Role of rural industries?
Answers
Answer:
Rural industries play a pivotal role in the development of India. It is generally held
that economy in rural industrialization not only raises per capita income and living standards
of the people by providing gW employment opportunities but also reduces income
disparities between rural and urban areas. Moreover, promotion of nual industries provides
an ample opportunity for optimum utilization of local resources to serve the local needs,
Rural industrialization has become one of the major economic and social goals of economic
development and formed part and parcel of planning and development of India. The objective
of rural industrialization implies widely dispersed on a small scale with as high an
employment potential as is compatible with an efficient technique and the nquimmeat of
process of development1.
In India, industrialization with urban bias resulted in haphd development betwttn
agriculture and industry on one hand and the nugl and urban area on the other. Fu~ther, the
relationship between traditional agricultun and modern industry made the rural sector at a
greater disadvantage in appropriating the gains of development leading to increasing
disparities in the level of income between rural and urban areas2. Rural industries developed
on proper lines can serve as an effective means of reducing imbalances and also play a
prominent role in providing subsidiary occupations and supplementary incomes especially to
personnel engaged in the agriculture besides facilitating a more intensive economic
utilization ofmaterial resources and man-powd.
Nevertheless, nual industrialization which does not benefit the nual population is not
the best way of rural development, though it may lead to a wnsidarable growth in industrial
output4. Rural industrialization facilitates shifts in work force from primary to secondary
sectors. Industrialization promotes an economy fundamentally relying on agriculture into a
more advanced industrial economy6. The issues of industrialization are different at different
levels of growth with political goals. Economic growth, equity and welfare, national
independencc etc. dominate industrialization7. The strategy of industrialization immensely
depends on the theoretical framework and ideological betting. It is impossible to develop
everything simultaneously and therefm priorities are to be identified. The right choice hasdimensions like relative roles of public and private sectors, heavy industry and light industry, import-substitution and export-promotion labour-intensive and capital-intensive etc.
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