Industrialization Meaning:

Industrialization is a process of manufacturing consumer goods and capital goods and of building infrastructure in order to provide goods and services to both individuals and business. It helps to increase the share of industrial sector in the national product and labor force in the economy. It transforms the entire economic structure of the economy. It leads to rapid increase in income and productivity due to advance techniques greater specializations, division of labor, and economy of scale.

Need of industrialization in the Indian economy are.

• Helps in raising income level: The first important role is that industrial development provides a secure bases for a rapid growth of income there is evidence suggesting a close correlation between the high level of income and industrial development in the industrially developed countries, per capita income is very high whereas for the industrially backward countries it is very low.
• Helps to structure of the economy: In order to develop the economy countries need to structural changes through industrialization history shows that in the process of becoming developed economy the share of the industrial sector should rises and that of the agricultural sector should decline this is only possible through deliberate industrialization as a result a benefits of industrialization will tackle down to the other sectors of the economy in the form of the development agricultural and service sector leading to the rise and employment output and income.
• Meeting high income demands: Beyond certain limit the demand of the people are usually for industrial products alone after having met and needs of the food, income of the people are spend mostly on manufacture goods this means the income elasticity of demand for the manufacture goods in high and that of agriculture product is low to meet these demands and increase the economist output underdeveloped countries need industrialization
• Employment generation: Countries like India characterize by surplus labor and rapidly growing population to observe all the surplus labor is essentially to industrialize the country rapidly. It is the establishment of industries alone that can generate employment opportunities on and accelerated rate.
• Technological progress: Possible research and development is associated with a process of industrialization the development of industries producing capital good that is machines, equipment etc. enable the country to the produce a variety of goods in large quantities and at low cost, making way for technology progress and changes in the outlook of the people this result in bringing about an industrial civilization or environment for rapid progress which is necessary for any health economy.
• Overcoming deterioration in the terms of trade: Countries like India need industrialization to free themselves from the adverse effect of fluctuation in the prices of primary product and deterioration in their terms of trade. Countries mainly export primary products have been falling or are stable whereas the prices of manufactured goods have been rising. This leads to deterioration in the terms of trade. For economic development such countries must shake off their dependence on primary product. They should adopt import substitution and export oriented industrialization.

also read: explain the objectives and performance of nationalization of banks.