Manufacturing sector considered the backbone of economic development of the country due to following reasons:
(i) Manufacturing industries not only help in modernizing agriculture, which forms the backbone of our economy, they also reduce the heavy dependence of people on agricultural income by providing them jobs in secondary and tertiary sectors.
(ii) Industrial development eradicates unemployment and poverty in our country. This was the main philosophy behind public sector industries and joint sector ventures in India.
(iii) It also tries to reduce regional disparities by establishing industries in tribal and backward areas.
(iv) Export of manufactured goods expand trade and commerce and brings in much needed foreign exchange.
(v) Countries that transform their raw materials into a wide variety of furnished goods of high value are prosperous. India’s prosperity lies in increasing and diversifying its manufacturing industries as quickly as possible.
