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Indian Economy
Notes Objectives
After studying this unit, you will be able to:
Describe the industrial pattern and plans
Know about the Five-Year Plans
Elaborate few large scale industries
Introduction
Industry is the production of an economic good or service inside an economy. Manufacturing
industry turned into a key sector of production and labour in European and North American
countries at the time of the Industrial Revolution, upsetting earlier mercantile and feudal
economies. This happened through many successive quick advances in technology, like the
production of steel and coal. Following the Industrial Revolution, maybe a third of the world’s
economic output is extracted from manufacturing industries. Several developed countries and
many developing/semi-developed countries (People’s Republic of China, India etc.) rely vitally
on industry. Industries, the countries they inhabit in, and the economies of those countries are
interlinked in a complicated web of interdependence.
In this unit, you will understand the industrial pattern and plans and on the eve of planning. You
will also study about the five-year plans and the large scale industries.
7.1 Industrial Pattern and Plans
In this section, you will understand about the industrial pattern and plans. The industrial
revolution resulted in the development of factories for large-scale production, with subsequent
changes in society. Initially, the factories were steam-powered, but later transitioned to electricity
once an electrical grid was created. The mechanised assembly line was launched to assemble
parts in a repeatable manner, with individual workers performing particular steps during the
process. This resulted in important increases in efficiency, lowering the cost of the end process.
Later automation was progressively used to replace human operators. This process has speeded
with the development of the computer and the robot. An industrial society can be described in
several ways. Today, industry is a vital part of most societies and nations. A government must
have some type of industrial policy, monitoring industrial placement, industrial pollution,
financing and industrial labour.
7.1.1 Role of Industrialisation
It is important to note that industrialisation has a main function to play in the economic
development of the underdeveloped countries. The space in per capita incomes between the
developed and underdeveloped countries is hugely mirrored in the disparity in the structure of
their economies; the former are largely industrial economies, whereas in the latter production
is restricted predominantly to agriculture. Table 7.1 clearly discloses the positive relationship
between per capita income as well as the share of manufacturing output (industry involving
construction). Undoubtedly, some countries have attained comparatively high per capita incomes
by virtue of their privileged natural resource endowments. Petroleum exporting countries such
as Saudi-Arabia, Kuwait, and UAR have attained higher per capita income by exploiting the
strong benefit that they enjoy in international trade. However these countries are a somewhat
special case.
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