Why should developing countries like India encourage labour intensive production techniques
Answers
Answer:
Poor LDCs suffer from huge unemployment problem. These countries also experience a huge army of surplus labour. ... Secondly, this technique makes an equitable income distribution since this technique helps in raising the income level of a relatively large member of workers and hence poverty level gets reduced.
Developing countries like India should encourage labour intensive production techniques because -
• Huge amount of unemployment is one of the biggest economic problems that is faced by the developing countries like India.
• Now,the labour intensive production techniques require a lot of labour employment.
• So,this labour intensive production techniques will surely decrease the unemployment problem by creating huge amount of labour employment.
• That's why this labour intensive production techniques should be encouraged by the developing countries like India.