Growth and Pattern of Industrialization

As we all know, early humans primarily depended on agriculture for their growth and economy. However, with rapid changes and advancements, they started establishing companies and manufacturing units that gave rise to Industrialisation. 

Industrialisation is not a sudden change but a gradual change that happens over a period. Industrialisation is defined as the process or period of social and economic growth and transformation of an agricultural society to an industrial society. 

In simple words, Industrialisation is the process of changing an agriculture-based economy to an economy based on manufacturing goods. In the process, many changes take place that helps the economy of the society grow and prosper. 

In industrialisation, many changes are involved, including mechanised production instead of individual labour. In the process, machines replace labour, reducing costs and saving time. It also involves technological innovations to solve the issues arising in the production process. 

This article will help you learn about industrialisation, rural industrialisation, and industrialization economics. 

Industrialisation: Definition

Before learning about the growth and pattern of industrialisation, we need to know its definition.

Industrialisation can be defined as the economic and social transformation of an agricultural society into a fully advanced Industrial society. It includes the use of machinery, advanced technology, and assembly line for the mass production of goods and services. Industrialisation helps grow the economy and society at large by saving time and money. 

History of Industrialisation

Industrialisation or the Industrial Revolution started in the mid 18th century in many European countries. Following the industrial revolution in Europe in the 18th century, North America was the second continent where the Industrial Revolution took place in the 19th century. 

Many countries in Europe became a part of the revolution, including Great Britain, Belgium, Switzerland, Germany, and France. The production in the countries of revolution multiplied, and as a result, the rural work was transformed into industrial labour. Many technical and innovative changes were brought about in the work environment to enhance the revolution.  

Gradually different countries of the world adopted industrialisation and transformed their economy into industrial economies. The industrial revolution in East Asia countries took place between the mid 19th century to 20th century, when countries like Brazil, Russia, India, China, and South Africa were in the process of industrialisation. 

Growth and Pattern of Industrialisation in India

Above, we learned about industrialisation and its history. Now, let’s learn about the growth pattern of industrialisation in India:

Industrialisation or the Industrial Revolution in India started in the mid 19th century, and it is divided into four significant stages. The four significant stages of Industrialisation represent its growth pattern. Let’s learn about each stage or phase in detail.

First Phase or Premature Stage: India’s first industrialisation phase comprises the first three plans that help build a strong industrial base. The first phase started in 1951 and continued till 1965. 

In the premature stage, investments were made in heavy industries, including iron, steel, and machine-building sectors. During the premature stage, the industrial growth rate fluctuated between 5.0 to 9.0 per cent. 

Second Phase or Deceleration Stage: The second phase of the Industrial Revolution in India started in 1965 and lasted till 1980. During this period, the production growth rate declined from 9 per cent to 4.1 per cent. 

The stage was a period of struggle for the Indian industries. There was a steep decline in the percentage of industrial output, and during 1979-80, the industrial growth rate was negative. 

Third Phase or Recovery Stage: The third stage comprised the sixth and seventh plans and was considered a period of recovery of the Industrial growth rate. The third phase started in early 1981 and continued till 1991. 

During the first five years, i.e. from 1981-85, the industrial growth rate bounced up to 7 per cent. Furthermore, it grew to 8.6 per cent from 1985-90. The growth rate was rapid in industries like petrochemicals and chemicals, 11.19 per cent. 

However, heavy industries such as iron and steel showed a growth rate of 5 per cent. It clearly shows the shift of industrial development from heavy to chemical industries.

Fourth Phase or Retrogression Stage: The fourth and final phase of the Industrial Revolution started in 1991. In this stage, the industries saw a rapid deterioration followed by an upturn and downturn in the growth rate. 

The industrial growth rate declined due to the decline in the export of goods and the government’s monetary policy.

Rural Industrialisation

Rural Industrialisation can be defined as the process of encouraging and establishing large and small scale production units in rural areas. It is the planned shifting or relocation of manufacturing plants to rural areas. 

Rural industrialisation aims to transform and uplift people living in rural areas completely. It helps raise the people’s living standards in rural areas and provides them with employment opportunities.