Question

What are the problems of industrial development in Nepal

Answer 1

Answer



the pace of their development is very slow due to the following reasons:

Lack of Capital: One of the major problems of cottage and small scale industries is inadequate financing. Persons with special skill lacks financial resources. Because of collateral requirement and complicated procedures of financial institutions, it becomes difficult to take loans from these institutions.

Shortage of Raw Materials: There is a lack of required raw materials to run such industries. Raw materials available within the country are exported to foreign countries in large quantities and also the raw materials available are of low quality.

Lack of Basic Infrastructure: There is a lack of basic rural infrastructure in rural development areas such as road, transportation, communication, electricity etc. for the development and smooth operation of cottage and small scale industries.

Tough competition with Large Industries: Being labour intensive in nature, goods produced by the cottage and small scale industries are more expensive in comparison to goods produce by large industries.

Limited Market: Organized marketing system has not yet developed in Nepal. Because of low purchasing power of people and lack of basic infrastructures, the size of the industrial market is small which creates difficulty in selling the products in time.

Lack of Skill Development Training: Cottage and small scale industries are suffering from the lack of efficiency of labour, mainly because of the unskilled quantity of labour in these industries. There are no provisions for skill development training for such unskilled labour.

Primitive Technology: The production techniques of cottage and small scale industries are very primitive. The entrepreneurs of these industries are mostly uneducated, unskilled and untrained. They still continue with tradition tools and method of production.

Lack of Protection Policy: Each country should adopt a policy of protection for the cottage and small scale industries at the beginning. But there is a lack of such protection policies in Nepal.



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