Industrialization refers to creation of industries, expansion of industries and use of modern technique of production in industries. During the time of independence, industrialization was not in motion because Britishers did not want to make India an industrialized country. After the decades of foreign rule, steps were taken for rapid industrialization.
The necessity of industrialization is given below:
Utilisation of Available Resources
Adequate environment is present in India for industrialization. Firstly, India is rich in different natural resources like iron-ore, manganese, bauxite, coal and mica etc. Secondly, raw materials like jute, cotton, oilseeds, sugarcane and tobacco leaves are plenty produced in India. Thirdly, forest resources are more which give us paper, matches and sports materials. Industrialization alone can be able to utilize large mineral resources, agricultural and forest resources.
Modern industrialization also needs development of energy. We have large water resources and coal reserves for energy resources. It means there is no difficulty in the path of industrialization. It implies that the necessary conditions for industrialization are present in India.
Overcoming the Problem of Unemployment
The problem of unemployment is acute in India. Due to rapid growth of population, every year lakhs of people enter into the labour market. On the other hand, there is no scope for alternative employment opportunities in agricultural sector to employ the excess labour in agricultural sector and unemployed labourers rapid industrialization is necessary.
Modernization of Agriculture
Modernization of agriculture is necessary for increasing the productivity of land, tractor, pump set, chemicals, fertilizers, insecticides and other developed machineries are necessary to modernize agriculture. It- means modernization of agriculture is possible only with the help of the development of fertilizers and agricultural machineries industries.
It is not advisable for a country to depend upon foreign countries for industrial products. We have to pay in terms foreign currencies if we purchase industrial products from foreign countries and it also needs to sell the raw materials required by the industries at a lower rate and to purchase the industrial products produced with these raw materials at a higher rate which will hamper the economic development. It will lead to financial loss. There will be no import of goods if there is war or bitter relationship among the countries and people will find difficulties in getting these goods. It will also lead to lowering of status of country if we purchase war heads and materials from foreign countries.
Due to all these reasons, self-sufficiency is an important aim of our planning. Self sufficiency depends upon the development of consumer goods industries, basic and heavy and heavy industries.
Basis for Economic Development
Industrialization expedites the process of economic development. Infrastructural facilities like energy, transport and communication are necessary for industrialization. So industrialization leads to development of infrastructural facilities and also for industrialization it provides machineries. It means industrialization strengthens infrastructural facilities.
Industrialization improves standard of living of the people by developing industry, agriculture and other activities including infrastructure.
All the above stated reasons also help to raise the per capita income and national income. Due to more income, people purchase more and standard of living rises. Due to more demand for goods, there is further expansion of industrial sector. It shows that the industrialization makes economic development and leads the country in the path of growth.