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What is the significance of secondary sector in Indian economy? How does it help in the economic development of the country?
Answer:
Points to remember
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Secondary sector is the sector in which raw materials , which are extracted from the natural resources , are converted into a finished product .
Role in the Economic Development:
- Without the conversion of raw materials into something useful, these materials will go to waste
- Generate a lot of employment .
- Maintaining a circular flow of income in the economy .
- Helps in creating self-sufficiency in the country as it produces goods ..
Answer to be written in exam
Secondary Sector - Secondary sector is the sector in which raw materials , which are extracted from the natural resources , are converted into a finished product which has to be supplied to the market. It is the second largest sector of the economy and also has a major contribution to the GDP i.e. the national income of the country.
Role in the Economic Development
-
Without the conversion
of raw materials into something useful, these
materials
will
go to waste
and nothing substantial could be obtained from them.
-
This sector involves the
usage of heavy machinery
which will require a lot of man - power to be operated, thus
generating
a lot of
employment
.
-
Since employment is generated, the
number of people
earning
as well as
spending
money
increases
which helps in increasing the
national
income
and maintaining a
circular
flow
of
income
in the
economy
.
- It also helps in creating self-sufficiency in the country as it produces goods for local as well as international consumers thus bringing foreing investment into the country.
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