What is industrialization?

2. Industries are the most important aspect of the
economy. Industries refer to the production of an
economic good or service with an a economy. The
processing of raw materials to finished goods and
provision for services is done by the industries. For
which three major factors are required.
Raw
Labour Capital
materials

3.  Industries maybe agro- based, marine based, mineral
based or forest based. They can be classified as public
and private. Industrial revolution led to the
development of factories for large scale production
with consequent changes in society .
 There is a term called ‘CREATIVE INDUSTRIES’ which
we are not much familiar with. Creative industries do
economic activities concerned with generation of
knowledge and information. These industries provide
services like advertising, architecture, films, music etc.
They account for around 45 percent of revenue in the
economy.

4. INDUSTRIALIZATION
 A process of socio-economic change that transforms a
human group agrarian economy into an industrial one.
 Industrialization in India took place after
Independence. Liberalization, Privatization and
Globalization play a very important role in
industrialization. It is means of modernization.
 Industrialization is needed in India because India needs
to progress and become a developed nation from a
developing one.

5. It includes application of
Division of labour
scientific methods
Industrialization
Accompanied by social and
It is a long term process
economic changes

6. GROWTH OF VARIOUS
INDUSTRIES
AGRO-BASED INDUSTRIES
Industries which handle the processing of agricultural
produce. Like sugar industry. It’s contribution to the
GDP is 17.1 %.

7. SERVICE INDUSTRY
Consists of transport and trade communication
(THTC), Finance, insurance, real estate and business
services (FIRBF), Communities social and personal
service (CSPS). It has grown over past 6 decades to
almost 60% of GDP. It contributed to 15% in 1950 and
in 53.8 % in 2005, this shows that service sector in India
accounts for over half of the country’s GDP.

8. IRON AND STEEL INDUSTRY
One of the important industries in India, Steel
industry reformed particularly in 1991-92 have led
to strong growth in India’s steel industry. India is
the 7th among all crude steel producing countries.

9. SUGAR INDUSTRY
India is the second largest sugar producer in the
world. There are 571 factories in India 2005
compared to 138 in 1950s. Production has increased
from 15.5 million tn in 1990s to 20.1 million tn in
2002-03.

10. IMPACT OF INDUSTRIALIZATION
• Major role in economic development for underdeveloped countries.
• Provided a secure basis for a rapid of growth of income.
• Helped in raising the standard of living
• Provided employment, meeting high income demands
• It brings in technological progress and change in the outlook of the people
• Has decreased the dependency on foreign resources
• The government took over the sick units which cannot be re-habiliated by the public sector
financial institutions

11. CONCLUSION
In spite of the benefits if Industrialization, there are
setbacks. The major one being, poor infrastructure
acting as a hindrance to the growth of the Indian
economy. Also, the inefficient public sector has lead to
corruption and therefore lowered the quality of
production and industrialization. There is also a lack of
skilled of labour which has slowed down the process of
industrialization.
In the case of creative industries and service industries,
the growth has been steady and fruitful, contributing a
lot to the strengthening oh the economy.

12. THANK YOU
(We are still learning economics)
By,
Palak Patel
Heer Khant
Foram Vora
Binjal Samani