Which industries are considered the backbone of the economic development of India and why small businesses are the backbone of our economy?
Several industries are considered the backbone of India's economic development due to their significant contributions to GDP, employment generation, and overall economic growth. Additionally, small businesses play a crucial role in the Indian economy, contributing to employment, innovation, and poverty alleviation. Let's explore both aspects in detail:
Industries Considered the Backbone of India's Economic Development:
Importance of Small Businesses as the Backbone of the Economy:
In conclusion, while various industries are considered the backbone of India's economic development due to their substantial contributions, small businesses are equally crucial. They play a pivotal role in generating employment, driving innovation, and fostering economic inclusivity, ultimately contributing to a dynamic and resilient economy.
Manufacturing industries help to modernize the agriculture sector, which is the backbone of our economy. By providing jobs in secondary and tertiary sectors, these industries help to reduce the heavy dependence of people only on agricultural income. It is considered as backbone of development because: (i) It not only helps in modernizing agriculture but also forms the backbone of our economy. (ii) Industrial development is a precondition for eradication of unemployment and poverty from our country. (iii) Export of manufactured goods expands trade and commerce. Manufacturing sector is considered the backbone of economic development because: 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. Small businesses contribute to local economies by bringing growth and innovation to the community in which the business is established. Small businesses also help stimulate economic growth by providing employment opportunities to people who may not be employable by larger corporations. Independent businesses provide their local economies with new jobs, products, revenue, services and more. Charitable and innovative contributions - Small businesses not only contribute economic benefits to their community but also charitable and innovative ones as well. Small business contributes about 35 percent to India's total exports. Small business also helps in reducing the pressure on the country's balance of payments, because these industries do not require import of sophisticated machinery or raw materials. Small businesses help promote entrepreneurship and create a supportive ecosystem for new companies to flourish. According to data from the Ministry of Micro, Small, and Medium Enterprises, small businesses in India employ about 120 million people, about 40% of the country's workforce. In an economy so enormous as India, 95% of the industrial units in the country consist of small business and 40% of total industrial output is contributed by these small industries. Again, small businesses bag around 45% of the total exports from India. Small scale industries contribute to around 40% of the total exports done by India, which forms a significant part of the revenue earned from the exports. Small scale industries work towards increasing the forex reserves of the country that reduces the load on balance of payment of the country.
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