Answer to Question #264047 in Macroeconomics for Zethu

Question

How does the government promote secondary industries?

Answer 1

The secondary sector of the economy is an economic sector in the three-sector theory that describes the role of manufacturing. It encompasses industries that produce a finished, usable product or are involved in construction.

The liberalisation of industrial policy along with economic planning, development of infrastructure like credit, transport system and electric power, industrial innovation, technological development and setting up of industries are some of the important steps that the government has taken to encourage industrial.

Governments can greatly influence the location of industry, by giving tax incentives, cheap rent and other benefits to companies locating in certain areas of the country.

The government can promote industrial development through by ensuring there is low taxation and giving subsidies to promote investment and build good transportation network to promote economic growth.