reasons for industrial sickness
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Similarly, poor industrial relations, lack of human resources planning, faulty wage and promotional policies can cause problems for the existence of the firm. So, incompetent management is the most important reason behind industrial sickness. Financial problems: These problems are generally faced by small units.
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Some of the problems faced are:
*Regional concentration- Most of the industries are located in few selected areas leaving out vast expanse of the country without industrial developments. Industries are located in states like Maharashtra, Gujarat, Tamil Nadu are well developed by industries, other areas like Jammu & Kashmir, Himachal Pradesh Orissa are far behind from the development.
*Industrial structure is not balanced- India is still dependent on foreign imports for transport equipments, machineries, iron & steel , paper, chemicals & fertilizers etc. It shows that it is still far from achieving the goal for development.
* Demand is very low- Demand is very low for industrial products due to low consumption level, purchasing power is very weak, and the standard of living is very poor.
* loss in public sector industries -Due to defective policy of government, characterised by red tops and inefficiency and the labour management relations is also very weak which all are in loss. To cover up this loss the government has to incur huge expenditure, which affects new industries at the time of setup in an area.
* Lack of Infrastructure- It is a major problem for the development of Indian industries. Problems like power cut and rostering which hampers the industrial production. Telecommunications facilities are mainly confined to big cities