Industrialization plays a significant role in the process of economic development. The examples of developed countries indicate that there is a direct relationship between high level of income and industrial development. Industries account for 37% of the gross domestic product in Japan, 32% in UK and 22% in the U.S. whereas it stands at 27% for India. Further a strong industrial base is required for generating gainful employment opportunities for the unemployed and under-employed labourers in the agricultural sectors. Industrialization also helps in overcoming trade gap. The less developed countries are generally primary producers and import industrial output. With industrialization of their own economy they need not import industrial product from outside and this helps in reducing the trade gap. Industrialization also helps in satisfying a variety of demands of the consumer's. With modernization of the economy the demand for industrial product has increased considerably. Industrialization brings a change in the socio-cultural environment of the economy. It makes people dynamic, hard-working, mobile, skillful, efficient, and punctual. It brings a change in the way-of life of the people and makes people more commercial. It also provides security to the economy by making it self-dependent. Thus industrialization in a nutshell acts as a catalyst in the smooth process of economic development. Industrial Development during the Plan Periods
Prior to British rule, India was industrially an advanced country and was exporting its industrial products in the European world. Each village of economy was an industrial unit producing output based on availability of raw materials and use of local expertise to produce it. Unfortunately Britishers for their selfish interests systematically destroyed the industrial base in India. As a consequence, India inherited a weak industrial base, undeveloped industrial infrastructure and a stagnant economy at the time of her independence....
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