What are the reasons responsible for slow progress of industrialisation in India?
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Industrialization In Developing Countries
In developed countries there are several favorable conditions for industrialization, but in poor and developing countries there are several problems in its development. Even after some significant developments in the field of Industrialization in India, the country is still agricultural country and 38% of the national income and 70% of the population depends on the land.
Causes Of Industrial Backwardness Of India
Scarcity of Labor
Even when the density of population is high in India, still in some areas like- West Bengal, Assam etc. there is scarcity of labor for agricultural activities. Apart from this, due to lack of organised labor markets in the country the supply of labor is completely in the hands of contractors and they intentionally create scarcity of labor in factories. Moreover, due to lack of transportation, long distances and also for other reasons the laborers travel less from one place to another. In this way, even after the abundance of labor their supply in factories is less
Lack of Infrastructure Facilities
In a developing country like- India there is lack of infrastructure facilities. There is also lack of energy resources for the development and proper running of industries. We are fully aware of the usual situations of closure of industrial units due to shortage of power supply. Also due to lack of transportation means, hurdles arise in the way of industrial development.
Lack of Capital
For the industrial development a country requires huge sources of funds. In poor countries the per ca-pita income is not even sufficient to fulfill the basic requirements of people. For establishment of Multi-national industries, huge quantities of funds are required. To make available such large quantity of capital resources does not become possible for a developing country, like India.
Industrial Conflicts
For industrial development, industrial peace is very necessary. But due to lack of proper labor policy and mutual harmony an environment of conflict can be seen. We are very well aware of the conditions of strikes, lock outs, ‘Gherao’, destruction etc. The route to industrial development is blocked by industrial conflicts.
Science and Technology
The pace of scientific and technological development in the developing countries has been slow by which the industrialization could not progress. Without higher level science and technology and resources it becomes difficult to succeed in industrialization. This reason is more responsible for creating hurdles in way to industrialization.
In developed countries there are several favorable conditions for industrialization, but in poor and developing countries there are several problems in its development. Even after some significant developments in the field of Industrialization in India, the country is still agricultural country and 38% of the national income and 70% of the population depends on the land.
Causes Of Industrial Backwardness Of India
Scarcity of Labor
Even when the density of population is high in India, still in some areas like- West Bengal, Assam etc. there is scarcity of labor for agricultural activities. Apart from this, due to lack of organised labor markets in the country the supply of labor is completely in the hands of contractors and they intentionally create scarcity of labor in factories. Moreover, due to lack of transportation, long distances and also for other reasons the laborers travel less from one place to another. In this way, even after the abundance of labor their supply in factories is less
Lack of Infrastructure Facilities
In a developing country like- India there is lack of infrastructure facilities. There is also lack of energy resources for the development and proper running of industries. We are fully aware of the usual situations of closure of industrial units due to shortage of power supply. Also due to lack of transportation means, hurdles arise in the way of industrial development.
Lack of Capital
For the industrial development a country requires huge sources of funds. In poor countries the per ca-pita income is not even sufficient to fulfill the basic requirements of people. For establishment of Multi-national industries, huge quantities of funds are required. To make available such large quantity of capital resources does not become possible for a developing country, like India.
Industrial Conflicts
For industrial development, industrial peace is very necessary. But due to lack of proper labor policy and mutual harmony an environment of conflict can be seen. We are very well aware of the conditions of strikes, lock outs, ‘Gherao’, destruction etc. The route to industrial development is blocked by industrial conflicts.
Science and Technology
The pace of scientific and technological development in the developing countries has been slow by which the industrialization could not progress. Without higher level science and technology and resources it becomes difficult to succeed in industrialization. This reason is more responsible for creating hurdles in way to industrialization.
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The reasons for the slow progress of industrialization:
- Social factors like immobility of labor and capital and lack of proper initiative and enterprises on the part of people of India are also highly responsible for this slow pace of industrialization in the country
- Our key conclusions are: as is generally found in the literature, financial growth, democracy, and control of the labor market have significant effects on the industry, exchange-rate appreciation is counterproductive to the cycle of industrialization and political and structural factors.
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