TECHNOLOGY is the body of knowledge which can be used to produce goods and services from economic resources. While technological progress means the increased application of new scientific knowledge in the form of inventions and innovations.
In increasing the rate of economic growth at present technology is playing a key role. Inorder to boost the economic growth there should be technical progress along with capital. Moreover every country thinks it as the basic tool of economic development.
• Saving of Time :-
Because of technological progress goods can be produced in a minimum time. As the demand of any commodity increases, the supply can be produced in short period of time. So it saves the time of the producer.
• Use of Natural Resources :-
Technology helps to make utilize the natural resources more effectively which are not properly utilized such as land, minerals etc in the countries where they are available in abundant.
• Best use of Capital :-
Marginal efficiency of capital gets improved by technology. The output rate of capital increases and makes the capital more productive and profitable.
• Importance for Research :-
Technology has led to increases of huge investments in scientific research in various fields. Due to this high degrees of technical capabilities have been achieved by the various countries.
• Improve in Quality :-
Technology has improved the quality of goods and services. At present the goods are standardized and they are available in best packing according to their quality.
• Improve in Labour Efficiency :-
The efficiency of labour is increased and so the output of labour also risen. The labour is getting better reward, basic facilities like food, clothing, housing and education. It also reduced the burden of work from labour with the help of computers and machines.
• International Trade :-
Information Technology has brought great revolution in the International Trade. Because of internet facility market has expanded so people may purchase or sell anything from any country.
• Increase in National Income :-
It is very useful in getting the more output from the same resources. It increases the production and real income of the country.
• Expansion of Industry :-
Use of technology has expanded the industry and reduced the cost of production. The goods are available on possible lower prices , the profits of the producer is also normal.
• Development of all the sectors :-
Now developed and under – developed countries are working out to install improved technology in agriculture, industry, education, transport, banking etc (all sectors).