Why is the economic strength of a country measured

Why is the economic strength of a country measured by the development of manufacturing industries? Explain with examples.

Answer

The economic development of a country is measured by the development of manufacturing industries by the following ways:

  1. Manufacturing industries help in modernizing agriculture which forms the backbone of our economy.

  2. They reduce the heavy dependence of people on agricultural income by providing them jobs in secondary and tertiary sectors.

  3. Industrial development is pre-condition for eradication of unemployment and poverty from our country.

  4. Manufacturing goods expand trade and commerce.

  5. Export brings in much needed foreign exchange.

  6. Manufacturing is the process of value addition.

  7. It also brings down regional disparities by establishing industries in tribal and backward areas.

  8. It increases the GDP / National Income of the country.