According to economists, why is a good industrial sector important for a poor nation?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Both (1) and (2)
Poor nations can progress only with a good industrial sector. Industry gives more stable jobs than agriculture and promotes modernisation and prosperity.
Option (1) It promotes modernisation. — Correct statement, but it is only one of the correct points, so on its own it is not the answer. Industry brings new technology.
Option (2) It provides employment which is more stable than employment in agriculture. — Correct statement, but it is only one of the correct points, so on its own it is not the answer. Farm work depends on the season and the monsoon.
Option (3) It reduces the need for a service sector. — Incorrect. Industry does not replace services. In fact, by 1990 services had the largest share of India’s GDP.
NCERT (2026-27): “2.4 Industry and Trade Economists have found that poor nations can progress only if they have a good industrial sector. Industry provides employment which is more stable than the employment in agriculture; it promotes modernisation and overall prosperity. It is for this reason that the five year plans placed a lot of emphasis on industrial development. …” |