Industrialization in India

1493 Words Jun 1st, 2012 6 Pages
Need for & Trend of Industrialization in India

What is Industry?
In its broadest sense, industry is any work that is undertaken for economic gain and that promotes employment. The word may be applied to a wide range of activities, from farming to manufacturing and tourism. It encompasses production at any scale, from the local—sometimes known as cottage industry—to the multinational or transnational.
In a more restricted sense, industry refers to the production of goods, especially when that production is accomplished with machines. It is this limited definition of industry that is embodied by the notion of industrialization: the transition to an economy based on the large-scale, machine-assisted production of goods by a concentrated,
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Ironically, de-industrialization in the three countries mentioned above has been accompanied by a growth in the high-tech industries in areas such as the Côte d’ Azur in France; Silicon Valley in California; and along the M4 motorway, around Cambridge, and in central Scotland—the so-called Silicon Glen—in the UK. The long-term impact of de-industrialization has yet to be felt. It may be the speed of the process, rather than the process itself, that needs careful management.

Transnational Corporations

Probably the most significant industrial development since the 1960s has been the rise of the multinational or transnational company. Examples of these companies, which operate in many countries, are Ford, General Motors, IBM, Siemens, and Matsushita Electrical. United Nations (UN) estimates that investment by transnational companies has risen by 13 per cent per year over the last 20 years, largely because more and more governments are accepting these firms into their countries.
Nevertheless, the growth of multinational corporations has raised a number of concerns. An enormous amount of production power is concentrated in the hands of a few controllers, which means that the countries involved become directly susceptible to economic changes in other parts of the world. The transfer of assets from one country to another may be difficult for governments to manage or prevent, and there are likely to be disparities in the treatment of different countries.

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