industries contribute a lot in the economic development of a country. Explain
Answers
Explanation:
Cottage and small-scale industries occupy an important place in Indian Economy. These industries are contributing half of the total industrial production in India and provide gainful economic activity to more than five times the number of people employed in the large and medium sized industries in the country. Their contribution to India’s export earnings has reached significant proportions during the past few years.
The development of cottage and small-scale industries holds solutions to many side problem of Indian economy. The economy reeling under excessive population pressure, on agriculture subject to the vagaries of nature, a people oppressed by massive unemployment and the consequent misery and a nation struggling to stand up and build its economy, has much to gain from the development of cottage and small-scale industries.
1. Increase in Employment Opportunities- The Employment Argument:
Unemployment, both in the rural and urban areas of the country, has assumed alarming proportion and it continues to mount up despite our efforts at creating more and more job opportunities under the plans for economic development. Establishment of cottage and small-scale industries on a very wide scale can contribute a great deal in removing much of this unemployment prevailing in the country at the present time.
With the limited amount of capital resources, the small-scale industrial sector holds promise of creating greater employment opportunities. This is so because the cottage and small-scale industries are more labour intensive i.e., they employ more labour per units of capital than the large scale industries.
2. Economy in the Use of Capital- The Capital Scarcity Argument:
India is not as lucky in the matters of capital resources as has been the ease of the industrially advanced nations. In fact, acute scarcity of capital has been one of the major causes of our economic and industrial backwardness over the past centuries.
Therefore, there is a greater need for judiciously utilising this scarce factor so as to achieve largest possible output and a quicker pace of economic development. Thus, we need to establish those industries which use a small amount of capital per unit of output, or to say, in other words, which generate larger output per unit of capital.
3. A Means to Achieve More Equitable Distribution of National Income- The Equality Argument:
The development of cottage and small-scale industries ensures an equitable distribution of income and wealth. The ownership of small and cottage industries is much more diffused and is spread over millions of people, while the large-scale industries are owned by only a few big industrial houses.
Thus, while large-scale industries lead to concentration of income and wealth in a few hands, the small-scale industries help a wide dispersal of income and thus ensure a more equitable distribution. Further, since the smaller industries have a much bigger employment potential, they naturally distribute incomes among a much larger labour force, which further assures a better distribution of income in the society.
4. Using Unutilised Capital and Skill- The Latent Resource Argument:
A strong argument in favour of the small small-scale industries is that their establishment would make use of the latent resources which are lying idle. Establishment of village and small scale industries would lead to utilisation of hoarded wealth, family labour, local skills of artisan and craftsman, etc.
5. Cottage Industries—A Source of Rural Prosperity- Rural Development Argument:
Cottage and village industries can contribute a lot towards rural prosperity and the economic well-being of the village people. Development of such industries can provide part-time occupation to the people engage in agriculture and a whole- time job to the village artisans and craftsmen.
6. Checks Large-Scale Migration of Population to the Urban Centres:
The development of cottage and small-scale industries in the countryside can effectively check the migration of rural population to the already overgrown and congested urban areas. The rural masses steeped in poverty and unemployment due to law productivity in agriculture, are attracted to the urban centres with a view to making better living.
Industries contribute a lot in the development of a country in the following ways -
1) Employment - Industries help in creating more job opportunities for people of the country.
2) They help in modernising agriculture.
3) They reduce the heavy dependence of people on agriculture income by providing them jobs.
4) Helps in bringing down regional disparities.