High value added industries are the backbone of all industries
in the world. They do not necessarily need to be the most
competitive industries in international trade at the same time.
This can be justified as :
- Value added industries act as backbone for the economy
and boost the GDP and economic growth : Value added
industries like sugar industry act as backbone and boost the
domestic GDP of the economy.They need not be competitive in
international trade as the value addition in the domestic country
is enough.
- Value added products are for domestic consumption and
improves the living standards of the people : Value added
products improve the living standards of the people in the
economy.
- Value added products have got high demand
worldwide.
- Value added industry contribute as key factors in assessing the
status of the economy.
The same concept is not applicable in service industry. Service
industry revolves around value addition only as it is only about
creating value to the service delivered to the end consumers. It
has to be competitive as well as it has to meet the international
standards prevailing worldwide.