How does government maintain regional balance in the country?
Answers
(a) Setting up steel industries in rural areas:During the 1950s, the Government of India established four major steel plants in rural areas. The basic rationale behind this move was to facilitate the economic development and growth of rural and backward areas.
(b) Creating employment opportunities: The steels plants and many other enterprises in rural areas provided the rural people with employment opportunities, helping them to earn a higher income and enjoy a better standard of living.
(c) Facilitating development through linkages: The setting up of the industries contributed to the development of various forward and backward linkages, besides providing employment opportunities. These linkages encouraged the agricultural sector, which in turn spurred the development of ancillary industries (i.e., related industries).
(d) Ensuring infrastructure development:The establishment of industries in rural and backward areas necessitated infrastructure development, including better roads, railways and bridges. The infrastructure made the backward areas well connected with the rest of the country, facilitating the growth and development of these areas
Answer:
The government is responsible for developing all regions of a country. Earlier, most of the development was limited to few areas like port towns. For providing employment to the people and for accelerating the economic development of backward areas many industries were set up by public sector in those areas.
Explanation:
One of the major objectives of planning in India has been that of removing regional
disparities. During the pre-independence period, most of the industrial progress was limited to a few areas like the port towns. After the inception of planning in 1951, the government started paying special attention to those regions which were lagging behind and public sector industries were deliberately set up in those backward regions.
Four major steel plants were set up in the backward areas to accelerate economic development, provide employment to the workforce and develop ancillary industries.
For example, with the establishment of Bhilai Steel Plant in Madhya Pradesh, several new small industries have come up in that state.
The private businessmen hesitate to establish their enterprises in the backward areas due to lack of infrastructure facilities, skilled workforce, etc but these regions cannot be neglected in public interest. Therefore, the government located new enterprises in backward areas and at the same time prevented the mushrooming of private sector units in already advanced areas.
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