • They help in modernising agriculture and also reduce the heavy dependence of people on agricultural income by providing them jobs in secondary and tertiary sectors.
  • Industries help in reducing unemployment and poverty and it is the main philosophy behind public sector industries and joint sector ventures in India.
  • They bring down regional disparities by establishing industries in tribal and backward areas.
  • Export of manufactured goods expands trade and commerce and brings in much needed foreign exchange. 
  • Countries that transform their raw materials into a wide variety of finished goods of a higher value are prosperous. 
  • Agriculture and industry are not exclusive of each other. They move hand in hand. For instance, the agro-industries in India have given a major boost to agriculture by raising its productivity.
  •  In the world of globalisation, our industry needs to be more efficient and competitive and only the best products stay in the competition.

 

Contribution of industries to National Economy     

  • The share of the manufacturing sector has stagnated at 17 per cent of GDP – out of a total of 27 per cent for the industry which includes 10 per cent for mining, quarrying, electricity and gas.

  • GDP of India is much lower in comparison to some East Asian economies, where it is 25 to 35 per cent.
  • The trend of growth rate in manufacturing over the last decade has been around 7 per cent per annum
  • The desired growth rate over the next decade is 12 per cent with the appropriate policy interventions by the government and renewed efforts by the industry to improve productivity.
  • The National Manufacturing Competitiveness Council (NMCC) has been set up with this objective only.

 Related questions from the topic

1. What is manufacturing?
Ans. Manufacturing is considered the production of the desired product after processing raw materials
through the use of machines and mechanical labour.

2. How do manufacturing industries help agriculture?
Ans. Manufacturing industries not only help in modernizing agriculture, which forms the backbone of
our economy, but also reduce the heavy dependence of people on agriculture income by providing
them jobs in secondary and tertiary sectors.

3. What is the contribution of industries to the national economy?
Ans. Over the last two decades, the share of the manufacturing sector has stagnated at 17 per cent of
GDP—out of a total of 27 per cent for mining, quarrying, electricity and gas.

4. What are the agglomeration economies?
Ans. Many industries tend to come together to make use of the advantages offered by the urban centres
are known as agglomeration economies.

5. Where were manufacturing units located in Pre-independence period?
Ans. In the Pre-independence period, most of the manufacturing units were located in places from the
point of view of overseas trade such as Mumbai, Kolkata, Chennai, etc.

6. The ‘‘Manufacturing sector is considered as the backbone of economic development of a country.’’ Support the statement with examples. [CBSE (F) 2017]
Ans. Manufacturing sector:
(i) It helps in modernizing agriculture.
(ii) Helps in providing jobs in secondary and tertiary sectors.
(iii) Reduces unemployment and poverty.
(iv) It brings down the regional disparities by establishing industries in tribal and backward areas.
(v) Export of manufactured goods expands trade and commerce.
(vi) It brings in much needed foreign exchange.
(vii) Example- Cotton textile, Iron and Steel industry, etc.

7. “Industrialization and urbanisation go hand in hand.” Validate the statement.  [CBSE Sample Paper 2016]
Ans. After an industrial activity starts in a town, urbanisation follows. The industry provides employment
to the people of the area. Population migrates from rural hinterlands to seek jobs, housing
and transport facilities are developed to accommodate these people. Other infrastructural
developments take place leading to growth and development of the town into a city.
Sometimes, industries are located in or near the cities. Cities provide markets and services such
as banking, insurance, transport, labour, consultants and financial advice, etc. to the industry.
Thus, industrialisation and urbanisation go hand in hand.

8. Analyse the role of the manufacturing sector in the economic development of India.  [CBSE (AI) 2017]
Ans. The Role of the manufacturing sector in the economic development of India:

(i) Manufacturing industries not only help in modernizing agriculture but also reduces the heavy
dependence of people on agricultural income.
(ii) Eradication of Unemployment and poverty.
(iii) Export of manufactured goods expands trade and commerce and brings in much needed
foreign exchange.
(iv) Countries that transform their raw material into a wide variety of furnished goods of a higher
value are prosperous.

9. “The economic strength of a country is measured by the development of manufacturing industries.” Support the statement with arguments. [CBSE Delhi 2016]
Ans. The manufacturing sector is considered as the backbone of economic development of our country due
to the following reasons:
(i) Manufacturing Industries not only help in modernising agriculture, which forms the backbone of our economy, they also reduce the heavy dependence of people on agricultural income by providing them jobs in secondary and tertiary sectors.
(ii) Industrial development eradicates unemployment and poverty from our country. This was the main philosophy behind public sector industries and joint sector ventures in India. It was also aimed at bringing down regional disparities by establishing industries in tribal and backward areas.
(iii) Export of manufactured goods expands trade and commerce and brings in much needed foreign exchange.
(iv) Countries that transform their raw materials into a wide variety of furnished goods of high value are prosperous. India’s prosperity lies in increasing and diversifying its manufacturing industries as quickly as possible.

10. “The economic strength of a country is measured by the development of manufacturing industries.” Give three arguments to support this statement.
Ans. (i) In the present day world of globalisation, one industry needs to be more efficient and
competitive, self-sufficiency alone is not enough.
(ii) One manufactured goods must be on par in quality with those in the international market.
Only then we will be able to compete in the international market and earn foreign exchange.
(iii) Countries that transform their raw materials into a wide variety of furnished goods of higher
values are prosperous like Japan and the US are industrialised. India’s prosperity lies in increasing
and diversifying its manufacturing industries as quickly as possible.

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