(a) Explain any four benefits of industrial development in an economy (b) Outline any four measures that will encourage industrial growth in your country.

Answer Details

(a) Four benefits of industrial development

• Employment creation: industries provide jobs, reducing unemployment and raising incomes.
• Increased national income and growth: industrial output adds to Gross Domestic Product and raises the standard of living.
• Diversification of the economy: industry reduces over-dependence on agriculture or a single export such as oil.
• Saving of foreign exchange: local production of goods formerly imported (import substitution) and export of manufactures saves and earns foreign exchange.

Industrial development also promotes technological progress and the growth of infrastructure.

(b) Four measures to encourage industrial growth

• Provision of infrastructure: reliable electricity, good roads and water reduce the cost of production.
• Provision of finance and credit: establishing development banks and giving loans at low interest to industrialists.
• Favourable tax policy and incentives: tax holidays, subsidies and duty-free import of machinery attract investors.
• Protection of infant industries: imposing tariffs and quotas on competing imports to allow local industries to grow.

Manpower training and ensuring a stable political climate also encourage industrial growth.