Q. 5. Explain the contribution of industries in the national economy.

Ans. Contribution of industries in the national economy :

According to the industrial commission, India was an industrial country even before the Christian era. Muslin, silk clothes, ornaments etc. made in India were exported to other countries, but the traditional cottage industries of India got a setback due to the industrial revolution of Europe in the mid 18th century. Thus, the place of industries in the national economy of India gradually became secondary and agriculture became prominent.

After independence, the need for industrial development was felt for the economic development of the country. In 1950, the National Planning Commission' was set up. Through five year plans, targets were set for the industrial development of India. Due to increasing contribution of industries in the national economy, the following achievements are obtained :

(1) Industrialisation increases production as well as per capita income and the standard of living is improved.

(2) It increases employment opportunities and strengthens human resource.

(3) Industrialisation increases the national income and contributes in capital formation.

(4) Due to development of industries, other spheres of economy e.g. Agriculture, mineral, transportation etc. also progress.

(5). Research is strengthened and technology develops.