How do small scale industries contribute to the socio economic develop...
Small scale industries in India enjoy a distinct position in view of their contribution to the socio-economic development of the country. The following points highlight their contribution :
Small industries in India account for 95 percent of the industrial units in the country. They contribute almost 40 per cent of the gross industrial value added and 45 per cent of the total exports from India.
Small industries are the second largest employers of human resources, after agriculture. They generate more number of employment opportunities per unit of capital invested compared to large industries.
Small industries in our country supply an enormous variety of products which include mass consumption goods, ready-made garments, hosiery goods, stationery items, soaps and detergents, domestic utensils, etc.
The contribution of small industries to the balanced regional development of our country is noteworthy. Small industries which produce simple products using simple technologies and depend on locally available resources, both material and labour, can be set up anywhere in the country. Since they can be widely spread without any locational constraints, the benefits of industrialisation cem be reaped by every region. Thus, they contribute significantly to the balanced development of the country.
Small industries provide so many opportunities for entrepreneurship.
Small industries also enjoy the advantage of low cost of production. Locally available resources are less expensive. Establishment and running costs of small industries are on the lower side because of low overhead expenses. In fact, the low cost of production which small industries enjoy is their competitive strength.
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How do small scale industries contribute to the socio economic develop...
Introduction:
Small scale industries play a crucial role in the socio-economic development of India. These industries are typically characterized by their small investment, limited resources, and fewer employees. Despite their small size, they contribute significantly to the overall growth and development of the country.
Employment Generation:
Small scale industries are important contributors to employment generation in India. They provide opportunities for self-employment and generate jobs for a large number of people, especially in rural areas where unemployment rates are high. These industries absorb surplus labor from agriculture and contribute to reducing poverty and income inequality.
Regional Development:
Small scale industries are dispersed across various regions of India, promoting balanced regional development. They play a vital role in creating jobs and economic activities in rural and semi-urban areas, reducing the migration of people to urban centers in search of employment. This decentralized industrial setup helps in reducing regional imbalances and promoting inclusive growth.
Contribution to GDP:
Small scale industries make a significant contribution to the Gross Domestic Product (GDP) of India. They account for a substantial share of industrial output, manufacturing, and exports. These industries produce a wide range of goods and services, including textiles, handicrafts, processed food, leather products, and more. Their contribution to GDP helps in maintaining a stable and growing economy.
Entrepreneurship and Innovation:
Small scale industries foster entrepreneurship and innovation in India. They provide a platform for individuals to start their businesses with limited capital and resources. These industries encourage creativity and innovation in product development, process improvement, and technological advancements. They also promote the growth of indigenous technologies and traditional craftsmanship.
Export Promotion:
Small scale industries contribute to India's export sector by manufacturing and exporting a diverse range of products. They play a crucial role in earning foreign exchange and enhancing the country's export competitiveness. These industries often cater to niche markets and produce high-quality goods, attracting international buyers and promoting India's image as a reliable supplier.
Support to Large Industries:
Small scale industries act as ancillary units and suppliers to large industries. They provide raw materials, components, and services to big manufacturing units, contributing to the overall industrial ecosystem. This symbiotic relationship helps in the growth of both small and large industries, fostering industrial development in the country.
Conclusion:
Small scale industries play a vital role in the socio-economic development of India. They contribute to employment generation, regional development, GDP growth, entrepreneurship, innovation, export promotion, and support to large industries. The government should continue to support and promote these industries through favorable policies, financial assistance, skill development programs, and infrastructure development to harness their full potential and ensure inclusive and sustainable development.
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