In what ways do industry and business associations contribute to socio-economic development in the country? Explain with suitable examples.

Adam Smith highlighted the role of 'Invisible Hand of Market' which supports economies to become proper. Industry and Business Associations are part of this invisible force which contributes to socio-economic development in the following ways: Less pressure groups (1) Articulation of interests of stakeholders. Dairy associations pressure to not join RCEP (2) Inclusive Growth as a consequence of Trickle Down Effect. Industry Success leads to infrastructure, employment, technology (3) Support to formulate policies. eg FICCI, Bombay Plan. (4) Business Associations help in educating workers & their rights. eg Trade unions (5) Help from a collective identity with business organization thereby leading to economic growth.

However, issues: Elite Capture of Associations, Concentration of power in management. Pressure groups often promote conflict of interest. Parochial interests. Thus, Industry Associations need to act impartially and without selfish interests to achieve SDG-2.