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Indian Economy

Notes respectable level of 8.9% from the very low level of growth rate of 4.3% in the Ninth Plan. The
revival of industrial growth is a main accomplishment of the policy in current years. However,
industrial performance requires to be improved if high quality employment in non-agricultural
sector is to be produced. Within industry, the manufacturing sector, explaining for 77 per cent of
industrial output has depicted vital growth acceleration in the past two years. This revival of
dynamism in industry has to be continued to reverse the unacceptable decrease in the share of
manufacturing in GDP that has occurred since 1991. This will also produce more employment
opportunities for the burgeoning workforce. The Eleventh Plan targets at double digit growth
both in manufacturing as well as in industry simultaneously, it will be critical to enhance the
performance of the core sector (Cement, Steel, Coal, Oil, Fertilizers and Refined Petroleum) to
make sure that their supply response is sufficient to sustain double digit manufacturing and
industrial growth. It may be stated that the Eleventh Plan has set a target of 10-11 per cent
growth in industry, both in industry and in manufacturing. In initial year of Eleventh Plan (2007
-08) industrial growth was satisfactory, but performance in the year 2008-09 was not satisfactory.
However it again enhanced in 2009-10 and 2010-11. Industrial growth plunged in the second,
third and fourth quarters of 2011-12. This led to slippage of industrial growth rate to 2.8% in
2011-12. Industrial growth further plunged to only 1.1% in 2012-13.

Self Assessment

Fill in the blanks:
10. Inadequate availability of …………………… like power and transport bottlenecks and
inadequate handling facilities at ports, also affected industrial production.
11. A number of industries could not face …………………… as a result of reduction in import
duties.

7.4 Role of Small-scale Industry

In this section, you will learn about the role of small-scale industry. In a developing country like
India, the character and status of small-scale industries is very important near poverty extinction,
employment generation, rural development and making regional balance in elevation and
growth of numerous development activities.
You must recognise that it is projected that this sector has been causative about 40% of the gross
value of output shaped in the industrial sector and the group of employment by the small-scale
sector is more than five times to that of the large-scale sector.

This evidently shows the reputation of small-scale industries in the monetary development of
the country. The small-scale industry has been playing a significant role in the development
process of Indian economy from the time of independence in spite of stiff struggle from the
large sector and not very inspiring support from the government.
The following are some of the essential roles played by small-scale industries in India that you
must keep in mind:
1. Employment Generation: The rudimentary difficulty that is challenging the Indian economy
is the growing pressure of population on the land and the need to generate massive
employment prospects. This problem is resolved to larger degree by small-scale industries
for small-scale industries are labour concentrated in character. They produce huge number
of employment prospects. Employment generation by this segment has shown a
remarkable growth. It is a powerful tool of job formation.

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