Why did the government take up the responsibility to set up basic good industries?
Answers
Answer:
Basic good industries or key industries are those who supply their products or raw materials for the manufacturing of other goods. ... The government took up the responsibility as these industries were of strategic importance to the growth of the economy.
Answer:
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Explanation:
Basic good industries or key industries are those who supply their products or raw materials for the manufacturing of other goods. Iron and steel industry is an important basic good industry. During the 1960s, the government took up the responsibility for setting up and promotion of the basic good industries. The government took up the responsibility as these industries were of strategic importance to the growth of the economy. They were the factors guiding the direction and the degree of economic expansion. Also, these were major industries requiring huge capital investment. The private industries at that time were unwilling to invest in such large amounts in an economy that was growing. Thus government took up the responsibility of the establishment and expansion of the basic good industries.The government took up the responsibility to set up basic good industries because,
In India, a few large factories are operated by government and most others by private companies. This kind of existence of industries run by both government and private industrialists has emerged because of the policy decided by the Indian Parliament. This kind of arrangement was made keeping in view the huge amount of capital required to set up large industries at that time in India. For a large number of industries to come up it is important to provide basic inputs. Hence it was presumed that government can invest in basic goods industries and this would also help privately-owned industries for their expansion. Basic goods industries not only require more money but also take a long time to be set up. Private industrial groups or families were not willing to invest in such industries. For example, for setting up a power plant production of electricity, it would require five to ten years. The government had to undertake this responsibility.
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