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Why is color coding of live wire, neutral wire and earth wire important?

The color coding of wires are important because we can know that which wire carries current to the appliance at a high voltage, the wire which completes the circuit and carries current away from the appliance and whether the wire is a safety wire and connects the metal case of the appliance to the earth.

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Live wire - red Neutral wire - black Earth wire - green
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The color coding of the wires is used to distinguish between them.
Different countries use different color coding.
In India the earth wire is in green color and the neutral wire is usually in white
 
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It is important to prevent short circuiting as if it is not done then the electrician will confuse and mix all the wires which cause short circuiting . Hence , it is important
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