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Introduction to Manufacturing Industries

Manufacturing industries in India are a major contributor in India’s economy. India is one of the leading industrialised nations in the world. It is due to the development of Indian industries that India has become a developing nation from an under-developed nation. The manufacturing sector is considered the backbone of any economy. Industries can be classified into two main types on the basis of their structure. They are (a) manufacturing industry, which includes heavy and light industries, and (b) small-scale and cottage industries.


Manufacturing industries are those which are concerned with processing finished products from raw materials.

The manufacturing industries contribute immensely to the economy of India.

  1. Industrial development leads to an increase in employment opportunities. As a result, the per capita income of the people increases. Moreover, excessive dependence on agricultural sector is reduced by the employment opportunities in the secondary and tertiary sectors of the economy.
  2. The agro-based industries place a huge demand on agricultural raw materials. Thus, advancement in agro-based industries also promotes agricultural development in India.
  3. The demand for skilled labour in the tertiary sector such as banking, education, transport and communication is closely related to economic development due to industrialisation.
  4. Regional development is encouraged by the eradication of poverty and unemployment. Industrial development provides employment opportunities. Industrial towns and cities become trade centres.
  5. The industrial products are items of foreign trade. This generates a higher income from exporting our industrial products and earning foreign exchange.
  6. The products used in the defence sector of a country are manufactured in the country itself. In India, a large part of industrial development is supported by the demands from the defence sector.

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