An economy can progress only if it has a good industrial sector, providing a sound capital base. Industrial development is important for an overall growth of a country due to following reasons :
(i) Industrialisation provides a stronger basis for rapid and continuous increase in the income of the people.
(ii) Industrialisation leads to higher savings, investments and capital formation leads to higher savings, investment and capital formation, thereby creating a solid foundation for self sustaining development.
(iii) Industrialisation provides employment opportunities.
(iv) Industrialisation makes available to the consumer capital goods in the country, thus
providing a higher standard of living.