Prospects for new industrialization in Russia

Abstract

Industry is an important sector of economy, predetermining the quality of the population life and creating the prerequisites for the sustainable development of the national economy. It concentrates industries with a high multiplier, which are the locomotive for development of other types of economic activity. Industry contributes to the economic security of the country, it is a catalyst for scientific and technical progress. However, in Russia there are a number of problems constraining evolution of this sector of economy. The country is facing low rates of production, a decrease in investments, a decrease in real incomes of the population, a decrease in consumer demand. The evolution of industry is significantly affected by high rates on commercial loans and prices for fuel and energy resources, materials, equipment, and raw materials. As a result, the technological lag of the Russian industry from the level of advanced economies in the world will grow. All this puts the task of modernizing domestic production at the top priority level. The aim of the work is to analyze the current economic conditions of the Russian industry, identify the factors hindering its development , and the main sources of modernization. A modernization break can be achieved by improving the tax and depreciation policies. Implementation of measures in these areas will significantly reduce the burden on en-trepreneurship and free up the necessary amount of financial resources for the implementation of promising investment projects, which will make it possible to quickly overcome the technological gap between Russia and the leading economies of the world and restore the lost period of scientific and technical potential of the country.