There is no such nation in the present world, which can survive or become a developed nation without industrial advancement. A nation also can not get an honorable position in the world without industries because such nations have to depend on others, which infringes on the dignity of the citizens. Hence, industrialization is an important link between non-development and development for a developing country. In short, industrialization is an inevitable concept for every developing economy.

Definition of Industrialization

Industrialization and economic development go side by side thus industrialization is essential for the development of every nation. Many economists have differently defined it, but everyone has a common opinion that without industrialization economic development is not possible and a nation can not be self-dependent. Some of the important definitions are as follows:-

  1. According to Pie Kang-Chang, “Industrialization is a way, is a process of developing as well as widening capital.”
  2. Eugene Staley liked industrialization with high productivity and defined it as High productivity produces industrialization and that industrialization produces high productivity.
  3. Professor K.C. Kuchhal has said, Industrialization is also treated as a process in which the economic gains of industrial process, mainly in the nature of increasing returns are continuously created and wholly or partially realized.
  4. By UNESCOIndustrialization means an absolute and relative growth in the importance of factories, mills, mines, power plants, railways and so on of manufacturing and closely related activities, especially activities involved in the building and operation of a modern economic infrastructure.”

Most Appropriate Definition of Economics:

Here industrialization can also define as the use of more capital per unit of output. Many authorities on the subject think that industrialization and agrarian reconstruction in less-developing economics are interconnected and interdependent.

Industrialization and Per Capita Income.

The living standard of citizens of any nation is adjudged based on the per capita income of the citizen. As we all know that this income is directly associated with industrialization. The industry generates employment and provides employment to skilled, semi-skilled, and unskilled laborers. No one can deny the fact that the per capita income of undeveloped and developing countries is low and on the other hand, the per capita income and rate of consumption in developed countries are very high. The primary reason for this vast gap is industrialization.

Industrialization and Economic Development

Industrialization and economic development complement each other as both go hand to hand. A very famous Swedish economist and sociologist namely Karl Gunnar Myrdal has given his opinion that In advanced countries, the development of manufacturing industry has been concomitant with these countries spectacular economic progress and rise in the levels of loving: many of its products are indeed almost symbolic of a high living standard.” Industrialization creates employment for skilled, semi-skilled, and unskilled laborers, which increases paying capacity of the citizens as well as industrialization also rising national productivity and income. It also provides a viable solution to the ever-increasing economic problems for the countries faced with the population explosion. It is industrialization alone that can increase the country’s production by properly exploiting the natural resources available in the country, thereby increasing the national income and helping in the economic development of the country and its citizens. Industrialization also helps in absorbing surplus manpower and labor of a country, that otherwise would go waste.

Patterns of Industrialization

Every country does not adopt the same industrialization pattern, due to which it differs from one nation to another. For example: in the UK, France, and the USA, large industries are in the private sector whereas, in the China and USSR these are in the public sector. Some developing countries like India have mixed economies where both public and private are freely participants in industrialization. In addition to the above patterns, the process of industrialization is either evolutionary or revolutionary, although it is very difficult to demarcate between the two. It is generally believed that the pattern of industrialization in the USSR was revolutionary and in the USA it was evolutionary. Entrepreneurial spirit, individual freedom, and technology are the main productive forces in an evolutionary pattern and process.

Processes if Industrialization

Industrialization is not an easy process, a country or society has to go through various stages before it becomes industrially progressive and advanced. The process of industrialization is linked to the social system on the one hand and the rate of economic growth and development on the other. The whole process also progresses from simple to complex and passes through various stages, although the time taken in each step may not be the same. The timing will always depend on the availability of available resources, the manpower attitude of the government and its policies and programs, and the social system in favor or unfavorable of industrialization. However, the process and policy of industrialization cannot be made separately. It should be closely related to the whole social and economic system, agriculture, mining, transport system, etc.

Three Phases of Industrialization

Industrialization is a continuous process and usually passes through three stages. In the first stage, the secondary industry deals with the processing of primary products viz. In the second stage, the secondary industry starts moving some of the finished goods like material, milling of grain and tanning leather, etc. In the third stage, machines and equipment are used not for the direct satisfaction of a need but to facilitate the future process of production in the preparation of roti and confectionery, etc. Where in the first phase of their industrialization, the country will export a major part of its production while in the second phase the industry will be able to meet its local needs. Most developing countries have reached the second stage of industrialization. The third stage of industrialization indicates the industrial maturity of the nation. At this stage, the nation is not only in a position to satisfy its needs and requirements satisfactorily but is also in a position to export goods to meet its needs to other countries. This process also indicates the extent of spontaneous development in response to economic stimuli.

The industrialization has become today’s motto and slogan of every developing nation. Countries that have recently gained independence are doing everything possible to industrialize themselves. Of the needs, the huge men and material resources and the needs of the society are many which need to be addressed urgently.


Today it cannot be denied that the standard of living of the people and their per capita income are directly linked to industrialization. Thus industrialization is essential for the development of every nation.

There can be no uniform pattern of industrialization. It changes not only from one country to another but also from society to society. Then another pattern of industrialization is whether it is evolutionary or revolutionary. Industrialization is dependent on and linked to many processes. It is a continuous process. Generally, industrialization passes through three distinct phases.

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