Q.Explain the role of the industrial sector in economic development.

Industry raises income and employment, earns and saves foreign exchange, builds the capital base for further growth, and creates linkages with agriculture and services. …

Industry contributes to economic development through several channels that reinforce one another. Because manufacturing generally has a higher value addition per worker than traditional agriculture, industrial growth raises national income and per-capita income more rapidly, and it generates large-scale direct employment in factories along with substantial indirect employment in transport, trade, and services that develop around industrial centres. Industry also strengthens a country's external position: manufactured exports earn valuable foreign exchange, while domestic production of goods that would otherwise have to be imported saves foreign exchange through import substitution. …

A frequent gap is discussing only employment and income while omitting the linkage effects and the capital-formation role, both of which …