Page 124 - DECO303_INDIAN_ECONOMY_ENGLISH

Unit 7: Indian Industries

2. Mobilisation of Resources and Entrepreneurial Skill: Small-scale industries can organise Notes
a good quantity of savings and entrepreneurial skill from rural and semi-urban areas
continue unharmed from the clutches of large trades and put them into creative use by
capitalizing in small-scale units. Small entrepreneurs also recover social well-being of a
country by harnessing dormant, previously overlooked talent.
Thus, a massive amount of latent incomes are being prepared by the small-scale sector for
the growth of the economy.

3. Equitable Distribution of Income: You must understand that small entrepreneurs arouse a
redeployment of wealth, income and political control within societies in ways that are
economically optimistic and without being politically upsetting.
Thus, small-scale industries safeguards reasonable distribution of income and wealth in
the Indian society which is largely considered by more concentration of income and
wealth in the prepared section keeping unorganised sector undeveloped. This is mostly
due to the fact that small industries are general in comparison to large industries and are
consuming large employment potential.
4. Regional Dispersal of Industries: There has been huge attentiveness of productions in a
few large cities of dissimilar states of Indian union. People migrate from rural and
semi-urban areas to these highly established focuses in search of employ and sometimes
to earn an improved living which eventually leads to many evil significances of over-
crowding, pollution, creation of slums, etc. This difficult of Indian economy is better
resolved by small- scale industries which exploit local resources and carries about dispersal
of industries in the various parts of the country therefore, encourages balanced regional
development.
5. Provides Opportunities for Development of Technology: Small-scale industries have
incredible volume to produce or absorb improvements. They deliver plenty opportunities
for the growth of technology and technology in return, creates an environment favourable
to the growth of small units. The entrepreneurs of small units play a strategic role in
commercialising new developments and products. It also facilitates the transfer of
technology from one to the other. Consequently, the economy reaps the benefit of improved
technology.
6. Indigenisation: Small-scale industries make improved use of original structural and
organization competences by drawing on a pool of entrepreneurial talent that is incomplete
in the initial stages of economic growth. They deliver creative outlets for the innovative
independent people. They also deliver a seed bed for entrepreneurial talent and a testing
ground for new ventures.
7. Promotes Exports: You will find it interesting to note that small-scale trades have recorded
a remarkable growth in export over the years. The value of exports of goods of small-scale
industries has amplified to ` 393 crore in 1973-74 to ` 71,244 crore in 2002-03. This donates
about 35% India’s total export. Therefore they support in growing the country’s foreign
conversation reserves in that way reduces the pressure on country’s balance of payment.

8. Supports the Growth of Large Industries: The small-scale industries play a vital role in
supporting greater industries and developments so that the deliberate activity of
development work is timely attended. They provision the growth of large productions by
provided that, components, accessories and semi-finished goods mandatory by them. In
fact, small industries can breathe vitality into the life of large industries.
9. Better Industrial Relations: Better industrial relationships between the employer and
employees supports in growing the competence of workers and dropping the incidence of
industrial arguments. The loss of manufacture and man-days are reasonably less in

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