Economic and Industry Development

Economic and Industry Development

Industrialization refers to a process of change in the technology used to produce goods and service.

According to Wilbert Emoore and G. R. Madan, it is a much broader process of economic development which has in view the integrated development of all other sectors, i.e. agriculture, power, transport and other services.

Industrial development has had an important role in the economic growth of countries like China, the Republic of Korea (Korea), Taiwan Province of China (Taiwan), and Indonesia. Along with accelerated growth, poverty rates have declined in many countries. Some countries have managed to achieve growth with equity, whereas in others inequality has remained high.

Economic development is a process by which a nation can improve the economic, political, and social well-being of its people.

1. Modernisation of Industry:

Industrial development is necessary for modernisation of agriculture. In India, agriculture is traditional and backward. The cost of production is high and productivity is low. To increase productivity, we need fertilizers, pesticides etc. Heritage Foundation is keen to introduce the Integrated and Advanced Agriculture through Organic Farming, Bio-fertilizers and gradually bringing economic bloom in Agricultural Industry.

2. Development of Science and Technology:

Industrial development encourages the development of science and technology. Heritage Foundation R & D Team has conducted research and developed new ideas. Ethanol in the form of bio-fuel, bio-diesel from Jatropha seeds can be used for industrial development.

3. Capital Formation:

Acute deficiency of capital is the main problem of Indian economy. In agricultural sector, the surplus is small and its mobilisation is also very difficult. In large scale industries, the surplus is very high. By using external and internal economics model we can get higher profit. These profits can be reinvested for expansion and development. So industrialisation will help in capital formation.

4. Industrialisation and Urbanisation:

Urbanisation succeeds in industrial development. Industrialisation in a particular region brings growth of transport and communication. Schools, colleges, technical institutions, banking and health facilities are established near industrial base. But Heritage Foundation have taken the plunge to mix the culture through ecological farming in urban area, resulting in greener environment in cities and Organic Agriculture and Food Processing Industry in Rural sectors, making them a model village in their future,

5. Self-reliance in Production:

Self-reliance in capital goods and industrial infra-structure is also necessary. To achieve self-reliance, production and market must be defined properly and the supply-chain management should be a balanced system rather than a manipulative one.

6. International Trades:

Industrial Development plays an important role in the promotion of trade. The advanced nations gain in trade than countries who are industrially backward. The underdeveloped countries export primary products and import industrial products. Agricultural products command lower prices and their demand is generally elastic. While industrial products command higher values & their demand is inelastic. This causes trade gap. To meet the deficit in balance of payments we have to produce import substitute products or go for export promotion through industrial development. Heritage Foundation is developing the models to grow more international trading in order to attain a higher rate of GDP.

7. Optimal Use of Natural Resources:

India is a rich country inhabited by the poor. It implies that India is rich in natural resources but due to lack of capital and technology, these resources have not been tapped. Resources should be properly utilized to transform them into finished industrial products. Proper utilization of recourses reduce the raw material and production cost makes it easier to fight the International market and this will result in Industrial Bloom.

8. Alleviation of Poverty and Unemployment:

Poverty and unemployment can be eradicated quickly through rapid industrialisation. It has occurred in industrially advanced countries like Japan. The slow growth of industrial sector is responsible for widespread poverty and mass unemployment. So with fast growth of industrial sector, surplus labour from villages can be put into use in industry.

9. Area of Economic Development:

Industry is viewed as leading sector to economic development. We want to have economies of scale by applying advanced technology and division of labour and scientific management. So production and employment will increase rapidly and this will bring economic growth and capital formation.

10. Growth of National and Per Capita Income:

Industrial development helps in the rapid growth of national and per capita income. The history of economic development of advanced countries shows that there is a close relation between the level of industrial development and the level of national and per capita income.

11. Higher Standard of Living and Social Change:

A country cannot produce goods and services of high quality in order to attain decent living standard without the progress of industrial sector.

Heritage Foundation is eyeing an economic and industrial development area through proper channelization of national resources and multiplying the output by modern technology, resulting in increasing economic structure. But still it is a long process and big industries also need to indulge in order to change the global economic scenario of India.