Manufacturing sector refers to the secondary sector of the economy which deals with production of goods in large quantities with the help of machines, where raw materials are transformed into more valuable products. Manufacturing is considered as the backbone of economic development because: 

• Manufacturing has contributed to modernisation of agriculture and reduced the dependency on agriculture by providing jobs in secondary and tertiary sectors. 
• It has helped in reducing the poverty and unemployment and aimed at reducing the regional disparities by setting up of industries in rural, backward and tribal areas. 
• Export of industrial goods contributed to valuable foreign exchange earnings. 
• It has added value to raw materials by converting them into finished goods. 
• The prosperity of a nation depends upon the development and diversification of manufacturing. Thus, it has not only made India self-sufficient but more competitive in terms of international market. 
• It brings down regional disparities by establishing industries in tribal and backward areas. 
• Industry sector contributes substantially to GDP.