Question

State how small industries are helpful for growth of a country like India.

Answer 1

Because it required less raw material with less capital . they used labour insensetitive technique . And not using machines .

Answer 2

Explanation:

Following are the ways in which SSI are helpful:

1. They help to generate employment in areas in which they are set up.

2. They help to mobilize resources in areas where resources are hard to reach and also develop entrepreneurial skill.

3. Small-scale industries help in narrowing down the gap between poor and rich by redistributing income and generating employment opportunities.

4. It helps in avoiding the concentration of industries in only a few areas and hence avoiding problems such as pollution, overcrowding, the creation of slums etc.

5. As these industries are small in size, they are able to adapt to new technologies faster and hence enabling an environment of innovation and technological development.

6. Small-scale industries help in export (40% contribution of total exports) and hence help in earning foreign exchange.

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