Industrialization is a key to the economic development of a country. This is true for an underdeveloped economy like India, where industrialization creates avenues to absorb excess labor and also ensures the availability of mass consumer goods for a large population. The industrialization process helps in exploiting and transforming raw resources into useful consumer products and effective means and tools of production and infrastructure development. The industrial sector has a relatively high marginal propensity to save and invest, contributes significantly towards achieving a self-sustaining economy with consistently high levels of investment, increasing levels of income and employment (Jammu and Kashmir State Industrial Profile 2016 ). We say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay The transition of an economy from a predominantly agrarian economy to an economy based primarily on manufacturing and industry. Industrialization is generally believed to be a sign of a growing economy and is associated with income growth, urbanization, and improved health, lifespan, and living standards of the population. Industrialization is considered important for the dynamics and competitiveness of every economy. Its specific uniqueness makes the sector important as an "engine of growth" (Paskal). Industrialization has played a key role in driving economic growth and living standards for more than three centuries and continues to play the same crucial role in developing countries as well. India is also continuously trying to build its manufacturing sector to improve living standards and also to increase the share of manufacturing sector in its economy from 16% to 25% by 2022 (James Manyika et al. 2012). Virtually every country that has experienced rapid growth in productivity and living standards over the past 200 years has done so through industrialization. The countries that have industrialized successfully – that is, that have turned to manufacturing by exploiting economies of scale – are the ones that have become rich, be they 18th century Britain or 20th century Korea and Japan. Yet despite the clear benefits of industrialization and the success of many countries in achieving it, numerous other countries remain poor and unindustrialized. What allows some countries, but not others, to industrialize? And can government intervention speed up the process? Among the many causes of lack of growth in underdeveloped countries, a particularly important and often discussed constraint on industrialization is the small size of the internal market. National markets are small and world trade is not free and cost-free, firms may not be able to generate sufficient sales to make the adoption of increasing-return technologies profitable, and therefore industrialization has stalled (Kevin 1989). Adam Szirmai (2009) explained why industrialization is considered the engine of growth. There are powerful empirical and theoretical arguments for industrialization as the main driver of growth in economic development. The arguments can be summarized as follows: Please note: this is just an example. Get a custom paper from our expert writers now. Get a custom essay There is an empirical correlation between the degree of industrialization and per capita income in developing countries. greater in the industrial sector than in the agricultural sector. The transfer of..