all large scale industries are set up by government.give reasons?
Answers
Answer:
To create more employment opportunities with less investment. To remove economic backwardness of rural and less developed regions of the economy. To reduce regional imbalances. To mobilize and ensure optimum utilization of unexploited resources of the country
Explanation:
✯LET'S EXPLORE MORE
✯What are Large Scale Industries?
Industries which requires huge infrastructure and manpower with an influx of capital assets are Large Scale Industries. In India, large-scale industries are the ones with a fixed asset of more than one hundred million rupees or Rs. 10 crores.
The Indian economy relies heavily on such industries for economic growth, generation of foreign currency, and the creation of job opportunities for millions of Indians.
✯Here are some advantages of large scale industries:
- They provide an impetus to the industrialization of the country.
- Large scale industries, usually, produce capital and basic goods (instruments, machines, chemicals, etc.)
- They are capable of generating funds for the research and development of new technologies.
- Due to the large scale of operations, they have the potential to lower the cost of goods.
- Further, they create opportunities for small-scale and cottage industries to evolve and flourish.
- Also, the employment opportunities created by large scale industries are huge.
✯Here are some disadvantages of large scale industries:
☆Evils of Factory System:
The large scale production is accompanied by all the evils of the factory system like over-crowding, density, pollution, bad morals, etc. Dirty habits of drinking and gambling spread very easily.
☆Danger of Over-Production:
The large scale organisation results in over production at times, so demand cannot be properly estimated. At last, prices fall and depression sets in.
☆Less Supervision:
A large scale producer cannot pay full attention to every detail in various departments. Costs often rise on account of the dishonesty of workers. Thus, due to inefficient and inadequate supervision, the cost of production goes up.
☆Monopoly:
The large scale production results in the localisation of industries. As a result, the bigger fish swallows the smaller ones, and cut-throat competition and monopolies result.
☆ Class Struggle:
The large scale production gives rise to class struggle, the struggle between the labourers and the capitalists. Their interests cannot go together, as they are very different from each other. As a result, there is a struggle between the two groups.
☆Dependence on Foreign Markets:
A large producer has generally to depend on the foreign markets. The foreign markets may be cut off by wars, etc. This makes the business risky.
✯Scale Industries in India
The term ‘large-scale’ is generic in nature and includes different types of industries. In India, the following heavy industries fall under the purview of large scale industries:
☆Iron and Steel Industry
☆Textile Industry
☆Automobile Manufacturing Industry
Over the last two decades, Information and Technology (IT) industry has evolved and has contributed huge revenues while creating thousands of jobs for Indians. Hence, many economists include it in the large-scale industry sector.
☆Telecom Industry