Role of rural industries in economic development
Answers
Industrial development is necessary for modernisation of agriculture. In India, agriculture is traditional and backward. The cost of production is high and productivity is low. We need tractors, threshers, pump sets and harvesters to modernise agriculture. To increase productivity, we need chemical fertilizers, pesticides and weedicides etc. These are all industrial products. Without industrial development, these goods cannot be produced. Agricultural products like jute, cotton, sugarcane etc. are raw materials. To prepare finished products like flex, textiles and sugar etc. we need industrialisation. So industrial development is necessary for modernisation of agriculture.
2. Development of Science and Technology:
Industrial development encourages the development of science and technology. The industrial enterprises conduct research and develop new products. Ethanol in the form of biofuel is an example of industrial development. Industry conducts research on its wastes and develops byproducts like biodiesel from Jatropha seeds. Due to industrialisation, we have made progress in atomic science, satellite communication and missiles etc.
3. Capital Formation:
Rural industries play a crucial role in economic development by increasing domestic Productivity and reducing unemployment.
EXPLANATION:
The industries set up in remote areas with comparatively lower capital can be said as rural industries or small scale industries. These type of rural industries plays a crucial role in development of a country's economy. They increase the productivity of goods and services and this increased productivity helps in improving the economic growth rate of the country in long run.
It also improves the domestic market. It also increases the employment opportunities in remote areas and has helped to reduce the unemployment rates considerably. Due to all these factors, the rural industries are very helpful for the country's economy, and that’s why the government of India has launched various loan schemes to promote small scale industries in rural areas.