Due to following reasons manufacturing sector is considered the backbone of economic development of the country
(i) Manufacturing industries help in modernising agriculture. For example, industries providing fertilisers machinery have given a major boost to agriculture by raising its productivity.
(ii) Industrial development is required for eradication of unemployment and poverty. An example is the establishment of industries in tribal and backward areas, which bring down regional disparities.
(iii) Countries that transform their raw materials into a wide variety of finished goods of higher value are prosperous. For example, USA.