The importance of economic development is also known as the significance of economic development. So, It includes various points such as:-
- Availability of Better Products and Services
- Improvement in Infrastructural Facilities
- Balanced Economic Growth
- Improvement in the Social Services
- Improvement in Efficiency and Productivity
- Increase in National Income
- Proper Utilization of Resources
- High Degree of Structural Transformation
- Increase in Employment Opportunities
- Promotes Social Equality
1.Availability of Better Products and Services-
Economic development helps in the creation of better quality of products and services at cheaper prices. It has resulted in increased production of both consumer and industrial (Capital goods and services).
If a particular company wants to increase its sales, then it will have to decide an average or cheap price of its product and increase its quality in the product so that the customers attract easily towards a particular product or service.
2. Improvement in Infrastructural Facilities-
Economic development results in economic growth. There is an increase in infrastructural facilities like communication, transportation, warehousing, fuel & power, banking, etc.
Infrastructure can be defined as the basic structure needed for the operation of society, an organization on a large scale, etc. However, infrastructural facilities are very important in all aspects of business activities so that it helps to enhance the growth level of the economy.
3. Balanced Economic Growth-
In this importance of economic development, it has resulted in balance growth between agriculture and industry, consumer goods & capital goods, large scale & small scale industry, labor-intensive & capital intensive, rural & urban areas, etc.
4. Improvement in the Social Services-
Economic development has resulted in social services like medical, recreation, law & order, services, education at the nominal or normal rate.
5. Improvement in Efficiency & Productivity-
Economic development gears up economic activity and economic productivity. It increases the productivity and efficiency of all productive resources and also helps to increase the production volume.
6. Increase in National Income-
In this importance of economic development, it results in an increase in per capita income which in turn increase the national income of a nation. It also helps to enhance the efficiency level of an individual through the great or optimum per capita wage and salary.
7. Proper Utilization of Resources-
It ensures proper utilization of resources such as national, human, and physical resources. These resources play a very crucial role to develop the production capacity and as well as economic growth of the rate.
8. High Degree of Structural Transformation-
There has been a transformation in the structure of the economy from the dominant agricultural sector to manufacturing and finally to the emergence of services.
9. Increase in Employment Opportunities-
In this importance of economic development, there have been tremendous employment opportunities in banking, marketing, manufacturing, durable industries, services, and so on.
10. Promotes Social Equality-
Economic development promotes social equality among the masses so that there is an equal distribution of wealth and income and people enjoy some quality of wealth, status, livelihood.
So, these are the points of the importance of economic development.