Explain why industrial development is still very slow in assam
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Inadequate capital accumulation:
Poor rate of capital formation is considered as one of the major constraint which has been responsible for slow rate of industrial growth in India.
Political Factors:
During the pre-independence period, industrial policy followed by the British rulers was not at all favourable for the interest of the country. Thus, India remained a primary producing country during 200 years of British rule which ultimately retarded the industrial development of the country in its early period.
Lack of Infrastructural Facilities:
India is still backward in respect of its infrastructural facilities and it is an important impediment towards the industrialization of the country. Thus in the absence of proper transportation (rail and road) and communication facilities in many parts of the country, industrial development could not be attained in those regions in-spite of having huge development potentialities in those areas.
Poor Performance of the Agricultural Sector:
Industrial development in India is very dependent on the performance of the agricultural sector. Thus, the poor performance of the agricultural sector resulting from natural factors is also another important factor responsible for industrial stagnation in the country.
Agriculture provides not only raw materials and foodstuffs hut also generates demand for the goods produced by the industrial sector. Thus, this poor performance of the agriculture retards the development of industries in India.
Elite Oriented Consumption:
In recent years, a strong tendency to produce rich men’s goods has been established among the large industrial houses. Accordingly, the production of “white goods” like refrigerators, washing machines, air conditioners etc. expanded substantially along with the other luxury products.
But the production of commodities for mass consumption has recorded a slow growth rate. This clearly reveals a ‘distortion of output structure’ of Indian industries, resulting in a recessionary tendency in the market of these luxury products in recent years.
Poor Performance of the Public Sector:
In-spite of attaining a substantial expansion during the planning period, the performance of public sector enterprises remained all along very poor. A good number of such enterprises are incurring huge losses regularly due to its faulty pricing policy and lack of proper management necessitating huge budgetary provision every year. Thus, the public sector investment failed to generate required surpluses necessary for further investment in industrial sector of the country.
Regional Imbalances:
Western region comprising Maharashtra and Gujarat attained maximum industrial development whereas the plight, of the poor states are continuously being neglected in the process of industrialisation of the country in-spite of having a huge development potential of their own.
Although a huge investment in the public sector has been made in the backward states like Bihar, Orissa and Madhya Pradesh, but the ‘trickling down effects’ of such investment were not also visible.
Industrial Sickness:
Another peculiar problem faced by the industrial sector of the country is its growing sickness due to bad and inefficient management. As per the RBI estimate, a total number of sick industrial units in India were 1,71,316 as on 31st March, 2003 and these sick industrial units had involved an outstanding bank credit to the extent of Rs. 34,815 crore.
The RBI estimate further disclosed that every seventh small scale unit in India was sick at the end of December 1983. Thus, this growing sickness of industrial units has resulted in a huge problem in the path of industrial development of the country.
Mobilisation of unproductive investment;
Undue preference for quick-return yielding commerce and trading activities of the Indian capitalist classes; and
Concentration of entrepreneurship in the hands of a few small sections of Indians.
In addition, shortage of capital goods and absence of skilled personnel also acted as drag on India’s industrial development.
Poor rate of capital formation is considered as one of the major constraint which has been responsible for slow rate of industrial growth in India.
Political Factors:
During the pre-independence period, industrial policy followed by the British rulers was not at all favourable for the interest of the country. Thus, India remained a primary producing country during 200 years of British rule which ultimately retarded the industrial development of the country in its early period.
Lack of Infrastructural Facilities:
India is still backward in respect of its infrastructural facilities and it is an important impediment towards the industrialization of the country. Thus in the absence of proper transportation (rail and road) and communication facilities in many parts of the country, industrial development could not be attained in those regions in-spite of having huge development potentialities in those areas.
Poor Performance of the Agricultural Sector:
Industrial development in India is very dependent on the performance of the agricultural sector. Thus, the poor performance of the agricultural sector resulting from natural factors is also another important factor responsible for industrial stagnation in the country.
Agriculture provides not only raw materials and foodstuffs hut also generates demand for the goods produced by the industrial sector. Thus, this poor performance of the agriculture retards the development of industries in India.
Elite Oriented Consumption:
In recent years, a strong tendency to produce rich men’s goods has been established among the large industrial houses. Accordingly, the production of “white goods” like refrigerators, washing machines, air conditioners etc. expanded substantially along with the other luxury products.
But the production of commodities for mass consumption has recorded a slow growth rate. This clearly reveals a ‘distortion of output structure’ of Indian industries, resulting in a recessionary tendency in the market of these luxury products in recent years.
Poor Performance of the Public Sector:
In-spite of attaining a substantial expansion during the planning period, the performance of public sector enterprises remained all along very poor. A good number of such enterprises are incurring huge losses regularly due to its faulty pricing policy and lack of proper management necessitating huge budgetary provision every year. Thus, the public sector investment failed to generate required surpluses necessary for further investment in industrial sector of the country.
Regional Imbalances:
Western region comprising Maharashtra and Gujarat attained maximum industrial development whereas the plight, of the poor states are continuously being neglected in the process of industrialisation of the country in-spite of having a huge development potential of their own.
Although a huge investment in the public sector has been made in the backward states like Bihar, Orissa and Madhya Pradesh, but the ‘trickling down effects’ of such investment were not also visible.
Industrial Sickness:
Another peculiar problem faced by the industrial sector of the country is its growing sickness due to bad and inefficient management. As per the RBI estimate, a total number of sick industrial units in India were 1,71,316 as on 31st March, 2003 and these sick industrial units had involved an outstanding bank credit to the extent of Rs. 34,815 crore.
The RBI estimate further disclosed that every seventh small scale unit in India was sick at the end of December 1983. Thus, this growing sickness of industrial units has resulted in a huge problem in the path of industrial development of the country.
Mobilisation of unproductive investment;
Undue preference for quick-return yielding commerce and trading activities of the Indian capitalist classes; and
Concentration of entrepreneurship in the hands of a few small sections of Indians.
In addition, shortage of capital goods and absence of skilled personnel also acted as drag on India’s industrial development.
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Answer:
- The transport and communication network in the state developed.
- The state faces the problem of insufficient funds.
- The industrial policy of the government is not simple and flexible.
- Investment in the industrial sector is lacking. Investors from outside are not willing to invest in the state especially due to insurgency problem.
- The food processing industry has not grown due to lack of storage and preservation facilities for perishable Agro products.
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